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St. Anthony council backs commercial-weighted franchise-fee plan to raise revenue for public-safety and capital needs
Summary
Councilmembers reached consensus to pursue Franchise Fee Plan Three, which staff estimates could generate about $1 million annually by shifting roughly 60% of the fee burden to commercial users, to help fund public-safety facilities and building improvements.
The St. Anthony City Council on June 9 expressed support for pursuing a franchise-fee structure that shifts a larger share of costs to commercial accounts, a step staff said could generate roughly $1 million annually to help pay for public-safety and capital needs.
Ehlers Senior Municipal Advisor Stacie Kvilvang presented three options. Under the first option—applying a metro-average charge—staff estimated annual revenue of approximately $627,000, with residential accounts assessed about $4 per utility per month and larger commercial accounts paying higher monthly amounts. The second option keeps residential at $4 and doubles other classes, an approach projected to raise about $844,000. The third option, which the council chose to advance, shifts approximately 60% of the burden to commercial accounts; staff estimated it would generate about $1,000,000 annually. Kvilvang illustrated sample rates: Small commercial accounts ranging roughly $6–$28 per unit, and Large commercial-industrial accounts at $135 or $270 per month (about $3,200 per year at the higher level).
Councilmembers discussed who should ultimately bear the burden. Councilmember Jan Jenson said the city needs a revenue stream for public-safety improvements and favored Plan Three to seed a new public-safety facility; Councilmember Thomas Randle said he opposed placing majority burden on residents and expressed conditional support for options that shift costs off residents if funds are dedicated to specific projects. Mayor Wendy Webster and members agreed Plan Three provided a better balance and asked staff to proceed; Mayor Webster also noted upcoming discussions on broadband franchise fees, tentatively slated for September.
No formal ordinance or fee was adopted at the work session; the council confirmed consensus to move forward with Plan Three and directed staff to develop implementing language and options for dedicating funds to capital projects.
