Minutes - Council Work Session - 06/19/2012

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Councilmember Wise asked if staff can look into what would be gained by using economy of scale with road reconstruction or the option of combining projects so they are done every other year, instead of every year. However, maintenance would need to be done yearly. Mayor Ramsey suggested that discussion occur when the pot of money is available. Councilmember Elvig noted that roads cost $700,000 per mile and asked whether $1 million will "make a dent." He stated he does support better purchasing power and would like an understanding of the true costs. He stated it seems that a lot of costs have been added to the budget and it seems the Council is missing something so he would like to meet with Finance Director Lund to review this information. He noted this budget adds $900,000 to roads, not $1.5 million as has been stated. Councilmember Elvig stated that he would rather not hide the fee and go with a franchise fee, and tell residents that is what it is. Mayor Ramsey stated one -time money from the Equipment Fund, is not a tax increase. He noted this budget will result in residents paying less in taxes that they paid last year. Councilmember McGlone suggested the Public Works Committee discuss Councilmember Wise's suggestions about the process used in Coon Rapids and economy of scale options. He noted if projects are delayed for several years, costs will increase, so he would like a better understanding of all the issues before making a recommendation to the Council. Mayor Ramsey stated road reconstruction projects were not scheduled to start until 2014 or 2015 but this budget puts $1.5 million into the road fund this year and next year, which means the Council is starting something. Councilmember Tossey stated the cost of money to bond is cheaper today, which is another reason to look at what Councilmember Wise is suggesting. Mayor Ramsey stated the only way to fix the entire road problem is to raise $3 million in taxes. Councilmember Backous stated he thinks the right answer is somewhere in between and has never said to go with the whole $3 million. He suggested the Council stop buying land with EDA funds and re- levying. Councilmember Backous stated the Council acts as if it is so against raising taxes but it has raised taxes because it has spent money foolishly. Councilmember McGlone stated when the City gets into the cycle of reconstructs, it is a $1 million problem the first year. Street Supervisor Reimer advised that Garnet and Andrie Streets are the top two projects for reconstruction. Councilmember McGlone stated there is a need to have a conversation with every project whether it will include concrete curb and gutter and sidewalk because that will impact the number of miles that can be done. He noted that theoretically, with Garnet and Andrie Streets, the City would have the funds ($1.5 million) to start the program. City Council Work Session / June 19, 2012 Page 10 of 15