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tax, and motor vehicle registrations for that matter, is paid to the state without direct correlation to the return you receive. The gas tax is the same if one drives only on freeways, state roads, county roads, MSA roads or city streets. At best, the gas tax is a proxy for an individual or entity's use of a public good called roads. Therefore, making a connection between how much gas tax an individual or entity pays or generates or the amount collected in a city, county or area as compared to the distribution derived by such is very difficult and probably inappropriate. Roads as a Public Good The public road system is generally considered a"public good". While there is certainly a utilitarian value that may be different for each property (a retail store has a greater need for a higher volume road than a homeowner might), there is a broader value to all members of the community. For example, as a homeowner, it is in my interest to have good roads around Rosedale to provide greater access, to provide greater profits, to provide higher business value, to reduce my taxes. By the same argument, Rosedale has an interest in me having a good road system. This circular argument can be played out in many ways with all sorts of caveats and exceptions but for this memo, this simple example presents the concept of "public good". As a public good, this resource, shared by all, is supported by federal, state and local funds generally. Local funds include trust fund distributions, property taxes and special assessments. In my judgment, any policy developed for each of these revenue sources must be cognizant of the effects that policy has on the others. There is a balloon effect (push in one place, it must expand somewhere else). A policy based solely on the concept of roads being a public good would suggest that there would be a single assessment policy for all properties and ignore whether the property was on a MSA road or not. Functionality A third key issue is the issue of functionality. Roads are designed and built to serve a particular function. A freeway serve's a unique funCtiOn in the same way that a neighborhood street serves a function. An assessment policy should be sensitive to what the function of the street is. For instance, having a home located on a high volume MSA Collector Street does serve the same function as having a home on a cul-de-sac. While functionality can be considered in an assessment policy, determining a functional value of a road for each property or even type of property would be very difficult and might require a parcel-by-parcel determination. Overburden Another important concern is the issue that was brought up by Council Member Maschka. It is the issue of overburden. Having a home on a high traffic street carries burdens that may not be found on a low traffic street. The high traffic may make for more difficult access to a property; more noise and other inconveniences would be parts of the perceived overburdens. The counter argument would be that the heavier volume street is repaired more quickly, the snow plowed sooner, etc. Just like the issue of functionality, placing a value on net overburden for a property or properties would be extremely difficult. Value of the Improvemeht A key consideration when determining a special assessment on a property is whether the improvement increases the value of the property. Case law suggests that there needs to be a correlation between a special assessment and the increased value of a property. This is also an extremely difficult thing to do, as there are so many factors that play a role in valuing property. The quality of the road is only one of hundreds of factors that are considered when putting a willing buyer and willing seller together. The difficulty is even greater when you are dealing with properties that exist out of the normal market place. Properties like churches that are unlikely to have a"sale price or market value" have no base to begin a value added comparison. Further complicating the issue is that one must consider both the value gain but also the value lost if streets are not improved. 2