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06-27-1983 CCMMINUTES PUBLIC HEARING MONDAY, JUNE 27, 1983 The public hearing was called to order by Mayor James DeMeyer at 7:30 P.M. on June 27th, 1983. Present were: Mayor James DeMeyer, Alderman Ted Beatty, Alderman Ken Gruenhagen, Alderman Mike Carls, Alderman John Mlinar, City Administrator Gary Plotz, City Accountant Kenneth B. Merrill, Director of Engineering Marlow V. Priebe and Director of Maintenance Services Ralph Neumann. Mayor: The purpose of this meeting is a Notice of Hearing on Improvement. (Reading of Publication No. 3069, waiving the reading of all the streets listed.) Are all the streets in town included in this notice? Priebe: Includes all the streets in town except those that are scheduled for construction, which were also given this option. Mayor: The council, at recent workshops, has reviewed the street situation in the City of Hutchinson. The streets are in poor condition and we do not have the money in the general fund to maintain them properly. With the bad weather conditions this year we have gotten further behind. We are proposing an ab -norm tax to help pay for maintaining the streets. That is why we are here tonight. I will call on city staff to discuss the situation with you. If you have something to say, it is your help and input that helps us. I will now call on the City Engineer to give a report on the maintenance program. Priebe: On the notice you received, we indicated the type of street your property was served by, to the best of our knowledge. Since this is not an assessment hearing, a change in status of street type will be made before an actual assessment if we can receive information to substantiate same. This can be done by submitting information to me by calling me at my office or coming in to the office to discuss it. The proposed cost to be assessed has been determined by the average cost the City has had over the last few years for the different type of City Streets. On County Roads and State Highways, the City and State or County maintain same, which is why they have been give a "C" rating regardless of roadway surface. From 1967 to 1983, the following changes have occurred in our system and cost of maintenance: 4� # Minutes - Public Hearing Project No. 83-07 Page 2 42.6% increase in total miles of roadways in 16 years. 49.5% increase in total miles of City Streets in 16 years. Price of Oil in 1967 - $ .12 In 1983 - $1.07 Price of Bituminous Base in 1967 - $8.00 In 1983 $23.20 Price of Curb & Gutter in 1967 - $2.00 In 1983 $6.00 In 1967, many of you can recall that one of the worst streets in the City was Main Street. We have come a long way since then in trying to improve and maintain our street system. It is hoped that this can continue. For over 10 years the City has had a limitation placed on it by the ligislature relative to increasing its yearly levy. This has caused a decrease in revenue to operate the City. Due to this decrease, it has been necessary to make adjustments in many areas. The result has been that we have not been able to do the proper amount of maintenance on our City Streets and I am sure you can see the effect it has had on our streets. That is the real reason we are here tonight. We have come to the point in time when the maintenance can no longer be paid out of general revenue and a direct cost or assessment is what we are proposing. If the program is approved, we would expect to increase our maintenance program and some streets would have work done by contractors, since we do not have the equipment. Some residents have contacted me relative to what would happen if an improvement is requested on their street. The answer is, if such a request is received by the City and approved for 1984 construction, the proposed maintenance assessment would only be levied for 1983, payable in 1984. If it cannot be done until 1985, then then the 1983 and 1984 maintenance assessment would be levied, which would be payable in 1984 and 1985. Also, for a 1984 Improvement Project, the first assessment payment would be in 1985, and a 1985 Project would be payable in 1986. This is assuming the resident opts to pay for the improvement over the 10 year period. For your information, the 1983 estimated cost of building a residential street with curb and gutter inplace, is $24 per front foot. Based on this, a lot ith 66 feet of benefited frontage, the cost would be $1,584 or 58.40 per year plus interest. The same lot without curb and gutter would be $2,244 or $224.40 per year plus interest. In the new subdivision areas that are covered by an agreement, the cost per lot would be calculated for each subdivision on request. MILES % ALL ROADS % ALL STREETS 1967 1983 1967 1983 1967 1983 State Highways 4.95 5.9 11.5 9.6 -0- -0- County Roads 5.12 6.2 11.9 10.2 -0- -0- "A" Temporary Surfacing 26.63 22.9 61.7 37.1 80.4 46.3 "B" Bituminous Base 3.97 11.7 9.1 19.0 12.0 23.6 "C" Bituminous Wear -0- 13.4 -0- 21.8 -0- 27.1 Not Open to Traffic 2.52 1.5 5.8 2.4 7.6 3.0 TOTAL 43.19 61.6 100.0 100.0 100.0 100.0 42.6% increase in total miles of roadways in 16 years. 