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Table 1: Current and Potential Road Funding Mechanisms for the City of Ramsey <br />* Indicates the City of Ramsey is currently using this funding mechanism <br />Mechanism Description <br />Special City imposed levies on property owners as a percentage of a public project cost <br />Assessments* that benefits the charged properties. In Ramsey adjacent properties are assessed <br />25% of total project costs. <br />Property Tax Levy* The city tax authority sets a percentage rate for additional tax to cover road <br />costs, which is then calculated against the assessed value of each homeowner's <br />property. <br />MSAS Eligible cities (population of greater than 5,000) are able to access assistance <br />from the Municipal State -Aid Street System funded by the State's transportation <br />related taxes. <br />Franchise Fee The city taxes local utilities for the utilities' use of public roads to ply their <br />services. The tax is either a flat rate per customer, a percentage of the utility's <br />gross revenue, or a percentage rate of each customer's utility usage. Utilities <br />pass the cost of the tax onto consumers, raising everyone's utility bill. <br />Sales Tax The city applies a local sales tax to local business transactions <br />Capital Improvement Cities can raise money to pay for capital improvements by selling bonds, which <br />Bonds* guarantee full repayment plus interest to the lender. <br />Source: Zhao, Z.J., Das, K.V., & Becker, C.E. (2010). Funding Surface Transportation in <br />Minnesota: Past, Present, and Prospects.; City of Ramsey and WSB. (2019). Pavement <br />Management One -Pager.; City of Ramsey. (2013) Joint Meeting on Long-term Options for Street <br />Maintenance.; City of Ramsey and WSB. (2019). Ramsey Pavement Management Funding <br />Commission Meeting Presentation. <br />