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Motion by Councilmember Kuzma, seconded by Councilmember Musgrove, <br />hearing. <br />Motion carried. Voting Yes: Mayor LeTourneau, Councilmembers Kuzma, <br />Riley, and Specht. Voting No: None. <br />The public hearing was closed at 8:27 p.m. <br />Council Business <br />to close the public <br />Musgrove, Menth, <br />Councilmember Specht thanked everyone that has taken time to provide input. He stated that <br />everyone agrees that the roads need to be fixed. He stated that City services are offered through <br />the property tax and therefore he believes roads should be done in the same manner. He <br />commented that people would be assessed based on the value of their home, as they are with the <br />other City services. He stated that franchise fees would tax those in apartments and non -profits <br />which serve people in the community. <br />Councilmember Riley stated that the Council has discussed this many times over the past several <br />years and a lot of information has been reviewed and debated. He agreed that this is a tax. He <br />stated that properties assessed for road improvements are not the only ones that benefit from the <br />improvement and provided examples of Jarvis, Andre, and Sunwood in which the few properties <br />on the road were assessed but many others benefit. He noted that the assessment process has an <br />additional administrative cost of ten percent and the debt portion has become a problem for the <br />City. He stated that everyone uses the roads, regardless of whether they own a vehicle. He stated <br />that this franchise fee has been planned to fully account for the road needs of the community. He <br />stated that in the past up to $6,636 has been assessed for a road project, which equates to 40 years <br />of franchise fees. He stated that many neighboring cities use franchise fees. He stated that the <br />other choice would be to place the road improvements on the tax levy. He stated that if the City <br />were to levy the amount of money needed for streets that would equate to a 15 percent increase in <br />taxes. He stated that levies are not based on income, but rather property value. He stated that <br />while there may be some correlation between income and property value, that is not always the <br />case. He stated that in the last few years about 10 percent of those that file taxes itemize their tax <br />return, which goes towards the argument that property taxes can be itemized. He stated that this <br />Council is accountable every time there is an election. <br />Councilmember Musgrove stated that there has been a lot of discussion about this topic in <br />worksessions. She stated that she appreciates the input from the residents today and the majority <br />of residents would prefer to have roads funded through assessments or the levy. She commented <br />that roads have not been a priority in Ramsey for a long time. She commented that the $500,000 <br />included in the budget for roads is laughable. She stated that the comments from residents tonight <br />support the comments she has made throughout this discussion. She stated that residents can <br />receive a property tax refund, whether they rent or own. She commented that franchise fees have <br />to be paid and do not go away. She stated that there is no guarantee that taxes will not increase if <br />this franchise fee is passed. She stated that she will not support this ordinance. <br />City Council / July 14, 2020 <br />Page 10 of 18 <br />