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Mr. Hendricksen stated, in that case, there should not be an assessment. <br />Councilmember Backous agreed, stating they are expensive and burdensome, and they are a <br />surprise. He added they can be counter - petitioned, and they are unfair. <br />Mayor Strommen stated the percentage could be fixed. <br />Finance Director Lund stated it is currently 50% for overlays. <br />Commissioner Deemer stated a mechanism that would be used to increase the general levy has to <br />include this amount. <br />Councilmember Tossey stated general obligation bonds can not be used on road projects unless <br />there are assessments of 20 %. He added that would be a pro for assessments. <br />Finance Director Lund stated street maintenance bonds can be issued but could be counter - <br />petitioned by a certain percentage of voters. <br />Commissioner Deemer asked how the bond would be repaid. <br />Finance Director Lund stated the general levy can be increased if it is debt service, and falls <br />outside the levy limits. <br />Commissioner Bendtsen stated a pro for property tax levy is that it is equitable as it would be <br />tied to property values. <br />Commissioner Niska stated a pro for assessments is that it is transparent, and creates a nexus <br />between money that is being raised and money that is spent. <br />Mayor Strommen asked, with regard to existing assessments, whether the current formula is <br />sufficient and sustainable. <br />City Engineer Westby stated it is his understanding that the City assesses 50% for overlays, but <br />not for seal coating, and street reconstruction assessments have never been addressed. <br />Commissioner Bendtsen asked whether local improvements cover any street maintenance. <br />Mayor Strommen stated a percentage assessed on reconstruction would be high for residents, and <br />might not be sustainable. <br />Commissioner S. Anderson stated any residents who refuse overlay assessments should pay <br />more for reconstruction. <br />Mayor Strommen stated the system was initiated before reconstruction was considered an issue, <br />and it would not be realistic to expect residents to pay more than their fair share. <br />City Council Work Session / November 19, 2013 <br />Page 8 of 15 <br />