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<br />For additional perspective, staff provided the following examples of increased capital infrastructure
<br />costs related to street rehabilitation projects since 2010. In 2010, the low bid for street rehabilitation
<br />projects typically came in at approximately $200/LF. In recent years our typical pavement reclamation
<br />projects with spot curb and gutter and utilities come in around $300/LF all-in, which is a 50% increase.
<br />Complete reconstruction projects were approximately $433/LF in 2010, and our typical reconstruction
<br />projects with new curb and gutter are approximately $650/LF today, representing a 50.2% increase.
<br />This trend is also supported by additional comparisons of the Construction Cost Index (CCI).
<br />
<br />The last amendment to the City of Little Canada’s electric franchise fees was on May 12th, 2010 when
<br />the City Council approved a 57% rate increase. This was the first time an increase took place since the
<br />Franchise Agreement and franchise fee ordinance was initially implementation in 2001. This increase
<br />added approximately $130,000 in annual franchise revenues, bringing collections to approximately
<br />$335,000 per year. Prior to 2011, the revenues generated from franchise fees were around $200,000.
<br />Revenues generated by electric franchise fees in 2022 totaled $358,953.
<br />
<br />2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
<br /> Franchise Fees $215,637 $210,835 $214,984 $209,895 $198,537 $272,464 $337,787 $335,798 $336,566 $336,081 $339,949 $356,543 $358,795 $356,925 $358,146 $361,335 $363,071 $358,953
<br /> $-
<br /> $50,000
<br /> $100,000
<br /> $150,000
<br /> $200,000
<br /> $250,000
<br /> $300,000
<br /> $350,000
<br /> $400,000
<br />Franchise Fee Revenues last 18 years
<br />
<br />
<br />Electric Franchise Fee Impact on Capital Infrastructure Fund (Fund 450):
<br />Since the electric franchise fee ordinance has been in place, franchise fees have provided an essential
<br />source of revenues for the Capital Infrastructure Fund 450. The franchise fees have exclusively been
<br />used to fund street infrastructure capital projects. Other sources of revenue for Fund 450 have included
<br />approximately $400,000 per year of Municipal State Aid (MSA) funds and approximately $160,000 of
<br />General Property Tax Levy each year. Other revenues are mostly one-time contributions to the fund,
<br />such as grants or special assessment revenues.
<br />
<br />The City of Little Canada Capital Improvement Plan (CIP) includes total estimated expenditures of
<br />$20,005,860 for the 10-year period from 2024-2033 in fund 450. This includes $1,247,192 for
<br />inflation over the ten-year period. The recently adopted Storm Water Utility Fee will help decrease the
<br />burden on the Capital Infrastructure Fund 450 by $2,371,456.
<br />
<br />The proposed increase to the electric franchise fee will also decrease the burden on the Capital
<br />Infrastructure Fund 450. The Capital Infrastructure Fund 450 was initially projected at a deficit of
<br />approximately 4 million based on the total estimated revenues for the 2024-2033 CIP of $16,083,641.
<br />In conclusion with the implementation of the storm water utility fee and an increase in electric
<br />franchise fees, the Capital Infrastructure Fund 450 is projected to maintain a positive fund balance for
<br />the ten-year proposed 2024-2033 CIP.
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