Agenda - Council - 06/25/2019 - Laserfiche WebLink

Home

City Engineer Westby explained that the five dollars per utility franchise fee would be the starting point that would get the City going and started down the road to see how it works and how that equates to road improvements. He stated that if the City starts too high, the odds of starting a successful franchise fee process would decrease. He noted that other cities have found that there is a reduction in other costs because of the elimination of the assessment process that they have been able to maintain on the franchise fee level. Mayor LeTourneau stated that this would get the City through the five-year trial basis to provide more information. Councilmember Riley stated that he is not interested in saying the City will start at five dollars per utility and then increase in the future if needed. He stated that he would rather start at the right number to begin with. He attempted to clarify that the options today in order to eliminate the assessment option would either be to use franchise fees or raise property taxes by 6.46 percent. Councilmember Kuzma noted that the increase could be higher, depending on the details of the 2020 budget. He stated that franchise fees would be a cost of $120 per year. He noted that his concern would be the financial burden that a large assessment could put on a younger lower income family. He stated that given the two choices he would pick franchise fees. Councilmember Heinrich stated that it seems that the Charter Commission has asked for additional research to be done, which the Council can entertain or not. She stated that if that request is approved, that could help to answer questions. She stated that she feels there is an importance to pursue what Commissions may feel would bring them clarity. She stated that she also sees value in that the Council is elected to make tough decisions, and this is one of those decisions. She agreed that the process should continue to move forward. Councilmember Riley stated that he would be ready to move forward to draft an ordinance that would dedicate the franchise fees to only road funding. He noted that franchise fees would be used specifically for road financing. He stated that he would like to see a more specific number, rather than a generic five -dollar figure, which also takes into account the rebating for those that have paid assessments. Councilmember Kuzma stated that he would also support drafting an ordinance. He stated that he is not supportive of funding another study. City Administrator Ulrich confirmed that staff would prepare a draft ordinance which will come forward at a future worksession. He also confirmed the consensus that the Council would support the study from the University of Minnesota, as requested by the Charter Commission, contingent upon the cost. 2.03: Review 2018 Comprehensive Annual Financial Report (CAFR), Management Report and Special Purpose Audit Reports Finance Director Lund introduced Aaron Nielsen of MMKR. City Council Work Session / June 11, 2019 Page 5 of 7