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City Administrator Ulrich stated utilities companies will not separate out multiple meters, so that <br />needs to be done at the City level. He added it could be addressed in conjunction with possible <br />franchise fees. <br />Mayor Strommen thanked City Engineer Westby for his presentation. She added possible <br />funding mechanisms, and their pros and cons, should be identified to gain a better understanding <br />of the advantages and disadvantages of each. <br />The City Council and Charter Commission agreed to review each funding option. <br />2.03: Review Funding Alternatives: Identify Pros and Cons <br />City Administrator Ulrich and City Clerk Thieling made a list of the following funding solutions: <br />TIF; franchise fees; grants; MSAS funding; special assessments; general property tax levy; and <br />general obligation bonds. The City Council and Commission discussed the pros and cons of <br />each solution. <br />Commissioner Sivertson stated, with regard to franchise fees, a con would be the taxation of <br />non - profits. <br />Finance Director Lund stated that might be considered a pro. <br />Commissioner Deemer stated franchise fees represent inequality. <br />Mayor Strommen stated there is inequality due to multiple meters. She added another con would <br />be regressive tax. <br />Councilmember Kuzma stated a pro would be no assessments. <br />Commissioner Bendtsen stated taxes are supposed to be tied to the value of property, based on <br />the City Charter. He added it is regressive due to the great disparity. <br />Terry Hendricksen, 15631 Ramsey Boulevard NW, stated franchise fees are an unreliable <br />funding source, and could be subject to referendum. <br />Councilmember Tossey stated any ordinance could be counter- petitioned. <br />Councilmember Backous stated it is not the role of the Charter Commission to debate funding <br />methods expenditures. He added he believed the meeting would be a discussion on the merits of <br />franchise fees. <br />Mayor Strommen stated the assessments currently used by the City have limitations in the <br />Charter. <br />Commissioner Deemer stated the Charter Commission should not be dealing with the City <br />budget. <br />City Council Work Session / November 19, 2013 <br />Page 5 of 15 <br />