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Regular City Council Meeting Monday, July 12, 2010 Page 16 other classes billed at a rate of 5 units per acre, similar to the structure to the City's existing storm water fee and comparable to other communities currently billing for street lighting. Mr. Schwarz noted that there were 9800 single-family residential properties and approximately 2400 acres of non-residential properties in the City of Roseville. Mr. Schwartz advised that staff sought Council direction whether to schedule a public hearing and provide a more detailed and accurate analysis of rate informa- tion. Finance Director Chris Miller confirmed that any fees would be considered re- stricted funds, under the ordinance, Section 804.05, and in accordance with state law; with those funds only available for use in paying street light utility costs and related capital and maintenance costs, and not to be co-mingled with other funds. Councilmember Ihlan questioned if this fee would result in a reduction of the property tax levy by the same amount or this fee considered above property taxes. Mr. Miller indicated that this would be a policy discussion for the City Council, and that staff could provide additional research on the issue at the Council's dis- cretion. Councilmember Pust opined that a future City Council policy discussion should be to discuss tax exempt groups benefiting from infrastructure but not paying for that benefit (e.g. Payment in Lieu of Taxes -PILOT). Discussion included cost comparisons of residential versus commercial proper- ties; consideration of the legality of applying street light utility fees to tax exempt properties. Councilmember Roe proposed that any amount currently in the levy come out of the levy if this revenues source was implemented. Councilmember Roe opined that this would be a source of revenue that could be dedicated and controlled by the City outside the General Fund, and would provide a direct correlation between use and the amount collected. Mayor Klausing expressed his interest in establishing a public hearing for further consideration; however, he expressed his personal opposition to reducing the levy dollar by dollar for collection of this fee. Mayor Klausing noted that the original rationale in directing staff to pursue alternative funding sources was to address the City's insufficient funding for capital needs. Mayor Klausing spoke in support of a short-term consideration to use this as an additional funding source, and when the City was in better shape financially, to subsequently reduce the levy.