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Agenda - Charter Commission - 08/27/2020
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Agenda - Charter Commission - 08/27/2020
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Charter Commission
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08/27/2020
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75%; and commercial/industrial = 100%). The city also accesses MSAS funds amounting to an <br />average of $3.14 million per year. The current funding structure has been in effect for 30 years. <br />Eagan stated that their funding structure exists in its current form because they believe in the <br />importance of maintaining pavement infrastructure. The city's approach is based on the idea that <br />benefiting properties should be assessed construction costs. In other words, residents who receive <br />the benefit pay the cost. The city mentioned that the plan was created while considering its <br />efficiency, adequacy, and feasibility. <br />Stillwater <br />While it varies from year to year, special assessments are the largest portion of Stillwater's road <br />infrastructure projects, attributing for 70%. The remaining funding towards these efforts come in <br />the form of municipal state aid, government bonds, and general taxes. This funding model has <br />existed for 25 years and the approach has met the city's goals of funding these particular needs by <br />offering equity, feasibility, and adequacy. Additionally, over the past 25 years there has been no <br />public engagement in either measuring the popularity of the current road funding model or gaging <br />the public in alternative methods that may provide more efficiency. Stillwater has looked into <br />street improvement districts as an innovative approach to funding road maintenance for their <br />municipality. <br />Stillwater has used special assessments for 25 years for road funding needs, while also tapping <br />into state aid, taxes, and bonds. In addition to the length of time for special assessments, Stillwater <br />has done no public outreach to gage whether they public needs or even wants a new funding <br />mechanism. While it did mention they were keeping an eye on street improvement districts as an <br />innovative approach to road funding, Stillwater shows no sign in changing their funding method <br />as the current model continues to meet their needs. <br />SYNTHESIS OF FUNDING <br />From the interview and survey results of eight cities in the seven -county metro area we were able <br />to present a balanced depiction of how comparable cities to the City of Ramsey are funding their <br />roads (Table 2 and 3). Overall, the cities involved in this study seemed to be satisfied with their <br />current funding structures with a number of the cities having updated their road funding policies <br />in the past decade. Each of the cities used the funding techniques at their disposal in unique ways <br />and summarized in the below tables. While general funds, supported by property tax levies and <br />special assessments, seemed to be the most common funding techniques in our sample, aligning <br />with our background research findings, franchise fees seem to be increasing in importance and <br />popularity as cities search for new ways to raise dedicated road improvement funds. <br />We found that all cities except Coon Rapids and White Bear Lake fund their roads with general <br />fund and property taxes. All cities have used them in the past or currently use special assessments, <br />though Brooklyn Park no longer uses them, Elk River plans to eliminate their use in the future, <br />and New Hope only uses them for tax-exempt properties. Capital bonds were used in five out of <br />the eight cities. Franchise fees, an increasingly popular option, were used in four of the eight cities. <br />Brooklyn Park uses other mechanisms such as national and international grants and Inver Grove <br />10 <br />
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