10-09-2003 Charter Minutes - Laserfiche WebLink

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Charter Commission October 9, 2003 Page 3 DRAFT Community Development Director Grochala stated the intent is to get to the point where the City can utilize tax exempt bonds for projects within those areas. Commissioner Bening asked if the property owners have been notified. Community Development Director Grochala advised the property owners have not yet been notified. Staff wanted to discuss this issue with the Charter Commission before notifying property owners. Staff believes the City should eliminate the exempt areas. Staff will be making a recommendation to the Charter Commission in January. Finance Director Rolek distributed a letter from Springsted that outlined the distinction and impacts between taxable or tax-exempt bonds. Based on the outlined scenario, it would cost the City an extra $24,075 to $32,461 annually for 15 years for taxable bonds. Commissioner Bening stated the changes in the Charter were made in 1993 to help development in those areas. He asked staff why that has changed. Community Development Director Grochala stated it costs the residents in those areas more for projects because the residential and commercial property owners are not treated equally. The City needs to eliminate the Charter exempt areas altogether. Staff will determine how to proceed and bring a recommendation to the Charter Commission in January. Chair Montain stated it is hard to believe that the City would restrict those residents from opting out of assessments. He noted the two ways that the Charter can be changed and requested a staff recommendation for that aspect also. Community Development Director Grochala advised any changes would go through the City process. Property owners will be notified and public hearings would be scheduled. Commissioner Trehus suggested another option may be to extend the opt out to all property owners in those areas. Commissioner Carlson requested information on why the changes to the Charter were made in 1993. He also asked for information on the City being able to assess 100% of the projects if the areas are changed. The majority of the Commissioner's indicated they were undecided as to whether changes to the Charter should be made by the City Council and Charter Commission or go to the voters. Update on Fall Street Referendum—Community Development Director Grochala advised the City does have a fall street referendum. Information will be mailed to residents and neighborhood meetings are scheduled. The projects are the second phase of the City's street reconstruction projects. The areas include West Shadow Lake Drive and Shenandoah. 3