Mounds View City Council October 11, 1999
<br /> Regular Meeting Page 27
<br /> City Administrator Whiting explained the money comes into the General Fund, and then is
<br /> allocated to another fund, or is designated in a way still to be determined by the City Council.
<br /> He stated the following agenda item, the resolution, directs staff to work with the Council to
<br /> determine a way to do this, and how restrictive the Council desires to make it, in terms of
<br /> whether they want to act with an ordinance, a Charter amendment, a resolution, etc. He stated
<br /> there were many questions in terms of the appropriate way in which to do this, as well as the
<br /> traditional means of dedicating funds to the City.
<br /> Mrs. Warner stated this was not what she was interested in, but wanted to know if the entire 4
<br /> percent would go into a fund strictly designated for streets, or if they were going to do something
<br /> creative with the funds, and find themselves in the same position they are in now.
<br /> City Administrator Whiting explained that the language in the resolution suggests, unless the
<br /> Council chooses to indicate otherwise, that anything over the 2.5 percent will be the amount that
<br /> goes into the street fund.
<br /> Mrs. Warner inquired what was wrong with putting the entire 4 percent into the street fund. She
<br /> stated if it was not, it could just be "funny money" in the General Fund.
<br /> City Administrator Whiting explained that the City does not have any "funny money." He
<br /> explained that because this decision on the franchise fee must be made ahead of the final
<br /> discussion, some of the questions she was asking have yet to be determined.
<br /> Mrs. Warner stated the citizens of Mounds View should have some assurance of where the funds
<br /> were going, and if they indicated that the entire 4 percent would go into a fund and "cast in
<br /> stone"that it was for the streets, they might receive a very favorable response.
<br /> Ex-Mayor McCarty stated his comment that he wanted to have services, however, he did not
<br /> want to pay for them, was an attempt to point out that asking for services, and at the same time,
<br /> opposing an increase in taxes simply does not work. He stated through his experience, he was
<br /> aware that the proposed budget for the year 2000 is "bare bones," under State mandates, paying
<br /> sales taxes on municipal purchases, and under mandates that must be funded whether necessary
<br /> or not. He stated, without having seen that budget, he would wager it is "bare bones" and there
<br /> are not enough funds in the General Fund budget to make the road project work. He stated the
<br /> greater majority of the citizens of Mounds View want their intra-structure protected. They want
<br /> their streets driveable, and the value of their homes protected, and they would embrace this plan.
<br /> Ex-Mayor McCarty explained the City did have a fund in place for the streets, which expired in
<br /> 1997, so if the time frame is correct, the adoption of the franchise fee this evening will provide
<br /> the opportunity to make a comparison, and hold it up to the budgetary challenges. He stated that
<br /> if in the future, it is determined that the total levy is not being utilized, this can be adjusted for
<br /> the time being, which will not provide permanency, but will provide "breathing room," and time
<br /> to allow the debate to settle out. He stated, however, to suggest that the City Council has any
<br /> "float" or "humorous money" simply is not correct, and he knows this from experience. He
<br /> stated he would challenge anybody who views this as a wrongful act of the Council, out of
<br /> respect for the forum, to show him their alternative.
<br /> Ex-Mayor McCarty stated as he left office the previous year, he did not know any of the three
<br /> new Council Members,however, after seeing the debates, watching the election, and talking with
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