Minutes - Council Work Session - 04/10/2012

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Mayor Ramsey supported 30% for roads because it is 30% of the City's job to care for the roads and the other 70% responsibility is for police, fire, and the rest. Councilmember McGlone stated the Council previously decided to base trunk numbers on a growth of 260 units per year. He stated while that is not reasonable today, it is probably not unreasonable for the future. Councilmember McGlone asked what would be the City's increased tax base if using a similar formula; how much will the City's taxes grow. He noted staff's estimates had not addressed projected growth, which may show more funds will be raised so the assessments can be dropped. Public Works Director Olson cautioned that growth results in the need for more infrastructure and funding to pay for those improvements when due Councilmember Tossey added that along with infrastructure growth comes inflation and the City's biggest possible tax base is TIF from The COR, which cannot be used unless the City decertifies. He believed the City needed to stop spending TIF funds it does not have. Mayor Ramsey indicated there may be future projects not included within a TIF District. Councilmember Strommen noted the City has gone through periods of significant growth and if that was the solution to road funding, it would have been solved. She indicated this is why she is concerned about not having an economic development staff person in place, to grow and create a robust tax base since it will not happen in a competitive economy without dedicated staff working on it. Mayor Ramsey agreed the City had experienced growth but believed the funds were spent instead of being put away for road projects. Councilmember Elvig stated this and the last Council did not have the foresight because TIF dollars were spent elsewhere. He stated he can get on board with the 30/40/50 formula, having a sliding scale, and a policy of establishing spending ratios; however, the Council needs to address how to raise money. He noted the Mayor does not support raising it through taxes so he would ask how the budget and expenses can be cut and money still put aside for on -going maintenance with reconstructs in three to four years. Mayor Ramsey indicated there may be unrestricted funds that can be reallocated. Councilmember McGlone stated he would not consider in any way the idea of basing all on projected growth because that is what happened in the past with constructing and paying for the municipal center. He just wants a basis to start a discussion. City Administrator Ulrich indicated staff will calculate the 30/40/50 formula, additional reductions to get to $1.5 million, determine the point of additional growth that would drive down the tax base, and land proceeds that will be gained from The COR. This information will be presented to the Council for additional discussion. City Council Work Session / April 10, 2012 Page 9 of 13