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City Administrator Ulrich stated the City Council can decide if there is a consensus to get closer <br />to costs by covering that with fees while being sensitive to existing residents. He added City Staff <br />can pull some fees for typical residential projects. <br /> <br />Councilmember Specht asked whether there will be public comment on this matter. Finance <br />Director Lund stated the issue will be introduced in November, and will require a public hearing, <br />as it is an Ordinance. <br /> <br />Councilmember Riley stated that 15%, which gives us $1.673 million, is less than the $1.9 million <br />we are bringing in now. He added he can support it if the roads are fully funded with the 1.9 <br />million. <br /> <br />Councilmember Heineman stated roads were only fully funded by franchise fees for two of those <br />eight years. He added, under this plan, the City will need to dip into the slush fund but there will <br />be 6 years of consecutive surplus starting in 2023. <br /> <br />Councilmember Riley stated there is only extra if you build in an increase. <br /> <br />Councilmember Heineman stated there is currently a balance. <br /> <br />Councilmember Riley stated it is growing because we are anticipating a 5% increase. <br /> <br />Councilmember Heineman stated the 5% increase is actually quite a bit lower than the average <br />7.5% increase that we have had since 2014. He added, by doing this, if we can keep it to 5%, we <br />will have a 2.5% year after year general increase in savings, and we will also fully fund the roads <br />and end 2030 with a surplus of $1.9 million. He added he can provide the numbers. <br /> <br />Finance Director Lund stated the City has to do a 15% increase every year based on the 5% levy <br />increase. She added, at the end of 2030, the balance would be $2.8 million. <br /> <br />Councilmember Heineman stated there would be a deficit of $712,000 with the franchise fee. <br /> <br />Councilmember Riley stated you are not building a 5% increase into the franchise fee. He added <br />it will not be fully funded in the first year, and we do not know what will happen in the coming <br />years. He noted it is assumed it will increase by 5%, and that assumption was never used for the <br />franchise fee. <br /> <br />Councilmember Heineman stated the only way this doesn't work is if future City Councils do not <br />pass an average of 5% going forward. He added these numbers are based on the CIP, and the <br />franchise fee will only fund the City for 2 of the next 8 years. <br /> <br />Councilmember Riley stated he does not like to make decisions assuming there will be an increase <br />every year, although he agreed it is likely. <br /> <br />Councilmember Heineman stated the franchise fee represented a 15% tax increase for many <br />th <br />residents. He asked whether the City Council wishes to fund roads through the 10 year. <br />City Council Work Session / September 14, 2021 <br />Page 10 of 15 <br /> <br />