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Mounds View City Council August 22,2011 <br /> Regular Meeting Page 3 <br /> Operations within the City of Mounds View and publish an Ordinance summary. <br /> Council Member Hull stated he would not support the short term budget fix that was established <br /> in the 1990's as the City has now become dependent on the funds. <br /> Council Member Mueller indicated she supported the Ordinance as the fees were passed along to <br /> all energy consumers in the City. These fees are used to support police and fire services in the <br /> community. She explained the franchise fee used to be 4%and has been reduced to 3.87%. <br /> Council Member Stigney did not support the franchise fee as presented. He felt the franchise fee <br /> should be increased to 4% to assist the City in recapturing revenues. He suggested a friendly <br /> amendment to the motion to raise the franchise fee to 4%. <br /> FRIENDLY AMENDMENT: Stigney/Gunn. To increase the Franchise Fee for Xcel Energy <br /> Electric and Natural Gas Operations within the City of Mounds View to 4%. <br /> Council Member Stigney stated the increase would only minimally impact the tax payers while <br /> bringing in additional revenues from across the community. <br /> Mayor Flaherty disagreed with the amendment stating the franchise fee was a temporary fix that <br /> has been used year after year in the budget. The City has become reliant on the franchise fee <br /> 411 funds. <br /> Council Member Mueller indicated the franchise fees were created at a time when income was <br /> being lost from TIF districts. She did not feel the City could cut $500,000 out of the budget at <br /> this time while providing adequate services to the community. She would support the increase in <br /> the franchise fee to 4%. <br /> Council Member Stigney agreed that the Council did not have a way to offset these funds within <br /> the budget. He felt the increase to 4%would greatly benefit the tax payers in the end. <br /> Council Member Gunn commented if the franchise fee were to be eliminated, the City had no <br /> plan to make up these funds. The City has become reliant on these funds and until there was a <br /> way to make up $500,000 within the budget,the franchise fee could not be eliminated. <br /> Council Member Hull stated the funds could be made up by slightly increasing property taxes <br /> which were tax deductible. The impact on residents would be minimal. <br /> Fiiionce Director Beer clarified th q the increase would be more than $35, which is being paid ire <br /> frall rise fees. lies ,rated th : sense to be mo tiLe $50-6G year. <br /> Co,:_icil Member HuL.czcreed to sec- ort the franchise rcc at 4%. <br /> AviENDMLiTf VO : <br /> • <br />