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City Engineer Westby stated the life expectancy may not hit 60 years for every road due to the <br />way it was constructed but there may be 70 -75 years from some urban roads. He stated Ramsey <br />has good sand soils so it should be able to get 60 years from reconstructed roads. <br />Mr. Kingston asked if non - taxable entities will pay franchise fees. <br />City Engineer Westby stated they would if they use those utilities. <br />Mr. Kingston stated he would like to know how many properties of that type are in Ramsey, <br />noting that schools get their revenue from residents so he will also be paying for that fee. <br />Public Works Superintendent Riemer explained that a road at a rating of PACER 3, means the <br />road would no longer be sealcoated and would be scheduled for reconstruction. <br />Pat Surma, 7930 161st Avenue NW, stated the City needs to keep it fair and the process <br />transparent. <br />Mayor Strommen stated in an ideal world, she would also prefer funding the SMP through <br />property tax but at this time, the City does not have the ability to raise the levy high enough to <br />cover that cost. In addition, taxes are not always paid and some residents would be taxed but <br />their road may not be fixed, which is also not fair. She stated she leans towards franchise fees <br />with a sunset date in five years so it can be reevaluated at that time. Mayor Strommen supported <br />having a conversation to assure the fees are dedicated for this purpose, and to learn more about a <br />rebate program similar to that used by Elk River. She stated it is not a way to hide a tax and the <br />City needs to be transparent in this process. Mayor Strommen stated if $1.7 million had to be cut <br />from the City's budget, it would be a severe impact to police, fire, or parks, which are all <br />important to the City's residents. <br />Councilmember Tossey stated the $1.7 million will be collected from residents anyway. <br />Mayor Strommen stated the City does not have enough levy to raise it high enough to cover $1.7 <br />million. In addition, the City is under levy limits this year and cannot increase the levy high <br />enough to fund roads. <br />Councilmember Tossey stated the budget includes $140,000 for the EDA, which is not an <br />essential government service but police, fire and roads are essential government services. He felt <br />it was nonsense to say the City does not have the money. <br />Mayor Strommen stated the shortfall is not $140,000, it is $1.7 million. <br />Councilmember Tossey suggested that the City then not hire an Economic Development <br />Director. He stated in some cases, staff does not need to be increased. Councilmember Tossey <br />stated the Legislature put levy limits in place for a reason and he does not support going around <br />it by creating another revenue stream through franchise fees. <br />City Council Work Session / September 3, 2013 <br />Page 7of12 <br />