07-10-1997 Charter Minutes - Laserfiche WebLink

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Charter Commission July 10, 1997 Page 3 Commissioner Dunn asked if a conference hotel is being considered. Mr. Wessel answered that is a possibility. Commissioner Turner stated that she would prefer to see more open space and trees along Lake Drive as an entrance to the City, instead of heavy commercial development; and questions were raised about traffic issues on Lake Drive with the current plan for commercial development. Mr. Wessel explained that traffic lights at the freeway ramps and improvements to Lake Drive will control traffic. Light industrial development is desirable as a buffer between residential and commercial areas. Light industry includes manufacturing parts and assembly work that is usually enclosed and contained within a building, environmentally clean and quiet. Chair Montain thanked Mr. Wessel for the information and urged Commissioners to attend the public meetings and/or talk to staff about further questions. ROAD RECONSTRUCTION Commissioner Dunn reported that a subcommittee of five Charter Commission members (Al DeMotts, Don Dunn, Ron Solfest, John Sullivan and Mike Trehus) has been working with City staff regarding the need for a road reconstruction plan and to set aside funding within the general fund for this purpose. A document from the Minnesota League of Cities, showing that there is nothing to prohibit the City from beginning a road reconstruction fund, was presented to the Council at a work session. It was suggested that the City consider establishing a road reconstruction fund from three revenue sources: 1) additional dollars from increased valuation of property; 2) tax increment financing (TIF) that will generate revenue in 1998; and 3) new revenue from new construction of business and residential development. Committee members met with City staff July 2, 1997. The same three sources of revenue were identified with a fourth one of prioritizing current expenditures to put funding into road reconstruction. The outcome of this meeting was twofold: 1) City Engineer Dave Ahrens agreed to reanalyze road reconstruction priorities applying a time phase for the work and the cash flow needed against the time phases; 2) Mary Vaske will analyze how that cash flow requirement fits with the influx of new revenue. The Charter Commission does not have authority to fund road reconstruction, and how that fund is spent is not controlled by the Charter Commission. A follow-up meeting is scheduled for July 22, 1995. In response to an inquiry about assessments, Commissioner Dunn stated that cities are only allowed to assess an amount that reflects the benefited increase in value to the property. That has typically been found to be approximately $.25 on the dollar. This means that only 25 percent to 30 percent of the total cost can be assessed. The balance must be paid from other sources. Commissioner Rehbein asked if the previously identified sources of revenue for road reconstruction would be used for the balance of costs so that taxes would not be raised. He expressed concern whether adequate funding will be available 10 years into the future or that the priority will be to use the funding for something other than fixing roads. Chair Montain answered, yes. He noted,however,that if these revenue sources are used