Minutes - Council Work Session - 06/15/2021 - Special

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Councilmember Heineman stated that although he was not a part of the franchise fee discussions as a member of the Council, he had several conversations with Councilmember Heinrich about that topic. He agreed that it would be good to review a history of the previous discussions and review the franchise fee option against the other options. He noted that perhaps the franchise fee is found to be the most stable funding option, but perhaps it is not. Councilmember Specht agreed that a decision would not be made tonight on this topic. He stated that he agrees with the language as recommended by the Finance Director. Mayor Kuzma commented that he is fine with the Council evaluating the alternatives but is unsure how that could occur until the budget process for this year is completed. He stated that once the budget process is completed it would help to provide a more accurate picture of the finances. Councilmember Musgrove commented that the franchise fee method sunsets in five years and would hope that the discussion is not kicked too far down the road. She stated that she believes the tax levy is a stable funding source as taxes are always paid. She believed that all funding sources should be reviewed. She stated that while the franchise fee is good for some, she does not believe it is good for all. She stated that her taxes increased, she now pays a franchise fee, and her road has not received any improvement. She commented that the City should have a plan in place for when the franchise fee sunsets rather than getting to the fifth year and not having a plan in place. Councilmember Riley commented that the sunset was put in place on purpose to ensure that there would be an end if it did not work. He stated that if this is reviewed in three years, the City would have three years of experience to review in making a decision. Councilmember Woestehoff stated that he agrees that this should be reviewed at some point in the future and prior to the sunset. He stated that there is not much experience at this time as this is the first year it has been in place. He noted that not having this bonded or included in the levy saves the City that interest that it would be paying. He stated that while he agrees this should be looked at, perhaps it is something that should be reviewed in the first quarter of 2022 when there is a year of data and the budget process to prepare for 2022 has been completed. He believed that the focus needs to be on the budget at this point. He stated that there has been miseducation as to what the franchise fee is and that needs to be corrected. Councilmember Musgrove commented that residents are paying taxes and the roads are not being done. She stated that now residents are paying their taxes and this fee to get roads repaired. She stated that perhaps the budget needs to be reviewed in order to determine what could be cut, specifically personnel. Councilmember Woestehoff stated that the majority of the City budget is related to public safety, roads, and other City services. Mayor Kuzma disagreed that the roads are not being done. He stated that the City has a system in place to address the road repairs but can only complete so many repairs in one year. City Council Special Work Session / June 15, 2021 Page 7 of 10