Minutes - Council - 10/14/2003 - Laserfiche WebLink

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Mr. Thermos stated that he has been living in Ramsey for eight years and when he first started receiving the Ramsey Resident it provided good information and now it does not seem to include some of the most important information. The Council noted that information regarding franchise fees was included in the Ramsey Resident. Councilmember Elvig stated the Council is still working on the budget and still has a lot of work to do and still has to consider some cuts. Some measures have been taken to reduce the amount the City needs to collect in franchise fees and the Council is still trying to be creative to find ways to avoid having to implement franchise fees at all. No one on the Council wants to implement franchise fees, but they may not have any other options. COUneilmember Kurak noted that the City Council will be reviewing the franchise fee every six months. Ed Hamilton, 6615 Highway #10 NW, Ramsey, stated that he has lived in Ramsey since 1954 and he was opposed to the franchise fee. He felt that the City should cut down on their budget instead of adding more fees. His income is limited and adding another fee makes it very difficult for senior citizens. Councilmember Elvig stated that the good news is that property values are going to go up 12 percent and property taxes and school levies will both go down this year. Councilmember Zimmerman stated that by going to a flat meter fee it shifts more of the burden on the residential property owners, which he feels was a flaw because it should be based on usage. There is also no guarantee that the fee will go to a dedicated fund for things such as hiring two new police officers. Councilmember Cook replied that changing to a flat fee from a percentage will not increase the burden on the residential properties. Under the percentage option it would have cost residents $74 a year on a flat fee it will be $72 a year. When the City collects the fee it will go into the general fund and the Council will decide where that money goes. The City is in this situation because the State took over $400,000 from the City and the City cannot operate with $400,000 less than what they had last year. COMIC] [member Strommen stated that she agreed that a percentage may be more equitable based on usage, but with a flat fee the amount does not increase as gas and electric rates increase, which would then result in the City collecting more money than what is needed to offset what the City lost. COLlncllmembef Pearson stated that with the flat fee people will know exactly what they will have to pay each month. The Council is only doing what they have to do to try and balance the budget. City Council /October 14, 2003 Page 13 of 30