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

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good presentation. He stated one impact is sprinkler systems that spray onto the roads and causes destruction. Mr. Embury stated the streets need repair and a steady funding source, which may be the residents, but it is needed. He stated when he leaves his cul-de-sac, he needs to use the main thoroughfare and several years ago those who live on that street raised such a ruckus that they intimidated the Council to not make the improvement so that street is now at a Level 1 or 2 instead of a Level 5. Mr. Embury stated he understands the need for a reliable source of funding but it sounds like a franchise fee may have some downfalls and not a course of funding that is fair to everyone. He indicated he would like to hear more about whether property taxes are a fair funding source. Mr. Embury stated whether it is a property tax or franchise fee, maybe more time is needed for discussion instead of moving forward tonight. David Elvig, 18026 Ute Street NW, stated he appreciates the Council is taking on this issue and listening to comments. He stated in his experience as a former Councilmember and wrangling the issue, if funded by the General Fund, there is not as much control in where it is spent. But, if a franchise fee, the use of the funds is locked. His concern is management of the funds so it is not commingled and invested only in infrastructure. Mr. Elvig suggested the ordinance define "repair" and "reconstruction" as being for existing infrastructure and not for a developer. He supported the ordinance indicating no loans, interfund loans, pet projects, or no fees that artificially bolster the general fund. Mr. Elvig stated proper management is his concern and he likes the franchise fee because it can be isolated and transparent. He also supports the sunset provision, noting that the past franchise fee had a sunset and when the goal was met, the franchise fee was removed. A franchise fee is not a long-term assessment on property taxes that continue into perpetuity and that is the problem with funding by property taxes. Mr. Elvig stated the ordinance language does not include a soft sunset. He felt five years may not be long enough and may need to be ten years, but a term should be set. Mr. Elvig stated if there is a change or loans, the issue needs to come back for public input to assure proper management of the funds. He stated the City spent about $30,000 on a survey of several hundred randomly selected residents who were called and the vast majority said a franchise fee makes sense to them as opposed to other mechanisms. Mr. Elvig stated Ute Street was reconstructed so he had a $5,000 assessment and is paying $500 per year as opposed to $200 per year he would pay through a franchise fee. Mr. Elvig stated he would prefer paying the $200 per year. Wayne Buchholz, 14621 Neon Street NW, stated Mr. Elvig raised fine points but the poorest of the poor pay for this no matter how you cut it and that is wrong. Dennis Olson, 8260 159th Lane NW, stated the people voted for the Council and he believes the Council would not do anything that residents would not support. He stated residents want the roads fixed and the Council has the ability and knowledge of what to do. Otherwise, the roads will be crumbling and residents will say they want them fixed. Mr. Olson stated he feels sorry for the Council having to take this input when it is doing its job as best as they know how. He stated Ramsey's taxes are lower than others and while no one likes bills, the franchise fee is small. Mr. Olson stated Minneapolis does not maintain its streets and the potholes are large. He stated all want businesses in Ramsey and it would be nice to attract big businesses, which pay a very high tax, to lower resident's taxes but big businesses want good infrastructure. Mr. Olson stated the City has to maintain its image so it doesn't have problems with crime. That is another reason businesses will want to come to Ramsey, because it is a good and upcoming community. City Council / October 8, 2013 Page 15 of 24