City Council Meeting Date: September 23 2025
To: Mayor and City Council
From: Ben Martig, City Administrator
Title
Summary Publication of Ordinance No. 1086 Amending Gas Service Franchise Fee.
Body
Action Requested:
The Northfield City Council is asked to consider the first reading of the attached ordinance amending a gas service franchise fee on Northern States power Company, A Minnesota Corporation, D/B/A Xcel Energy, Its Successors and Assigns, for Providing Gas Service Within the City of Northfield.
Summary Report:
The City Council is asked to consider the first reading of Ordinance No. XXX amending the gas service franchise fee. The Council implemented a franchise fee for gas and electric in 2020. When these fees were adopted we discuss having them updated on a regular basis as the fee structure is legally required to be a fixed dollar amount. The recommendation at the time was to update the fees every 5-years or so and include a street construction inflator to adjust. The expenses in the capital improvement plan are not planned to change with additional revenue. Alternatively, it would replace property tax for a portion of the costs that are paid by all in the community who benefit and not just taxable properties.
The draft Ordinance along with additional information will be sent supplemental.
Alternative Options:
Council could choose not to amend the gas service franchise fee.
Financial Impacts:
Tentative Timelines: