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Mayor Strommen asked staff to provide additional information on the funding for these projects <br />and why the general fund is not used, noting that there was a five-year process in determining <br />how to fund these road project. <br />City Engineer Westby stated that originally in the discussion the City investigated the option of <br />using franchise fees to fund road improvements but noted that due to the difficulties that arose <br />from negative comments and from the Charter Commission, that option was not chosen. He <br />stated that is how the assessment came about, to assess 25 percent of the project cost to the <br />directly benefiting properties and spreading the remaining 75 percent across the entire City's tax <br />base. He noted that 25 percent is a very common percentage for assessment rates. <br />Councilmember Kuzma stated that the method for paying for the road improvements is bonding <br />and stated that in order to use bonding, the City has to use assessment along with that. <br />City Engineer Westby provided additional information on the bonds the City uses, noting that 20 <br />percent is the minimum for assessments. He noted that sometimes when you target 20 percent, <br />you can fall short and that is why 25 percent was chosen. He stated that staff is looking five <br />years ahead to determine a schedule of road improvements. <br />Councilmember Kuzma stated that if the City uses the bonds, they are mandated to charge a <br />minimum of 20 percent in assessment by the State Statute. <br />Public Hearing <br />Mayor Strommen called the public hearing to order at 7:47 p.m. <br />Citizen Input <br />There was none. <br />Motion by Councilmember LeTourneau, seconded by Councilmember Shryock, to close the <br />public hearing. <br />Motion carried. Voting Yes: Mayor Strommen, Councilmembers LeTourneau, Shryock, Johns, <br />and Kuzma. Voting No: None. Absent: Councilmember Riley. <br />The public hearing was closed at 7:47 p.m. <br />Council Business <br />Motion by Councilmember Johns, seconded by Councilmember Shryock, to Adopt Resolution <br />#17-11-285 Approving Feasibility Report and Ordering Plans and Specifications for <br />Improvement Project #18-00 Stanhope Terrace Street Reconstructions. <br />City Council / November 14, 2017 <br />Page 6 of 14 <br />