Laserfiche WebLink
ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION— SEPTEMBER 23, 2024 6 <br /> Councilmember Monson would like to see what the individual resident impact would be if the <br /> franchise fee covered the $542,000 annual debt service for a 10-year bond. The current <br /> calculation of$3.00 per resident is based on the $375,000. That is just under$200,000 less than <br /> we were hoping for. <br /> Mayor Grant said he understands Xcel would prefer an even dollar amount. <br /> Mike Wilhelmi said they prefer$0.25 increments. <br /> Mayor Grant thought rounding up to $4.00 is possible. That would equate to just over$455,000 <br /> annually. <br /> Councilmember Monson confirmed but we'd still fall short of the total. <br /> Mike Wilhelmi said if Council provided a number to target,he could put together some options. <br /> He said the $3.00 is what most communities do. Some go as high as $4.00. Some a little higher. <br /> Councilmember Monson wondered if Staff should work with Xcel on what each customer class <br /> would look like. <br /> Mayor Grant thought they have already done that. <br /> Finance Director Yang said she had used previous break outs for that. In order to get updated <br /> figures, Staff would have to work with Xcel. <br /> Mayor Grant thought it would be worth our while to have Mike Wilhelmi work with Staff to get <br /> those cost options. The intent is to use the franchise fees to pay for the fire station and spread <br /> those costs over the entire city, including the non-profits. <br /> Councilmember Monson agrees Staff should work with Xcel. She wondered what the advantage <br /> of scenario #2 that has a higher interest rate. <br /> Finance Director Yang said that's just a cushion., in case rates were to increase from where they <br /> are today. <br /> Councilmember Monson summarized the difference between the scenarios. She would like to <br /> see the residential fee held to $3.00. <br /> Councilmember Holden agrees. She said keeping it below $3.50 is significant for residential <br /> while asking residents to pay the equivalent of a single cup of coffee. <br /> Mayor Grant said when this was done with the BQ AAA rates, that was before the rates were <br /> dropped by the fed. He thought focusing on the top half of the sheet and not the bottom would be <br /> appropriate. <br /> Councilmember Fabel asked how much Xcel Energy charges to be the middleman on the <br /> collection of taxes. <br /> Finance Director Yang said there is no charge. <br />