Laserfiche WebLink
Councilmember Elvig stated he is in the same "boat" and suggested reducing the tax levy by <br />$1.5 million and having a franchise fee in the same amount of tax reduction. He pointed out this <br />proposal would net more revenue because it would also be placed on institutional /non - profit <br />properties. <br />Mayor Ramsey felt part of the equation is the difficulty in conveying that scenario to residents. <br />He thinks many will say it is another tax and not look at the fact that their property taxes went <br />down because their house valuations are also going down. <br />Councilmember Wise pointed out a franchise fee is a fixed number and would not increase as <br />property values increase. A franchise fee would also not become an unfair burden on residents <br />who own more expensive homes. He stated he likes Councilmember Elvig's proposal and felt it <br />would be a starting point. <br />Mayor Ramsey asked if it is fair for a property owner with 600 feet of frontage to pay only a <br />little franchise fee versus The COR paying the same money. <br />Councilmember Backous pointed out that both may have one car. <br />City Administrator Ulrich stated staff will analyze Councilmember Elvig proposal as well as <br />Mayor Ramsey's proposal and bring back a report concurrently so the Council can approve the <br />budget proposal and franchise fee at the same time, with a public process to explain that the <br />budget is being cut to reduce taxes but a franchise fee would be charged, resulting in no net <br />change. He asked if the Council was willing to consider a $7 /month franchise fee this fall, which <br />would realize $1.5 million for roads. <br />Councilmember Elvig stated in better times there is more opportunity and all were looking <br />forward to the end of the recession and start of growth. He indicated the Council can divert <br />general funds to do road maintenance to accelerate the program for several years; however, it has <br />to be done in better times. <br />Public Works Director Olson noted if the Council does not prepare a plan for how to raise the <br />money, it can't determine there will be zero assessments. He noted the Council has discussed <br />partially funding with the general fund in addition to cutting taxes and implementing a franchise <br />fee the following year. <br />Councilmember Backous stated the plan is to start somewhere. <br />Councilmember Strommen asked Councilmember Elvig to clarify whether it was a $7 million <br />levy or a $7 million budget. <br />Councilmember Elvig answered it was a $7 million budget. The general fund is now $8.092 <br />million and he supported $7.150 million. <br />Councilmember Strommen stated the Council is responsible to figure this out and set a plan in <br />place for the long -term. She stated she can support starting with a "strawman proposal" to get <br />City Council Work Session / March 20, 2012 <br />Page l0 of 12 <br />