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36 Franchise Fees <br />37 Over 100 cities have franchise fees in Minnesota. In Ramsey County, 12 of the 15 cities <br />38 have utility franchise fees as shown in the table below. <br />39 <br />40 <br />41 <br />42 The fact that franchise fees are used by other cities is not intended to suggest that <br />43 Roseville should automatically follow suit simply because others have. Rather, it highlights <br />44 that franchise fees are a widely accepted and effective tool that many cities rely on to <br />45 support both operational and capital needs. As the City Council considers strategies to <br />46 address rising costs and potential tax levy increases, franchise fees represent a practical <br />47 and commonly used option worth consideration. <br />48 <br />49 For City Council consideration, staff is bringing forward a suggested utility franchise fee <br />50 schedule. The proposed fees are slightly different than what was discussed at the August <br />51 25 City Council meeting and subsequent 2026 budget discussion. The updated fee <br />52 estimate will increase the amount of revenue generated by the franchise fees by slightly <br />53 more than $300,000. Under the proposed utility franchise fees, the residential rate of $3 <br />54 per month for gas and electricity remain the same. The non-residential rates have been <br />55 modified and as a result, additional revenue is generated. Below is the table showing the <br />56 proposed franchise fees: <br />57 <br />58 <br />59 <br />60 Under these proposed franchise fees, residential customers, which comprise 88% of the <br />61 total electric and gas accounts, will pay 40% of the fees. Non-residential customers, or 12% <br />Page 2 of 4 <br />Qbhf!:7!pg!74: <br /> <br />