49.5% increase in total miles of City Streets in 16 years. Price of Oil in 1967 - $ .12 In 1983 - $1.07 Price of Bituminous Base in 1967 - $8.00 In 1983 $23.20 Price of Curb & Gutter in 1967 - $2.00 In 1983 $6.00 In 1967, many of you can recall that one of the worst streets in the City was Main Street. We have come a long way since then in trying to improve and maintain our street system. It is hoped that this can continue. For over 10 years the City has had a limitation placed on it by the ligislature relative to increasing its yearly levy. This has caused a decrease in revenue to operate the City. Due to this decrease, it has been necessary to make adjustments in many areas. The result has been that we have not been able to do the proper amount of maintenance on our City Streets and I am sure you can see the effect it has had on our streets. That is the real reason we are here tonight. We have come to the point in time when the maintenance can no longer be paid out of general revenue and a direct cost or assessment is what we are proposing. If the program is approved, we would expect to increase our maintenance program and some streets would have work done by contractors, since we do not have the equipment. Some residents have contacted me relative to what would happen if an improvement is requested on their street. The answer is, if such a request is received by the City and approved for 1984 construction, the proposed maintenance assessment would only be levied for 1983, payable in 1984. If it cannot be done until 1985, then then the 1983 and 1984 maintenance assessment would be levied, which would be payable in 1984 and 1985. Also, for a 1984 Improvement Project, the first assessment payment would be in 1985, and a 1985 Project would be payable in 1986. This is assuming the resident opts to pay for the improvement over the 10 year period. For your information, the 1983 estimated cost of building a residential street with curb and gutter inplace, is $24 per front foot. Based on this, a lot ith 66 feet of benefited frontage, the cost would be $1,584 or 58.40 per year plus interest. The same lot without curb and gutter would be $2,244 or $224.40 per year plus interest. In the new subdivision areas that are covered by an agreement, the cost per lot would be calculated for each subdivision on request. Minutes - Public Hearing Project No. 83-07 Page 3 Mayor: The City Accountant Ken Merrill will now give a report. Merrill: Stated that Marlow covered most everything but added that along with the Street Department, everything else has been increasing, general services, police, fire, etc... From state and local taxes you only have so much money to work with and things get put off. That is where the problem comes with the streets. I can see no other alternative than to go to the levy. Mayor: Due to the fact that we only get back a portion of the money, if we address this to the state level, would we need to address a larger amount? Merrill: The state will not allow us to increase the taxes to that level, so the direct assessment is the only alternative. Mayor: As I understand it, these funds will be set aside for this fund only. Is that correct? Merrill: This would be left up to the council to decide. Mayor: My feeling is that this fund will be set up for this purpose specifically. I now call on Ralph Neumann. Neumann: I would like to give you a recap of the street department. In 1963 we had 6 full time street employees. We now have 6 1/2 full time street employees. We do more than just clean the streets and remove snow. Some of the jobs we perform are seal coating, street patching, filling pot holes, grading, graveling. We now do all snow removal. At one time we contracted out for some of this work, but now we do it all. We install signs, paint and maintain all street light standards and clean sewers, repair all city owned buildings and maintain the city dump site and do all maintenance at the airport, paint all city cross walks and curbs. The economics of the street department are such that the street sweeper cost $60,000, and youre lucky to get 8 years out of a machine. The snow blower and front-end loader cost $90,000. Ten years ago a pickup cost $4,000. Today the