Laserfiche WebLink
<br />Franchise Fees - Gas <br /> <br />Residential Commercial - Firm - <br />Non-demand <br />Commercial - Firm - <br />Demand <br />Small Interruptible <br />Average $ 2.23 $ 8.37 $ 57.16 $ 45.02 <br />High $ 6.69 $ 24.57 $ 485.00 $ 131.08 <br />Low $ 0.50 $ 1.00 $ 1.00 $ 1.00 <br />Lake Elmo <br />Prelim. Estimate ≤ $ 2.00 ≤ $ 8.50 ≤ $ 57.00 ≤ $ 45.00 <br />Number of Cities 37 37 32 33 <br /> <br />Since the last discussion in August, Xcel has provided more thorough estimates for fees based on what our <br />revenue goals are and their customer data. (See attached “Franchise Fee Options Review” for all options <br />provided.) <br /> <br />The final column in the attached Options Review document shows the revenue from combining “Electric - <br />Option 2” with “Gas - Option 3” and has a total revenue around our goal of $500,000 per year. That <br />information is shown below. <br /> <br />Customer Rate Classification – Electric “Option 2” Fees Total Collections <br />Residential 3.75 <br />Small C&I: Non-Demand 2.50 <br />Small C&I: Demand 23.00 <br />Large C&I 175.00 <br />Total Est. Annual Collection - XE Electric $ 340,479 <br /> <br />Customer Rate Classification – Gas “Option 3” Fees <br />Residential 2.00 <br />Commercial Firm: Non-Demand 8.00 <br />Commercial Firm: Demand 18.00 <br />Small Interruptible 80.00 <br />Med & Lrg Interruptible 175.00 <br />Est. Annual Collection - XE Gas $ 152,796 <br />Est. Annual Collection - Centerpoint Gas $ 9,360 <br />TOTAL EST ANNUAL FEE REVENUE $ 502,635 <br /> <br />All of these amounts are flexible and may be adjusted to Council’s preferences. <br /> <br />The final discussion point is where Council would like the fees to be allocated. Council had expressed <br />interest in the fees going toward a specific type of project. The most efficient way for this to occur is for <br />Council to determine the capital fund that the money would be deposited and the ordinance setting the fees <br />would specify this, though Mr. Vose recommends language to retain flexibility in the event the money is <br />needed elsewhere. Capital fund options are below; <br /> <br />403 City Center Capital Fund <br />405 Park Capital Reserve <br />408 Street Maintenance Fund <br />409 Infrastructure Reserve Fund <br />410 Vehicle Replacement Fund <br /> <br />Staff will adjust the final capital levies to be deposited to these funds to account for the decision made <br />regarding the franchise fees. For ease of implementation, and minimization of change, staff would <br />recommend selecting one of the new capital funds; the Park Reserve and Infrastructure Reserve being the <br />most in need of revenue at the moment.