Minutes - Charter Commission - 02/13/2019

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City Administrator Ulrich stated that Elk River uses franchise fees for road improvements and has implemented a special sales tax for a community center. He noted that a number of cities use franchise fees already, including Elk River, Rogers, Princeton, and Brooklyn Park. Chairperson Field stated that the representative from WSB did provide all the options but candidly did favor franchise fees. He stated that he would like to commission a separate study that would provide an independent opinion on what other communities are using and the available options. Commissioner Fuhreck stated that he would be interested in historical data on how other municipalities that use franchise fees have been able to hold the line. Commissioner Sivertson stated that there were complaints in the past from residents that have utilities for outbuildings and would not want to be charged twice. He stated that he has also heard that utility companies do not like the use of franchise fees as they become the middle man. He stated that there is a lot of gray area left unanswered and he would be in favor of bringing the motion back into play. Commissioner Anderson stated that there are still urban and rural areas in the community. She stated that while she believes that this would be a good idea, she was unsure that a proper study could be completed for $1,500. City Administrator Ulrich stated that the scope of a study should be defined and put into writing, establishing the topics the Commission would like covered and staff can then request proposals from different firms. He noted that perhaps the Council would be interested in providing additional funding. Chairperson Field stated that he would want to ensure that municipalities similar to Ramsey in age and miles in roads are included in the study, all available financing options, what has happened in other communities that utilize franchise fees, the number of cities that engage in 100 percent levy/assessment, additional information on the assessment model that Ramsey currently follows, and the annual budget of municipalities that are spent on road improvements compared to the remaining budget. Commissioner Anderson stated that the whole city is concerned with road improvements and funding, as is the City Council. Chairperson Field stated that he hopes that the City Council does not take this the wrong way. He stated that when you are opening up a box of potentially unlimited funding, that would be similar to letting a kid loose in a candy store. He stated that for the City to engage someone that is very enthusiastic about franchise fees may not be the best choice. He noted that once this box is opened this could be an uncontrolled shadow tax. He stated that if the Commission were to order a separate study that could have better standing in the end and could provide an option that would work for the City without amending the Charter related to franchise fees. Charter Commission/February 13,2019 Page 9 of 11