11-29-2023 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL NOVEMBER 29, 2023 the plan. He reviewed some advantages of the franchise fee funding compared to the property tax base. Mayor Fischer opened the public hearing for comments from the general public. Trisha Duncan, Xcel Energy, commented that the time of implementation is up to 90 days from the time the ordinance is adopted and published. She stated that the fees would be paid quarterly to the City. She commented that typically franchise agreements are 20 years with a municipality and that time period is coming up for Little Canada, therefore the agreement must be renewed in order for the City to be able to collect the fee. D. Miller asked if the fee is tied to the 20-year agreement or whether that is separate. Ms. Duncan replied that the agreement is for 20 years, and the fee continues throughout that period, but the City would have the ability to adjust the fees once every 12 months. Roger Kiemele, 2620 Lakeshore Avenue, asked the amount of the fee. The City Administrator replied that the residential gas fee would be $1.75 per month, for a total of $21 per year. He stated that currently the electric fee is $2.75 per month and that would be increasing to $3.75 per month. There were no further comments from the public. Upon motion by Mayor Fischer, seconded by T. Miller, the public hearing was closed. Ayes (5). Nays (0). Motion adopted. Kwapick acknowledged that the gas fee is new. He asked if the fee were set at zero today, could the City then change that in 12 months to charge a fee. The City Administrator replied that the option would be there after 12 months. He stated that the City has begun to plan for that fee in its budgeting, therefore if that is not approved there would be a gap in the budget. He also acknowledged the work and preparation the City has done to prepare for these ordinances. He stated that the City does not have a history of changing these fees annually and follows more of a set it and forget it process. The Finance Director commented that the ten-year budget was created using that projected revenue. D. Miller recognized that the ten-year CIP was planned using that revenue. He stated that if these increases are adopted, he would like to determine if there are ways to reduce the levy in the next agenda item to in turn reduce the ask for residents. He believed that the franchise fee was important in looking at long-range planning rather than continuing annual increases to the levy to provide that funding. Mayor Fischer thanked the Council and staff for the time required to propose the gas franchise fee. He recognized that the $1.75 fee is minimal and that the projects associated with this funding are needed. He stated that the City is also introducing a water and sewer fund, increasing water and sewer rates and proposing to increase the electrical franchise fee as well as implementation of the gas fee. He stated that he will not be supporting the introduction of the gas fee today and would prefer to address the projects through the levy process. He stated that Little Canada is at the bottom of the tax rate in Ramsey County and therefore he would prefer to provide funding through the levy process on an annual basis. He stated that the City has always found a way to fund its projects in an efficient manner and believes that the Council and staff are capable of continuing that. 2