Forest Lake council approves increases to gas and electric franchise fees for road funding

The Forest Lake City Council approved two ordinances to adjust gas and electric franchise fees that were last revised in 2013. City staff said the proposed increase is designed to help close an infrastructure funding gap and to be implemented in 25¢ increments consistent with Public Utilities Commission preferences.

Mark (city staff) told the council the change could either be dedicated to the road fund to boost reconstruction capacity or used to reduce the preliminary levy; he noted council could decide later whether to apply the revenue to lower the property tax increase or to add to road construction funding. "There's nothing saying you have to do that. You could simply add to the road fund and do more roads," Mark said.

Council discussion acknowledged that fees operate like a tax and that the city has not increased them in more than a decade. One councilor noted the city is being advised it should be spending about $4 million per year on roads but is currently spending a little over $2 million; the franchise fee increase was presented as a means to help close that gap and to dedicate funds exclusively to roads.

The council approved Ordinances 7-60 and 7-61 and then approved a resolution authorizing summary publication of ordinance summaries by voice vote.

What happens next: The ordinances will be published pursuant to the approved summary publication resolution and implemented per city code timing requirements.