Harris council meeting packed

By Danielle Strenke
An explanation of an increase in rates led to explanations of embezzled funds and several other reasons behind increases in taxes for Harris residents last Thursday.
Nearly 60 people packed the Harris City Council new meeting quarters May 1, in the garage of the old fire hall at the city hall building.
City Engineer Chuck Schwartz started the meeting by outlining the reasons behind increases to water and sewer rates for city residents, saying that rates have not been increased for at least eight years.
ìLast summer the city was concerned that expenditures for the water and sewer systems were out-driving revenues,î Schwartz said. ìThey were also concerned with the Department of Health issue and the Pollution Control Agency concern with the lagoons.î
The DOH has issued warnings to the city that levels of radium in the drinking water exceed newly lowered limits, and is requiring a treatment plant to filter out the radium to be built by 2007.
The PCA is concerned that there are possible leaks in the lagoon system. Schwartz said that while all lagoon systems have normal leakage, the PCA is concerned the Harris system may be leaking more than allowed levels.
Schwartz told the audience he completed a rate study of both systems, factoring in expenditures including existing debt, depreciation, maintenance and operations of the systems.
Also factored in were costs associated with necessary capital improvements including repairs to the existing lagoon and a share of costs associated with the new treatment facility.
Rates were changed to a base rate for water of $48 per quarter and $32 per quarter for sewer for residential.
The previous water rate was $60 and the base sewer rate was $21. Schwartz said the most noticeable change on the bills is a usage rate added to both the the water and sewer portions, which is where most residents are seeing their bills increase.
He said with the increases, the city will collect $52,000 this year under the new rate system. ì$26,000 of that is out right away to cover existing debt,î Schwartz said.
About $10,000 will be left to start a sewer reserve fund, and $8,000 into a water reserve fund. ìItís less in reserves than what weíd like to see, but itís a starting point,î he said.
A few residents voiced concerns that their bills had doubled or tripled, asking if they should stop taking showers.
Schwartz said if residents have difficulty paying, the city would be willing to work with them to come up with a payment plan. Chisago County also will help residents below certain income levels pay their utility bills.
Schwartz said the rates would be looked at again as next yearís budgetary process begins this summer, but that the city needed to be planning for the future.
ìThe lift station and sewer system are 30 years old and nothing has ever been done to them. These are things the city wants to start planning for, as well as the treatment facility and issues with the pond,î he said.
Other residents questioned again whether the city is increasing fees because it is paying ìhigh salaries to city employeesî and another asked if city employees were being paid double when working on water and sewer bills, because a portion is included in the water and sewer budget and a portion in the general fund.
Harris Mayor Richard Hanson assured residents that the city clerk and treasurer are paid only once for work on the water and sewer bills, and that money comes out of the water and sewer budget.
The discussion of raised fees and other budgetary issues led to several residents voicing concerns over high taxes. City Attorney Kevin Shoeberg explained several reasons for the tax increase.
ìThe first reason is the embezzlement of funds from the city and related fees,î he said, which equalled about $160,000 although the exact amount may be higher, he added.
ìThere is a stack of files of things not done by the city from the PCA and Dept. of Health and penalties and fines attached to those,î Shoeberg said.
Residents asked why the city did not discover the fiscal mismanagement sooner. Former city councilor Marlys Cleveland, who was attending the meeting, said the embezellment ìwas so slick that even the auditors didnít catch it.î
Shoeberg stressed that the city has made many improvements to its financial system to insure that it it protected in the future.

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