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Councilmember LeTourneau stated this is a complicated issue and he thinks the easy solution is <br />a tax or franchise fee but he prefers the idea of coming up with a revenue solution. For him, it <br />would be more about coming up with opportunities, but he knows that cannot always be <br />guaranteed as an assessment can be guaranteed. Councilmember LeTourneau suggested <br />addressing this issue in five -year increments and creating specific strategies in how to reach a <br />revenue goal for each five -year segment. <br />Councilmember Elvig suggested considering land proceeds. <br />Councilmember LeTourneau stated some will have to be a tax and then the Council can address <br />an avenue of sustainable revenue. <br />Acting Mayor Backous stated he does not support "double dipping" by charging both a franchise <br />fee and an assessment. <br />City Administrator Ulrich stated if approved by the Legislature, a Street Improvement District <br />would allow the City to declare the entire City a Street Improvement District and institute a street <br />fee. But, the disadvantage is in that fee not being discounted one -third as is available with <br />property taxes. <br />Councilmember Elvig stated he has no problem raising the General Fund by $14/household if <br />there is a way to lock those funds into road reconstruction. He stated he likes the idea mentioned <br />for a one -time assessment or ten -year assessment on every household as a property tax <br />assessment, such as a fee of $2,500 for ten years on ever property. <br />City Administrator Ulrich stated that has to be done in areas of projects to charge benefiting <br />properties a fee. He stated an advantage of street reconstruction bonds is that you are committed <br />to making those payments and the proceeds would have to be dedicated for that purpose and not <br />eligible for other uses, which would "tie the hands" of future Councils. <br />Councilmember Riley stated he wants this issue to be resolved and the funds dedicated to road <br />projects and not available for any other use. <br />Acting Mayor Backous stated another option besides a flat fee is to raise the General Fund taxes <br />but he knows the situation will be changing each year so he preferred to start with a low fee and <br />then increase it, if necessary. <br />Councilmember Kuzma stated that would be palatable. <br />Acting Mayor Backous agreed and noted residents have to realize the roads are falling apart and <br />the City needs to build a "war chest." <br />Interim Engineer Nelson stated based on this work the needs are $5 5 million and if spent, it <br />would address needs for an extended period of time. He stated the issue is that a lot of the roads <br />are approaching 40 years and if the City is not proactive, it could sneak up and require doing all <br />City Council Work Session / March 19, 2013 <br />Page 8 of 16 <br />