Minutes - Council Work Session - 04/10/2012

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Councilmember Elvig noted part of the consideration is to reduce government, the City needs to raise funds and create a pool of money for roads, and it will come from the taxpayers. He stated residents can be shown the City is reducing taxes that will be offset when adding a franchise fee to fund roads, but he believed a later assessment would send the wrong message. Councilmember Elvig asked if there is another mechanism available if the City cannot bond for roads. Public Works Director Olson stated if the Council decides it wants to eventually get rid of assessments, then staff will tailor the message to residents who ask why they have to pay for the franchise fee in addition to a lower assessment by explaining the City is no longer assessing for sealcoating and overlays and will eventually do away with assessments all together. He indicated staff will follow the Council's policy and correctly portray it to residents. Councilmember Elvig expressed concern that property owners will counter petition road projects until the funding is figured out. Public Works Director Olson stated that would not be a problem because the City is already behind in maintenance activities, which will take several years to complete. Councilmember Tossey stated after further thought he supports no franchise fee because taxpayers want their City to hire police to keep them safe, fire protection for their property, and roads to get those services to their property. He thought a franchise fee would create another "finger" to take taxes and in a representative form of government, residents need to know what they are voting for. Mayor Ramsey asked why police and fire are more important than roads and suggested adjusting levels of funding for each piece because, in his mind, all are equally important. He indicated that if it comes down to it, he supports telling the City Administrator to present levels of funding for police and fire so the Council can find money to fund the roads. City Administrator Ulrich advised the general model, if taking from the general fund, is with an assessment of 25% to 40%. with the City paying the balance of the project cost. Councilmember Backous noted the Council is talking about, cutting the budget in one area and taxing through a franchise fee to take care of the roads. He stated he supports a franchise fee that brings in all the road users, noting it may only raise an additional $40,000 with these numbers but it will grow in the future. Councilmember Backous stated he does not understand the debate because all funds come from resident's pockets. Mayor Ramsey stated he still believes the levy is above where it should be. Councilmember Strommen arrived at 5:56 p.m. Councilmember Wise stated he also likes the equity that franchise fees bring and does not support a policy that will "handcuff' a future Council. He stated he has no problem with moving forward, to Councilmember McGlone's point, and tell residents this problem has been here for a City Council Work Session / April 10, 2012 Page 6 of 13