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Mayor Strommen stated the City currently has assessments that are above and beyond a levy. <br />She added the proposed Charter amendment would set a limited fixed amount. She expressed <br />concern regarding a 20% threshold on special assessments. <br />City Administrator Ulrich stated a minimum 20% assessment policy would be necessary. <br />Commissioner Deemer stated he is concerned that the franchise fee only uses three utility <br />franchises, and represents an inequality. <br />Councilmember Backous stated a solution might be to only use electric. <br />Finance Director Lund stated apartment complexes separate utilities per unit, and the City can set <br />a rate for each unit. <br />Councilmember Backous stated franchise fees can be charged for electric and not gas, but that <br />could be handled through rebates. <br />Finance Director Lund stated franchise fee receipts must be reviewed by the Council, and they <br />would be able to see offsetting expenditures. <br />Mayor Strommen stated it would be similar to enterprise funds. <br />Finance Director Lund confirmed this, adding an account could be set up as a business with <br />revenue and expenditures. <br />Chairperson Field stated it is necessary to determine whether it is an additional or alternative <br />funding source. He added it seems it is necessary to have an additional source as the present <br />general levy is not sufficient for the necessary proposed roads maintenance <br />Mayor Strommen stated the Council wanted to raise the assessment percentage, but also have an <br />alternative source of funding. She added the levy could remain the same, and the franchise fee <br />would be transparent, without raising rates. <br />Chairperson Field stated a general levy is not a stable funding source, but the cost of <br />maintenance decreases with deflation, or a downturn in the market. <br />Commissioner Deemer asked whether the Council has considered a franchise fee for a shorter <br />period with the anticipation of raising the levy. <br />Mayor Strommen confirmed this, adding the Council wanted the 5 -year sunset. <br />City Engineer Westby stated the road maintenance program has been adjusted to a 5 -year view <br />by the Finance Committee. <br />Councilmember Backous stated he would not support franchise fees and assessments. <br />City Council Work Session / November 19, 2013 <br />Page 11 of 15 <br />