City Council Meeting Date: November 2, 2021
To: Mayor and City Council
City Administrator
From: Brenda Angelstad, Finance Director
David Bennett, Director of Public Works/City Engineer
Title
Update on Franchise Fee Revenues and Refund Program.
Body
Action Requested:
The Northfield City Council receives an update on Franchise Fee Revenues and Refund Program.
Summary Report:
On December 1st, 2020 the Northfield City Council approved the implementation of electric and gas franchise fees. At the same time it also approved and Utility Franchise Fee Refund Program for those with recent special assessments.
The Franchise Fee was implemented in March 2021. The City receives quarterly payments from Xcel Energy for the franchise fees collected from residents. Year to date, the city has received $399,267 representing a partial month of March and second quarter 2021 receipts.
The original study by BakerTilly projected annual receipts of $1,300,000, net of the refund program. If quarterly receipts are similar to 2021 second quarter receipts, the city will receive approximately $1,400,000 annually, which will be reduced by the annual refund program amount. If annual refunds are less than $100,000, the city will reach its projected annual target for the program.
The information related to the refund program is detailed on the City Website. A few items to highlight related to the implementation and rollout of the refund program.
* All assessed properties back 10-years have been identified and property owners that paid the street assessments have been mailed notice of the refund program and refund application.
* There are 1,417 properties that had street assessments, and 1,066 are eligible properties. (Note: Once a property is sold, it is no longer eligible for the refund.)
* Eligible property owners need to complete a refund application form, and include one statement from Xcel Energy with Gas and Electric.
* Refunds will be process and sent out in the f...
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