Lakeville City Council Work Session 7-22-24

Thursday, May 8, 2025

Implementation of franchise fees for gas and electric utilities

Utility franchise fee rate structure and tier options

Funding strategy for fire and police public safety facility improvements

Communication and public outreach plan regarding franchise fees

Quarterly financial report (Q2) review

Areas of Interest (5)

  • Lakeville considers new franchise fees for utilities to fund a $64M public safety facility project.
  • Proposed shift from property levy to tiered franchise fees on gas and electric bills raises equity concerns.
  • Business community expresses confusion over multi-metered billing and potential for multiple franchise fee assessments.
  • Staff suggests using a special account for franchise fee revenue to cover bonding debt for fire and police stations.
  • Controversy persists over whether franchise fees result in double taxation for residents through school district levies.

Notable Quotes (3)

This is a I think the third or fourth time that C has reviewed the concept of uh starting to assess franchise fees for uh public utility gas electric

— Mr. Kennan
Franchise feesIntroducing the agenda item.

I'd like to just get a feel for what the concerns are if there are any publicly wise

— Mayor
Public outreachAsking for visibility into public comments during the outreach phase.

Second quarter we're looking at um if you're looking at a general fund and revenues we're right on par about 50%

— Miss Stall
Financial reportOpening the Q2 financial update.

People (3)

Mr. KennanStaff Member

Provides analysis on franchise fee structures, revenue projections, and utility rate comparisons.

1 quote

“State Statute does allow cities to um charge a fee to utilities for the use of the Cities RightWay”

Explaining the legal authority behind the proposed franchise fees.

MayorMayor

Leads the council discussion, emphasizes transparency, and manages the public hearing timeline.

1 quote

“I think what's laid out I don't know how you could be more transparent about it”

Defending the communications plan against concerns about transparency.

Miss StallStaff Member

Presents the Q2 financial report, noting property tax collection timing and departmental budget performance.

Places Mentioned

LakevilleCity Right-of-Way

Events & Meetings (5)

  • July 22nd: City Council Meeting
  • August 20th: Draft notices to utility companies
  • August-September: Public communication campaign
  • November 18th: Scheduled public hearing
  • March 1st: Effective date of ordinance
View Source
Lakeville City Council Work Session 7-22-24 - Lakeville Recorder