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PUBLIC UTILITY FRANCHISE FEE <br /> What is a franchise fee? <br /> A franchise fee is a charge imposed by the City on utility and cable providers who <br /> operate in the public right-of-way. An agreement with the City allows them to <br /> work in the right-of-way upon payment of established fees. The utility and cable <br /> providers often pass these charges on to the customer. <br /> Who pays the fee in Forest Lake? <br /> If you own a home or business in Forest Lake and receive a gas and/or electric <br /> [FeA e Q(:: ] bill from a utility company, a franchise fee will be included on your monthly <br /> statement beginning in May of 2013 based on the following schedule: <br /> Residential $ 4.00 <br /> Small Commercial/Industrial Non-Demand $ 2.50 <br /> Small Commercial/Industrial Demand $18.50 <br /> Large Commercial/Industrial $75.00 <br /> Why was this fee established? <br /> In 2011, the City Council appointed a Streets task force to study the condition of <br /> the City's street inventory and recommend methods of financing street <br /> maintenance and improvements. The task force found that nearly 65% of the <br /> City's streets were in need of improvement, based on a standard ranking system <br /> recognized in the industry. Failing to maintain streets in an appropriate time <br /> frame can result in the need to reconstruct the roads at a much higher cost to the <br /> taxpayers. The task force ultimately recommended the establishment of <br /> franchise fees as a mechanism to finance needed street improvements. <br /> What benefit do I get from paying this fee? <br /> City residents will enjoy a higher level of street maintenance and improvement. If <br /> your street is improved, it is likely that little to none of the cost will be assessed to <br /> your property. The franchise fee will provide approximately $700,000 annually in <br /> revenue, which is specifically dedicated to the local street improvement fund. <br /> The annual revenue is far less than the amount the City would need to maintain <br /> the streets to an acceptable level; however, significant improvement in the overall <br /> condition of local streets should be noticed as this program proceeds. <br />