Agenda - Council - 09/10/2019 - Laserfiche WebLink

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City Administrator Ulrich stated that the City would not have to do the rebate, explaining that was developed through the discussions that have occurred. Councilmember Kuzma stated that the Council has looked at assessments and he does not feel comfortable passing on $6,000 assessments to property owners. He stated that the roads are the biggest asset in the community, and they need to be taken care of. He stated that everyone uses the roads, regardless of age or income level. He stated that garbage trucks and others use the roads in a neighborhood and yet the assessment is charged only to those residents that live on the road under the current model. He stated that the franchise fee is a tax and they are not trying to hide that. He stated that this would be a dedicated road funding source and would equate to $168 per year. He believed that this would be a better option than charging residents large assessment amounts. He stated that this program would be a five-year option that would give the City the option to try this method. Councilmember Riley stated that this is a tax. He stated that this option would also have a cost savings as there would not be the interest that is currently charged on the bonds and the elements required for assessments would no longer be required. He stated that this is not an option of a franchise fee or nothing; this would be a franchise fee or a tax increase. He stated that the assessment numbers are real and range from $1,500 to $6,700, and eventually every road will need to be reconstructed and would therefore be assessed. He stated that while it is difficult to plan for a large assessment, is it much easier to plan for the franchise fee. Mayor LeTourneau stated that this process began in 2013 when the Council took responsibility for a lack of or underfunded street maintenance program. He stated that the roads continue to be a problem as they continue to age. He stated that in 2013 a similar discussion took place and the City chose the assessment policy. He stated that the City also developed a very robust program to rate the roads and schedule maintenance in an attempt to increase the quality and lifespan of roadways. He noted that the decision was also made to review the issue after five years. He stated that they began to review the topic of road funding about 18 months ago as assessments seem to be an expensive way to fund roads. He stated that franchise fees would provide a better cost scenario because of the ability to not have to pay interest on bonds and the administrative costs that follow the assessment process. He stated that the City would like to review the franchise fee method for five years, noting that if the City is not fond of the funding method the choice can be made to change that at any time. He appreciated the large amount of time that has been spent learning about this topic and involving the public. He stated that tonight the Council has the responsibility to bring this forward and order a public hearing to gather more input. Councilmember Musgrove asked if there would be an option to change the funding method during the five-year period if the franchise fee is implemented. City Administrator Ulrich confirmed that the Council could change the funding method during the five-year period should that be the choice. Councilmember Heinrich stated that she would like to open it up to a public hearing. City Council / August 12, 2019 Page 7 of 13