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Mounds View City Council October 11, 1999 Regular Meeting Page 14 consideration, Transportation Policy and Transportation Finance, which are addressing State policy in terms of the roads, and how they will finance them. Representative Haake stated she had attended a meeting that date with the Metropolitan Council, in regard to the original master plan for transit. She explained there has been discussion at this level in regard to inter-modal systems, roads, light rail, commuter rails, and every aspect of transportation. She stated whatever they decide to do, they are aware it will cost money. She explained that continued maintenance of the roads is imperative, as this is how the Sysco products are brought into the City, as well as all other products that must be transported, and the roads are to the benefit of the people. Representative Haake indicated the State is considering three priorities for the year 2000, and the second of these priorities is transportation, as relates to the costs of transportation links, such as the highway system, bottlenecks, and bridges. She noted the University of Minnesota is developing sensitivity design training, which is similar to the process utilized in the Mounds View area for Spring Lake Road and County Road I. She explained these residents received the road they desired because they did not utilize MSA funding, which limits the residents' control of the roads. She explained that the new road policy in Mounds View allows the residents of a neighborhood to decide what type of road they desire for their neighborhood. She pointed out with the sensitivity training, the engineers are beginning to research new concepts in street design, and with this research they may discover that the City can obtain the roads less expensively than anticipated in the original plan, due to the sand based soils in Mounds View. • Representative Haake commented she was going to be assessed approximately $4,500 for the improvement of her road, and the average street assessment would be approximately $4,200 to $4,500, which represents 50 percent. She explained the Streets Policies Committee had provided a recommendation that the road in front of a resident's property be considered the starting point and allow the resident to "buy up" if they desired, and the second recommendation was to reduce the assessment rate to 25 percent. She explained by doing this, they were aware the citizens would benefit very much, however, the City must provide the balance of the funds, and bond issues and different forms of funding were discussed in this regard. Representative Haake stated she was present during the implementation of the original franchise fee, and had looked forward to seeing it sunset, and continue to decrease, however, there are issues at the State level, in terms of the levy limits, which have been extended for another year. She noted one of the taxation Chairs has indicated the levy limits might be lifted next year, however, they were uncertain this would occur, and in the interim, neither the City or the State have the funds to proceed with street improvements. She pointed out this was the result of a "crunch" felt not only by the City, but also at the State level. She added that the infrastructure throughout the State is beginning to fail, and must be provided for. She indicated although increasing the franchise fee is not the most popular solution, she was not aware of how they would otherwise obtain the necessary funds. She inquired if the proposed ordinance would sunset. Mayor Coughlin stated it would, on an annual basis. Representative Haake stated she appreciated Ms. Olsen's arguments, which were logical. She suggested that if the ordinance sunsets in a year, people will have the opportunity to indicate their feelings at that time, and in the meantime, they can salt this fund with $125,000, an amount