City Council Meeting Date: November 10, 2020
To: Mayor and City Council
From: Ben Martig, City Administrator
Title
Public Hearing on Ordinances Implementing Franchise Fees.
Body
Action Requested:
The Northfield City Council holds a public hearing to consider proposed ordinance for gas and electric franchise fees.
Summary Report:
The Northfield City Council has been exploring the possibility of implementation of franchise fees for gas and electric for some time. On October 20, 2020, the Northfield City Council approved a motion calling for a public hearing on November 10, 2020 at 6 pm to consider proposed ordinance for gas and electric franchise fee with the following two ordinance combinations:
Option C:
* Gas Franchise Fee 5.0% streets & trails and Climate; and
* Electric Franchise Fees 4.0% streets and trails and Climate
The attached notice was published in the Northfield News on Wednesday, October 28, 2020. The proposed attached ordinances were posted on the City's website on October 28, 2020.
The Northfield City Council is considering utility franchise fees as an alternative revenue source from special property tax assessments primarily for street improvement projects, and secondarily for ancillary improvements (i.e. trail gaps, sidewalk gaps and climate actions and initiatives as outlined in the strategic plan).
Northfield maintains nearly 78 miles of paved city streets, and 84 miles of trails and sidewalks.
The city spends $3.5 million annually to maintain city streets.
Home and business owners are assessed between 25% to 50% for street improvement projects. Replacing streets typically occurs every 40 to 50 years. The city uses general property taxes and bonds to pay for the remaining costs of street replacements.
Many cities in Minnesota have a franchise agreement with each utility company (gas, electric) for the use of publicly-owned right-of-way for their business purpose. The right-of-way is the public property located adjacent to ...
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