Local Road Funding

The purpose of this case is to update the Council with more information and research on local road funding.  On May 28, information was provided to the City Council and, after discussion, additional information was requested.

• A list of responses to frequently asked questions (FAQs) raised during the March public input meetings was provided. 
• An estimate of revenue from franchise fees, based upon information from the utility companies, was provided to the Council.
• An analysis of road funding options on local properties based upon value, considering property taxes versus franchise fees was reviewed and a revised version is attached.
• The financial impact of a rebate policy to address properties that received assessments over the past 5 years was reviewed.
• A draft generic ordinance is attached for consideration of policy issues such as the dedication of fees to transportation, and assessment rebate program, and a sunset provision.  It is generic such that the utility company name, fee amounts and dates are left blank. 
• Consider possible ballot questions, either an advisory question or specific ordinance amendments.  The August Special Election is too soon to post a question, and the November 2019 Special election is still a possibility to consider a city wide ballot question, but the election would need to be expanded to include all City wards.
• Staff has met with the Charter Commission and a committee of the Charter Commission to consider this issue.  The Charter Commission has asked for additional research regarding the use of franchise fees in Minnesota and other cold climate states for road maintenance. The University of Minnesota is expected to submit a proposal to consider the research in which the Charter Commission has expressed an interest.

The Council may choose to introduce the franchise fee ordinances, followed by adoption, similar to the process the City followed in 2003.  When introduced, the ordinances would be redrafted to include the necessary information.  

The City's Charter provides a unique opportunity for the public to petition against adopted ordinances.  Chapter 5, Section 5.7 of the City's Charter (Referendum) reads as follows:  Prior to the date an ordinance takes effect, it may be subjected to referendum by a petition, which shall state at the head of each page, or attached thereto, the exact text of the ordinance to be considered by the voters. If the petition is found to be sufficient under the provisions of Section 5.3 of this chapter, the said ordinance shall thereby be prevented from going into operation, and the subject matter of the petition shall be placed on the ballot at the next election occurring in the city.  If no election is to occur within 120 days after the filing of the petition, the council shall call a special election to be held within such period, providing the petition has been found to be sufficient.  If a majority of the voters voting thereon vote for the ordinance contained in the petition it shall take effect immediately upon certification of the election results by the council.  Please note that the language relating to the election occurring in 120 days is obsolete because of uniform election dates set by State legislature.  The Charter Commission is in the process of amending the Charter language to be compliant.  The election would be set for the next available uniform date.

Following receipt of a petition, staff must determine if there are a sufficient number of signatures.  Charter language states the following:  Section 5.3 Determination of Sufficiency.  The committee shall file the completed petition in the office of the city clerk.  The required number of signatures for initiative and referendum shall be at least twenty percent of the total number of registered voters at the time of the last citywide election.  Note:  The last citywide election was November 2018.  There were 15,890 persons registered as of 7:00 a.m., Election Day, with 907 more registering on that day, for 16,797 registered voters.  Twenty percent of 16,797 is 3,359. 

The question of franchise fees could also be brought to the citizens for a vote.  It could be placed on the ballot as a regular question or an advisory question.  The City's Charter provides the following:  Chapter 4.  Nominations and Elections.  Section 4.4 Special and Advisory Elections Except for Elected Office.  The council may by resolution order any special or advisory election deemed appropriate by the council, for any reason, and provide all means for holding it. 

The City has presented both kinds of questions in the past.  Attached to this case is an example of the ballot from November 2001, which included both types of questions.  Also, for your information, the Canvassing Board material for that election is included as well.   

 

It is likely that tonight's work session may not allow enough time for a full discussion of this report.  If that is the situation, staff is recommending that the Council refer this report to the Public Works Committee at their regular meeting of June 18 to continue discussion. 

N/A

Kurt Ulrich

Action based upon discussion. Possible outcomes include the need for additional research, concensus to bring specific action to the Council for consideration, a future Council work session, or referal of this item to the June 18 Public Works Commission for review and discussion.  Note, Public Works staff has suggested that their planned agenda would allow adequate time for this discussion.  The Public Works Committee meeting is scheduled for Tuesday, June 18, 2019, beginning at 5:30 p.m.