Agenda - Council - 07/09/2019 - Laserfiche WebLink

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Our Mistioi}: To work together to reipoiibly grew our comma nityr, and to provide quality, cent-oliBcdwe, and efficient government services. CC Regular Session Meeting Date: 07/09/2019 By: Kurt Ulrich, Administrative Services 7. 8. Information Title: Authorize Local Road Funding Study Purpose/Background: A local road funding study was recently initiated by the by the Charter Commission. The Charter Commission has asked for additional research regarding the funding of local road maintenance and reconstruction in Minnesota and other cold climate states. The University of Minnesota has submitted a proposal to consider the research in which the Charter Commission Committee on the matter has expressed an interest. A summary of that study is below: Local Road Funding Study Preliminary methodology: Survey a list of 25 cities, selected at random (at least half outside the state of Minnesota) regarding how they manage local road funding and maintenance. An in depth investigation would be done on six cities. These six case studies would compare and contrast 2 for each type of funding mechanism, that is, assessments, franchise fees and property tax. Survey results from the larger group of 25 cities would be combined into a matrix, and identify whether they use the property tax method, assessment method, franchise fees method, or alternative sources, or a combination of methods. This proposed methodology may be subject to change based upon discussions with the researchers. The franchise fee information would include a ratio comparison of each city's fee to that city's assessed tax levy on an average market valued residential property in that city (for example, average market valued residential property is $220,000. Tax levy for city is $1000 annually on $220,000 value. Franchise fee imposed is $5 monthly or $60 annually. $60/$1000 = 6%). Research to include what other cities comparable in size and weather conditions are doing for road maintenance, repair and reconstruction (note: weather correlates to similar salt use/freeze-thaw conditions). Explore a range of solutions, not just focused on franchise fees as the solution. Other information: • Name of City (group by Metro and Non -metro, include a few from other cold weather states) • Size of City: square miles/acres and population • Miles of city roads maintained - Does the City have a dedicated funding source for road maintenance and reconstruction (how much and how is it dedicated? e.g., by ordinance, policy, etc.) Specific to Franchise Fees: • What is the franchise fee dollar amount for single family residential? Commercial? • How long has a franchise fee been in place?