cost is $8,000. The street budget 10 years ago was $27,000. In 1980 it was $80,000. This year the original budget was $73,000. Street maintenance can not be handled under the general fund. That is why we are here tonight. Mayor: It is easy to forget about thestreets. When we buy a new car or a home, they need maintenance. It is the same with the streets. At this time I am going to request any one present to come to the mike and give your name and address before speaking. John Reynolds, Illinois St.: Your last comment on maintenance strikes home. The problem is to come up with the money. Do you think it is wise to put limitations on taxes? Shouldn't they be raised since this includes the whole city? Minutes - Public Hearing Project No. 83-07 Page 4 Mayor: It would cost more to go that route. Reynolds: At these costs, when the road is graded twice a year, it just doesn't pay. Mayor: We know there are inadequacies. Reynolds: Mine is a Class A street with 8 houses on it. There is very little traffic. Mayor: The street in front of your home is yours in a sense, but all the streets are for the community to use on a whole. If we do not have quality streets in the community we have less of a community. Lloyd Schlueter, 108 Oakland Ave.: As I understand it, we will be assessed 20# a foot. After we have paid for the street originally, why should we have to pay to maintain them when there is plenty of money for replacement of sidewalks that don't need replacement, and also, there is always plenty of money to stick into parks and recreation. DeWayne Ingebretson, 630 Roberts Road So.: The amount we are being assessed is too high. I could hire a private contractor to do the maintenance for much less. We have been plowed twice in the past year. I feel it is a bit high. I know the streets need maintenance, but the cost is unreal. Priebe: Being a type A street, yours is an incomplete street. Last year the last house was built in that area and is now completed. We could recommend to complete the street, but we would prefer that the people address it to us. We have been holding off because they would rather wait. Mayor: If the street is built up and ready for completion, it could be petitioned and done next year. Ingebretson: If we wish not to blacktop, we still have the high maintenance assessments. Mayor: Maintenance by oil or water or chloride to control dust would be necessary. If you wish,you could go one step further and blacktop. Ingebretson: If we don't blacktop, we have the maintenance assessment. I feel like we are bing pushed into it. Why should we pay high maintenance assessments? Norman Bowen, 218 -5th Ave. N.E.: This is an A street on 5th from High to Main. Why are big trucks allowed to drive on this street? Priebe: Presently, there are no restrictions on any streets. We have put this street in for a state aid street and it has been approved as of last week. Sometime in the future, as the council and the residents agree, this can be done. The cost or assessment would be the same as a residential street. Minutes - Public Hearing Project No. 83-07 Page 5 Bowen: There are manholes that need fixing. There is one on my street that is so bad that I have had several items in my home broken when cars hit this hole. Priebe: We have had our crews out to get data to get files on what problems we have. We are still trying to update this. We can't afford to raise the manholes, knowing full well that we will be lowering them when we construct. The only alternative is to level them out. We realize it is a problem. Martin Prieve, 5th Ave. N.E.: Is it true that some other towns furnish garbage pickup and sewer and water and charge it to taxes? Also, between 5th and Prospect the street has been damaged by Juul, Hoffman and telephone crews, and now we are supposed to pay to maintain it. Trucks go through, but that doesn't make any difference. Some people are going to have a problem. The renter is goint to pay 5, 10, 15 dollars a month more. For the maintenance that is done, it doesn't seem right. Wes Anderson, 5th Ave. N.E.: Why are we goint to improve the streets and then continue to allow semi's run over them? Mayor: In the very near future, we will be taking a very serious look at truck routes. The residential property should not be burdened with this truck traffic. Neumann: If this proposal goes through, we will be providing a better street, and in addition, we will be able to do the streets we can not do. Mayor: I have had calles from citizens who have been told if they have any further problems, call me back. No one has called me back. You are also welcome to call Ralph Neumann. If you have a problem, do call. If some of