What will the cost impacts to residents and businesses be?

Multiple funding options are under consideration (as detailed in the recommendations report). One of these options (Option 1A) would use a combination of the property tax and franchise fee to allocate approximately $2.9 million annually to address the parks and trails replacement funding shortfall.

The estimated franchise fee impact to Woodbury property owners would be $5 per month (total for gas and electric) for most residential properties. The franchise fee for larger commercial properties will be more, with many variables influencing the final estimate. See below, or reference page 11 in the Replacement Plan Funding Recommendations Report (PDF).

Proposed Monthly Franchise Fees
Option 1A: Blended (Mid End Fee)
Electric Service
Small Commercial/Industrial, Non-demand$3.50
Small Commercial/Industrial, Demand$23
Large Commercial/Industrial$90
Public Street Lighting$8
Gas Service
Commercial Gas Service - Xcel Energy
Commercial Firm, Non-demand$10
Commercial Firm, Demand$100
Small Interruptible$90
Medium/Large Interruptible$55
Firm TransportationN/A
Commercial/Industrial Gas Service - CenterPoint Energy (Estimated)
Commercial A  Less than 1,500 therms/year$10
Commercial/Industrial B 1,500 less than or less than 5,000 therms/year$10
Commercial/Industrial C greater than 5,000 therms/year$100
Small Volume Dual Fuel A less than 120,000 therms/year$90
Small Volume Dual Fuel B greater than 120,000 therms/year$90
Large Volume Dual Fuel greater than 1,999 therms peak day$55

If approved, the collection of the monthly franchise fee through Xcel Energy and CenterPoint Energy utility bills is planned to start in January 2022.

Show All Answers

1. What is a franchise fee?
2. What will the cost impacts to residents and businesses be?
3. What is the estimated financial impact to non-residential properties?
4. Do other cities collect franchise fees?
5. What are the next steps to implementing a franchise fee?
6. Have more questions?