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

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Councilmember Backous thanked all for participating, noting this is far from a "done deal." He stated people have been participatory, rational, and understand there is a problem. Councilmember Backous stated he is a senior member on the Council and been serving just over two years, noting none on the current Council created this problem or the budget problem. He noted comments were made about the Municipal Center, but it is already here so the focus needs to be on what can be fixed. Councilmember Backous stated he heard a lot of excellent comments tonight that he had not yet considered. He stated the ordinance needs to include a sunset, dedication of funds, surcharge, safeguards in the Charter, and removal of the special assessments process. Councilmember Backous stated that is the only reason he would support franchise fees, to remove the assessment process. He stated Councilmember Tossey's suggestion to have a compromise on the assessment counter petition is a good one. Councilmember Backous stated the roads need to be fixed and citizens will pay for it whether through a franchise fee, assessment, or tax. Councilmember Backous stated he would like to pursue a tiered approach to franchise fees but avoid a scenario of "ten -cent rebates." He stated he likes keeping it in the levy and a five-year sunset that requires mandatory decrements each year to force the Council to look at the budget and funding issue each year. Councilmember Backous agreed with the concerns of a perpetual franchise fee, noting if the ordinance language eliminates the franchise fees in five years, then after that everything could be in the levy without franchise fees or special assessments. Councilmember Backous stated his mind is still open and the City will only arrive at the proper solution if all provide input and show respect. Councilmember Johns thanked everyone for attending, noting it has been an interesting process during her two months on the Council. She stated all are listening and noted the Council has already discussed many of these points and raised a lot of questions to staff. Mayor Strommen stated at this point in the City's history, the roads are of an age where the cost to maintain is increasing but the budget has never been structured to include these costs. She noted that as the City approaches this point, many past Councils have considered how to fund infrastructure projects, and some are not comfortable with the burden of staff preparing engineering and feasibility work only to have the project counter petitioned. She noted a $4,500 or $5,000 assessment is also a burden and financial hit on everyone, cannot be budgeted for, and if not paid in full the property owner is charged 4.5% interest over the life of the assessment. Mayor Strommen stated there is no perfect solution, noting other cities are experiencing the same challenges because it is not built into the budget until infrastructure becomes of a certain age. Mayor Strommen noted the State has infrastructure issues of its own to address and not in a position to bail out cities. She thanked the Councilmembers for tackling this issue, for working to find a solution, and thanked residents for becoming part of the process. Mayor Strommen stated the seven -seated Councilmembers will probably not be all in agreement with the final solution but she appreciates all engaging in the process. Mayor Strommen asked staff to research the option for a tiered franchise fee that gives a break to lower -valued properties. Motion by Councilmember LeTourneau, seconded by Councilmember Kuzma, to postpone consideration of Ordinance #13-21, Implementing an Electric Energy Franchise Fee on the City of Anoka, a Municipal Corporation, for Providing Electric Energy Service within the City of Ramsey, Minnesota; Ordinance #13-22, Implementing a Gas Energy Franchise Fee on CenterPoint Energy Minnesota Gas ("Centerpoint Energy") for Providing Gas Energy Service City Council / October 8, 2013 Page 20 of 24