you are being neglected, call. Wes Anderson, 5th Ave. N.E.: If the work is done, it should be quality work. My driveway was chipped when some previous work was done. Also, Clark Street is the nicest street in town. If any money is spent on it, it would be a waste of money and time. Gorman Draheim, Maple St.: I live on the end of Maple Street. The property out there has become a city oil dump. People come out there and dump their waste oil all the time. I reported it to the Police Department once and asked if there was an ordinance against this. They said yes. When I asked what they were going to do, they said that perhaps we needed more patroling out there. The only time I have ever seen a police car out there is when the fella . in the neighborhood goes home for lunch. And then the police called me up when a man reported to them that I jumped all over his son when he dumped oil there. Ronald Forsberg, 5th Ave. N.E.: There are road restrictions on county roads and highways. Why not on city streets? Minutes - Public Hearing Project No. 83-07 Page 6 Mayor: That has been brought up and will be looked into. Dale Annis, Dale St.: According to the letter we received, on county roads, the county is responsible for the center 24' of the road. The road is only 30' wide. How much does the City maintain, 2 feet on each side? Now to be assessed an ab norm tax is unjust. What is the actual work? Priebe: Repairing cracks, patching, new gravel base, seal coating. It varies from street to street. Annis: The county did work on street this spring. Why do we pay the City for half of the work? Priebe: No decision has been made. We will be looking into problem areas and revising. Richard Dessens: I am a non-resident, but I represent a company in town (Drag Specialties). I want to compliment the council on attacking this problem on City streets. Most of the people are concerned about the frontage on their own property, but everyone has use of the streets and should attempt to share the cost and the council should be complimented. Don Heimerl, 410 Connecticut St.: First I have a petition for blacktopping of Connecticut St., Campbell Lane and Hilltop Drive. also, I think the $65.00 for maintenance we received is too high. We are displeased with the snow removal service the Connecticut St. has had. We also have people that pay taxes and work in the City who would like to get to work. Floyd Hoel, Hanson Drive: We are not on the list. How do you get on this list? We asked to have our street done and we were told, yes it could be done by adding it onto another project. Nothing was ever done. We would like to have a better street. How do we get on this list, or how do we get a better street and curb and gutter? We should pay our fair share. Mayor: You are entitled to the same privileges as everyone else. Hoel: What do we have to do, come to another meeting. I have already spent a lot of time. Mayor: Just present a letter with all the signatures of the property owners and we will deal with it from there. Priebe: We will not be able to do it this year, it would have to be for next year. But as long as I know about it, I will write a memo on it and present it. Linda Martins, 1235 McDonald Drive: This spring there have been numerous trailers in and out of the trailer court. Trailers and semi's are being allowed to drive on the street. At this rate we'll be paying for the next 20 years. When these trucks and trailers are allowed to run over the streets, why should we pay the maintenance? Also, this improvement is for 1,600 feet west. How Minutes - Public Hearing Project No. 83-07 Page 7 far does the maintenance go? Priebe: The maintenance is from School Road to the mail boxes at the trailer court. Martins: There has already been 6 loads of gravel this year. The other day the city truck came and filled the holes again. How long will this go on? Marlow: We do have a problem on that street because of the field, which is outside the City. There is no plat on that property. If it was platted, we could put in a better street. It has been put on a holding pattern, but will be put back on the agenda in July for truck routes. Martins: The trucks are a problem, but the trailers are the biggest problem. Even at $100 per year, we would not be able to maintain it properly. Brad Olson, Delaware St.: I feel my assessment of $103.91 is high for maybe getting graded twice a year, and we have gone as long as 9 days without snow removal. We don't need much maintenance. As for oiling the road, we don't want it because we are near the river and enjoy the wildlife and the oil would just run off into the river and cause more pollution. We have a few mud