Minutes - Council Work Session - 06/19/2012

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Finance Officer Lund asked if there was any appetite for a franchise fee or at least a 20% assessment so the City would have the bonding option. City Administrator Ulrich noted a majority of the Council had agreed during the previous budget discussion to a 20% assessment level to allow flexibility to use bonding. Councilmember Backous pointed out that this Council has said numerous times to not "kick the can down the road" and he believed that is what the Council is doing. He believed the current proposal did not provide adequate funding for roads. Councilmember Backous agreed the City needs to start somewhere but he does not think $1 million will "put a dent" in what the City needs to do and `kicks the can down the road." Councilmember Wise agreed. Councilmember. McGlone stated the road reconstruction projects will hit in two to three years so, technically, the current proposal will "get the ball rolling" ahead of the problem, though is not a total fix. Mayor Ramsey stated he thinks it is unrealistic to get $3 million in this budget unless the Council raises taxes but he will not support raising taxes. Councilmember Backous pointed out that $1.5 million includes overlays and sealcoating. He suggested that the answer is somewhere between $1 million and $3 million. Mayor Ramsey stated some want to hire an ED/HRA Manager, but he thinks that is unrealistic. Councilmember Backous stated the City paid for a study to determine what residents want, and that is a franchise fee. But, since that is not what the Council wanted to hear, it is not following what residents want. Mayor Ramsey stated he will not support a franchise fee. Councilmember Wise stated he often hears the Council does not care what other cities are doing, but he did not want to be so stubborn to "reinvent the wheel" every time there is a problem. He noted an economy of scale and money savings can be realized once you start a project by going bigger. Since one of the City's biggest costs is road projects, it is his goal to address that issue and get something started in the next six months. Councilmember Tossey stated franchise fees would be dedicated funding for roads, a dedicated tax, and he does not like dedicated funding. He noted that is why we tax and the Council can decide whether to increase taxes. Councilmember Tossey stated his support to maintain a 20% assessment to soften the blow and allow the option for bonding He stated he also supports looking at Councilmember Wise's suggestions, noting it may result in paying less per mile He supported putting $1.5 million into roads, noting projects were to start two years down the road. Councilmember McGlone questioned the $750,000 "revenue" figure for engineering. City Council Work Session / June 19, 2012 Page 8 of 15