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Department Approval <br />[� �: �c <br />ICem Description <br />1�� <br />� <br />R�QUEST FOR COUNCIL ACTION <br />Discussion on Alternative Revenue S�urce�s <br />Date: <br />Itern No.: <br />13uubdi nt ou 13 <br />02/22/10 <br />City Manag�r Approval <br />SACKGROUND <br />At the May 11, 2009 and November 9, 2009 City Council �neetings, Staff presentec� a brief overview of <br />alternative revenue sources that could be used to support City programs and services. While there was some <br />interest expressed b� individual Councilmembers in pursuing th�s� furt�l�r, the Council chose nat to <br />implement any af the new revenue sources at t�at time.. <br />The 2010-20I9 F'inancial �'lan and 2Q10-2019 Capital Investment �'lan identifieci a substantial gap in the <br />., funding sources needed to maintain services at current levels. However, State-imposed levy limits and <br />stagnant n�n-tax revenue� �ill inhibit the City's ability �o ge�nerate new monies from tradi�ional sources. <br />. it's itnperative that the City remain diligent in identifying additiona� means of funding City programs — a <br />sentiment shared by the community during the Imagine �oseville 2025 process. The Councii-adopted. <br />Revenue Policy prescribes the same approach. <br />�:. <br />. nuring prior discussions a number of potentia] new revenue sources wer� identified. However, it is <br />.� acknowlecigect that oniy two sources wouid prociuce signiticant revenue; a s#reet iight utiiity, anc[ a <br />��; gasleleetric franchise fee. Ifthe City er�acted a street light utility it could be� set at such a rate to generate <br />�. $300,000 annually. Gas and electric franchise fees waulci garner er�en mor�. A 1% franchis� fee charged to <br />E.� gas and electric customers w�uId equ�te to approximately $620,000 annually. <br />�.. Cit� Staff will be availa�le at the ineeting to provide some general comments and address any Co�ncil <br />inquiries on these alternaCive revenue sources. <br />.. � �OL,CCY O�JECTIVE <br />The use af varied revenue sources pravides greater stability in preserving programs and service levels, and <br />can produce a more equitable distribution of program costs. This is further supported in the Council- <br />�_�.� adopted Revenue Policy as well as the Imagine Rosevill� 2025 G�oals and Strat�gies. <br />w FINANCiAL IMPACTS <br />The potential revenues that could result from irnplementing these new funding sources vary substantially, <br />,_.. but could be significant and may allaw the City to preserve program and services at curren# levels. <br />ST�r�FF` RECOMMENbATIQl�4 <br />., Staffrecommend� the continued diversification of reven�e streams to support City programs and services. <br />Page 1 of 2 <br />