10-13-1992 CC - Laserfiche WebLink

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• Mounds View City Council Page Twelve Regular Meeting October 13, 1111 Charles Miller stated that the franchise fee has been in existence for 18 years and has never had to be used. The fee has raised its head in the past. The property tax process is already established and should be used. The property tax amount has already been submitted to the State. Councilmember Rickaby during a meeting Don Brager stated that by increasing the property tax the City would receive more in fiscal disparities. The fiscal disparity would not be felt that year but the next year. Rickaby stated that whatever amount the City Council decides to set for the franchise fee, that amount will go up with no action on the part of the residents. Councilmember Rickaby stated that on the survey when asked about the franchise fee, 63% voted against it. Charlie Hall, Mermaid, stated again that the residents are concerned about this franchise fee and it should be deleted from the agreements. Dave Schwartz of NSP stated that one out of 42 has a franchise fee in affect. Mr. Schwartz stated that he has negotiated 27 franchise agreements in the past five years. Five or six out of those have the franchise fee provision in their agreements but none have evoked it. Councilmember Rickaby asked how many hours Mr.Schwartz has spent on dealing with this franchise fee in Mounds View. These hours will 41 collected somehow, and it is her assumption that it will be on the NSP bills. Charles Miller is not in agreement with paying a sales tax on a utility. Mr. Miller qualified the meaning of the word franchise. The way it is used in regards to the utility obscures its meaning. Judy Trude stated that if homeowners could not pay property taxes it would go on the tax roll. Dave Schwartz stated there will be accounts uncollectible. The non—paymentaeeounts—wild—be—deducted—from thefee paid—to—the City of Mounds View. Councilmember Rickaby stated then that the franchise fee does not have such a stable base. Richard Oman stated that perhaps the implementation of the franchise fee be tabled until the budget process is complete and then deal with the franchise agreements and implementation of the fees. Oman suggested January or February and let the franchise fee survive on its own merits. The budget will be finished in December. Oman stated - again that the franchise fee implementation should be tabled as there is no pressure to pass it for October, November or December of 1992. 410