Agenda - Council Work Session - 05/28/2019

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Ramsey Road Funding Open House Questions, 3/20/2019-3/21/2019 Decision -Making Process • Q: How do cities make this decision about how to fund road maintenance? • A: We go through a process where we have these types of forums, people talk about it like we're talking, and the City Council will have to debate it. • Q: Didn't this issue get to council a few years ago? • A: It came to council and we came to a point of decision. We decided to give the assessment plan five years and then have another discussion, and we're at that place now. • Q: How will we know what the decisions are? • A: Good question — this is part of a process. We're going to have these discussions, get back together with the council and run the numbers, and investigate what the situation would be for people who've already paid assessments, among other questions. Our goal is to have a decision by the end of the year. • Q: Will it be a public vote? • A: It eventually could be. • Q: When does this get voted on? • A: Right now, we're just looking at the information and having conversations with the community, so that hasn't been considered yet. City Finances • Q: What are the interest rates like on the City's bonds? • A: For four road debts issued, interest rates ranged from 1.75% to 3.22%. Add two basis points when assessed (interest rates 3.75% to 5.22%). • Q: You mentioned we are paying interest on those bonds. What are we paying in Ramsey for the interest? • A: Total principal issued for four years = $4,925,000; total interest on 4 issues: $671,056. • Q: The money that is bonded for — does it go into a general slush fund? • A: No, it needs to be used for road funding specifically. • Q: Where does the money for seal coating come from? • A: It comes from the City's general maintenance fund — so you pay through your taxes but not individually. • Q: How did we pay for this in the 1980s and 90s? Didn't we set aside money for this?