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Mounds View City Council <br />.Regular Meeting <br />Page Fifteen <br />July 27, 1992 <br />franchise fee agreements for gas and electrical energy have been <br />negotiated and provide for the desired payment schedule. <br />MOTION/SECOND: Quick/Wuori to Set a Public Hearing for 7:05 p.m. <br />on August 24, 1992 to Consider an Ordinance Approving an Electrical <br />Energy Franchise Agreement with Northern States Power. <br />5 ayes 0 nays Motion Carried <br />E. Samantha Orduno, City Administrator, gave information in last item <br />to also cover this item. <br />MOTION/SECOND: Quick/Wuori to set a public hearing for 7:10 p.m. on <br />August 24, 1992, to Consider an Ordinance Approving a Gas Energy <br />Franchise Agreement with Northern States Power <br />5 ayes 0 nays Motion Carried <br />F. Samantha Orduno reviewed Staff Report No. 92-337C regarding the <br />setting of a public hearing for 7:15 p.m. on August 24, 1992 to <br />consider an ordinance implementing a franchise fee on gas and <br />electric utilities. Orduno stated that over the past several <br />. years cities have experienced declining revenues due to such <br />factors as State cuts to Local Government Aid, reductions in <br />residential and commercial/industrial property tax rates, reduced <br />investment earnings, less construction and development resulting in <br />declines in permit fees and now a recession that is further <br />exacerbating an already dangerous situation. The consequences of <br />this dilemma is the move toward user fees, franchise fees and <br />other non-property tax revenues. A franchise fee is an example <br />of a user fee based revenue program imposed on a company conducting <br />business far profit within the City limits. The City currently <br />has a franchise agreement with North Central Cable. The Cable <br />Company conducts business in the City and for that privilege, the <br />company pays the City a franchise fee of 5o to be used only for the <br />City's municipal cable operations. <br />Councilmember Rickaby stated that these methods are just <br />property tax raises in disguise and that by doing it this way <br />it is an attempt to avoid the clamber of people coming in to make <br />comments about the City raising people's taxes. The people have the <br />right to these comments. <br />Mayor Linke stated that he takes exception to Councilmember <br />Rickaby's statement with regard to avoiding the clamber of people <br />coming to the hearings. Mayor Linke feels these franchise methods <br />would aid in buying down property tax increases for the homeowner. <br />These fees are controllable by the homeowner as they are based on <br />electric and gas usage. The churches and schools, who pay no taxes, <br />will now share in this burden. Linke stated that for many years people <br />