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Imposition of the Franchise Fee is a long term solution to what <br /> will undoubtedly be long term problems: <br /> 1. Continued cuts to LGA <br /> 2 . Declining real estate tax structures <br /> 3 . Action by the state to limit the fees cities can charge <br /> (contractor) <br /> 4 . City's ability to plan and provide for significant <br /> projects, i.e. the golf course, expanded parks, <br /> development incentives, and social service programs . <br /> 5 . Perhaps equal to the above problems and potentially <br /> greater is the impending Oakgrove Landfill lawsuit. <br /> The worst case scenario for Mounds View is devastating. <br /> Even the best case scenario is costly (and very unlikely <br /> to occur. ) And, the Oakgrove site is just one among <br /> several Superfund sites which have the potential to <br /> negatively impact Mounds View's financial stability. <br /> I have presented pros and cons of both programs in the Staff <br /> Report, as well as the various combinations of options before you <br /> for consideration. In your agenda, you will see a proposed <br /> ordinance for a Street Light Utility, and 3 proposed ordinances <br /> (all numbered the same) for implementation of a franchise fee on <br /> electricity and gas, or only on gas or only on electricity. The <br /> percentage of the fee is at 4% on each. However, the percentage <br /> can be adjusted downward as an amendment to the ordinance decided <br /> upon by Council, if any. <br /> Approval of the franchise fee ordinance must be by a 4/5 's vote of <br /> the Council. <br /> We faxed Mark Karney copies of the proposed ordinances, received <br /> his comments on the street light utility, but not the franchise fee <br /> ordinance. Consequently, there may be minor revisions in the <br /> ordinance. 1-f-so, i 'll - - - • ' - • - - a - - - - •- -ted <br /> ordinance before the meeting Tuesday. <br /> I have had only one call from a resident who expressed <br /> dissatisfaction with the Franchise Fee -- she favored the Street <br /> Light Utility. I am meeting with the Mounds View Business <br /> Association tomorrow morning to discuss the public hearing and the <br /> two programs . Northern States Power has talked to 15 of our <br /> businesses and only one (Sysco) was upset about the Franchise Fee. <br /> However, if you don't see or hear from me tomorrow, send someone <br /> out to search-for-my-body <br /> Have a wonderful and safe holiday weekend! ! ! <br />