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Mounds View City Council <br />.egular Meeting <br />Both agreements provide for <br />gross operating revenues of <br />fees to the City as opposed <br />provision of the current fr. <br />Page Nine <br />October 13, 1992 <br />a franchise fee of no more than 4~ on the <br />NSP and a monthly payment schedule of the <br />to annual payments after one year as the <br />3nchise. <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 $125,000 <br />more than the City needs to balance the budget at 4~. Trude asked the <br />Council what was heard from the people at the public hearing on this <br />subject. <br />Mayor Linke responded that the main speakers at the public hearing <br />were from the business community and it was favored to increase the <br />property taxes rather than implement the franchise fee. <br />Councilmember Rickaby stated that the residents were in attendance <br />one year ago and were against the franchise fee. <br />Trude stated that the franchise fee is an inequitable tax and that <br />everyone is not affected the same -- some will pay more, some ,less. <br />Trude suggested that the Council vote on the agreements minus the <br />franchise fee. Property taxes would be lower than the franchise <br />fee. <br />Councilmember Rickaby stated that was an excellent idea, leave <br />the 4$ 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 />