Minutes - Council - 07/27/2021 - Laserfiche WebLink

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organizations. He expressed his support for the franchise fee, because it is the best option that is currently available. Councilmember Heineman asked Councilmember Woestehoff how many residents are behind on utility payments. He stated his point is that numbers continually fluctuate, regardless of what model is being used, and there is no exact number. He added it is not appropriate to suggest that franchise fees are a stable source of income, as numbers fluctuate and are not infallible. Councilmember Musgrove asked whether it is possible to designate specific funding from the levy for roads improvements. She added the City does that with other parts of the levy. City Administrator Ulrich agreed, stating the City Council can adopt a policy to set aside funding every year for a specific expenditure, that could be changed by a future City Council. He added an Ordinance may be required, which is a cumbersome process. He suggested that the City Council could consider a policy to indicate that this is a budget intent, to set aside funding, and give direction to future City Councils. Councilmember Musgrove stated she thinks that would be a good policy to have, and should be considered during budget discussions. She added the City has a public improvement fund through the levy for road maintenance, subject to excess or deficit of funds at the end of the year. She noted the City Council tries to make sure the funds are used up as much as possible, but they could be used for other things. Councilmember Musgrove stated property taxes are governed by the State of Minnesota, and the City has a certain amount of money that can be collected from residents based on property tax restrictions. She added franchise fees constrain City spending, there will be more flexibility when the $1.9 million in franchise fees is removed. She added this Ordinance will give the City Council the ability to focus on implementation of a roads plan as a priority. Motion by Councilmember Musgrove, seconded by Councilmember Heineman, to Adopt Ordinance #21-16 Repealing Ordinances #20-11, #20-12 and #20-13 in regard to Franchise Fees on Centerpoint Energy, Connexus Energy and City of Anoka Electric. Further discussion: Tom Gamek, 16021 Neon Street NW, stated there was a franchise fee in Ramsey years ago, that was scaled down throughout the years and which eventually came down to zero. He added the City’s roads are very bad, and he wonders what the assessments will be, which is the only way to get the roads done. He added a slush fund would be left over, and the City could keep things going for a long time. Mr. Gamek stated the City Council must decide what they want to do about the roads before shutting down the franchise fee, and there will be many problems without the franchise fee, including an increase in taxes of approximately 43%, according to the League of Minnesota Cities. He urged the City Council to take more time to really look at this before eliminating something. He noted he favors the franchise fee because he knows the money will go toward roads, and Ramsey is growing. City Council / July 27, 2021 Page 9 of 25