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Mounds View City Council October 11, 1999
<br />Regular Meeting Page 24
<br />Council Member Marty stated Director of Public Works Ulrich had indicated it costs
<br />• approximately $700,000 to refinish a mile of road. He noted this is the "Cadillac" of roads, 50
<br />feet wide, with sidewalks and gutters, etc. He explained to Mrs. Werner that when it comes time
<br />to redo her road, the Streets Policies Committee has recommended the citizens affected on that
<br />road will meet at public hearings for their specific road, and will decide what type of street they
<br />desire. He explained if the residents decide to have the "Cadillac" of roads, they can, although
<br />they will still be required to 25 percent of its cost. He added if they decide they want to keep the
<br />beautiful trees, it will be their decision, and the City will not come in with rules or mandates.
<br />Council Member Marty noted that he and Mayor Coughlin were members of the Streets Policies
<br />Committee at its onset, and these were the discussions that were coming forward. He
<br />commented after he and Mayor Coughlin were off the committee, the Streets Policies Committee
<br />came forward with their recommendations. He stated he was very impressed with their work.
<br />He stated Mary Malerick, Chairperson of the Streets Policies Committee has indicated that the
<br />neighboring cities of New Brighton, Spring Lake Park, Blaine, Roseville, Fridley, and St.
<br />Anthony have had a tax through the operating levy, or separate funds through sewer and water or
<br />street Lighting, which have been instituted and in place for some time for street replacement. He
<br />explained that until now, the City of Mounds View has not had anything in place to generate
<br />revenue to replace the streets. He stated he did not know how they had gotten this far without it,
<br />but believes it is high time that something is done.
<br />Council Member Marty stated the cities of Arden Hills and White Bear Lake have street funds of
<br />which they can only utilize the interest, and not the principal. He noted much could be done with
<br />• the interest on a 30 million-dollar fund, however, Mounds View does not have anything set
<br />aside. He explained that 1.5 percent, m the form of a franchise fee, will provide approximately
<br />$125,000 a year, and fora $700,000 per mile road, this amount will not go very far. He stated
<br />this was why he was hoping to be able to apply more of the franchise fee directly toward the
<br />street fund.
<br />Council Member Marty stated he had attended the League of Minnesota Cities conference in
<br />June, along with other Council Members and members of staff. He noted this was the
<br />conference at which Council Member Stigney had won a $1,000 door prize. He stated he
<br />attended a seminar at this conference, in regard to explaining taxes to the citizens, and had
<br />questioned one of the experts teaching the seminar, in regard to Tax Increment Financing. He
<br />stated the expert indicated, with commercial and business taxes being lowered by the State in the
<br />last couple of years, cities with Tax Increment Financing situations could be in for some difficult
<br />times. He stated that some of the cities entering into new Tax Increment Financing programs are
<br />specifying this is not just based upon taxes, but the minimum payment. He explained that the
<br />City had researched a Tax Increment Financing situation this spring, in terms of minimum
<br />payments, to insure the City will not be caught short if the State continues to lower the business
<br />and commercial taxes. He noted, however, the expert speaker further indicated the only way
<br />cities can cover themselves, or possibly recoup, if the State's course of action follows true with
<br />the past couple of years, is to maintain their franchise fee. He advised this is the only means the
<br />City has to correspond with the taxes coming into the City, and if commercial and business taxes
<br />continue to be decreased, the only way to cover the operating expenses of the City is the
<br />franchise fee.
<br />Ms. Olsen stated that Mounds View does not need to be concerned about this, as the majority of
<br />the City's commercial Tax Increment Financing Districts are "pay as you go" situations. She
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