Minutes - Council - 01/28/1997 - Laserfiche WebLink

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Ken Peterson, Cable Commission, stated that originally the commission felt it might be to our advantage to negotiate with Meredith Cable. They sold to Continental and they sold to US West. However, now we have decided to go along with the extension. Motion by Councilmember Beahen and seconded by Councilmember Haas Steffen to adopt Resolution//97-01-039 regarding extension of Cable Television Franchise(s). Motion carried. Voting Yes: Mayor Gamec, Councilmembers Beahen, Haas Steffen, Beyer and Zimmerman. Voting No: None. Motion by Councilmember Beahen and seconded by Councilmember Haas Steffen to introduce the ordinance amending the Cable Franchise Ordinance. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Beahen, Haas Steffen, Beyer and Zimmerman. Voting No: None. Case #4: Discussion Regarding Street Maintenance Program Funding City Administrator Schroeder stated that staff is looking for Council input. At three meetings in 1996, Council considered introduction of a utility franchise fee ordinance, the revenue from which was proposed to be dedicated to the sealcoating portion of the Street Maintenance Program. At the January 14, 1997 meeting, Council directed that tasks be undertaken to provide for the 1997 Street Maintenance Program. This program is budgeted at $293,700, of which $135,000 is expected to be covered by the Public Improvement Revolving Fund (PIR). Currently the City provides for 50% of the cost and the other 50% is provided through the benefit assessment. About five years ago, it was a 100% assessment. That changed in about 1990. After that, the PIR was created. Staff's desire has been to attempt to eliminate the assessment entirely and find some other revenue source other than the benefit assessment for funding. Our question to Council is - are you fine with how this is currently operating? If not, we are looking for suggestions and directions. Mayor Gamec felt it would be nice to handle all the public hearings differently - to save money. With a franchise fee, or an increase in taxes, the resident is paying either way. Councilmember Haas Steffen stated she is not convinced that a franchise fee is the way to go. She felt irritated when she had to pay an assessment and people on a County Road did not have to pay one. She felt everyone ought to have to pay. She suggested that if this is done so it can be claimed on taxes, she would feel better about it. She was not sure what would happen if this is put onto the property owners. She asked if businesses could get some kind of relief. She expressed interest in knowing what would happen if 100% came out of the general fund. She believed that the average home owner could get back some tax relief but she did not know what it would do to the businesses. Mr. Schroeder stated that if the City paid for everything, it would be about a 5% increase in the tax bill. About 30% of the tax bill is paid by the commercial customer. Seven to ten percent of our market value is commercial. Councilmember Haas Steffen stated she would like to see examples. Mayor Gamec requested knowing what this would do to the average homeowner and to the businesses. Mr. Schroeder offered to get the information but he would have to use very broad assumptions. Finance Officer Hart stated that any business expense is tax deductible. City Council/January 28, 1997 Page 8 of 11