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Case #4: Revisit the Priority Street Lighting Financing Issue Finance Officer Hart stated that at the last Finance Committee meeting, priority street lighting and the financing of them, was discussed. Based upon those discussions, the use of franchise fees was discarded and the Committee requested further information regarding the billing of such charges directly to the benefitting properties, which are primarily residential properties. With regard to Anoka Electric Cooperative (AEC) doing the billing, she reported that the one time charge of $5,625, quoted at the last meeting, would not be applicable. That charge is specifically a one time charge for a new connection and would not effect the overall administration of this program. Assuming the addition of 4,000 accounts, the annual billing cost would be approximately $4,800. Ms. Hart detailed the cost of installing, operating and maintaining street lights and also the capital recovery costs. She summarized if all priority arterial street lights are installed, and 4,900 residential properties are billed directly, the annual cost to each property would be $7.94, or approximately $2.00 per quarter. As the City grows, so will the number of residential properties and the need for additional priority arterial street lights. She anticipated the quarterly billing would continue to be sufficient to recover the costs of installation. She suggested it may be necessary to adjust this rate periodically if there is a significant increase in costs for operation and maintenance. She explained, with regard to new subdivisions, it is staffs position that if a priority arterial street light is in place when a new subdivision is planned, the need already existed. On the other hand, if the creation of a new subdivision causes the need for the installation of a priority arterial street light, the developer should pay for the installation and three years of operation and maintenance COSTS. City Administrator Schroeder stated that the City also needs to find a financing source for the curbside recycling program. He requested that, if Council decides upon this billing system, that a request be made to AEC for this line item also. It would add about $10 to $12 a year ($18 for recycling and street lights). Mayor Gilbertson felt that a couple of dollars a month for street lights and recycling was very reasonable. Councilmember Peterson stated that the street lighting program was originally discussed about eight years ago, and concerns have been expressed about installing the lights in neighborhoods. He suggested he is not ready to make a decision to go past the Priority B list and inquired how far Priority D goes into neighborhoods. Mr. Schroeder stated that Priority D is basically every intersection that connects with a county road. Mayor Gilbertson felt that by not implementing the entire program at one time, the City would be spending more money. Mr. Schroeder stated it would depend on who wants the lighting. Councilmember Hardin suggested printing an article regarding street lighting in the Ramsey Resident with a "tear-off" section to fill out and send back indicating interest. The priorities and the cost should be listed in the article. Councilmember Beyer thought that a survey had been done before. Councilmember Zimmerman felt that maybe street lights should just be installed at intersections with county roads and major collectors. Councilmember Hardin suggested that residents should know what they are being billed for. Finance Committee/July 26, 1994 Page 3 of 4