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MINUTES <br />CITY COUNCIL <br />JULY 9, 2003 <br />no one utilizing the rinks at certain hours of the week, then they would be <br />closed. <br />Fahey noted that as part of this discussion, the Council needed to establish <br />a target figure for the amount of revenue to be raised by gas and electric <br />franchise fees. <br />Blesener indicated that he was not prepared to support a $1.2 million <br />expenditure for trails. Blesener suggested that rather than complete the <br />trail improvement at one time, these improvement be spread out thus <br />spreading out the cost. <br />The City Administrator indicated that the $1.2 million is a rough estimate. <br />He also noted that the City is planning to submit a T-21 grant application <br />for a large share of the trail work. If the grant is approved, the cost to the <br />City would be reduced substantially. The Administrator suggested that the <br />Council review the trail plan, readjust priorities, and plan the <br />improvements and expenditures based on that review. Fahey agreed that <br />in tough economic times, the trail improvements should be scaled back for <br />a year or two. <br />Anderson agreed that the Council should review the trail plan indicating <br />that there may be some natural breaks in the plan that could be used for <br />extending out the improvements. <br />The City Administrator indicated that the cost of the trail improvements <br />may not have included the cost of easement acquisition. <br />The City Administrator raised the issue of the timing for implementing the <br />gas and electric franchise fees. Jurek suggested a January implementation <br />date given that Xcel Energy is going through a conversion of its billing <br />system. The Administrator noted the Council directive fora 9/1/03 <br />implementation in order to offset losses in aid for 2003 and 2004. He also <br />noted that on a cash flow basis, a January implementation would only <br />yield nine months of revenue. Blesener pointed out that the urgency is <br />somewhat diminished in that the City will be allowed to levy back 60% of <br />lost aids. It was also noted that once new franchise ordinances are passed <br />by the Council, the fees must be implemented within 60 days. <br />Council again discussed the amount of revenue it wanted to raise through <br />the implementation of these fees. The consensus was that $175,000 to <br />$200,000 in revenue would be needed. <br />Staff was directed to continue working with Xcel Energy on this matter, <br />and to scheduled further consideration by the Council at its next meeting. <br />11 <br />