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CITY OF NEW BRIGHTON <br />PUBLIC WORKS/ENGINEERING DEPARTMENT <br />MEMORANDUM <br />DATE: August 7, 2008 <br />TO: Honorable Mayor and City Council, City Manager <br />FROM: Dean R. Lotter, City Manager <br />Grant Wyffels, Director of Public Works <br />SUBJECT: Street Light Utility and the Xcel Franchise Fees <br />WORKSESSION MATERIALS FOR AUGUST 12, 2008 MEETING <br />At the June 24, 2008 worksession, the Street Light Utility and the Xcel Franchise Fee <br />were discussed. At that time staff was directed to follow up on each of these items as it <br />pertains to both the budget and the utility rates. <br />Attached to this report is historical information on how both the Street Light Utility and <br />the Xcel Franchise Fee came to be. In short, both were implemented to address <br />revenue short falls due to LGA cuts in 2002 and 2003 and corresponding levy limits. <br />Council inquired about the impact of repealing the franchise fees and levying for those <br />fees. The enclosed material should illustrate the requested information. Staff will need <br />direction on how to proceed before a draft budget can be completed for Council review. <br />It staffs intention to have a draft budget for Council review at the August 26t�' <br />worksession. <br />It should also be noted that New Brighton is subject to a levy limit for 2009. The Finance <br />Department has calculated that limit to be 1.80% of the 2008 levy. Under the levy limit <br />structure, the City would not have room to levy for the $485,000 Xcel Energy franchise <br />fee in 2009. It may be worth waiting for a time when levy limits are no longer in affect to <br />consider the removal of the franchise fee. Staff looks for Council direction on this <br />matter. <br />