06-24-2003 Council Agenda - Laserfiche WebLink

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COMMUNITY PRIDE 1953 - 2003 515 Little Canada Road, Little Canada, MN 55117 -1600 (651) 766 -4029 / FAX: (651) 766 -4048 www. ci.li ttle- canada. m n.us MEMORANDUM TO: Mayor Fahey & Members of the City Council FROM: Joel Hanson, City Administrator DATE: June 20, 2003 RE: Workshop to Review Implementation of Franchise Fee on Utilities M /lYOR Michael I. Fahey COUNCIL Jim LaValle Matt Anderson Rick Montour Bill Blesener ADMINISIEAT[OIR Joel R. Hanson Staff has continued to work with Xcel Energy to prepare for the implementation of franchise fees on gas and electric utilities. Xcel has informed me they will have a draft agreement to me by June 24th. We have also learned that it will take 60 days after the adoption of our franchise fee ordinance before implementation can occur. We also need the approval of the Public Utilities Commission. (My sources inform me this is routinely given and that the primary reason for their review is so they can log the increased fees into their tariff books.) Another reason for the workshop will be to review the level of the fee to be imposed, especially in light of the fact we can no levy back 60% of the loss in local government aid and market value homestead credit. Staff will provide more background material on the budgetary impacts at that workshop. My recommendation is we call for the workshop to be held sometime around our July 9°i Council meeting. While I would normally recommend a pre- meeting workshop, I believe the Mayor will not be available at that time. We could hold it immediately after the conclusion of the regular Council meeting, but that would negate our ability to take any action on the 9th (if any is required). Therefore, please bring your calendars and we will need to figure out a date and time. cc: Colette Jurek, Xcel Energy