Minutes - Council Work Session - 09/03/2013

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Councilmember Tossey stated that may be a reason to not consider franchise fees, they cannot be deducted from taxes. Mayor Strommen stated this is not and easy decision to make, and has been discussed by previous City Councils but a decision had not been reached. She noted that at this time, all one- time money has been used so a decision needs to be reached by this City Council. She stated the funding needs to be fair to the City's residents and of a sustainable nature. Mayor Strommen stated there will be differences of opinions amongst the City Council, and that is all right, but what is important is that all agree with the purpose (maintaining roads). Councilmember LeTourneau stated the Strategic Plan is to use a PACER rating at 7 and asked if the dollar amount to maintain this rating is $2.5 million each year. Mayor Strommen stated staff has framed the question to look at the annual shortfall over the next five -year period, which is $1.7 million. For the following five years, it will be a different number. She felt a five -year consideration was a reasonable term as taxes and revenues and street conditions may change during that period of time. Councilmember Kuzma stated out of the $2 5 million, the City Council is looking to fund a shortfall of $1.7 million. Mayor Strommen stated that is correct but when TIF District 4 decertifies in 2014, there will be a larger shortfall that will have to be addressed. This is why staff has suggested it could be partially addressed by building funds into the base at this time in anticipation of loosing the tax increment after 2014. Councilmember Riley asked if reconstruction has been assessed in the past. Finance Director Lund stated it has not. Councilmember Riley asked how roads are rated and if the rating drops each year. Public Works Superintendent Riemer stated once roads are at a PACER 3, the road will stay at that rating for a while unless there is a change in truck traffic or water on the roadway. He stated . the rating remains constant for several years before changing. Councilmember Riley asked if staffs cost estimates have been reviewed by a second party outside of City Hall. City Engineer Westby stated they have not but a quick estimation matches what you would expect for a City with the miles of roadways within Ramsey. Councilmember Riley stated if the City Council does not support franchise fees, the levy can be increased to cover part of the cost. He asked if the City would then have to rely on special assessments to fund the remainder of the cost. City Council Work Session / September 3, 2013 Page 4 of 12