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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION — SEPTEMBER 23, 2024 7 Finance Director Yang said that's just a cushion., in case rates were to increase from where they are today. Councilmember Monson summarized the difference between the scenarios. She would like to see the residential fee held to $3.00. Councilmember Holden agrees. She said keeping it below $3.50 is significant for residential while asking residents to pay the equivalent of a single cup of coffee. Mayor Grant said when this was done with the BQ AAA rates, that was before the rates were dropped by the fed. He thought focusing on the top half of the sheet and not the bottom would be appropriate. Councilmember Fabel asked how much Xcel Energy charges to be the middleman on the collection of taxes. Finance Director Yang said there is no charge. Councilmember Rousseau would like to see options at $3.00, $3.50 and $4.00. She would also like to try to keep the small commercial and industrial at the lower rate. She prefers to put it on the large commercial and industrial to carry more of the weight. Mayor Grant asked Mike Wilhelmi when Xcel sets a franchise fee, do they have to level set residential to commercial? Can you weigh one heavier than the other? Mike Wilhelmi said the Council has a lot of options available. He said a resident will use a lot less energy than a business. It makes sense that the commercial and industrial properties will take more. Councilmember Holden thinks a small business can utilize a significant amount of electricity and a larger business, a lot of them, are very energy efficient and may be using less. She wondered how it breaks down. Mike Wilhelmi said it's not broken down by the size of the business. There are categories based on usage. Councilmember Holden said small businesses may use a little more energy. She would like to see businesses with less than 10 employees have a lower rate. Even if they use more electricity, they don't have stockholders. They need to make payroll. Mike Wilhelmi said non -profits and schools also pay franchise fees. Councilmember Rousseau said that is why Council dedicated this funding source to the fire department because all of those entities also use the services of the fire department. Councilmember Holden said Presbyterian Homes has a lot of locations and are already paying the franchise fees elsewhere. This will be nothing new for them.