4.1. SR 09-23-2002 - Laserfiche WebLink

Home Browse Search

tax revenues. (The other two revenue sources being evaluated are the street reserves and special assessments.) Two years ago, the city placed some of its tax monies into a street levy category in anticipation of this street rehabilitation program. With levy limits now being enforced on municipalities, there is a need for this money to go into the general fund for general municipal services. Accordingly, it is necessary and makes sense to establish a gas franchise fee to pay for part of the pavement rehabilitation program so that the street levy can go into the general fund. Using revenue from a gas franchise fee in lieu of a tax levy seems more fair and equitable as this fee is collected from all property owners that have gas service, including churches, schools, and governmental units. In some cases, churches, schools, or governmental units can be the largest generator of traffic in the neighborhood and be the major cause for a street rehabilitation project. If one of the funding sources for the street rehabilitation project was tax revenue (rather than franchise fees) then these major users of the street would not be participating in funding this share of the program. The gas franchise fee is not intended to dominate the discussion with Mr. Hendrickson but I'm sure it will be part of the conversation. The majority of municipalities in the metropolitan area do not charge a gas franchise fee, although a few do have an established fee. According to LMC, the list includes the cities of Newport, Mounds View, North St. Paul, Coon Rapids and Edina, and from recent newspaper articles we know that other communities are exploring options relative to this revenue source. Also, some outside communities like Moorhead, Lake City, and St. Cloud collect a gas franchise fee. By far, franchise fees charged for cable TV is much more common than gas fees but this may change in the future as levy limits continue.