Roseville city leaders on Monday adopted electric and gas franchise ordinances that would permit Xcel Energy to continue to construct, operate and maintain utility facilities in the city’s rights of way for a new 20‑year term, while deferring a final decision on whether to impose franchise fees until a public budget hearing on Dec. 8.

City Manager Pat Trojgen told the council the ordinances mirror longstanding model language and would re-establish the city’s ability to negotiate franchise fees for right‑of‑way use. Trojgen said the permit fees Xcel currently pays average about $50,000 annually; if the council imposes franchise fees, Xcel has asked to waive those permit fees and the staff proposal would reimburse the engineering services fund from franchise revenue if that waiver is granted.

Trojgen and staff presented three budget scenarios showing different mixes of franchise-fee revenue and repurposed levy money. Under the staff’s central scenario — combining $2.4 million in franchise revenue with partial repurposing of existing levy — the city said it could reduce a projected 11.54% levy increase to about 7.59%, while directing franchise revenue to right‑of‑way capital funds (pavement management, street lights, pathways) and other equipment needs. Trojgen said the proposed flat monthly rates under consideration would be roughly $3 for residential electric and $3 for residential gas, with higher dollar tiers for nonresidential accounts.

Council members debated timing and public input. Council Member Bauer favored postponing any fee decision until the Dec. 1 and Dec. 8 budget hearings to ensure public scrutiny; Council Member Straub urged caution about underfunding long‑term capital needs and preferred the scenario that uses franchise revenue to shore up capital funds. Several members said they were comfortable adopting the underlying franchise ordinances now to preserve the city’s options and bring fee choices back for public hearing.

The council voted unanimously to adopt the franchise ordinances and to authorize publication of ordinance summaries. The council did not adopt any fee ordinance Monday and will consider ordinance(s) establishing specific fee amounts at a Dec. 8 meeting tied to the ongoing budget and levy discussion.

If the council adopts fees, Trojgen said council must later amend the fee ordinance to change rates; any future rate changes would require a formal public process. Xcel Energy staff were present for technical questions during the discussion, and city staff said they would provide more granular fiscal impacts before the Dec. 8 hearing.

What’s next: Council members asked staff to return with precise fee resolutions and budget reconciliations for public hearings on Dec. 1 and Dec. 8; final action on franchise fees is expected Dec. 8.