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A resident present. thanked the meeting attendees for putting in the time and effort to discuss the <br />various funding options. He added the City has to provide funding for these core services, and <br />these are Charter issues that require a solution. <br />Mayor Strommen stated the City Council and Charter Commission hoped to find common <br />understanding of a potential way forward for funding the street maintenance program. <br />City Administrator Ulrich stated limits within the Charter regarding franchise fees could prevent <br />inequity, and a 5 -year sunset for electric utilities only would prevent multiple meter charges. <br />City Attorney Langel stated some Franchise Fees Ordinances have restrictions against higher <br />commercial rates. He added that language is included in the franchise fee amendment proposed <br />by the Charter Commission. <br />Mayor Strommen stated franchise fees could be made more transparent and they could contain <br />reporting requirements, since that is an argument against franchise fees. <br />City Finance Director Lund stated it will be difficult to pay the remainder of an assessment if the <br />percentage is lowered. <br />City Administrator Ulrich agreed, adding another funding source would have to be identified. <br />Mayor Strommen stated a supplemental solution would be necessary. <br />Chairperson Field stated that Councilmember Backous had suggested that franchise fees could be <br />created on an interim basis. He added homes with a value under $235,000 will pay more under a <br />franchise fee for an outlay, and a general levy would allow those homeowners to get a tax <br />deduction. He noted the regressive nature of franchise fees means they are not equitable for <br />homeowners. <br />Councilmember Backous asked what percentage of the City roads budget comes from <br />assessments. <br />City Administrator Ulrich stated roads funding is born entirely in the general fund, but cities can <br />assess for a portion of roads reconstruction. <br />Councilmember Backous stated that is a real tax that residents will have to pay, as opposed to a <br />specific franchise fee amount. <br />City Administrator Ulrich stated there will be different legislation in five years' time, and' <br />possibly more efficient legislative tools would be at the City s disposal. <br />Mr. Hendricksen stated the City's 100 -year old ditches are a serious problem and will be costly <br />to rehabilitate and maintain. He added the amount of individual homeowner property acreage is <br />insignificant compared to fees assessed on commercial buildings. <br />City Council Work Session / November 19, 2013 <br />Page 13 of 15 <br />