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