Agenda - Council Work Session - 06/09/2020

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CC Work Session 2. 1. Meeting Date: 06/09/2020 Information Title: Pavement Management Program Discussion: Franchise Fee and Property Tax Funding Purpose/Background: In 2014, the Ramsey City Council adopted a Pavement Management Program that relied on assessments and an annual property tax levy to support the effort. It was concluded that this method was the best approach at the time and that the funding program would be re-evaluated after five years. The City Council held a work session on May 12, 2020 to discuss Pavement Management Plan funding options and to determine a preferred option to fund road repair and maintenance over the next five years. The consensus of the City Council at this work session was that staff should focus on the franchise fee option, but that they would also like to see the effect if the roads were funded 100% via the tax levy. Staff would like to review the proposed franchise fee ordinances, impacts, and timeframe required for implementation of a franchise fee.. Several attachments have been included that outline the following: • Calendar: Outlines the timeframe needed for the implementation of a franchise fee. • Proposed Franchise Fee Ordinances: Connexus Energy, City of Anoka, and Centerpoint Energy • Calculation of Franchise Fee Needed based on 2021-2029 CIP Project Costs • Franchise Fee Revenue Generated • Special Assessments Assessed — To determine rebate (if approved in ordinance) • Net effect on tax rate if fully levied to taxes • Effect on taxes vs franchise fee: Breakeven Point — This is not available at writing of case will be added. Timeframe: 45 minutes Funding Source: Based on discussion. Responsible Party(ies): Kurt Ulrich, City Administrator Diana Lund, Finance Director Outcome: Direction regarding Pavement Management Program funding options based upon Council consensus. Attachments Franchise Fee Implementation Calendar Ord 20-11 Proposed Franchise Fee Centerpoint Energy-