holes, but we don't mind. We don't want or need this maintenance. There is a business on the corner and that is where all the traffic is. The only traffic is the people who live there. What is going to be done on this street? Priebe: Whatever the street department finds necessary is what thy would do. Olson: For the maintenance we get on Delaware Street and the price we will have to pay, $103.91, you're crazy. Roman Haas, 113 Mark Drive: If I understand correctly, an A street is charged $1.00/foot, a B street is $.40/foot and a C street is $.20/foot. What has it cost the City of Hutchinson to maintain the streets the last few years, the different streets? I want to know what the cost is per foot. In Clifton Heights you are asking $1.00/ foot, but you don't use the expensive sweeper or other high cost equipment on this street. Why should we pay the higher price? Priebe: Clifton Heights is a Class A street because it is a gravel street requiring more maintenance. Haas: How many miles of street in the City do you maintain. Priebe: 50 miles in the City. Pat Mikulecky, 385 Connecticut St.: How much did we have budget last year to street maintenance materials, only $30,000? Merrill: Total budget for street department was $250,000. Minutes - Public Hearing Project No. 83-07 Page 8 Mikulecky: This propsal is for $600,000 over a period of 4 years. That is $150,000 per year. Where do you get the funds? How did we come up with the money for 1983 if we don't pay for it until 1984? Merrill: Improvement bonds will be sold this year. Mikulecky: What improvement will we be getting? Priebe: Maintaining what is already there. Mikulecky: The street assessement of $688 for grading 3 or 4 times a year is high. I could hire an independent contractor at $50 per time. Why does the City cost so much more? Neumann: Many times, people do not even realize that the grade has been by. Mikulecky: I would rather pay an independent contractor the lower price. Also, Shady Ridge was not on the list of streets. Why? Beatty: It was on the list, I have my notice right here. Mikulecky: Does Glencoe have a full time engineering staff? Priebe: No they do not. They have consulting engineers. Mikulecky: The special assessments in the County of McLeod were $1,000,000. $530,000 of that was for Hutchinson. Why does Hutchinson have more special assessments than the rest of the county? Hutchinson also has 1/3 of the population of the county. Ben Stolpman, Hayden Ave.: I have two lots. I have spoken to several other people. Art Bretzke said this is an approved street with the approved gravel base. Lou Brunner said there is a City map which indicates the types of streets and that Hayden Avenue is an approved street. Check and see why it is an A street. The only thing we need is patching and grading. It is the same type as Osgood and Charles. I have so many assessment I could paper my walls with them. Why doesn't the general fund take care of it. The taxes we pay into the general fund should be used. I don't think we should have to pay. But if so, everyone should be taxed. They use the streets, they work. Because we own property, we are burdened with the assessments. Les Smith, 346 Monroe: This is a Grade A street with 10 houses on it. It was seal coated, I believe, about 5 years ago. Neumann: It was seal coated 3 years ago. Smith: What are the proposals for the next 4 years? Neumann: I will need another seal coating and patching for sure. Minutes - Public Hearing Project No. 83-07 Page 9 Smith: I would like to compliment the City crews, the engineers, police department, fire department and all others for the help they gave us in the Southeast area. We appreciated the help at the time of the tornado. Alan Schottmeier, 326 Larson: This is a 4 year program. What is the long range program of the City? In 1987, are we looking at a million? Mayor: We don't know what the situation will be at that time. It could be less. Schottmeier: If approved, does it set a precedent for the future? Mayor: I would hope not. From my point of view, I trust that these funds will be put into a separate fund. If there are monies left over, they should be carried forward. Tom McClure, 325 Glen St.: Water trucks from the farm service stores and the farmers go to the park to fill up with water. I have even seen trucks from Frederick Bros. Farm from Gibbon filling up with water. How much will they pay to maintain these streets? I will pay my share. Mayor: This is an item that needs to be discussed. It may need to be discontinued or controlled better. We may need to look at another location. Priebe: Our best bet would be to allow traffic on 3rd Avenue only. This is the only well used for