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Mayor LeTourneau asked how debt is carried for the road debt. <br />Finance Director Lund explained how the road bonds are carried as debt and included in budgets. <br />She stated that currently the City has four bonds for road debt, which are carried over 20 years. <br />Mayor LeTourneau stated that in addition to the $500,000 that is annually budgeted for roads, the <br />City also has the road bonds included in the budget as debt. <br />Councilmember Kuzma stated that the Council considers the roads very important as he was a part <br />of the team that enacted the assessment process. He stated that the roads are rated annually, and <br />they attempt to address the worst roads each year. He stated that the City has done radar <br />penetrating throughout the City and has found that roads built 25 years ago did not meet the <br />requirements for bituminous, therefore there is not enough road to complete a mill and overlay and <br />a reconstruction is needed. He stated that this has become a huge problem that will not go away. <br />He stated that the franchise fee will provide that dedicated funding in order to really tackle this <br />problem in a fair manner. He stated that if the roads are put on the tax levy, the taxes will increase. <br />He stated that he supports this action. <br />Councilmember Menth stated that each year the City was taking out debt to fix roads, noting that <br />there are four road bonds. He stated that each year the City pays interest on that debt and if the <br />City continues with the program of borrowing the money and assessing the residents, by 2029 the <br />City would be paying $2, 3 00, 000 on interest and debt. <br />Mayor LeTourneau stated that they need to monitor how the money is spent for the City for the <br />best interest of the community. He stated that the reality of accumulating that much debt and <br />paying that much in interest does not feel fiscally responsible. He stated that the franchise fee is a <br />much more fiscally responsible way to collect the funds and use the money. He stated that <br />ultimately this will save the City millions of dollars. <br />Councilmember Musgrove stated that she is not for debt and would want to see a line item in the <br />budget. She stated that her concern is that the Councils in the past have not done the job necessary <br />for the City in terms of roads. She stated that she will not support this action. <br />Motion by Councilmember Musgrove, seconded by Councilmember Specht, that Ramsey fund its <br />roads through a byline budget of a number between $1,000,000 to $1,300,000 with a 25 percent <br />assessment or 100 percent levy. <br />Further discussion: Councilmember Specht stated that he believes including the funding through <br />the budget would be the best idea. He stated that he is unsure of the exact figures included in the <br />motion and believe that the funds needed should be allocated. He stated that including the item in <br />the budget is the most transparent method. Councilmember Kuzma stated that he would oppose <br />this as that would equate to a 15 percent increase in the budget along with other road debt, which <br />would be a 20 percent increase in taxes and would make Ramsey less attractive for businesses. <br />Mayor LeTourneau stated that there were many comments related to controlling and managing <br />this. He stated that he likes that this would do that through ordinance. He noted that a previous <br />Council set aside funding for roads which was reversed by a later Council. He stated that there <br />City Council / July 14, 2020 <br />Page 11 of 18 <br />