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April 28, 2026 St. Anthony Council Work Session - 6 <br />C.Franchise Fee Discussion <br />City Manager Yunker summarized Franchise Fees and clarified that they are a tool that cities can use to <br />recoup costs for private utilities, such as airing the City Council meetings on private channels. He <br />highlighted the Council's previous rejection of franchise fees on gas and electricity. He also proposed <br />broadband franchise fees because fiber has largely replaced cable programming, making community <br />programming more difficult. He highlighted that this will place a new tax on the users of these utilities. <br />He asked the Council whether they would like to pursue franchise fees and, if so, whether they would <br />approach it as a way to reduce the tax levy or as an additional source of revenue. <br />Councilmember Randle originally expressed support for broadband fees, but after Mayor Webster <br />clarified that residents, not the company, would be charged, he rescinded his support. <br />Councilmember Jenson noted that in past discussions, these fees were in addition to your property <br />taxes. <br />Councilmember Doolan highlighted that this could be an opportunity to shift the tax burden from <br />homeowners to the full population. Individuals in multi-family complexes would also share the burden <br />of these taxes. <br />Councilmember Jenson asked whether a net analysis could be conducted to show the gain to the City <br />from applying these fees to tax-exempt buildings. City Manager Yunker stated that this would be <br />possible. <br />City Manager Yunker highlighted community complaints about the tax burden on homeowners and <br />confirmed it is the Council’s responsibility to determine if this would be a worthwhile way to shift that <br />burden. <br />Councilmember Doolan proposed implementing fees on natural gas as this could help the City goals on <br />reducing emissions. She noted that gas usage is holding steady, so this presents a better opportunity to <br />increase revenue than electric, which is declining. <br />Councilmember Elnagdy stated that she prefers using franchise fees to shift the tax burden rather than <br />raise additional revenue, and she believed that would be more popular with residents. She also <br />expressed support for funding from exempt properties. <br />Mayor Webster noted that there appeared to be Council support for Staff to explore franchise fees. She <br />asked if the Council supported fees on gas, electric, and broadband. She highlighted that reductions in <br />revenue from lower cable franchise fees resulting from decreased cable usage could be offset by <br />broadband franchise fees. <br />Mayor Webster directed Staff to explore all three options. <br />3.Future Work Session Dates, Times, and Agenda Items <br />A. Future Agenda Items <br />4.Adjournment <br />7