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therefore it will be a long process ahead. He noted that the roads will continue to degrade <br /> because of the poor subgrade of the roads. <br /> Mayor Strommen stated that the City has picked off the worst of the worst thus far and will at <br /> some point hit a bubble. She stated that the more people that are assessed, the more contentious <br /> this program will become and that is why this is a good time to discuss the financing once again <br /> before they reach that bubble. <br /> City Engineer Westby stated that since the program began in 2015, staff is finding they are able <br /> to complete more work with the dollars than they anticipated and believed that a bigger chunk <br /> could be taken in the next five-year program that starts in 2020. <br /> Bret Weiss, WSB, stated that no one wants assessments and the amount that is contributed from <br /> assessments is dismal towards the total cost of the projects. He stated that streets are a core <br /> function of the City and it is important to have a pavement management plan and follow that <br /> plan. He provided additional information on pavement management plans and the elements <br /> included within. He provided the typical pavement performance curve without maintenance and <br /> compared that to the lifecycle with maintenance. He noted that with the right course of <br /> maintenance, the lifespan of a roadway can extend to 60 years. He noted that regular sustainable <br /> funding is a key element of the pavement management plan. He reviewed the different funding <br /> methods which include 100 percent tax levy, 100 percent assessments, combination of taxes and <br /> assessments, State Aid, and franchise fees. He stated that his industry has attempted to gain a <br /> trunk fee for roads through the legislature but have not been able to make that happen. He stated <br /> that the franchise fee would be paid monthly by residents in lieu of assessment. He stated that <br /> commercial and industrial properties really favor franchise fees because of the heavy assessment <br /> that typically occurs towards those types of properties. He reviewed the pros and cons of the <br /> combination of taxes and assessments method. He stated that once the franchise fees were <br /> implemented in Rogers, residents no longer oppose road projects and actually want their roads to <br /> be fixed. He reviewed the pros and cons of the franchise fee method for funding. He noted that <br /> the franchise fee option has no increase to the tax levy, provides a stable revenue stream that can <br /> be adjusted, is collected by all street users (including schools, nonprofits, and renters), and <br /> reduced costs for the project expenses (financial, legal, and engineering). He reviewed the <br /> negative aspects of the franchise fee method including less transparency on how the revenue is <br /> collected, requires public outreach to describe the fee and process, and the utility companies <br /> typically do not favor this method. He stated that the franchise fee method for funding provides <br /> a reduction in overall project costs, improved community engagement, and provides a fair <br /> distribution of costs to all road users. He provided an example of how the franchise fees appear <br /> on the utility bills in the city of Rogers. <br /> Mayor Strommen stated that one comment that the City heard was that roads should be included <br /> in the operational budget of the City but noted that there is no way the City could pay for roads <br /> in its usual budget. She stated that for those people that have not been assessed, they could still <br /> be under the impression that the roads are included in their taxes. <br /> Mr. Weiss stated that if the City is going to fund the roads with 100 percent tax financing, the tax <br /> levy would increase significantly and that would not collect from all users of the roads as <br /> City Council Work Session /March 27,2018 <br /> Page 2 of 7 <br />