Agenda - Council Work Session - 10/22/2013

Home

Franchise Fee Questions /Responses October 8, 2013 1. Are properties on County roadways assessed the franchise fee? Response: All utility accounts will be assessed the franchise fee based upon their classification (e.g., residential, commercial) and the type of road that they are on does not make a difference. 2. Can utilities charge an administrative fee on top of the franchise fee? Response: No. The Minnesota Public Utilities Commission has ruled that utilities may not charge an administrative fee on municipal franchise fees. 3. What additional levy capacity does the City have? Response: By statute, the City had the additional levy capacity to raise approximately $931,000 in 2014, but chose not to levy this additional amount with the establishment of the preliminary levy in September 2014. There currently is no levy limit in place for 2015. 4. Can the City exempt properties that don't front a city street from the franchise fee? Response: All residential properties would need to pay the franchise fee to the utilities, but the City could, by policy, give annual rebates to certain types of properties. This is not included in the current proposal. If the City exempts or reduces the franchise fee on some properties by giving a rebate, overall revenue would decrease, or the fee would need to be increased on other properties as an offset. 5. What types of projects have come to the City with the assistance of Economic Development staff? Response: The economic development staff of the City has assisted many business and industrial projects over the years in Ramsey. It is impossible to determine which projects are solely attributable to the Economic Development manager position, but every project that involved City assistance, or the sale or lease of City property, required considerable work by City staff. Ramsey's employment base increased by 771 employees from 2000 to 2010. For most of that period, the City has had a dedicated economic development position. 6. Why are some people calling this a "30% tax increase "? Response: This number appears to be derived from taking the franchise fee revenue (calling it a "tax ") combining it with the 2014 proposed levy, and subtracting it from the 2013 levy. It does not take into account that the Road Maintenance Program would require revenue to be replaced by the tax levy, assessments, or other sources to be implemented.