The Forest council met is special session on Tuesday November 8, 2011 at 7:30 in council chambers.
The meeting was called to order by Mayor David Hankins.
Roll Call: Robert Beitler Present
Kristy Blackburn Present
Robert Burd Absent
Terri Exline Present
Dean Hankins Present
Loretta Perkins Present
Administrator Robert Bristoll was also present.
Josh Eggleston from Rural Community Assistance Program (RCAP) was present with some information regarding the utility rate study being done for Forest. He went through the revenue and expenses for the water and sewer departments. He would recommend the village add reserves to each fund. These would include money for equipment replacement and preventative maintenance. Also a debt service, emergency reserve and capital improvement. Would contribute for a number of years and then replace funds when used. Should have reserves for a total of 90 days operations, 45 days emergency and 45 days for everyday operations.
Discussed the fixed cost of each fund that needs to be paid. The base rate of each fund should cover these fixed costs. This would probably never be feasible for the village though. About half of the water customers use 1000 to 3000 gallons of water a month. So there would not be much more collected by raising the usage. Had 3 scenarios on adjusting the water rates. Scenario 1 would be to raise the base rate by $5.00 and no increase in usage. Scenario 2 would be a 20% increase in the base rate and the usage charge. Number 3 would be to raise the base rate to $12.00 and the usage to $6.25 per thousand gallons.
He did not have any recommendations for sewer rate increases. The sewer rates on the average bill of 4,500 gallons of water are now $34.08. To meet the costs would have to increase to $55.33. There are not as many sewer customers because of the bulk water customers. So this will have to be looked at further.
Josh recommends giving any rate increase ordinance three readings and having a public hearing between the 2nd and 3rd reading. He would come to the meeting and explain the need for the increase.
Meeting adjourned.
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MAYOR PRESIDENT PROTEM
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CLERK
