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<br />Background: <br /> <br />CASE # ~ <br /> <br />I~7RODUCE fRANCHISE FEE ORDINANCE <br />By: Ryan R. Schroeder. City Administrator <br /> <br />For the past several years, cines have Deen resmcted to varymg State mandatee levy <br />limitatiom. This has resulted in severe rcsO'lcnons on opcranons of growmg cines SUCh as <br />Ramsey. At the same rime. the State has n:duced the .a.cmal dollars received in local <br />govcmmcnt aids. <br /> <br />Finally, in the last few years. the Stare has begun billing us in additional ways such as fees <br />for PCA. DNR WId other State depamnental operations and. most recently, implemcntanon <br />of a sales tax. <br /> <br />As a result of the above. cities have taken the approach of billing for services recelved by <br />specific individuals or businesses over and above levels received by the general public. As <br />this relates to utility companies, we allow them to have the exclusive use of a ponion of our <br />right-of-ways, Currently we have 147.8 miles of nght-of-way. At a cOSt of S10.000iacre. <br />this is an asser value of $14,336,600. To dale. the utilities have not reimbursed the City of <br />Ramsey for the ponion of the right-of-ways for which they have received the use. We <br />have also not billed them for services received when a new utilirv line or repair of a line <br />occurs. It should be noted here that if we need utility lines moved due to a public <br />constrUction project such as 153rd Avenue N.W., we will receive a bill. <br /> <br />As a result of the above, the City has proposed adoption of a fnm:hise ordinance with <br />Anoka Municipal Electric and Anoka Eiecrric Cooperaove. A franchIse ordinance cll.."Tentiy <br />exists 'with Miawesr Gas. Within the proposed eie:tric ordinance there is a fee provisior, iT; <br />consideration of the ri!!hts e:ramed to the ele::tric distributors unaer the ordinance. The <br />Midwest Gas ordinance is silent on a possible franchise fee. It is the Staff position tha:. <br />pursuant to an Attornev General oDinion. the fee levied upon the 2as. company is <br />appropriate in exchange for rights re:eived within the franchise. Tne foliov,.wg- are <br />enclosed with this case: <br />1) Prnje=red Franchise Fees and Property Tax Received from Fictitious 50 Lo: <br />Subdivision <br />~ ~9: Tax Canacin' Comna..-1.son 0: 20 .bu-...a Cilies <br />!~9: Tax CapacIty Comparison of Minnesota Cities with FODwarions <br />Berween 10.000 and 20.060 . <br />! 989 Pe:- Capita Expenditures l=-xciuci.inE: CaPIta':' Ouua'\:; ro:- M.innesoT.<: <br />Cities with Fopul.arions from 10.000 to 20~OOO . <br />Ciry Growth D~ <br />~onh Merro Mavors Tax CaDaciry DaIP. <br />'Jtilin" FnmchiseFee Comornve Dare <br />AEC"Monthlv Revenues iTom December 1990 tirrou~ November 1991 <br />Mi" p ~ G . Ro,o A - De" " , 090' ": N . ",... 1 00' <br />. awws. as ...."....nuws rron: _:moer~... rnrou~ ~ ovemo_ ,.... <br />Conma..-ison of Standzrd Residential Char2es - <br />Commer:ialllndusr:rial and Residential-Total ProDe~y Taxes Baser: or: <br />WlarK.e: Value for Properties in tile CirvofRamsc\". - . <br />100"1 -:::srimar...d -:::i..~':"';~ ana" G.,r T~";i:,..... Do\,onu;' ana- ;:;""''''''m- 's"'r--~'::c:r <br />___.,,__ .-..~_............. ....,'""'~...\ ~'"-........ """ ,J...J.~.I_..... _..._..._F..... <br />:S: <me 1 c;c <br /> <br />:0. <br /> <br /> <br />~ . <br />- , <br /> <br />" <br /> <br />0: <br /> <br />8. <br />Q. <br /> <br />- ~ - .. __ - 0- <br />:7onose~ ~:-a..'1=mse .:-ee I-n-='~:L~:~ <br /> <br />113 <br />