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. . . ., Councilman Claire said he believed NPDES should be funded through , Enterprise funds, similar to the way sewer and water are funded. "The intent of Proposition 13 was that you pay for what you get" He said sewer enterprise funds are permissible and storm drains should be financed the same way. Public Works Director Ingram said, "Our suggestion is that we wait a few more months to see what implementing legislation clears Sacramento. Hopefully that will start to clarify some of the edges of Proposition 218, and one of the areas that we are trying to pin down is utility funds or enterprise funds, and what we can or cannot do. Once we get something back on that, our suggestion is to come back to the Council Utilities Committee and look at options and scenarios for next year. Right now the practice has been that the Sewer Fund is paying some of the freight but not all of it." In response to Councilman Claire's questions regarding funding storm drains through the sewer fund, City Attorney Schricker said, "We broke away from that a couple of years ago in contemplation of financing NPDES separately. Now what we are thinking presently is to go back into combining, and I think it is legally supportable, the storm drain system with the sanitary sewerage system." In response to Councilman Leipzig's questions regarding why Redwood - City's Utility Users Tax does not have to go back to the voters under Proposition 218, City Attorney Schricker said, "Our Utility Users Tax... is grandfathered in." He added that it would have to go to the voters if the City wished to increase the fees or add new ones. City Manager Everett said the retroactivity date of Proposition 218 is January 1, 1995. In response to Vice Mayor Howard's questions, Director Ponty advised that the proposed budget did not include large technology purchases such as the new software for the Finance Department, nor was it included in the Five Year Plan. In response to Councilman Claire's questions, Director Ponty said Series A Revenue Bonds are not formally being repaid by Utility Users Fees. City Attorney Schricker said, "I don't want to lose the point. General Funds were pledged. To the extent that they (Utility Users Fees) go into General Funds, you could argue that they are indeed pledged toward debt service." In response to Mayor Hartnett's questions regarding enhanced dental benefits, Director Ponty said the proposed amount of$50,000 to $150,000 for enhanced dental benefits has not been factored into the proposed budget. - Mayor Hartnett said the Conunittee reviewing this matter may bring a recommendation to the Council in the next several weeks. ADJOURNED REGULAR COUNCIL MEETING MINUTE BOOK NO. 55 JUNE 23,1997 MINUTES Pag" No. 415 PAGE 13