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Mounds View City Council Page Nine <br /> (pular Meeting October 13 , 1992 <br /> Both agreements provide for a franchise fee of no more than 4% on the <br /> gross operating revenues of NSP and a monthly payment schedule of the <br /> fees to the City as opposed to annual payments after one year as the <br /> provision of the current franchise. <br /> Mayor Linke stated that the agreements are basically the same as <br /> in the past with the exception of the payment schedule and the <br /> improved control over work being done in the City by NSP. <br /> Orduno stated that there is a blank on page 6 of the gas and electric <br /> franchise agreements that should be filled in with 4% on both <br /> documents. <br /> Judy Trude, 8391 Knollwood Drive, stated her objection to having the <br /> 4% fee in the agreement at all and wanted it removed from the <br /> agreement. Trude asked how much revenue would be raised with the <br /> franchise fee? <br /> Mayor Linke explained that the franchise fee, if implemented, would <br /> raise $277, 000. Linke stated that an 8.3% raise in property taxes <br /> would only raise $155, 000. Property taxes would have to increase by <br /> 22% to raise the $277, 000. <br /> . Trude stated that 4% would raise $277, 000. The City only needs <br /> $155, 000 to balance the budget. Is it the intention of the Council to <br /> pass the agreement with the maximum fee? This would raise $125, 000 <br /> more than the City needs to balance the budget at 4%. Trude asked the <br /> Council what was heard from the people at the public hearing on this <br /> subject. <br /> Mayor Linke responded that the main speakers at the public hearing <br /> were from the business community and it was favored to increase the <br /> property taxes rather than implement the franchise fee. <br /> Councilmember Rickaby stated that the residents were in attendance <br /> one—y-ear—ago—and we-re—agni-nst he—fra-nehise fee. <br /> Trude stated that the franchise fee is an inequitable tax and that <br /> everyone is not affected the same -- some will pay more, some less. <br /> Trude suggested that the Council vote on the agreements minus the <br /> franchise fee. Property taxes would be lower than the franchise <br /> fee. <br /> Councilmember Rickaby stated that was an excellent idea, leave <br /> the 4% out and it can be voted in anytime in the future. <br /> Duane McCarty, 8060 Long Lake Road, stated that this franchise fee <br /> is a revenue source for the 1993 budget. McCarty asked, if the Council <br /> does not intend to adopt Ordinances 517 and 518, what purpose does <br /> Ordinance 519 serve. <br />