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ARDEN HILLS CITY COUNCIL WORK SESSION — SEPTEMBER 18, 2023 11 Mayor Grant would also like to see what other municipalities are doing. He wondered what the range was of one of their cell towers. If they need to locate it here, the City is in a better negotiating position. Councilmember Fabel said they didn't know if they were in the ballpark. After further discussion staff was directed to gather contract information from other cities, along with other cell tower vendors in the City, and bring the item back to Council. E. Franchise Fees Discussion City Administrator Perrault said this was a continuation from the August work session and whether the Council wants to consider franchise fees as a way of funding some capital projects. The PIR Fund looks healthy but could use more funding, but the Public Safety Fund and Government Equipment Building Fund will be negative, in part due to the new fire station starting construction in 2026 and the revised CIP. In order to raise $400,000 in franchise fees, Xcel projects it would require a residential monthly fee of $2.00 on electric and $2.25 on gas, for a total of $51 annually between the two. A comparable tax levy increase of $400,000 would equate to an annual increase between $55 and $60 on a median priced home ($469,000). Councilmember Holden was disappointed that the funding wouldn't include trails. Even if they bond for trails they need to pay the bonds off. If they get state bonding, will the City cost go down or just the County's? It is unknown now as there's not an agreement. City Administrator Perrault replied that the numbers were based off the July CIP. There were numbers with and without the trails. Franchise fees are for the baseline not including trails because the trails aren't guaranteed or solidified in the budget yet. The County trail on Lake Johanna is in their TIP plan, but that is dependent on receiving funding, and the Old Highway 10 plan isn't in a County plan or in the CIP. Regardless of the trails there are still funding issues that need to be fixed. Councilmember Fabel stated he was opposed to a franchise fee system. He felt if they need money for the various funds they should levy for what they need. He thought people would want to know why they were being charged a fee for something that has no relationship to the fee itself. Moreover, the fees would be the same for a $2 million home as a $200,000 home and that wasn't fair. Councilmember Monson said she would like to have public engagement on the topic that would include where the City would use it. She would be open to an open house with a presentation and asking residents if they were going to give franchise fees where would they want them to go. She would like to have all the information presented at an open house or public hearing at as Council meeting. Councilmember Rousseau thought they needed to be specific about why they think we need franchise fees, and also create awareness around the water meter project and make people really aware of the taxes and fees that are going toward their houses.