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3) ~'~ani~hise Fee <br />Finance~Offi~er Helling disseminated a sheet of information with regard to the 1992 <br />estimate~l~ele&ric and gas utility revenue and franchise fee at 3%, 2% and 1%. <br /> <br />Counciltnemi~er Hardin inquired if the City could put a "cap" on it, for example, 1% up to <br />$200.0~per· : rhonth, etc. <br />Mrs. He~ng stated she would check with Anoka Electric Cooperative and Midwest Gas to <br />see if th~ttiwoJ~ld be a possibility. <br /> <br />Council~m!~er Hardin stated he is not comfortable with charging a full percent after he <br />noted s~e of the amounts used. He feels it is out of line, especially if the City is going to <br />promot~.i ttny~kind of commercial development. He suggested dedicating the revenue <br />money ~Orn be fee to the Economic Development Authority. <br /> <br />Counci~errtber Peterson stated that the money could be put in the Park Capital <br />Improv~en~ Fund so the money for parks wouldn't have to come out of the General <br />Fund. I~ Could also be put into a fund for Police and Fire or to finance the Public Works <br />building; <br /> <br />Council~em~r Hardin stated he is hesitant to earmark these dollars for any particular item. <br />I% state~! l"he.}ommercial customers are already paying an inordinate amount of taxes and if <br />they we~!~m~e to pay the franchise fee, that too would be an inordinate amount of money. <br />If the m .~ney'.went to the EDA it would benefit all commercial businesses and would also <br />benefit he Ci~ty. <br /> <br />Mrs. He l{ng Stated that the average homeowner has the ability to conserve energy whereas <br />the com nero!al customer cannot. She stated it would "bother" her to place a franchise fee <br />on comr ~rcial. <br /> <br />Mr. Sch o, eder stated that if the parks fund is a consideration to receive the money, the Park <br />and Re~e}ati0n Commission has developed a long-term plan to use $120,000 a year as a <br />benchmark f~ developing parks. At the Staff level, it was felt that within a 20-year period, <br />$120,00~. :woOld sufficiently develop parks. <br /> <br />CouncilNember Hardin reiterated he didn't like to earmark the money for one particular <br />thing. <br /> <br />Mr. SchtOed~ stated that everyone agrees the City is deficit in the parks area and there has <br />never be~en a ~ource of revenue to deal with this. <br /> <br />Council~mber Hardin inquired how much had been spent on parks, including wages. <br /> <br />M,'. Schi:0eder replied under $900,000 for all development of parks and roughly 90 to 95% <br />of that ~ount was for Central Park. <br />Councilfnem~r Hardin stated he is still uncomfortable naming a place to put the money and <br />suggest~l sh0wmg the public the different ways ~t could be used. <br /> <br />Mr. Schiroedm' stated he has no problem with that as long as the money doesn't becomes a <br />source for w~ges or operating expenses of any k~nd. <br /> <br />Budget Committee/November 23, 1992 <br /> Page 3 of 4 <br /> <br /> <br />