10-13-1992 CC - Laserfiche WebLink

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Mounds View City Council Page Thirteen •gular Meeting —October 13, 1992 Dave Schwartz, NSP, stated that the City's franchise agreement has a separate fee policy which calls for a public hearing. Trude want a clarification regarding the hearings. Trude asked if the City would have to hold another hearing before the implementation of the fee could be voted on. Mayor Linke explained that a item three could be acted on tonight as the City has met all requirements of the City Charter. The fee could be collected yearly instead of monthly per the existing agreement. Orduno clarified that the current franchise has 8 more years to be in effect. Charles Miller asked to hear the Council's reasons for wanting the franchise fee and how it would be better for the City residents. Mayor Linke stated that he has had the privilege to sit for many years on the Council and work on many budgets. Linke stated that he has seen the volatility of property tax increases. Linke stated that last year the Council was able to reduce the budget by 1.5% but had to raise taxes to make up the difference because of • property taxes going down. The franchise fee is a revenue source that the City can count on. The franchise fee will not fluctuate by "whoever has a bee in their bonnet" in the legislature. The City has had to reduce the fund balance and draw it down and loose interest and with the franchise fee money being put in monthly the City would earn interest on that money. Councilmember Wuori stated that she had not made up her mind as to how to vote on the franchise fee. Councilmember Wuori stated that it bothered her to rely on taxes. Perhaps a sliding scale could be looked into. The government has a habit of changing their minds and it is done in the middle of our budget year. If something isn't done, each year-the-City-wi-.-1a-1-l—back-l-ityle-by Ilttle. Councilmember Quick stated that no one knows how much the state will cut us this year. Quick asked where does the City make its cuts -- non-essential services, what are non-essential services -- parks, recreation, streets, maintenance. The City has a one million dollar payroll in Police alone. The franchise fee will help Mounds View stay in the future. If the City doesn't do anything Mounds View could become a part of Shoreview, New Brighton or Arden Hills. In order to plan for the future the Council has to make tough decisions. Maybe one of the candidates in the audience will have to deal with the $950,000 cuts next budget session.