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• Q: So, the 100% tax levy and franchise fee are the same and it just depends on how you pay it? <br />• A: Yes and no. A commercial property pays a larger share of a tax levy than a residential <br />property. The franchise fees are a little more even. Someone in an apartment would pay the <br />same as someone in a house. Exempt properties also don't pay tax levy, but they would pay the <br />franchise fee. <br />• Q: Did you participate in the Brooklyn Park franchise fees implementation? They tiered their <br />payment system. <br />• A: From the Brooklyn Park from website: Residents will be charged $7 on theirXcel Energy <br />electric bill and $7 on their CenterPoint Energy gas bill every month. Commercial properties will <br />be charged between $14 and $320 per month depending on the classification of the business or <br />entity, which is based on consumption levels of electricity and natural gas. <br />• Q: Our road was reconstructed a few years ago. It was $8,000 for the assessment. If we did <br />franchise fees, do we get credit for the fact that we've already been assessed so we're not <br />double -paying? <br />• A: Sometimes cities have the system set up so that you'd get credit for those payments and for <br />some period of time you wouldn't be paying the franchise fees. The City has not yet looked into <br />this. <br />• Q: If we instituted franchise fees does that mean that purchasing bonds goes away? <br />• A: Purchasing of new debt will most likely go away, but we still have 4 current road debt issues <br />that have debt service to be paid. The last year of debt levy related to these bonds would be <br />2028. <br />• Q: I have a question about capital. If you have $3 million in projects to do, can a franchise fee <br />accumulate enough capital to get that done? <br />• A: It would take some time to get franchise fees in place, if the City Council wanted to do this. So <br />it might not be this year that we'd start collecting. We haven't run any calculations. <br />• Q: Another problem with the franchise fee is that it's in conflict with the City charter. Are you <br />suggesting we amend the charter? <br />• A: It is the opinion of the City attorney that it is not in conflict with the City charter. <br />• Q: If we implemented franchise fees, would paying on those debts go away? <br />• A: This has not been decided. We still have the four years of road debt whose debt service <br />doesn't go away. <br />• Q: How do we know on the bill that the franchise fee is for roads and not other things? <br />• A: The City Council would put language in place to ensure it goes to that purpose. <br />• Q: What if someone lives on a county road? <br />• A: They'd still pay a franchise fee. <br />• Q: We have a lot of new apartments. How are they figured into this? <br />• A: All new apartments have independent gas and electric meters, so they can be treated like a <br />single-family home and would pay a franchise fee. <br />