Agenda Packets - 1991/10/14 - Laserfiche WebLink

Home Browse Search

Agenda Section: 9 11 702 REQUEST FOR COUNCIL CONSIDERATION Report Number: 91-93C STAFF REPORT Report Date: 10-10-91 STV Council Action: ❑ Special Order of Business CITY COUNCIL MEETING DATEOctober 14, 1991 ❑ Public Hearings ❑ Consent Agenda RI Council Business Item Description: Consideration of Alternative Revenue Programs Administrator's Review/Recommendation: - No comments to supplement this report - Comments attached. Exp tion/summary (attach supplement sheets as necessary.) SUMMARY: As a result of such factors as a weak economy, a loss of State aid, declining real estate values and restructuring of the property tax formula, municipalities are forced to find additional sources of revenue to maintain adequate service levels. City staff has engaged in researching other revenue sources that are user fee based and are fair and equitable. Two options are proposed in this report. OPTION NUMBER ONE -A Street Light Utility Program and OPTION NUMBER TWO -An Electrical Franchise Fee. OPTION #1 - STREET LIGHT UTILITY One of the options proposed as a source of revenue is to implement a street light utility program. This option is consistent with the recent user fee trend and is a fair and equitable method of distributing the cost for this service. There are pros and cons associated with this proposed program. Some pros are: • it is a fair and equitable way of distributing the cost of providing this existing service • it shifts the burden of this cost from the general fund, which frees up these funds for other purposes • it can generate enough revenue to perform street light maintenance and improvements Some unfavorable aspects to this proposal are: • taxpayers would be asked to pay for a service that has historically been paid for out of the general fund • this program could be interpreted as another tax After researching this issue, comparing other cities programs and assessing Mounds View's demographic data, the following rate structure is proposed for Council review: User Fees for Property Classes (monthly) Residential $1.21 Apts. $4.82 Comm/Ind $5.48 Ints/Char $5.48 These fees include a five (5) percent contingency. 404 Oilthik imothy Cruikshank Administrative Intern RECOMMENDATION; Staff has researched these alternative revenue sources for Council review.