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<br />When comparing franchise fees to the property tax levy as a revenue source, advantages include: <br />• Wider base than property taxes <br />• Diversifies the City’s revenue sources <br />• Franchise fees provide a reliable source of revenue on an annual basis <br />• A flat-rate franchise fee is the same for each property, making it easy to administer. <br />• New construction would contribute immediately, which eliminates the one to two-year lag for <br />the City to receive property taxes for property owners receiving municipal services. <br /> <br />COUNCIL ACTION REQUESTED: <br />The City Council is asked to conduct a Public Hearing on the proposed changes to the City of Little <br />Canada’s existing Electric and Gas Franchise Agreements with Xcel Energy. Following the public <br />hearing, staff recommends the following action by the City Council: <br /> <br />1) Motion to Approve Ordinance 884 implementing an Electric Service Franchise Fee on <br />Northern States Power Company and approve publication of a summary ordinance. <br /> <br />2) Motion to Approve Ordinance 885 granting to Northern States Power Company permission to <br />construct, operate, repair and maintain an electric distribution system and transmission lines in <br />the City of Little Canada, Minnesota and approve publication of a summary ordinance. <br /> <br />3) Motion to Approve Ordinance 886 implementing a Gas Service Franchise Fee on Northern <br />States Power Company and approve publication of a summary ordinance. <br /> <br />4) Motion to Approve Ordinance 887 granting to Northern States Power Company permission to <br />construct, operate, repair and maintain a gas distribution system and the necessary gas pipes, <br />mains, and appurtenances for the transmission or distribution of gas to the city and inhabitants <br />in the City of Little Canada, Minnesota and approve publication of a summary ordinance. <br /> <br />Pursuant to Minnesota Statutes Section 412.191, in the case of a lengthy ordinance, a summary may be published. <br /> <br /> <br />Attachments: <br />1) City of Little Canada Franchise Fee Estimate <br />2) Xcel Gas Rate Book – Franchise Fees <br />3) Xcel Electric Rate Book – Franchise Fees <br />4) Ordinance 884 <br />5) Ordinance 885 <br />6) Ordinance 886 <br />7) Ordinance 887