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<br />Councilmember Stewart confirmed that waiving the charge would place the cost on residents <br />connected to municipal water, while charging the General Fund would spread the cost across all <br />taxpayers. She supported a citywide funding approach because residents throughout Ramsey may <br />use the splash pad, including households served by private wells and septic systems. <br /> <br />Councilmember Specht asked whether staff could determine the City's actual cost to produce the <br />water rather than applying the full retail rate. <br /> <br />Finance Director Lund explained that utility rates support the complete water operation, including <br />treatment chemicals, staffing, Department of Natural Resources fees, operating costs, and capital <br />needs such as water-tower maintenance. She added that the new water treatment plant had only <br />recently begun operating, so the 2027 enterprise-fund budget relied on estimates until staff had <br />better operating data. <br /> <br />City Administrator Hagen summarized the available options as continuing the current <br />departmental charge at the regular tiered rate, establishing a reduced rate to lessen the General <br />Fund impact, or waiving the charge and incorporating the estimated $95,000 into future Water <br />Fund cash projections and utility rates. He noted that the actual cost to produce a gallon of water <br />was lower than the retail rate, but the rate also funded future capital projects and reduced borrowing <br />needs. <br /> <br />Councilmember Riley confirmed that no sewer charge was included because the splash-pad meter <br />was treated similarly to an irrigation meter. <br /> <br />Finance Director Lund confirmed the estimate was for water only. <br /> <br />Councilmember Riley supported using a lower rate that was closer to the City's production cost <br />rather than the highest tiered rate. <br /> <br />Councilmember Olson supported funding the expense citywide because the splash pad was <br />available to all residents without restriction. <br /> <br />Mayor Heineman observed that public amenities such as drinking fountains and park misting <br />features also involved taxpayer-supported operating costs, although the splash pad used water on <br />a much larger scale. <br /> <br />Councilmember Olson asked whether operating costs could be funded through the same source <br />used to construct the splash pad. <br /> <br />Staff explained that the Park Trust Fund was available for capital expenditures but could not be <br />used for ongoing operating expenses. <br /> <br />Mayor Heineman summarized the direction as establishing a reduced water rate intended to <br />approximate cost, charging that amount to the General Fund so the expense was shared citywide, <br />City Council Work Session / August 25, 2026 <br />Page 2 of 7 <br />