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Councilmember Musgrove asked City Engineer/Interim Public Works Director Westby if the plant <br />was not done at this time, when would he suggest it is looked at again for going out for bids. <br /> <br />City Engineer/Interim Public Works Director Westby stated that with all those who have been <br />working in and around this project that everyone would just keep an eye on things to figure out <br />when would be a better time. <br /> <br />Councilmember Musgrove shared her thoughts to pause the project and not go out for bids and <br />have City Engineer/Interim Public Works Director Westby come back when he hears things would <br />be better. <br /> <br />Acting Mayor Riley shared that in the CIP it identifies the cost $32,000,000 and asked if this is <br />comparable. <br /> <br />City Engineer/Interim Public Works Director Westby said that is correct and the number in the <br />CIP would be revised. <br /> <br />Finance Director Lund added that the $32,000,000 was a number that could be funded internally. <br />With the cost over $47,000,000 about $14,000,000 would need to be bonded, adding $4,600,000 <br />of interest over 15 years. She discussed the handout where she accounted for these increases. She <br />shared that these numbers are based off of today’s interest rates and these too could increase. <br /> <br />Acting Mayor Riley asked if they were to build today they would be locking in rather large <br />increases for the utilities. <br /> <br />Finance Director Lund said yes. <br /> <br />Councilmember Woestehoff thinks that this project should be pushed forward, as he understands <br />the impact is not on every taxpayer, just those who use the services and it would be funded by the <br />enterprise funds. He asked if this was correct. <br /> <br />Finance Director Lund said about 50% of residents are on City sewer and water. <br /> <br />Councilmember Woestehoff asked if it would affect the tax rate at all. <br /> <br />Finance Director Lund shared it would affect the rates for using the water. <br /> <br />Councilmember Woestehoff thinks that the price will likely be the same in two years and without <br />knowing what interest rates will be, clean drinking water needs to be the priority. He realizes it is <br />expensive but he does not see the price coming down for it at all and safe water is most important. <br /> <br />Councilmember Heineman asked if the Ramsey water rates compared to surrounding cities. <br /> <br />Finance Director Lund shared that Ramsey’s water rates are low and raising them 10% moves <br />Ramsey closer to Anoka. <br /> <br />City Council Work Session / September 13, 2022 <br />Page 14 of 16 <br /> <br />