Minutes - Council - 07/13/2021 - Laserfiche WebLink

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that the Finance Director has given a lot of valuable details and has stated that the franchise fee is one of the best and more stable methods to finance roads. He stated that previously the legality of franchise fees was mentioned but there are 357 cities in Minnesota that have franchise fees. He stated that the League of Minnesota Cities is a proponent for franchise fees and also provides the City insurance, therefore he finds it hard to believe that organization would support something that is of risk. He noted that there are a number of reasons why the franchise fee makes sense for businesses and citizens of Ramsey. He stated that the franchise fee is substantial for some people, but it is not massive. He stated that he focuses on the stability of the franchise fee and the five- year commitment to that rate, rather than the fluctuation of market value. He stated that with the franchise fee each household was committed to $14 per month, rather than an unknown figure that climbs as property values climb. He stated that he does not dispute that a discussion and review should be done but does not believe this is the proper action to take before that review is done. He stated that this issue is heavily debated by the Council and perhaps this is the time when this issue should go to the residents for them to decide. He stated that more details will be needed as to what a replacement could look like before repealing this funding method. He stated that this is a growing community and there are a lot of factors to be considered. He noted that most homes in new developments have a tax of $20 the first year, therefore it is disingenuous to say that placing this on the levy would be the most equitable. He stated that he is hesitant to support this without a real solution. Councilmember Specht commented that there are wonderful churches in Ramsey and other non- profit organizations that have to pay the franchise fee, but he does not believe should have to be punished by paying that fee. He stated that he was not aware that new homes pay less in tax the first year but believed that would be an incentive for people to move to Ramsey. He stated that any similar argument could be made related to property taxes and City services. Councilmember Riley commented that if this is going on the levy, so be it, but the roads need to be fully funded and therefore he wants to see the roads fully funded in whatever plan is presented. He stated that in order to do that there would be a 15 percent increase on the levy just to pay for the roads. He noted that this will also increase taxes for businesses and the Council should be aware of how that will be impacting businesses or attracting more businesses. He stated that he is concerned with stopping this form of revenue to fix the roads without something else in place. He likened it to quitting his job before having another job in place. He stated that his main priority is the roads and wants to see them fully funded in whatever plan. Mayor Kuzma commented that there is currently a rebate program for people that have previously paid assessments during the past five years and noted that he has not heard how that would be handled in a new plan. Councilmember Heineman referenced the comment that administrative costs are lower, and he would like to see the supporting documentation. He was unsure that lower administrative costs would be at the expense of the residents with the lowest house values. He stated that the City is taking action overlooking tax code, cultural norms, and how non-profits have been taxed in order to gain funds from non-profit organizations. He stated that he ran on getting rid of the franchise fee and understands that Councilmember Woestehoff may have ran on keeping the franchise fee, City Council / July 13, 2021 Page 9 of 11