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ARDEN HILLS CITY COUNCIL WORK SESSION — AUGUST 21, 2023 6 <br />Councilmember Monson asked if franchise fees could be adjusted on a yearly basis. <br />Ms. Kvilvang reported this would be managed by the City Council through an Ordinance. <br />Councilmember Monson indicated she has mixed feelings about franchise fees. She discussed <br />how flat fees on utility bills were not beneficial in changing user behavior. However, she did find <br />it attractive to participate in this type of tax because all utility users in the community would pay <br />in. She explained she could support this matter moving forward in order to learn more from about <br />how the public feels about franchise fees. <br />Councilmember Rousseau asked if the public could be presented with scenarios on how they <br />would like to have funding raised for a new fire department whether that be through bonding, levy <br />increases or franchise fees. <br />Councilmember Holden stated this could perhaps be done through a survey. She understood <br />when franchise fees were discussed previously, it was determined the fees should not be placed on <br />gas bills. She indicated the City could consider pursuing franchise fees for electricity only. <br />Mayor Grant reported the City could pursue a franchise fee that was a percentage and not a flat <br />fee. <br />Councilmember Monson explained one of the goals for TCAAP was to be electric only. <br />Councilmember Holden indicated she could support a franchise fee for electricity because the <br />City would be using the revenues for a dedicated or specific purpose, fire and trails. <br />Councilmember Fabel asked how many times the Council has considered the adoption of <br />franchise fees. <br />Mayor Grant commented the only other time franchise fees were considered was in 2014. <br />Councilmember Rousseau questioned how budget talks would be impacted if the Council were <br />to not move forward with franchise fees. <br />Councilmember Monson stated the fire station was not included in the 2024 budget, but this will <br />be considered very shortly. <br />Councilmember Fabel inquired if Arden Hills has ever looked at a local sales tax. <br />Finance Director Bauman reported this would not be allowed, per State legislature, for the next <br />two years. <br />Councilmember Monson asked what the next steps would be. <br />City Administrator Perrault explained this matter was brought forward after discussing the CIP <br />and the Council determined there was a $400,000 shortfall. He indicated a franchise fee could be <br />considered to cover this shortfall. He noted the $400,000 was for the existing CIP projections and <br />