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CITY COUNCIL WORK SESSION SEPTEMBER 8, 1999 The resolution does not have to specify the amount of increase in the rate. It only has to affirm that the tax rate may increase. Furthermore, the numbers are not in from the County to determine whether or not there will be a tax rate increase, but staff would like to be proactive and satisfy the resolution requirements early. GAS FRANCHISE UPDATE — LINDA WAITE SMITH Ms. Waite Smith gave an update on the gas franchise. The discussion touched upon the advantages and disadvantages of meter fees. ADVANTAGES: • The industry deregulates, it will be harder to identify the supplier of gas. • Ownership of the gas meters remains constant • Meter fees are less dependent on consumption, which is dependent on weather • Meter fees charge is predictable for consumer, as well as stable ye • Meter fee revenue is more predictable for city than percentage • Easier to calculate meter fee revenue due than to haggle w® percentage fee is based upon. DISADVANTAGES: • Meter fees are regressive. They cons consumer with lower bills. • Meter fees are still indirect t dedicating at least half of t resistance. ound. ny's gas sales out what the percentage of the bill for resisted by consumers. (Hopefully, road reconstruction will mitigate the Ms. Waite Smith e•, *at the City of Blaine's meter fee is approximately $0.70 per meter per month fo t al customers, which is about 1.36% of the average bill. Commercial custom fall into several classes. A fee approximately 1.36% of their average bills can ran e from $5 per month to $200 per month. Ms. Waite Smith distributed an estimated impact of franchise fee on Minnegasco Customer in Lino Lakes; Minnesota estimated impact of franchise. Staff planned to discuss the franchise issue at another meeting. REGULAR AGENDA, SEPTEMBER 13, 1999 The Council briefly reviewed and discussed other regular agenda items. The meeting was adjourned at 9:45 p.m. These minutes were considered, corrected and approved at the regular Council meeting held on October 11, 1999. •