this purpose, because it is the only well with untreated water. We don't want these trucks to get water out of other wells because of the possibility of contamination. McClure: I heard that they only pay $10.00 for a water key and can get all the water they want? Marlow: I don't know what the charge is. McClure: Why are they allowed to drive large trucks on the Class A streets? Do you feel obligated to supply this water, expecially to outsiders? Priebe: It was originally started on the request of companies in town. Dean Dietal, 2nd Ave. & Arch St.: The condition of the roads is atrocious. Is everyone in the City being assessed? Priebe: Unless they have had recent construction. Dietel: Does it include businesses? Priebe: Yes. Minutes - Public Hearing Project No. 83-07 Page 10 Dietel: Why do you even bother filling the holes with gravel. After they are filled and you drive over and a few more cars drive over them, the gravel is gone and the next time you dirve over them you almost lose a wheel. If they are not filled, at least you know where they are and can drive around them. Arch St. is a Class A street at $1.00/foot. I don't believe it is ever graded or plowed. No one travels on it, but the people that live there. Neumann: We are maintaining as instructed. June Wick, 535 So. Main St.: What will be done on Main Street? Priebe: The highways are classified as C streets because maintenance is done by the county and city. Wick: The snow removal is great, but we have to shovel our sidewalks 5 to 6 times when the plows go by. Also, during the winter months there is no parking on the street because about 2 years ago, signs to that effect were erected. Shouldn't we have been notified prior to the erection of these signs? I think we would benefit from repair to our alleys, since we must use them every day. Also, I don't know if I am reading this correctly, but according to the City Charter, Sec. 7.13, no obligation should be assessed to pay current expenses. I think you should check this. Leonard Riemann, Hwy. 7 East: Does this assessment pertain to maintenance only? Priebe: Maintenance of existing surface only. Riemann: And all the assessments are set up on a 4 year term? Priebe: Yes. Mayor: We will now close the floor and call on the Aldermen for any comments they may have. Beatty: The fund, in my estimation, would be kept in a maintenance fund, period. We don't know what will be needed down the road. What we would like to do is upgrade all the city streets to C streets. We have streets that have lasted longer than 20 years. Taxes have been climbing. Within this city in the last 10 years, -the amount has not been substantial. Ken Gruenhagen: This is a public hearing. The council is here to listen to the people. There were about 3,000 notices sent out. There maybe 150 people here tonight. It is hard to determine what the people who are not here want. We run in to extra expenses, such as the tornado. It takes money to have nice streets and a nice town. John Mlinar: In the notice, it is stated that everyone will be heard tonight and everyone should be heard. Is there anyone else who wishes to be heard? Minutes - Public Hearing Project No. 83-07 Page 11 Floyd Anderson, 226 Monroe: I am tired of paying out every year. The sewer in that area is condemned, although the City Engineer said he didn't know the sewer was condemned. Also, why does the description read from 1st Ave. to Washington Ave? There is no street there. Priebe: There is a platted street there, and that portion of the sewer is okay according to the sewer department. Anderson: Isn't that railroad property? Priebe: The railroad does not own the City street, it goes over the City street. Anderson: What will happen when they want to put in curb and gutter? Priebe: We will go through the same hearing process and see what the people want. Mayor: If a residential area requests street, we would need to deal with that. If it is considered to be satisfactory by the residents, I trust it would be left that way. If the people would address their needs, it would be helpful. Marlin Torgerson, 1245 Rolling Oaks Lane: This is a Class A Street. At 145 -1st Ave. S.E., a Class C. The maintenance is beautiful at both locations, but I suggest that everyone be assessed equally because everyone uses the streets. Charging $132 for one street and $13 for another street does not seem equitable. Marcy Stotesbury, Hilltop Drive: What is the $260,000 amount mentioned before? Merrill: $260,000 per year is separate from the street maintenance materials. Stotesbury: Does the state reimburse you for this? How much money are you planning on getting out of this for maintenance? Neumann: