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Councilmember Burg appreciated staff's efforts as well and thanked staff for making the necessary changes to <br />get the tax levy down to 3.86%. <br />Councilmember Bauman asked how the franchise fee was being allocated. Davitt stated all $65,000 was going <br />towards the general fund to bring down the tax levy. She explained that staff was proposing to increase the <br />franchise fees. <br />Councilmember Bauman indicated she would not support an increase in the City's franchise fees. She <br />commented that this was just another form of additional taxation. She did not believe that this made any sense. <br />Councilmember Jacobsen questioned how the franchise fee increase would impact homeowners. Lotter <br />reported the fee would hit all users and noted a residential user would see franchise fees increase from $2.50 <br />per month to $4.00 a month. <br />Mayor Jacobsen anticipated that utility fees would continue to go up and residents in the City did have the <br />option to choose solar power. He discussed the programs, initiatives and rebates available to homeowners for <br />renewable energy resources. For this reason, he supported the use of franchise fees. <br />Councilmember Bauman commented that the City was still raising taxes by close to 9% through the tax levy <br />and franchise fees. She reiterated how franchise fees continued into perpetuity. She believed that the City had <br />to look more closely at expenditures in order to make cuts. <br />Mayor Jacobsen stated it was his opinion the budget was reasonable and he did not want the Council to have to <br />make staffing cuts or compromise long range planning goals. He commended staff on the great job they had <br />done to complete the 2016 budget and tax levy. <br />Councilmember Jacobsen and Councilmember Burg looked forward to discussing the budget further in <br />October. <br />Worksession adjourned at 5:41 pm <br />Respectfully submitted, <br />Terri Haarstad <br />City Clerk <br />