Laserfiche WebLink
has to reconstruct roads and the only question is how do you want to pay for it. Councilmember <br />Elvig asked staff to address how to lock the funds once in the General Fund in case that is a <br />viable option. He believed it was a 30 -year plan and supported review each five years. He also <br />supported a $14 /month franchise fee or a $20 /month/property General Fund fee. <br />Finance Director Lund explained that to lock the funds, they would be transferred out of the <br />General Fund into a Capital Improvement Fund. But, it would not be the exact dollar amount <br />levied because there is about $300,000 in delinquencies each year. Staff will probably have to <br />determine a percentage applicable for road construction. With regard to the question of putting <br />this decision off for six to nine months, Finance Director Lund advised the City needs to adopt <br />the preliminary budget in September so budget discussions start in June. <br />Councilmember LeTourneau stated in that case the Council may have to decide to go for it and <br />increase the General Fund levy. <br />Acting Mayor Backous agreed with Councilmember Elvig that it has to be done and the only <br />issue is how to pay for it. He stated the Council did not create this problem, it has been looming <br />forever, and residents want the City to be proactive. He stated he would support a franchise fee <br />of $10 /month, which would raise $1 million, in addition to the $500,000 the City already budgets <br />annually. Acting Mayor Backous noted this would build a "war chest," be palatable to most <br />residents, and provide an education of this problem that needs to be resolved long term. <br />Councilmember LeTourneau stated that method only addresses the taxation side and not the <br />revenue side. He preferred a revenue solution so the City does not have to tax its residents. <br />Acting Mayor Backous stated that may resolve itself in the near future through land sales. <br />City Administrator Ulrich indicated staff will refine the plan, consider balanced funding <br />approaches with several funding sources, a General Fund approach and what it means to the tax <br />base, and resulting percentage of increase. Staff will also look at a five -year window to <br />determine what is most urgent. He indicated that Mounds View has the same Charter provision <br />and was unable to fund road projects. That City sold its golf course to Medtronics, generating <br />$10 million to a dedicated fund, which may be similar to The COR land proceeds. Mounds <br />View also had existing TIF money that was pooled and agreed to increase taxes $100,000 per <br />year to fund road projects so there would be no assessments. City Administrator Ulrich noted <br />Mounds View is smaller and more condensed than Ramsey, but that is how it solved the issue of <br />funding road projects. <br />Acting Mayor Backous stated the other issue with this complex problem is the five different <br />policy decisions contained in the staff report, which are intertwined. He asked if there is a better <br />way to present solution options. <br />Councilmember Kuzma indicated another issue is if no assessments, how do you deal with those <br />who have already paid assessments. <br />City Council Work Session / March 19, 2013 <br />Page 13 of 16 <br />