Agenda Packets - 2009/05/25 - Laserfiche WebLink

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Mounds View City Council April 27, 2009 Regular Meeting Page 9 1 Chair Thomas stated if the franchise fee is increased more than 5%, it would go to referendum. 2 3 Clerk-Administrator Ericson clarified that when there is a new franchise agreement, the City 4 remains bound by the limitation of the Charter to not increase by more than 5%. Currently the 5 limit is to not increase the franchise fee by more than 4%. 6 7 Council Member Stigney noted the Council is being asked to make this Charter amendment 8 without it going to a referendum. He stated he is philosophically against having a franchise fee 9 plus a levy going to the same tax payers. Rather, he thinks they should be wrapped into one. 10 11 Chair Thomas stated if the Council is against the franchise fee concept, it can make that 12 determination in 2012. 13 14 Finance Director Beer noted the Legislature is considering giving local tax authority to counties 15 and cities to have a sales tax and that would have to be via referendum. With regard to combining 16 the franchise fee and levy, he noted the levy is a set dollar amount but the franchise fee is a fixed 17 rate and variable depending on things like energy costs. Thus, the City could not stay within the 18 constraints of Section 7.03 if the two are combined. 19 20 Chair Thomas stated the levy is based on property tax, not on the use of energy or water, and that 21 is why service based fees or cost of services based fees are separated out. 22 23 Clerk-Administrator Ericson suggested this consideration be postponed to allow participation by 24 Council Member Gunn. In addition, five affirmative votes are required to adopt. 25 26 Council Member Stigney stated he looks at the aggregate amount of all fees within the 5% cap. 27 However, Council Member Gunn interpreted that it means each individual fee cannot increase by 28 5%. 29 30 Chair Thomas explained the consideration is each individual fee since each fee has its own 31 accounting method and requirements. He noted that it does not put specific limits on fees that are 32 cost based. However, it does put specific limits on a fee for a service where the cost of that service 33 does not change from year to year. All of the caps are percentage based. 34 35 MOTION/SECOND: Mueller/Flaherty. To Postpone Consideration of Ordinance 819, an 36 Ordinance Amending Chapter 7, Section 7.03, of the City Charter Relating to Fees Subject to 37 Provisions of Section 7.03, Subdivisions 1 and 2. 38 39 Ayes – 4 Nays – 0 Motion carried. 40 41 8. CONSENT AGENDA 42 43 Mayor Flaherty asked to remove Item B. 44 45