Minutes - Council - 10/14/2003 - Laserfiche WebLink

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2003, meeting to allow Council the opportunity to further review the 2004 General Fund Budget and examine other revenue sources. Upon further review of the franchise fee and the 2004 budget, it was determined that a per meter fee on residential and commercial properties would be the most desirable franchise fee method to implement. By having a set rate, all accounts would know their monthly charge and would not be "surprised" if the rates for gas and electric increased. A sunset clause has been added to Section 7. The franchise fee ordinances are set to expire on December 31, 2006. The City of Ramsey is proposing a franchise fee of $3.00 /per meter on all residential meters for both gas and electric service, which would result in an overall annual franchise fee to a residential user in the amount of $72.00. A $6.00 /per meter would be charged on all commercial accounts with a total franchise of $144.00. With the set rates of $3.00 and $6.00 for residential and commercial accounts respectively, the City would receive approximately $404,000 in franchise fee revenue per year. Franchise fee revenues would be used to offset the loss that the City received in State Aid, which totaled $477,900. Councilmember Strommen stated that she had thought the agenda would reflect that public comment would be taken and it did not. Councilmember Kurak noted that it was also not stated in the City newspaper. James Then 6767- 158"' Lane NW, Ramsey, stated that he felt the franchise fee was another tax. Personally his hours have been cut and he has not received a raise in 2.5 years. There are already several line items on the utility bill for different City fees. He felt that the City needed to start charging user fees, such as park fees and stop giving everything for free. He did not think franchise fees were something the City needed at this time because things will be turning around. Mayor Gamee stated that he met with a group of business owners and they agreed with the per meter charge rather than on a percentage because then they would know what their fee will be every month.. If the City implements a franchise fee they will probably be able to keep things in the City status quo. He noted that most of the surrounding cities will be implementing a franchise fee. Councilmernber Strommen stated that the Council has been holding budget work sessions to look at their options and it appears that they will have to do something to offset the loss in local government aid. Prior to the adoption of the ordinance she would like to provide more information to the residents and have it noted in the agenda that public comment will be taken. In addition she requested that the Council hold another budget meeting prior to adoption of the franchise fee ordinance. Sue Kapinski, 17210 Baugh Street NW, Ramsey, stated that she lives and works in Ramsey and her boss was not informed about a meeting pertaining to franchise fees. She questioned why people were not notified of the meeting. Mayor Garnec explained that the City Council did previously hold a public hearing regarding the issue and they are trying to get as much information out as possible. City Council /October 14, 2003 Page 12 of 30 t