Agenda Packets - 1993/09/27 - Laserfiche WebLink

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Mounds View City Council Page Six Regular Meeting September 27 , 43 Mayor Linke stated that the NSP franchise sunsets in four years. The. City used $148 , 000 to buy down the budget last year and will use $125, 000 next year. Mayor Linke stated he feels uneasy about using a source that could be non-existent. Mayor Linke stated that the City has better control over the utility than funding from the taxes. Linke stated that in 1992 and 1993 if this utility had been put on the taxes, the taxes would have gone up to raise the same amount of money. Linke explained that when the street light utility was set up, the rates were figured too high. If this Utility were to be continued, rates could be adjusted down to alleviate excess funds. ' A discussion took place amongst the Council regarding adjustment of the street light utility rates and the surplus in the Street Light Utility Fund. This discussion involved how the rate would be established, policy for rate structuring, rate decreases and rate increases. Trude stated that a policy should be set at the time the ordinance is approved regarding a rate structure. Mayor Linke stated that he needs the information that the Police Department has been requested to provide to the City Council regarding installing of new street lights. This will help Mayor Linke with the rate structure. Councilmember Blanchard stated that the surplus in this utility acco nt should be diminished and funds should be taken from the gas and electric franchise fees to maintain, install and pay the electricity for the street lights. Mayor Linke asked Councilmember Blanchard if she were in favor then of making the gas and electric franchise fee permanent. Councilmember Blanchard stated that in four years, in her opinion, it would be permanent anyway. This is an appropriate time to eliminate one of the utility fees. Councilmember Trude brought up giving the residents a break on their street light utility bills at this time as they have overpaid their utility and raise the fee later if necessary. Mayor Linke explained that, in his opinion, this is like giving a gift today and yanking it back tomorrow. Mayor Linke would rather give the gift over a time period rather than all at once and then have to raise the rates drastically. Alice Frits, 8072 Long Lake Road, stated that she has a problem with the City taking money out of her pocket and letting it sit. Mayor Linke asked Ms. Frits if she would rather have the fee drop aill then have to face a raise again.