City of Columbia Heights
The Goal
Columbia Heights historically limited franchise fees to cable services, leaving the City reliant on a declining revenue source. Recognizing this shift, the City pursued an opportunity to modernize its franchise fee program to support long-term capital and infrastructure investment with a more predictable revenue stream.
The Solution
Ehlers advised the City on the statutory authority for franchise fees, and evaluated available fee structures, including flat monthly fees, percentage-of-revenue fees, and per-unit fees. Ehlers also benchmarked franchise fee practices across the seven-county metropolitan area and analyzed revenue potential, ratepayer impacts, and policy considerations across property classifications.
The Outcome
Columbia Heights is moving forward with new gas and electric franchise fees expected to generate more than $1 million annually. This new revenue will help fund streets and infrastructure while reducing the City’s reliance on special assessments paid directly by property owners.