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City Council rejects franchise fee proposal to fund parks, trails, and road maintenance and improvements by Kristine Goodrich rden Hills property owners wont includes reconstruction of West Round ible for their payers as are property taxes. includes reconstruction of West Round see new City fees on their electric Franchise fees also are considered regres - and gas bills. After several months Valentine Hills neighborhood next year sive because every property type pays Valentine Hills neighborhood next year and participation in state bridge projects in the same amount, regardless of property of discussions and two public hearings, and participation in state bridge projects in 2015, 2016, and 2017. There are no road value. the Council unanimously opted in Febru2015, 2016, and 2017. There are no road - projects planned between 2018 and 2022. ary not to move forward with exploring projects planned between 2018 and 2022. Public makes its voice heard News that reconstruction of Old Snelling franchise fees. Council members said their News that reconstruction of Old Snelling Avenue isnt planned until 2025 drew conAt two public hearings in February, com Avenue isnt planned until 2025 drew con -- cern from several public hearing speakers. munity members heard presentations public majority opposed the idea. cern from several public hearing speakers. about the franchise fee proposal and were City leaders had considered franchise The Citys Capital Improvement Plan invited to share opinions. More than 30 The Citys Capital Improvement Plan fees as a potential new, broader revenue proposes using money from the Permanent people spoke and many more attended the proposes using money from the Permanent source to support parks, trails, and road Improvement Revolving Fund for park public hearings. A few speakers, includ Improvement Revolving Fund for park - maintenance and improvements. The ing several members of the Parks, Trails, City looked at adding monthly fees on all years, including a trial dog park area in and Recreation Committee, supported the years, including a trial dog park area in property owners electric and gas bills. For the Hazelnut Park ice rink, and parking franchise fees as a dedicated source for the Hazelnut Park ice rink, and parking residents, the proposed fees totaled $4.75. lot and drainage improvements at Freeparks and trails improvements. Most of lot and drainage improvements at Free - The fees would have varied for other way Park. No new trails are included in the speakers opposed the fees for a variety way Park. No new trails are included in properties. The fees would have generated of reasons. Some speakers didnt believe approximately $439,000 annually for the additional capital project spending was City. of new trails as high priority and has an essential. Other speakers preferred the of new trails as high priority and has an additional 16 miles of new trails on its City continue to utilize its tax levy author additional 16 miles of new trails on its - Citys reasons for considering fee wish list. ity rather than create a new fee. Council The franchise fees proposal was prompted members noted they also received feed - Pros and cons weighed by Council members concern the City back via emails and other media, predomi - The advantages and disadvantages of nantly in opposition to the proposal. The advantages and disadvantages of - complish priority street, park and trail assessing franchise fees instead of raising assessing franchise fees instead of raising projects in a timely manner. The City has the property tax levy were considered. Council members thanked community the property tax levy were considered. used reserve funds to help pay for recent Franchise fees would have been assessed members for sharing their opinions. While Franchise fees would have been assessed projects. The Park Dedication Fund has to all properties including tax exempt some Council members acknowledged to all properties including tax exempt properties, which account for 43 percent properties, which account for 43 percent dedication revenues are expected in the of the Citys market value. For most or drawbacks, all of the the Council mem of the Citys market value. For most - near future. The Permanent Improvement homeowners, the franchise fees would bers said they dont support homeowners, the franchise fees would Revolving Fund has a sizable reserve that have cost less than if the City increased further consideration of the have cost less than if the City increased allows the City not to have to take out property taxes by a comparable amount. fees at this time because pub property taxes by a comparable amount. - loans for major road projects. The franchise fees would also have been lic reaction to the proposal The franchise fees would also have been a stable revenue source, not impacted by wasnt favorable. a stable revenue source, not impacted by The Citys road improvement plan, based on current expected funding levels, hand, franchise fees are not tax deduct hand, franchise fees are not tax deduct - Spring Cleanup Day is May 17. See page 5 for details.