Minutes - Council Work Session - 03/19/2013

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Councilmember LeTourneau asked who has a utility bill compared to who does not have a utility bill. Acting Mayor Backous stated if there is a way to lock down property taxes for road use, he would support that option. He stated he does not want Connexus viewed as the "bad guy" but wants to do away with assessments. Councilmember LeTourneau stated all want to solve this problem and asked if shorter increments of time can be addressed, such as a five -year term. Councilmember Riley noted it is a 30- or 40 -year problem, not a five -year problem. He supported making a 30 -year decision and then revisiting it in shorter terms, such as five years. Acting Mayor Backous stated the Council knows it is a 30- or 40 -year problem but is looking for a solution for the next five years. Councilmember LeTourneau stated the Council can be cognitive that it is a bigger problem but prefers to address it in shorter and more manageable terms. Councilmember Elvig stated he could support resolving it through a General Fund issue but does not know how those funds can be locked for road use. He indicated he had witnessed too many times when a council has diverted funds. Acting Mayor Backous asked whether the Charter Commission would consider locking up the dollars for road reconstruction. Councilmember Elvig asked if the Council can take that action with all seven members supporting. City Administrator Ulrich advised it has to be a Charter initiative. Councilmember LeTourneau stated you make a decision based on the best information available at the time and if it does not work, then it can be changed or reversed by a future Council. City Administrator Ulrich stated in Ramsey the previous franchise fee had a sunset date but in other cities, it is an annual franchise fee and the decision is made each year. He noted with a five -year solution, such as a franchise fee that is sunset, it would address a stopgap solution but not address the long vision. Parks and Assistant Public Works Superintendent Riverblood asked if a franchise fee could be put in and sunset in five years or whenever the Road Improvement District occurs. Then it would build legislative support to institute a Road Improvement District by those who do not support franchise fees and result in creating dedicated funding. Councilmember Kuzma stated he likes it as part of the General Fund levy taxes, noting it is not much of an adjustment, only several hundred dollars a year. In addition, it is tax deductible. City Council Work Session / March 19, 2013 Page 10 of16