Minutes - Council Work Session - 03/19/2013

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of them within 3 -5 years. He recommended looking at the needs for a five -year period and reviewing those needs every few years to identify whether goals are being met or the schedule is slipping behind. Councilmember LeTourneau stated then the first five -year segment would require some form of tax. He supported a proactive approach to the second and third five -year segments to build a "war chest" so the costs are more sustainable and less reliable on taxes. City Administrator Ulrich stated that was the genesis of the Public Service Revolving Fund, to use excess fees from growth years and put 40% into a Public Improvement Fund for use in rebuilding streets. This process had worked during the good economic years to build a positive balance but in recent years, more funds were taken from it for road projects than contributed. Councilmember Riley asked what role MSA plays in this consideration. Finance Director Lund stated the City receives about $1 million in MSA each year but has two outstanding bonds, leaving about $400,000. She explained that there are so many projects, that Riverdale Drive took what was left of those funds so the MSA Fund is in the negative. Councilmember Riley asked whether those projects would have been considered for this funding program. Finance Director Lund stated part of The COR was the AUAR projects that had been bonded through MSA to get those two roads constructed. When that land is sold, those funds will reimburse and replenish the MSA fund. Councilmember Elvig stated if a project area is between County roads, it qualifies for use of MSA funds, and the City can bond out two years for MSA projects. Interim Engineer Nelson stated overall, the State encourages cities to advance encumber MSA but Ramsey does not have that option since it already has two bonds with a balance nearly at zero and is only accumulating $400,000 /year. In addition, the Bunker Lake Boulevard project will create a significant MSA shortfall so, for this discussion, MSA is not a funding source. Acting Mayor Backous asked how much revenue would be raised through a franchise fee on tax - exempt properties. Parks and Assistant Public Works Superintendent Riverblood stated there are 60 tax- exempt properties. City Administrator Ulrich stated staff will look up the amount of revenue that can be raised through a franchise fee on tax- exempt properties. Councilmember Riley asked how many properties are undeveloped and do not receive a utility bill, noting that would be the offsetting issue. City Council Work Session / March 19, 2013 Page 9 of 16