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Finance Director Lund stated that is an option if maximizing the levy. <br />Councilmember Tossey asked if the franchise fee is higher for commercial/industrial properties. <br />Mr. Kingston asked if some properties have both utilities. <br />Finance Director Lund stated the figures are based off numbers provided by the utility companies <br />and the City of Anoka. <br />Councilmember LeTourneau stated he would like a lower levy because he likes the feature in the <br />franchise fee to track and dedicate the funds specifically for roads and to be able to identify how <br />the fees are being applied, creating additional transparency. He stated with franchise fees, that <br />need can be called out to the residents along with whether it was over funded, under funded, over <br />spent, or under spent. <br />Councilmember Tossey asked if anything prevents future City Councils from using franchise <br />fees for anything other than roads. <br />City Administrator Ulrich stated another City Council would have to consider it was publicly <br />dedicated but could consider another use by ordinance. He stated staff will look into language to <br />create it as irretrievable as possible. <br />Councilmember Tossey stated he will oppose a franchise fee because he finds it to be a hidden <br />revenue source. But if approved, he wants safeguards so a future City Council cannot use those <br />funds to subsidize their "pet project." <br />Councilmember LeTourneau agreed there should be firmly established criteria. He asked what <br />happens if the City Council decides to reduce or increase the franchise fee prior to the five year <br />sunset. <br />City Engineer Westby stated it would require an amendment to the ordinance. <br />Finance Director Lund stated the fee will be established by ordinance, the same as other City <br />fees. <br />Mayor Strommen stated it can also be eliminated if the City Council is comfortable that property <br />tax revenue and can cover the costs through the levy. <br />Finance Director Lund stated in 2003 there was a one-year sunset on a franchise fee and <br />quarterly reports were presented on the amount collected. At that time, the ordinance stated the <br />use of the funds and after the third quarter the amount collected covered the LGA loss so the City <br />Council sunset the fee at that point. In addition, franchise fees are received monthly whereas <br />taxes are received twice a year. <br />City Council Work Session / September 3, 2013 <br />Page 9 of 12 <br />