07-23-2003 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL JULY 23, 2003 $200,000 in fees each year. Fahey agreed and suggested that City staff begin working on easement acquisition. The City Administrator suggested that a workshop be held with the Parks & Recreation Commission to finalize these issues. The Council agreed. Fahey suggested that the target amount of revenue from franchise fees be set at $200,000 and that the City Attorney and City Administrator proceed with drafting the necessary ordinance amendments for consideration at the August 13°i meeting. After that date, a workshop should be held with the Parks & Recreation Commission. Montour pointed out that when discussion first came up about imposition of a franchise fee on gas and electric, the purpose of the fee was to make up for budget shortfalls due to loss of LGA. Money that was left over was to then be directed toward trail improvements. Fahey pointed out that the City Council has worked to minimize tax increases, but due to actions by the Legislature reducing or eliminating LGA and limiting the amount of tax revenue the City can collect, the City is now looking for ways to makeup these budget shortfalls. Fahey stated that his preference would be to raise taxes to make up for the budget shortfall caused by the Legislature's actions rather than impose a franchise fee. Fahey also noted that completion of the trail system is a goal of the City, and that utilization of a portion of the franchise fees collected will help to achieve that goal. Fahey felt that $200,000 should be collected in fi-anchise fees. Those funds would be utilized to make up the shortfall to the General Fund, for trail improvements, and for Fire Relief Pension Benefits. Fahey further noted that the trail priority listing submitted by staff takes a moderate approach to the completion of the trail system. Anderson pointed out that if there is an economic or legislative change that would allow it, the City would eliminate the franchise fee. Fahey noted that raising property taxes is preferable from the City's standpoint, as property taxes are deductible. Mr. Blesener introduced the following resolution and moved its adoption: RESOI.UTIONNO. 2003-7--171-APPROVINGA $200,000 FRANCHISE FEE REVENUE 73ASE FOR THE CITY OF LITTLE CANADA The foregoing resolution was duly seconded by Montour. Ayes (5) Blesener, Montour, Fahey, Anderson, LaValle. Nays (0). Resolution declared adopted. 21