Agenda - Council - 12/08/1992 - Laserfiche WebLink

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I ,I I I I I I ! ! I I I i I I I i I I At the last: Co~ncil meeting, residents proposed assessing a fee against utility revenues from comrherei,!al as well as residential customers (if a fee is to be assessed at all). Staff has requested ~hatthe utilities provide, by account name, revenues received from this customer base. At: the writing of this case, the data has not yet been received. It continues to be the Staff position that Council should avoid such a charge due to a Iow level of revenue received while Impacting a small customer base greatly (See Exhibit 7). It also continues to be the Staff position that the City should charge the utilities for the unique l~vel o~ services they receive. This is similar to charges to developers and other utilities, including our own, wherein one pays for the level of service received beyond basic poltce, fi(e, parks and public works delivery systems. It also col~flnue.S to be the Staff position that: 1) it is. iml~erative that we provide for stability in revenue sources; 2) we ProVide for future reductions in transfers from the State to avoid spikes in future tax ~lev~s; and 3) we';prov~ide a stable funding source for services delivered to the citizens at marginal teV~ls at present. Examples include: ~t} the mostly undeveloped park system; b) improvements to the transportation system mandated by the Metropolitan Council; C) needed infrastructure improvements such as storm drainage improvements which were planned in 1980 but for which only : minor improvements have occurred, or priority intersection street lighting; fully funding the fixed asset fund allowing for replacement of vehicles and equipment in a fashion to enhance service delivery; future improvements to public works and public safety facilities. Recommendalion: Staff recommends introducing the ordinance establishing franchise fees at the rate of 3% on residential irevehues. Council 'Action: Motion to introduce Ordinance g92-XX establishing franchise fees at the rate of 3% on residential revet~ues. Reviewed by: Copies also distributed to: City Administrator Finance Officer CC: 12/08/92 q?