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Mounds View City Council October 11, 1999
<br /> Regular Meeting Page 12
<br /> Brian Schipe, representing Sysco Corporation, 2400 County Road J, stated their company was
<br /> very pleased two years prior, when the franchise fee was decreased from 3 percent to 2.5 percent.
<br /> He explained that being a very competitive marketplace, keeping costs low to their customers,
<br /> and keeping on the competitive edge was very important to their company, and they were
<br /> looking forward to and hoping for a 2.5 to 2 percent franchise fee.
<br /> Mr. Schipe stated his company's utility bills are over one half a million dollars per year. He
<br /> explained that any increase only hurts their company by increasing their operating expense,
<br /> which must be adjusted by cutting back employee salaries or raising prices to their competitor,
<br /> neither of which are favorable for their company, and they view this as a significant issue.
<br /> Mr. Schipe stated the proposed 4 percent franchise fee represents an approximate 70 percent
<br /> increase in taxes. He thought this to be absurd adding that any government agency that would
<br /> increase someone's taxes 70 percent was ridiculous. He explained this might represent $18.00 to
<br /> some, however, 70 percent of over a half a million dollars is a very significant amount of money.
<br /> He commented that from the perspective of a company that had moved into Mounds View to
<br /> conduct their business, they were very disappointed in this.
<br /> Mayor Coughlin pointed out that the documents posted on the wall of Council Chambers
<br /> reflected the debate of this issue, which commenced at the beginning of the budget process
<br /> several months prior. He explained the Council has discussed for some time, how the City can
<br /> preserve, not add on to, the existing intra-structure. He stated Mounds View is an older town,
<br /> with roads and sidewalks, and some of the even the most conservative residents of the City have
<br /> indicated they desired to have trails as well. He advised all of these things come with a cost. He
<br /> explained that various people have commented the City streets were in a state of disrepair. He
<br /> noted the Public Works Director would agree with this, as he is often spending more in staff time
<br /> and money, attempting to use "spit and bail twine" to hold the intra-structure together, than if
<br /> they would just begin to address some of these issues.
<br /> Mayor Coughlin commented what constitutes good intra-structure could be debated, and this is a
<br /> separate issue, however, the City has intra-structure that is falling apart. He explained that part
<br /> of his job as a good steward of the community is to preserve that which was invested in years
<br /> ago. He noted the residents have paid taxes over many years, before he was even born, to create
<br /> and maintain the City roads. He stated he would not turn his back on his duty, and would look
<br /> beyond his term in office, to find a way to set up a mechanism by which, through the years, they
<br /> can pay for their intra-structure. He advised it was of the utmost importance, even in regard to
<br /> business, that they provide a community that is nice to look at, and nice to live in. He stated both
<br /> business and residents use the City roads, and they cause wear and tear, and break them down.
<br /> He commented he would like to wave a wand and simply say "all roads be nice," however, there
<br /> are very large areas of town, developed 30 and 40 years ago, which are in desperate need of
<br /> repair.
<br /> Mayor Coughlin pointed out if there was a lesson to be learned, it is that when you set out to do
<br /> something new, without planning for how to pay for it, the Council is obligated to find means to
<br /> cover the debts. He added this is the case with the golf course, as the previous Council did not
<br /> foresee the problems that could occur. Mayor Coughlin stated, if he was to receive some of the
<br /> credit for changing the City's road policy, which reduces the assessment rate on business and
<br /> residents from the present 50 percent, to 25 percent, he would not bind a future Council with an
<br /> unfunded mandate. He stated he did not enjoy this, and would rather cut the fee in half,
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