Minutes - Council - 10/08/2013 - Laserfiche WebLink

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any way. Mr. Bendtsen supported keeping focused on repairing the roads and putting the costs on property taxes. William Kingston, 15760 Andrie Street NW, stated he read Ordinances #13 -21, -22, -23 for the franchise fees and understands, based on the Work Session, that directives are to be achieved. One is to spend franchise fees only on the SMP but none of the ordinances address that directive or the five -year clause. He stated he asked previously about the administrative fees to handle the franchise fee and it is clear in all three ordinances that there is the ability for the utility to tack on a surcharge to administer the franchise fee so the end result may be an amount somewhat higher than $8 per month per utility. Mr. Kingston stated the analysis has forgotten that the franchise fee is a tax that is non - deductible from federal income taxes because it is a fee and not a tax. He asked the Council to be clear to the public on what the Minnesota law will allow the City to do to raise the levy. Mr. Kingston stated the analysis is ten years of $2.5 million, which indicates to him that after the five -year term there will be a second franchise fee that is at a higher rate than what is proposed today. Merlin Hunt, 17860 Nowthen Boulevard, stated his ancestors moved to Anoka County in the 1850s and he grew up on 167th and Nowthen Boulevard until 1963. Then he lived out of State until he decided to return to Ramsey where he grew up. Mr. Hunt stated his father was farming, and whenever the County wanted something, they asked to buy right -of -way, and his father did not have to pay any fees. The County paid the fees to him. Mr. Hunt stated it now seems like he is always having to pay a fee and sometimes he thinks his dream of moving to Ramsey will turn into a nightmare because residents are totally controlled in paying a fee on everything they do. Mr. Hunt stated on franchise fees, he thinks it is the wrong direction. He noted that with the last federal budget, President Obama refused to talk about it unless the rich were taxed, it was finally done, and now it is being fought again. He stated the Minnesota Governor ran for election based on taxing the rich and he has passed it. Mr. Hunt stated when he attended the open house, he thought the franchise fee was a done deal but found it interesting that comparing franchise fee to increasing property tax shows that a $250,000 home would pay the same amount as the franchise fee if property taxes were increased to pay for the SMP. But, a person with a $100,000 home will pay way more on a franchise fee than if the property taxes were increased. A person with a $500,000 home pays more, but he felt they can afford more. Mr. Hunt said he heard someone cannot afford the fees and that may be true with the owner of a $100,000 home or if struggling to make mortgage payments. He stated if the taxes are increased based on the home, he would not be hurt as much but the franchise fee is doing the opposite of what the President and Governor did by taxing the poor instead of the rich. Mr. Hunt stated he will pay more on real estate tax than the franchise fee, but can deduct it on his federal income taxes. He stated the City is trying to be open by passing a franchise fee, but someone else mentioned he lives on CR 5 and has 40 acres that do not touch a City street. The utilities come through his property and has an easement to build and maintain the road but he owns it. Mr. Hunt stated the State law says that because the City has right -of -way for streets and alleys, it can pass on a franchise fee. But, it does not say anything about roads that are outside of the City's jurisdiction and just before the previous franchise fee ended, he went to the County Attorney and tried to get it clarified that he (Mr. Hunt) owns the land under the road and the County Attorney said the City of Ramsey has no ownership influence or control over CR 5. Mr. Hunt asked how the City can apply a franchise fee to him. The County Attorney said it is because he travels on the roads. Mr. Hunt asked how City Council / October 8, 2013 Page 10 of 24