Agenda - Council - 10/22/2013 - Laserfiche WebLink

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behind on their utility bills and she guessed they are probably not the people in the $500,000 homes. She found the franchise fee to be a regressive tax, not what the Federal and State are doing to get the rich people, but it hits people who use vouchers for rent "below the belt," and those who are maybe paying $800 in property tax that will increase to over $1,000 with a fee that cannot be deducted. Ms. Bendtsen agreed the streets need to be maintained but it should be done the right way and attached to the property. Erika Ruch, 15446 Radium Street NW, stated it is creative but if sticking in fees and assessments, not being taxes, she still pays more. She stated it is alarming that nothing was said about making cuts, it was solely based on what fees can be taken from residents. She stated she does not know how the train station and Municipal Center works but she would have preferred to sit on a folding char in some church basement and not have to pay an additional $16 per month. She stated CenterPoint Energy is already raising their base rates and this franchise fee would be additional. Ms. Ruch asked if this is a formality or if resident input will make any impact because if not, they should have stayed home. Joe Field, 8021 152nd Lane, stated he is not speaking as a member of the Planning Commission or Charter Commission but as a private citizen about his concerns with the City Council proceeding with a franchise fee approach to funding. He stated he reviewed the proposed ordinances and found no reference to a five-year cap. In terms of transparency, it may be a glitch but has to be corrected. Mr. Field felt the most basic function of City government is to provide for its infrastructure, meaning roads, which is a base and it should come from the general levy. He agreed that special assessments can be burdensome for residents; however, the proposed ordinance does not indicate special assessments will be eliminated nor is it a proposed Charter amendment. Mr. Field stated City government should care for roads from the general levy, noting special assessments are a temporary tax but those homeowners see an improvement adjacent to their property and that special assessment cannot be set higher than its value to the property, as contained in the Charter. With the franchise fee, there is no limit or connection to the increase in property value, so it is a "bottomless pit" with no constraints. He stated nothing prevents a future City Council from raising the rates for whatever reason and the proposed ordinance does not specify funding is limited to roads. Mr. Field stated the City can eliminate the special assessment but then needs to find ways in the general levy to get the roads funded. He felt the franchise fee was a "taxing stealth device" and calling it a fee without a tax deduction. He noted residents pay in more than one way because if at a lower income level, 87% of the homeowners in Ramsey will pay more in a franchise fee without a tax deduction than if funded from the general levy. Mr. Field stated the City has not hit the levy limit and has close to $1 million to work with that could be tapped into. He stated if the shortfall is $2.2 million and there is $500,000 in reserve, using the additional $1 million of levy gets the funding close if the budget is also trimmed. Mr. Field stated the need is five years and the levy limit is for only one year and then it will be released. He stated no one wants to raise the general levy and that may be why it is not being considered. Mr. Field stated he felt there was no cap to franchise fees, it would let "the genie out of the bottle," and residents would start to see a new form of taxation without accountability. He stated just because other cities have not explored deeply the issues behind a franchise fee does not mean they have made the wise choice and he believed that Ramsey should stand its ground and say franchise fees are wrong. He invited the City Council to not proceed with a franchise fee and "dig in" to find other alternatives, which is the hard work City Council / October 8, 2013 Page 12 of 24