Agenda - Council Work Session - 06/22/2021

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taxes should be the method to fund the improvement. He stated that the benefit by the roads is realized by those that own property. Mr. Madden commented that he previously lived in Andover and received an assessment of $4,000, which was spread over ten years and he believed to be a reasonable cost. He stated that he did go to the City Council to complain about that assessment but still believed that an assessment would be a more reasonable method of funding. Mayor LeTourneau stated that there seems to be a concern about what the franchise fee is called. He recognized that franchise fees are a tax and the Council agrees with that point. He stated that funds have to be collected in one way or another and it is a tax. He stated that of the options available, none are perfect and therefore they are trying to find the best method for the community. Mr. Walker stated that he is glad to hear the Council admit that this would be a tax on the residents. He stated that the Minnesota Supreme Court has already ruled on the fees that cities are charging and are calling it a tax. He cautioned against collecting fees that could need to be paid back. He stated that he believes that the Council will approve this, no matter the comments made tonight. He believed that a five-year trial period is too long, as many of the members of the Council may not be here in five years which means that there would not be accountability. He commented that those that support this should need to be accountable. He stated that transparency is lost in budgeting by using these types of fees and therefore people are not held accountable for the decisions they make for the residents. Mayor LeTourneau commented that the ordinance could be introduced and passed by the Council. He asked if the Council would have the power to rescind the ordinance during that five-year period. City Administrator Ulrich commented that as with any ordinance adopted by the Council, the Council can change or modify the ordinance at any time. He explained that the reason for the five- year review is to keep the accountability. Mayor LeTourneau commented that the assessment policy was done in the same manner, with a five-year trial period. He stated that the Council will continue to state that this is a transparent tax that will be used as dedicated funding for roads. He stated that he would be open to having a discussion of how that could be made better. Chelsea Howell, 5250 156th Ln NW, stated that she agrees with the comments made thus far that a franchise fee is a regressive tax. She did not believe now is the time to burden people with additional taxes. She stated that she is concerned for the residents that have already paid assessments and asked for details on how those residents would be impacted. Finance Director Lund provided additional clarification on what those residents would be eligible for. Ms. Howell stated that she does not feel it is fair to double tax people. She stated that the majority of what residents want should be taken into consideration and noted that everyone tonight has spoken against this idea. City Council / July 14, 2020 Page7of18