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Councilmember Johns referenced a property that was paid in full and asked if that credit would <br /> remain with the property if the property owner were to move. <br /> City Administrator Ulrich stated that staff can further explore options that would be considered <br /> more equal but also financially feasible. <br /> Councilmember Riley stated that under the franchise fee scenario, the City would still come up <br /> short on funding. <br /> Finance Director Lund stated that the franchise fee will increase. She stated that the estimates <br /> are based on the $4 and $5 fees. She noted that the City would do projects that would be funded <br /> to the extent of the funds available. <br /> Mayor Strommen stated that franchise fees are collected equally on an annual basis while the <br /> road needs are not equal on an annual basis. She stated that eventually there will be a bubble. <br /> She noted that the sooner this comes on line, the less of a gap that will be created. She stated <br /> that the more roads that can be repaired before the bubble gets bigger, the better. <br /> Councilmember Riley stated that it would be important to show residents that there would be a <br /> tax cut with this method and these huge increases would be removed from the budget. He stated <br /> that the chart in the memorandum could be made more public friendly. <br /> Finance Director Lund provided additional details on the intent of the chart. <br /> Councilmember Riley stated that if the City continues to travel on the current path, there are <br /> increases coming and perhaps showing that this method would remove those large increases <br /> would be helpful knowledge for residents to have. He stated that he was hesitant about the <br /> deductibility of real estate taxes, noting that franchise fees are not deductible. <br /> Councilmember Kuzma stated that when the City attempted to discuss franchise fees in the past, <br /> staff did not do a great job with outreach. He stressed the importance of public outreach and to <br /> show residents the bubble that is coming with these road costs. <br /> Mayor Strommen agreed that a public meeting would be really important. She acknowledged <br /> that this is a complicated issue. <br /> Finance Director Lund asked if the Council is comfortable with the $4 and $5 fee rates for <br /> sharing with the public. <br /> Councilmember Riley stated that it would have to be a large enough number to solve the <br /> problem. He thought that there has been a study in the past to determine the number that would <br /> be needed to solve the problem. <br /> Mayor Strommen stated that for the purpose of public discussion, there could be different <br /> scenarios shown, using $4 and $5 and identifying the gap that would be left as well as using $7 <br /> and $8 and the gap that would fill. <br /> City Council Work Session/April 24,2018 <br /> Page 2 of 4 <br />