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ARDEN HILLS CITY COUNCIL WORK SESSION—OCTOBER 21, 2013 5 Mayor Grant requested the Council discuss how the franchise fees would be used by the City. Councilmember Holmes was in favor of having the franchise fee funds set aside solely for trails. Councilmember Holden agreed with this suggestion. She then discussed the difference between trails and sidewalks; and the fact that most sidewalks would need to be constructed along streets and in the front yards of some homeowners. Mayor Grant recommended the franchise fees be used strictly for public benefit or improvements. He saw that the franchise fees could greatly benefit the City's incomplete trail system. He indicated that he could support the funds being used for other City capital outlay items including City parks. Councilmember Holden questioned how the funds would be used for parks. Mayor Grant suggested that the funds only be used for capital improvements or equipment, and not for general park maintenance. Councilmember Holden supported the franchise funds being used for park acquisition as well. Councilmember McClung commented that there were several general maintenance items within the budget, being parks/trail and streets, that were currently being funded through PIR funds. He wanted to see general maintenance items covered by the general fund. This would allow the PIR fund to then be used for other public improvements. He did not want to see the City constrained or delaying necessary street improvement projects. He commented that if franchise fees were not pursued, the Council could consider a park referendum or bonding. He indicated he could support franchise fees being used for parks, trails and City streets after the funding issues were resolved. Councilmember Werner stated that he was not in favor of the proposed franchise fee. Councilmember Holden explained that she supported franchise fees versus bonding. She stated she could support franchise fees being used for street improvements. Mayor Grant also supported franchise fees being used for street improvements. He proposed the funds be broken down to have 30%used for streets, 50% for trails and 20% for parks. Councilmember McClung indicated that he would need more information on the funding that would be generated before he could agree to any percentages. He recommended the Council provide the public with a great deal of information on how the franchise fees would be used by the City in order to gain their approval. Councilmember Holden stated that the franchise fees will in part come from tax-exempt properties. She stated that she could go higher on the road percentage and proposed it be increased to 40%. Councilmember Holmes proposed combining the parks and trails funding.