In May 1982, Larry, Marlow and I made a review of what we thought was the most important streets in the City to do. In 1982, there was $40,000 spent. In 1983, to date $30,000.00 In 1984 we are looking at $57,000. This did not include Class A streets, only B & C streets. Stotesbury: Will the project increase each year? Mayor: Not necessarily, it could decrease. Stotesbury: What will be assessed after we get a better surface? Mayor: As I understand it, for the first 4 years after that improvement, you would not pay at all for maintenance. The next 4 years you would pay a small amount. The next 4 years would increase. The problem is, if the umimproved streets pay the same as the improved streets, why would they want a better surface? Minutes - Public Hearing Project No. 83-07 Page 12 Stotesbury: So as long as you live in Hutchinson, you would continue to pay. Mayor: It's like owning a home, maintenance is always there. Stotesbury: There are people on fixed incomes and social security that this could be diffucult for them. it could be a burden to them. To get the streets improved, what does the City use? Priebe: Street Improvements are done by bonding and assessments. We wish to have this on a cash flow basis. Stotesbury: Take into consideration the old people in town. It could be a diffuculty for them. Deforest Wagner, Dale St.: This is a County Road and you are assessing $.20/foot. What is the County going to assess? Priebe: The County does it through taxes and state aid. Wagner: What are the taxes on this amount? Priebe: This is strictly an assessment with no interest. Don Heimerl, 410 Connecticut St.: This should be done through the taxes. This is not a tax and is not deductable. If you don't want the street done then you should not get the maintenance. It is supposed to be on the city program. It is the job of the City and it comes out of the taxes. If the State of Minnesota says you can only go so far, then so be it. If you don't have the funds, then you shouldn't do the work. We need the streets, but it is the wrong way to go about it. Harold LeSauer, 6th Ave. N.E.: Everytime they need money, whV, do they always ask the people? Why don't they try to save the people money? You buy property and sell it to the developers for less money than you paid for it. You are using our tax money for this. You bought the S & L and sold it for less money than you paid for it. Beatty: This is a hearing on street maintenance. LeSauer: You are asking us to pay for maintaining the streets. The taxes that we have paid should have been used for the streets. Instead you buty property and give it away. Mike Carls: With the S & L project, the attempt was made to take an piece of property that was generating a small amount of taxes and improve it so it would generate more taxes. The taxes generated by the S & L Bldg. was $3,000 per year. Now it generates between $27,000 and $28,000 per year. We could have left it vacant and let it generate few taxes. Once the bonds are paid back, who benefits then? There wasn't much there to begin with. LeSauer: The S & L Building is a fire trap with all that old lumber left in. We will get the voters to change the council so we can get someone to help us. Minutes - Public Hearing Project No. 83-07 Page 13 Ed Connelly, School Road: I am concerned with the dust. Wouldn't it be better to chloride the road? Mayor: With additional funding this could possibly be done. Connelly: I think there should be equal distribution to all. Carls: Until 1962 when street improvements were made, the improvement was charged city wide. At that time, the policy was changed and the benefited property owners have paid assessments for their city streets. Now to ask them to pay again, for the A streets, doesn't seem fair when they have paid for an improved street already. It would be great to do the whole City in one year and everyone pay, but it would be unfair. Walt Mackedanz, 136 Lynn Road: What is scheduled for Lynn Road? Priebe: Maintaining what is there. Mackedanz: It is a very good road and shouldn't need much maintenance. Deforest Wagner: Why can't all citizens be assessed? If you come into the City with a new street then you should pay for it. After that, if it needs maintenance, why can't it be assessed to all the people? Carls: Who should pay for the A streets? Wagner: Everyone. Priebe: If everyone paid for the same type of street, why would they want anything better? Some people have put in streets and paid for it and some have not. There are 3 different levels of streets and 3 different prices. Joel Gunderson, 145 -1st Ave. N.W.: What is the percentage price for A, B & C? Priebe: 27% are C, 23% are