Edina Council Reviews Franchise Fee Options, Legislative Update
The Edina City Council reviewed two options for increasing franchise fees during a work session Wednesday, with both proposals designed to generate approximately $4 million annually for street reconstruction and other municipal priorities.
Option 1 would maintain the current flat fee structure while increasing residential fees from $3.55 to $4.40 per month per utility and doubling commercial rates. Option 2 would adopt a 4% percentage-based model for all customers, with fees varying based on energy consumption. Both options represent a $1.3 million increase from the current $2.7 million collected annually.
The franchise fees fund the city's PAX Fund for pedestrian and cyclist safety, the CASS Fund for conservation and sustainability, and street lighting. Under either proposal, the additional revenue would support street reconstruction projects, potentially reducing the burden on the general tax levy by $1 million annually.
Contract lobbyist Katie Sun of Messer Lee Kramer provided an update on key legislative priorities, including the Vernon Avenue Bridge Highway 100 project bonding request and Tax Increment Financing legislation for developments at 72nd and France and 70th and France. The bonding bill faces uncertainty with the House targeting $700 million and the Senate considering $1.3 billion.
The council will bring the franchise fee discussion to a full council meeting May 6 for a final decision. If approved, the regulatory process must be completed by July to implement new rates by January 2026.
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Areas of Interest (4)
- Council weighs switching from flat franchise fees to percentage-based model to fund street reconstruction.
- City proposal to add $1.3 million to annual franchise fee revenue to address street maintenance backlogs.
- Potential for massive bills for some commercial energy users under proposed 4% revenue-based franchise fee.
- Ongoing debate over whether residential or commercial sectors should carry the burden of the PAX and CASS funds.
Notable Quotes (3)
I'd like to have a decision to emanate from all five council members not three of us.
We would pass our ordinances, submit them to the utilities who would then have to go through a regulatory process with the public utilities commission.
If we do that 4% flat or 4% fee model here's where we the estimated number we generate per month and the change from today.
People (8)
Sharon AllisonClerkCalled the roll for the meeting.
Called the roll for the meeting.
AgnuCouncil MemberPresent at the meeting.
Present at the meeting.
RisserCouncil MemberPresent at the meeting.
Present at the meeting.
HublinMayorPresided over the meeting.
1 quote
Presided over the meeting.
“I'd like to have a decision to emanate from all five council members not three of us.”
Discussing the need for full council participation before deciding on fee models.
Katie Measelian KramerSenateWorking for the city at the state capital.
Working for the city at the state capital.
ChadStaffProvided background on franchise fees and funding models.
Provided background on franchise fees and funding models.
MarissaStaffExplained utility and PUC regulatory processes.
Explained utility and PUC regulatory processes.
ScottStaffDiscussed historical background of PAX and CASS funding.
Discussed historical background of PAX and CASS funding.
Places Mentioned
Events & Meetings (2)
- April 16, 2025, 5:30 p.m. - City Council Work Session
- May 6, 2025 - Scheduled follow-up discussion at open council meeting
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Other Topics from This Document
Continuation of franchise fee discussion
Evaluation of flat fee versus percentage-based fee models
Proposed $1.3 million revenue increase for street reconstruction
Legislative update from state capital
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