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Mounds View City Council October 11, 1999 Regular Meeting Page 12 Mr. Warner stated this provided him with insight into Mayor Coughlin's philosophy regarding finances. Brian Schipe, representing Sysco Corporation, 2400 County Road J, stated their company was very pleased two years prior, when the franchise fee was decreased from 3 percent to 2.5 percent. He explained that being a very competitive marketplace, keeping costs low to their customers, and keeping on the competitive edge was very important to their company, and they were looking forward to and hoping fora 2.5 to 2 percent franchise fee. Mr. Schipe stated his company's utility bills are over one half a million dollars per year. He explained that any increase only hurts their company by increasing their operating expense, which must be adjusted by cutting back employee salaries or raising prices to their competitor, neither of which are favorable for their company, and they view this as a significant issue. Mr. Schipe stated the proposed 4 percent franchise fee represents an approximate 70 percent increase in taxes. He thought this to be absurd adding that any government agency that would increase someone's taxes 70 percent was ridiculous. He explained this might represent $18.00 to some, however, 70 percent of over a half a million dollars is a very significant amount of money. He commented that from the perspective of a company that had moved into Mounds View to conduct their business, they were very disappointed in this. Mayor Coughlin pointed out that the documents posted on the wall of Council Chambers reflected the debate of this issue, which commenced at the beginning of the budget process • several months prior. He explained the Council has discussed for some time, how the City can preserve, not add on to, the existing infrastructure. He stated Mounds View is an older town, with roads and sidewalks, and some of the even the most conservative residents of the City have indicated they desired to have trails as well. He advised all of these things come with a cost. He explained that various people have commented the City streets were in a state of disrepair. He noted the Public Works Director would agree with this, as he is often spending more in staff time and money, attempting to use "spit and bail twine" to hold the infrastructure together, than if they would just begin to address some of these issues. Mayor Coughlin commented what constitutes good infrastructure could be debated, and this is a separate issue, however, the City has infrastructure that is falling apart. He explained that part of his job as a good steward of the community is to preserve that which was invested in years ago. He noted the residents have paid taxes over many years, before he was even born, to create and maintain the City roads. He stated he would not turn his back on his duty, and would look beyond his term in office, to find a way to set up a mechanism by which, through the years, they can pay for their infrastructure. He advised it was of the utmost importance, even in regard to business, that they provide a community that is nice to look at, and nice to live in. He stated both business and residents use the City roads, and they cause wear and tear, and break them down. He commented he would Like to wave a wand and simply say "a11 roads be nice," however, there are very large areas of town, developed 30 and 40 years ago, which are in desperate need of repair. Mayor Coughlin pointed out if there was a lesson to be learned, it is that when you set out to do something new, without planning for how to pay for it, the Council is obligated to find means to cover the debts. He added this is the case with the golf course, as the previous Council did not foresee the problems that could occur. Mayor Coughlin stated, if he was to receive some of the