B, and Gunderson: No, I want to know what percentage would maintain these streets. What percentage of dollar figures is going to each of these streets? Priebe: I don't know that off hand. Martin Prieve, 5th Ave. N.E.: The notice that I got was for $1.00/foot. What is the difference between a B or C street? Priebe: A type B street has a hot mix base. Stotesbury: If you are bonding, where is the interest coming from? Merrill: The interest would come out of the $150,000 generated this year. Stotesbury: I thought it was all going for street maintenance? Mayor: There will be an offset. We are allowed to bond and put the money_ into an interest bearing account. Minutes - Public Hearing Project No. 83-07 Page 14 Priebe: Presently we have funds allocated for maintenance this year. We are changing from one procedure to another. When the transition is completed, we will be on a cash flow basis and there will be no interest. Unidentified Man: I would rather it be put on real estate taxes so it could be deducted. Mayor: If it is addressed to other agencies, when it comes back, we get what is left. Unidentified Man: If you don't have the money for the streets, don't do the work. Unidentified Man: What does a renter pay for the streets? Mayor: Rental units include the taxes in the rent price. Linda Martins, McDonald Drive: 10, 15, 20 years from now McDonald Drive could still be a Type A street. We will be paying $1.00 per foot forever. Why not upgrade all of our streets to Grade C. Mayor: We welcome any of you to come forward and have your street improved. We had a 10 year program which has been set back because people have petitioned to delay the work. When you get into the complexities, it is not that easy. What you have before you this evening is a proposal and we need your input for all of this. We need to know if you can't handle it. That is what this is all about, you. Dean Huber: If we end up with an overage, will it be set aside for maintenance purposes? Mayor: As I view it, yes it will be set aside for that sole purpose. Unidentified Man: How can you cut the cost on maintenance that is done when the maintenance is zero. My street was only plowed twice this year. It cost $400 for 4 years to run that grader only twice a year? Mayor: If you feel you are not getting your share of maintenance, I appreciate hearing this. Unidentified Man: The street is just fine with the maintenance we are getting. It just doesn't cost that much. Mikulecky: Connecticut Street has petitioned for an improved street. If we pay for this street now, how long before we get maintenance assessments? Priebe: 4 years down the line. Nothing is guaranteed to last 10 years without maintenance. Minutes - Public Hearing Project No. 83-07 Page 15 Mikulecky: Who is going to keep track of what is maintained and how much maintenance is done on each street? It seem it would be impossible. Priebe: We are going to keep track on a day to day basis what work is done and the cost. Unidentified Man: You will find that it is illegal to bond for street work not done until the next year. Unidentified Man: If you are not offered a completed street, why should we pay the higher price? Mayor: Everyone in the City is offered a finished street. Just address it to the council. Unidentified Woman: How many other cities are in this predicament? Mayor: I am uncertain. Priebe: There are some communities doing the same thing we are. Unidentified Man: What happens at the end of 4 years? Do we come back in and do this again? Mayor: Yes, we would have to. Unidentified Man: It should be in the budjet for the Street Department. Unidentified Man: What if the elderly people can't pay this every year? Mayor: There may be some programs to defer the assessment until the property is sold. Mayor: There being no more questions, I will close the floor and call on John Mlinar. Mlinar: The truck traffic is a problem. It is something we are looking into and trying to designate truck routes. The cost seems to be a probelm in that it is too much. May have to be looked into. There may be some alternate means we may want to look at. The 10 year street plan has been deviated from because of economy. Maybe it should be looked at and upgraded. I think we should go back to the drawing board and reevaluate. Carls: The cost will certainly be looked at. I am not certain we would have to bond all of the $600,000. Mayor: Read letter from W. D. Enterprises and Petiton for Connecticut St. Carls: If we come up with an alternate plan, do we have to have another public hearing? Priebe: As long as there is no increase, you do not have to. Motion etas made to adjourn and was seconded. Adjourted at 11:25 P.M.