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MONDAY, NOVEMBER 3, 2003 ANOKA .Critics fear new fee on natural gas just a start City Council could vote on plan tonight BY NANCY NGO Pioneer Press The city of Anoka plans to o~set part of a loss in state f~mding by charging residents md business owners a natural ghs. franchise fee. The move concerns some ~ople, who wonder whether the fee will be followed by 0thor new charges. !.-The City Council could approve a franchise fee resolu- tion at a meeting tonight. Council members see the fee asa key means for holding the bhdget steady in the next few years in the face of a decline in .s~t.e funding. And they hope that-~hanges made to the plan '.w~ tisfy opponents. ~.-',"rhere's been some opposi- tioh:.:The biggest complaints v~qr~'really from business and r~si'dential users saying this is a'fie~v tax, and it's not going to g~-,away and that basing it on u~.a~e, is not fair," said Mayor. Bjorn Skogquist. After citizen complaints, the proposal was changed to ifistlmte a four-year term on ~Phtural gas fee rather than '~u~..~mg it indefinitely. That v~a~';a future council would ~ to approve ex-tension of th~'.f~e beyond four years. ~he resolution 'also was changed to charge residents and-business owners a fiat rat~g rather than basing the fee oh]usage. :-.The fee, which would take effect Jan. 1, would bill $2.75 a rao. r~th to all residences that uSe natural gas. Businesses were divided into three cate- gories depending on size, with rates ranging from $8 to $900 a Other area cities with the fees include Coon Rapids, Mounds View, New Brighton, North St. Paul and St. Louis Park. month. The fee will apply to about 4,500 Anoka residents and more than 600 businesses. Next year, the city is looking at a $600,000 loss in local gov- ernment aid from the state. The franchise fee is expected to bring in $366,000 annuagy. The city expects to cover the remaining loss in aid by instituting a hiring freeze on some open positions and com- bining certah3 jobs. Although Anoka resident Ohm O'Dette is pleased by the changes to the original pro- posal, he is concerned it is the beginning of more such charges. "If they're going to start with natural gas, where's it going to end?" he asked. just think it's the wrong direc- tion to go, and the prospects of where they're going to cut it off scares me." Other area cities with natu- ral gas franchise fees include Coon Rapids, Mounds View, New Brighton, North St. Paul and St. Louis Park. Nancy Ngo can be reached at nngo@pioneerpress, com or~ 651- 228-2149.