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Mounds View City Council February 12, 2001 Regular Meeting Page 17 Council Member Stigney questioned what other cities use the same PCI and what percentage of the PCI do they use to determine when the street should be repaired. Public Works Director Ulrich indicated he thought Roseville used the same PCI. Council Member Stigney asked if that percentage was 70%. Public works director Ulrich indicated he was not sure what the percentage was. Council Member Stigney requested that Staff check other cities for what their PCI percentage cutoff number is for determining when a street must be repaired. Public Works Director Ulrich indicated he would check into it and also stated he could check with the City’s consultant as a large number of cities use the same consultant. Council Member Stigney indicated there was a big difference in the projects mentioned by Mr. Ulrich in his earlier comments as one project is an MSA street and the other is a City streets so repairs are paid by residents. Public Works Director Ulrich clarified that the residents on County Road H2 would pay for half of 26 foot of asphalt and base to 9/10 design. They will not pay for anything else. Residents on the northern side with the exception of Arden would pay for 100% of the rehabilitation. Council Member Stigney asked how many streets the City is planning on doing during what period of time. How many is the City projected to do over what period of time and how many are MSA versus non-MSA. He noted there is $1.6 million in special projects funds and said the City could perhaps use that money for street projects. He also asked Staff to check into using funds in the TIF interest fund for funding the street project repairs. Public Works Director Ulrich noted he had asked the finance director for a brief analysis as the franchise fee was mentioned at the work session to raise it to fund street improvement projects. The finance director told him the current City taxes of an average household are approximately $410.00. If the entire four (4) percent of the franchise fee was used to pay off bond payments virtually eliminating a street assessment for street repairs for the next 20 years, using the scenario that the City would do approximately $1 million dollars worth of street projects every other year, the increase in tax dollars to figure the current 2% and the additional 2% it would mean an increase of 13.5% meaning the City needs another $280,000 annually to fund street projects using the franchise fee. Public Works Director Ulrich indicated the average franchise fee paid per resident is approximately $60.00 per year. In essence with a tax increase of approximately $55.00 plus another $30.00 for franchise fee the resident would pay $1600 - $2000 over a twenty year period. These figures include inflation and rising construction costs. They are paying for assessments or bonding in some way shape or form. Doesn’t know how residents would prefer to pay for the assessment.