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� �- Public Works Department/Engineering emo To: Duane Schwartz, Public Works Director; From: Debra Bloom, Assistant Public Works Director Date: 8/1112004 Re: Street Light Assessment & Electric Franchise Fee In his 2005 Budget memo, City Manager Neal Beets proposed two Council Action items regarding Street Light Assessment and an Electric Franchise Fee. We wanted to take this opportunity to address the feasibility of both of these proposed fees. Street Light Assessment: The proposed 2005 City Streetlight budget is $176,300. This budget covers the annual energy and maintenance costs of the 1150 streetlights that exist throughout the City. It also pays for the energy for stoplights and EVPs at City street intersections. The funding of this budget relies solely on the general tax levy. This budget increases every time a new streetlight is added. Also, our maintenance costs vary from year to year. Maintenance costs for Xcel- owned streetlights are built into the monthly charge. However, maintenance on city-owned facilities is provided by the City of St. Paul on Larpenteur Avenue and by private contractors on other city streetlights. As described in the budget memo, the streetlight budget could be funded through an assessment added to the city's quarterly water and sewer bill. The City would control the billing and allocation of these funds, it would add an additional line on the bill, and would not require a separate mailing. In the interest of determining the potential cost to individual property owners for a streetlight assessment we have attached prepared a proposal with a sample rate structure. These rates are based on what other Cities used when they implemented a similar assessment. Also, two different budget totals have been analyzed, the first would provide enough revenue to cover the proposed 2005 budget of $176,300. The second would allow for an increase in funding to allow for "system improvements" as discussed in Mr. Beets' memo. For the purpose of discussion we set this alternate budget at $250,000 which would allow for the construction or replacement of an additional 20 streetlights and their associatedmaintenance fees. � Page 1