Laserfiche WebLink
Finance. Director Lund explained that figure relates to overhead from the three construction <br />projects that could be administered by in -house staff. <br />Councilmember McGlone noted the City used in -house staff on the water tower project but the <br />engineers did not get it right and it cost an extra $100,000 to make the correction. The same type <br />of issue occurred recently in the park. Councilmember McGlone noted when the City hires <br />consultants, the consultant takes on all of the liability created. <br />Finance Director Lund explained that if this revenue source is not included, the Council will <br />need to find $750,000 in cuts. <br />Councilmember McGlone stated his preference to just charge people for what it is worth. <br />Councilmember Tossey stated he is not prepared to "go down that road" to terminate all the <br />City's engineers. <br />Councilmember McGlone stated he is not making that suggestion but if consulting engineers had <br />been used, the City would not need to pay $200,000 for staff screw -ups; the consultant would be <br />liable and pay for that. <br />Finance Director Lund reviewed dollars generated by different franchise fee rates. <br />Councilmember Wise noted a large percentage of people will find it easier to pay smaller <br />amounts like a franchise fee than a large assessment. <br />Councilmember Backous stated he has never argued that franchise fees are not a tax, it is a tax, <br />but it gets everybody in the game. <br />Councilmember Tossey stated he already pays monthly, escrowing his property taxes, and now a <br />franchise fee would be an additional payment. <br />Councilmember Backous stated this Council did not create the problem but he does not want to <br />be on the Council that ignores this problem so it becomes worse each year. <br />Councilmember Wise stated he did not like paying the stormwater utility fee but now he <br />understands the logic for it. He felt that once people are educated about a franchise fee, they will <br />not mind it. <br />Councilmember Tossey noted that out of each dollar you earn, you only bring home 30 cents and <br />the rest goes to taxes. He stated he wants to be open and honest, will not hide behind a franchise <br />fee, and would rather raise taxes and the tax capacity to 50% to get the roads done. <br />Mayor Ramsey stated he was comfortable with the budget presented tonight and done talking <br />about it until September or October when more information is available. <br />City Council Work Session / June 19, 2012 <br />Page 9 of 15 <br />