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Councilmember Kurak inquired if the franchise fee would have to be established by resolution <br />requiring a public hearing. <br /> <br />City Administrator Norman replied yes. <br /> <br />Finance Officer Lund noted that the funds collected from the franchise fee would go directly into <br />the general fund. <br /> <br />Councilmember Pearson inquired how staff determined what the franchise fee would be. <br /> <br />City Administrator Norman explained that staff used information put together by New Brighton, <br />but if the Council directs staff to proceed with establishing a franchise fee, staff will contact the <br />gas and electric companies to get real figures <br /> <br />Councilmember Elvig stated that he was frustrated to hear staff proposing franchise fees because <br />it would just be another tax on the people. His other concern is if the fees will be charged the <br />same to residential properties and businesses. Typically businesses take a larger portion and he <br />was concerned that businesses will not come to the City because of large fees being charged. He <br />also expressed concern on how the utility companies will distribute the fees. <br /> <br />City Administrator Norman replied that the City could more evenly distribute the fee amongst the <br />residential and business properties rather than putting it mostly on the business side. <br /> <br />Councilmember Kurak noted that it was her understanding that a property owner will pay a fee <br />based on the percentage of electricity they use. <br /> <br />Councilmember Cook inquired as to what the financial impact would be on a household for a <br />month. <br /> <br />Finance Officer Lund replied that it would be around $5.00 to $10.00 a month. <br /> <br />Councilmember Elvig inquired if the City dictated the way the fees are charged. <br /> <br />City Administrator Norman replied yes. <br /> <br />Councilmember Zimmerman noted that the discussion of franchise fees in the past has been <br />unpopular. <br /> <br />City Administrator Norman noted that if they City is not allowed to levy the cuts then the <br />franchise fees would be something the City could fall back on. <br /> <br />Councilmember Elvig inquired as to what kind of projections the City was looking at this year in <br />building permits revenues, because it seemed to him that the projections in the 2003 bud'get were <br />low. <br /> <br />City Council Work Session/April 29, 2003 <br /> Page 9 of 15 <br /> <br />-53- <br /> <br /> <br />