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Ramsey Road Funding Frequently Asked Questions <br />Road Funding Program Options <br />Question: What is a franchise fee? <br />Answer: Cities in Minnesota are allowed by state law to tax local utilities for their use of public road <br />right-of-way to conduct their services. These fees, called franchise fees, are typically passed on to <br />consumers on their monthly utility bill. <br />Question: How is the City able to implement a franchise fee? <br />Answer: The franchise fee is allowed by state law, and the process to implement the fee requires cities <br />to hold a public hearing, pass an ordinance, and provide at least a 60-day notice to the utility company <br />before the franchise fee becomes effective. <br />Question: When will the fee collection end? <br />Answer: The monthly franchise fee will run indefinitely until the ordinance is either changed by the <br />Council, or, the ordinance lapses after a planned five-year initial term without Council renewal. <br />Question: I have multiple bills or two or more meters on my property. Do I have to pay the fee more <br />than once? <br />Answer: Only one fee will be assessed per account address even if there are multiple meters. The fee is <br />account based and not meter based. In the event that an entity has more than one meter, but only one <br />account, only one fee shall be assessed to that account. If an entity has more than one account, each <br />account shall be subject to the appropriate fee. In the event a question arises as to the proper fee <br />amount for any account, the highest possible fee amount shall apply (this is from our ordinance) <br />City Finances <br />Question: Why are we considering changing the way we finance roads? What was the problem with our <br />previous method? <br />Answer: The current method of financing roads would result in large tax increases and large individual <br />assessments to property owners that have an adjacent street repaired. The franchise fee uses smaller <br />monthly payments by all property owners to create a dedicated fund for the repair and maintenance of <br />streets over the long-term. <br />Question: How much will I be charged? <br />Answer: Residents will see a charge of $7 on their electric bill (City of Anoka or Connexus Energy) and $7 <br />on their gas bill (Centerpoint Energy) every month. <br />Commercial/Industrial properties will see a charge for each utility based on their largest meter size. The <br />respective utility company can provide the proper meter classification. <br />Electric: <br />Small Commercial/Industrial — Non -Demand $ 10 <br />Small Commercial/Industrial — Demand $ 45 <br />Institutional (Schools) $210 <br />Large Commercial/Industrial $210 <br />