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MINUTES SPECIAL CITY COUNCIL MEETING FEBRUARY 10, 1983 PAGE 5 utility bills are a sensitive area; however, it would give a stable in- come to the City and could, perhaps, defer some of the property tax. acting Mayor Larson wondered if this X50.00 per year could be a burden to families on a fixed income. Clerk Administrator Barnes had calculated the amount of income to be derived from a !~~ fee would be approximately X178,000 per year, about the same amount as the City receives in State Aids. Both Acting Mayor Larson and Councilmember Ciernia were concerned that since the State is financially unstable and is contemplating more reductions in aid to communities that the City might have a shortage of funds. Clerk Administrator Barnes informed that in 1982 the State Aids for Falcon heights were reduced $37,336.50 and the State is now considering another reduction. Councilmember Eggert did not approve of the franchise fee, he recognized that if the state makes ma,~or cuts it would be necessary to find other sources of revenue, but, at present the situation does not lookbad and that there is sufficient slack built into the budget for the year. He stated that the franchise fee was a hidden tax in which the public has no input. Councilmember Eggert was of the opinion that Council should not implement the franchise at this time but if necessary, put it into effect at a later date. Councilmember Chestovich stated she was opposed to the franchise fee on the grounds that it was a hidden tax, there was no public input and not necessary a t this time. Councilmember Ciernia proposed that the fee might be set at 2% rather than ltd, thus lowering the cost to residents, but still providing the City with some extra income. Councilmember Ciernia moved, seconded by Acting Mayor Larson that Ordinances #19? and #198 be adopted stipulating that a 2~ franchise fee be established on Northern States Power Company~s gross operating revenue for the distribution of gas and electricity within the City. Upon a vote being taken, the following voted in favor thereof: Acting Mayor Larson and Councilmember Ciernia, and the following voted against the same: Councilmember Eggert, due to the fact that it is a hidden tax, and not necessary at this time and Councilmember ehestovich for the same reasons. Motion d efeated. Clerk Administrator Barnes informed Council that the Municipal Liquor Store had been held up on February 8th and that the robbery was under investigation. Acting mayor Larson commended Deputy Vandeberg, who was on duty at the time of the robbery, and the Clerk Administrator was directed to write a letter to Sheriff Zacharias informing him that Council was pleased with the Deputy~s performance. 1'a FRANCHISE FEE (cont.) Council discussed at length means by which robberies might be prevented. LI~~UOR STORE The Clerk Administrator was directed to check into additional security HOLD-UP measures and report back to Council, Council felt that important BISCUSSED occurrences such as the robbery should be reported to each Council- member immediately and directed the Clerk Administrator to do so.