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Regular City Council Meeting Monday, November 14, 2016 Page 28 At the request of Mayor Roe, Finance Director Miller clarified that the increase of 5.4% in the CIP was a result of updated assumptions and projections, including some not identified before. Mr. Miller reported that each department had been challenged to seriously review those assumptions, which they had done, providing for a recalibration and more accuracy in the numbers, part of what was driving an increase in base fees for 2017. Mayor Roe thanked staff for the bench handout providing the analysis of how rates were achieved, allowing him to see cost inputs and rate needs in various cat- egories, along with the capital areas. Mayor Roe encouraged staff to incorporate this information with the RCA on the website for public information, duly noted by City Manager Trudgeon. Councilmember McGehee referenced, and displayed, her previous calculations attached hereto and considerations entitled, “Utility Rate Facts and Questions,” and made a part hereof. Councilmember McGehee noted this involved her pref- erence of a different funding structure for utility rates, opining the current system was unfair and impacts of the fee were burdensome for homeowners, especially those living in lower prices homes with the link to their home’s value. Coun- cilmember McGehee suggested increasing the city’s tax levy by 15% that would actually result in saving money for all single-family homeowners and in the long run make the system more equitable citywide. Councilmember McGehee noted that the city could then pay for its fire station, parks public safety services, and in- frastructure through that levy increase while providing utility rate relief to almost every homeowner in Roseville without reducing upkeep and maintenance on the city’s infrastructure system. Councilmember McGehee asked her colleagues to reconsider her proposal rather than continuing to penalize residents through its current utility fee and rate structure. Mayor Roe opined this involved a philosophical decision as to how the city chose to pay for its infrastructure. Mayor Roe stated a question he’d want to understand better was a correlation between a home’s value and the ability to pay. Under Councilmember McGehee’s suggested revenue source, Mayor Roe noted that by basically using the property tax system, a resident was paying for water provision based on the value of their home through the tax system. Mayor Roe stated his question was whether that made sense or not that may result in a higher rate based on that value than the current flat fee used. Mayor Roe also noted the tax exempt properties that would no longer pay utility rates under Councilmember McGe- hee’s proposal, and impacts for businesses that already pay significantly more in property taxes. As suggested by Finance Director Miller, Councilmember Willmus suggested this 2017 utility rate proposal not be adopted tonight, but at the December 5, 2016 meeting to allow the community to review, digest and provide feedback on it.