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<br />Q & A on a Franchise Fee
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<br />Permit to Carry Applications
<br />
<br />All permits to carry a concealed weapon are provided by the
<br />Anoka County Sheriff's Office
<br />located at 325 E. Main Street, Anoka.
<br />
<br />Applications MUST be submitted in person,
<br />by appointment only.
<br />
<br />If you wish to schedule an appointment, please contact the
<br />program coordinator at 763.323.5126.
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<br />FRANCHISE FEE CONTINUED FROM PAGE 1
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<br />There are several reasons why a franchise fee is being
<br />considered:
<br />1. The State Legislature has placed a property tax levy
<br />cap on Minnesota Cities. In order to maintain service
<br />levels in the community, alternative revenue sources
<br />must be explored in financing municipal services.
<br />
<br />2. The State Legislature has reduced the amount of aid
<br />that Cities receive from the State. These funds were
<br />used by the City to fund such services as Police, Fire,
<br />Parl( Maintenance, etc. Again, alternative funding
<br />sources need to be determined. The City of Ramsey
<br />is lool(ing at losing $477,851 each year in state aids
<br />for years 2003 and 2004.
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<br />3. While taxpayers are also generally utility customers,
<br />not all utility customers are taxpayers. Tax-exempt
<br />entities such as churches, schools, and non-profit
<br />entities do not pay property taxes and thereby avoid
<br />paying a proportionate share of the taxpayer supported
<br />costs.
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<br />The current property tax levy includes costs associated
<br />with the maintenance and upkeep of the City's streets, including
<br />snowplowing, sealcoating, and maintenance. Approximately
<br />$676,226 is spent annually for these services. These activities
<br />directly benefit the utility companies and its ability to serve its
<br />customers. The franchise fee, which would be based on utility
<br />consumption levels, would be figured at 4.5% of gross revenues
<br />and would generate approximately $525,000 annually.
<br />Residential customers would see about a $6.31 increase
<br />monthly on their utility bills resulting from the franchise fee.
<br />The proposed franchise fee represents a diversification
<br />of the City's revenue base for financing municipal services. It
<br />is consistent with the City's intent to be sensitive to increases
<br />in the property tax levy and to increase the level of user-oriented
<br />fees, where appropriate.
<br />The City of Ramsey will be holding a Public Hearing
<br />during the regular City Council meeting on Tuesday, June 24,
<br />2003, at 7:00 p.m. at Firestation 1. The implementation of a
<br />franchise fee with Connexus Energy, City of Anoka Electric
<br />and Centerpoint Energy will be discussed.
<br />
<br />What is a Franchise Fee?
<br />A franchise fee is a charge that cities may impose upon
<br />private utility companies for use of the right-of-way.
<br />
<br />What is meant by the term "right of-way"?
<br />Right-of-ways are the streets and boulevards that abut City
<br />streets. This area is under public ownership.
<br />
<br />What is being proposed?
<br />The City Council is proposing an electric and gas franchise
<br />fee which represents a charge to Connexus Energy, City of
<br />Anoka Electric, and Centerpoint Energy in support of the
<br />right-of-way, and maintenance and rehabilitation of the City's
<br />street infrastructure.
<br />
<br />Why should these utility Companies be charged?
<br />Connexus Energy and City of Anoka Electric are the only
<br />providers of electric services in the City of Ramsey, whereas
<br />Centerpoint Energy is the sole provider of Natural gas
<br />services. Accessibility to the electric and gas utility systems
<br />is provided by the City street system. The City's costs for
<br />such upkeep, which include snow plowing, patching, crack
<br />sealing, signing and overall maintenance, is approximately
<br />$676,000 per year.
<br />
<br />What about other utilities? Does Ramsey have any other
<br />franchise fees?
<br />Currently, the only other utility that charges a franchise fee
<br />is cable television. These fees are collected to offset the
<br />expenses of televised City Council, Planning and Park and
<br />Recreation Committee meetings. The State has made it illegal
<br />to charge a franchise fee to telephone and telecommunication
<br />companies, even though they are significant users of the
<br />City's right-of-way.
<br />
<br />How much revenue would a franchise fee raise annually?
<br />The proposed franchise fee would equal approximately 4.5%
<br />of Connexus Energy, City of Anoka Electric and Centerpoint
<br />Energy's gross revenues from the Ramsey service area or
<br />$525,000 annually. Connexus Energy, City of Anoka Electric
<br />and Centerpoint Energy, in turn, would pass along the
<br />franchise fee to its customers on their monthly gas and and
<br />electric usage. A typical family would see an additional
<br />monthly fee of$3.06 on gas consumption and a monthly fee
<br />of $3.25 for electricity usage. These charges would be listed
<br />as a separate line itemcharge such as: "City of Ramsey
<br />Excise Tax", on your monthly bill.
<br />
<br />Isn't this just another tax or fee that will go to the taxpayer?
<br />Yes, it represents a fee that the taxpayer will see on their
<br />utility bills. Right-of-way costs are more equitably aligned
<br />as costs are spread to all users, including tax-exempt
<br />properties such as schools and churches. Franchise fees
<br />provides the City with a new opportunity to generate revenue
<br />to continue service levels that citizens have come to expect.
<br />
<br />Where can I voice my opinion about the proposed franchise
<br />fees?
<br />A Public Hearing will be held Tuesday, June 24, 2003 at 7 :00
<br />at Firestation #115050Armstrong Boulevard, NW.
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<br />Teenagers are people who express a burning desire to be different by dressing exactly alike. - Anonynlous
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