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<br />The City Council also compared the impact on homeowners of franchise fees verses <br />property taxes when generating the same amount of revenue. In the vast majority of <br />situations, homeowners pay less under the franchise fee program as compared to property <br />taxes. This analysis is shown in Attachments H. <br /> <br />Attachment I provides information on the breakdown between residential properties and <br />commercial/industrial (C/I) properties when paying a tax levy increase of $439,236. This <br />attachment also shows the breakdown between residential, C/I, and tax-exempt properties <br />when looking at the total City estimated market value. This chart shows that the tax- <br />exempt properties make up about 43% of the total City estimated market value. <br /> <br />In October 2013, the City Council also discussed using 60% of the franchise fee revenues <br />for trails and parks and 40% of the funds for streets. The City Council further discussed <br />that, if approved, the franchise fees program would not begin until January 1, 2015. The <br />City approval process involves the adoption of two City franchise fee ordinances. <br /> <br />Conclusion <br /> <br />This public hearing and the public hearing on February 24 are being held to receive <br />public input on franchise fees. <br /> <br />If the City Council decides that they need additional revenues to undertake additional CIP <br />projects or to move CIP projects ahead in the schedule, then establishing a franchise fee <br />on electric and gas services is an option worth evaluating. One of the advantages for a <br />franchise fees approach to generating additional revenues as compared to property taxes <br />as a revenue source is that franchise fees will be paid by all customers including the <br />customers that are exempt from paying property taxes. <br /> <br />Attachments <br /> <br />Attachment A Pavement Management Program (PMP) <br />Attachment B Park and Trail Improvements <br />Attachment C PMP & Other Street Projects <br />Attachment D - Typical Park Improvements <br />Attachment E Trails and Sidewalk Facts <br />Attachment F Reserve Balances <br />Attachment G - Franchise Fee Example <br />Attachment H Impact of Franchise Fee Compared to Tax Levy Increase <br />Attachment I Property Class Breakdown <br /> <br /> <br /> <br /> <br />55 <br />Page of <br /> <br />