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Ordinance No. 1206 07-25-2005ORDINANCE NO. 1206 AN ORDINANCE AMENDING FRIDLEY CITY CHARTER, CHAPTER 7. TAXATION AND FINANCES, SECTION 7.02.3.A. & B. PERTAINING TO UTILITY FEES SECTION 1. The Fridley City Council hereby finds the following: That in 2000, a successful initiative petition proposing an amendment to the Fridley City Charter requiring voter approval for tax increases beyond specified inflationary adjustments, or to create, expand or increase various fees was received and placed on the November 7, 2000, municipal election ballot. The question was approved by the voters by 57% of all people voting in the election. In an attempt to remedy confusing language contained in the amendment and potentially dangerous and costly problems for the City, an ad hoc work group met and formulated an ordinance designed to correct the language contained within the amendment. The ordinance was reviewed by the City Charter Commission and recommended to the City Council for adoption. The ordinance was approved April 9, 2001. That in 2004, due to the City's increased costs in providing the sanitary sewer, storm water and water sales to its customers, it was found that an unintended consequence to the City had been created by the amendment by not allowing the City to recover its full costs for providing sanitary sewer, storm water and water sales. The Charter Commission recommended adoption of an ordinance removing utility fees from Section 7.03.A. of the City Charter as a defined fee that could not be increased above 5% or the rate of inflation, whichever is lower. The City Council adopted the ordinance; however, a successful Referendum Petition requesting withdrawal of the ordinance was received and placed on the November municipal election ballot. The question approving the ordinance failed and the ordinance did not become effective. During the 2006 budget preparation and planning it was determined that sanitary sewer, storm water and water costs continue to increase due to a number of outside factors beyond the control of the city. Some of these factors include federal mandates imposing increasingly higher standards for water and sewer, higher sewage disposal charges imposed by the Metropolitan Council Environmental Services agency, and ongoing repairs and maintenance of the system's infrastructure. The City Council sent a Survey to all current city commissioners to query their thoughts about utility rates. There was overwhelming agreement that the charter should be amended to allow the city to recover its costs for sanitary sewer, storm water and water sales. That a proposed charter amendment will help eliminate potential for long term subsidy of sanitary sewer, storm water and water deficits; provide cost recovery for federal or state mandates; and maintain all other spending restrictions which requires city council to obtain direct voter approval for programs that increase costs above 5% or the rate of inflation, whichever is lower. SECTION 2. That Chapter 5, Section 5.09 of the Fridley City Charter states that, "The ways to initiate amendments to this Charter are set forth in Minnesota Statutes. Minnesota Statutes Chapter Ordinance No. 1206 Page 2 410.12, subd. 5, allows for the city council to propose an amendment to the voters by ordinance. This ordinance shall be submitted to the charter commission for review. After the charter commission completes its review and notifies the city council of its recommendation, the city council may submit it to the people. SECTION 3. That the Fridley City Council hereby ordains that the Fridley City Charter be amended and that a Special Election be held in the City of Fridley on November 8, 2005, to allow the people to vote on the following question: Shall the Fridley Charter be amended so as to permit water, sewer and storm water charges above the rate of inflation without the passage of a referendum for each such increase? O Yes O No SECTION 4. That the City Clerk shall cause notice of said election to be given to the Anoka County Auditor within 53 days of said election and that notice of said election be published in the official newspaper of the City for at least three weeks prior to said election; and That the City Council ordains that the election shall be held at the usual polling locations for the state general election, as set forth in Exhibit "A," and that said election shall be held and conducted in accordance with the Minnesota State Statutes applicable to municipal elections and the provisions of the Home Rule Charter; and That the City Council shall meet within seven days from said election as required by law for the purpose of canvassing said election and declaring the results thereof. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 25th DAY OF JULY 2005. ������ Scott J. Lund, Mayor ATTEST �� Debra A. Skogen, City rk First Reading: June 13, 2005 Charter Commission Review: July 18, 2005 Second Reading: July 25, 2005 Publication: August 4, 2005 Ordinance No. 1206 WARD 1 PRECINCT 1 WARD 1 PRECINCT 2 WARD 1 PRECINCT 3 WARD 1 PRECINCT 4 WARD 2 PRECINCT 1 WARD 2 PRECINCT 2 WARD 2 PRECINCT 3 WARD 2 PRECINCT 4 WARD 2 PRECINCT 5 WARD 3 PRECINCT 1 WARD 3 PRECINCT 2 WARD 3 PRECINCT 3 WARD 3 PRECINCT 4 Exhibit A Polling Locations Grace Evangelical Free Church 755 73rd Avenue Northeast Hayes Elementary School 615 Mississippi Street Northeast Fridley Municipal Center 6431 University Avenue Northeast Fridley Community Center 6085 7�' Street NE Woodcrest Elementary School 880 Osborne Road Northeast Knights of Columbus 6831 Highway #65 Northeast St. Philip's Lutheran Church 6180 Highway #65 Northeast North Park School — Gym 1 5575 Fillmore Street Northeast North Park School — Gym 2 5575 Fillmore Street Northeast Springbrook Nature Center 100 85th Avenue Northeast Redeemer Lutheran Church 61 Mississippi Way Northeast Stevenson Elementary School 6080 East River Road Fridley Covenant Church 6390 University Avenue Northeast Page 3