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Attachment 4 <br />City Manager’s Office <br />Memo <br />To: Mayor, City Council <br />From:Patrick Trudgeon, City Manager <br />Date: November 10, 2025, Updated November 19, 2025 <br />Re: Franchise Fee Impacts to Budget and Levy <br />As the City Council narrows down the 2026 budget and levy scenarios, staff is assuming that the <br />additional public safety personnel will be part of the 2026 budget as evidenced by the acceptance <br />of the SAFER and COPS grants. In addition, while a final decision has not been made, the City <br />Council has indicated, through previous discussions, that a start date of April 15, 2026 is desired <br />for the 15 new firefighters. <br />With that in mind, there are 3 scenarios that should be focused on. <br />Scenario 1 <br />Adds the public safety personnel with the SAFER and COPS grants partially assisting <br />in the costs for 2026 <br />Firefighters starting on April 15, 2026 <br />No franchise fees are implemented <br />No additional capital spending is proposed <br />Scenario 1 results in a tax levy increase of 11.54% and an increase of $15.71 more per month <br />for the owner of the median-valued home ($378,600) <br />Scenario 2 <br />Adds the public safety personnel with the SAFER and COPS grants partially assisting <br />in the costs for 2026 <br />Firefighters starting on April 15, 2026 <br />Franchise Fees raising $2,420,000 are implemented <br />Of the $2.42 million of franchise fees: <br />$2,106,00 are used to replace $1.631million of existing levy dollars going to the <br />Street Fund, Street Light Fund, Pathway and Parking Lot fund, and Public Works <br />Equipment Fund. <br />$264,000 of the franchise fees will be used for the Police Department Vehicle and <br />Equipment Fund <br />$50,000 will be allocated to the Engineering Services Fund to replace the Xcel <br />permit revenue <br />Qbhf!64!pg!259 <br /> <br />