Weeks of wrangling over what to do about Homer's beleaguered water and sewer system fund continued at City Hall Monday, with a handful of new ideas laid on the table but no new course of action taken by the Homer City Council.

The Homer Accelerated Water and Sewer Program fund, which has barely grown in the last year and continues to lose money, is set up as an "enterprise fund," meaning it's designed to pay for itself.

Last month, council members decided against raising water and sewer rates by 15 percent, an idea proposed by city manager Walt Wrede to mitigate the HAWSP fund's losses.

One way to improve the situation would be to change the way the fund is set up, said finance director Regina Harville, converting it from an enterprise fund to a "special fund," which would allow the city to forego depreciation payments.

"We're probably never going to have a completely enterprise fund," said Wrede. "Having the user fees pay for just the day to day operations and not the depreciation is one idea we've talked about."

The long-term goal, said Wrede, should be to add more users to the water and sewer systems.

"Expanding our service is not going to solve our issues," said council member Beth Wythe. "We need to figure out how to get people on the existing system so everyone is paying less."

Roughly half of the population inside the Homer city limits is presently hooked up to the system, said Wrede, and although city code requires homeowners to hook up if there is a water line within 200 feet of their property, there are still many who haven't.

"The code requires people to get hooked up within a year, but it's not being enforced," said Harville.

"It won't make some people very happy if the city does enforce it, but not doing that does contribute to higher water and sewer rates," said public works director Carey Meyer.

Another ongoing problem, said Meyer, is that different city departments, such as finance, public works and permitting, are in charge of various aspects of the water and sewer system and a lack of coordination is making it inefficient.

Meyer said he hoped a new software program, scheduled to be implemented later this year, would solve the problem. The program will allow the public works department to come up with more accurate data, including maps, showing where improvements to the existing system can be made.

Council member and Mayor Pro Tem Dennis Novak, who was subbing for a vacationing Mayor James Hornaday, suggested the council take up the HAWSP fund problem at their Feb. 10 Committee of the Whole meeting. The council agreed.

At its Monday meeting, the council also:

* Introduced an ordinance exempting the primary residence of a senior citizen, widow of a senior citizen or disabled veteran from property taxes. The ordinance, if passed, would follow the guidelines and restrictions of a similar ordinance at the borough level.

* Held an executive session in order to conduct an annual performance review for city manager Walt Wrede, despite objections raised by Leonard Wells.

"No disrespect intended toward the manager but a position such as city manager should be discussed in public," said Wells during the public comment period at the meeting.

* Renewed liquor licenses for Alice's Champagne Palace, Fat Olives, Kachemak Bowl and Mermaid Caf.

* Heard a presentation from West Homer Elementary students Samantha Jacobsen and Audrey Rosencrans on "the perils of plastic bags in our community."

* Expressed support for a policy guide, entitled "Money, Energy and Sustainability," which recommends ways for city employees to reduce waste and energy use.

* Passed a resolution encouraging the borough assembly and mayor to add a recycling container on the Homer Spit.

* Appointed Mark Robl as acting city manager for Fiscal Year 2009.

* Awarded a three-year waste disposal contract to Moore and Moore Services.

* Awarded a $48,458 contract to the firm of Steiner's North Star Construction for a tile installation project at the Homer Airport.

* Appropriated a $7,168 grant from the Alaska Department of Transportation toward commercial vehicle enforcement inspections.

* Celebrated Wythe's birthday with chocolate cake.

Aaron Selbig can be reached at aaron.selbig@homernews.com.