City of Burnsville
The Goal
Burnsville had an established policy of using franchise fee revenue to support facility projects and related debt service. As the City began planning the next phase of facility investments, highlighted by nearly $100 million in improvements to its combined police station and City Hall, it faced the challenge of determining how to fund these significant costs and whether substantial increases to franchise fees would be required to maintain the City’s long-standing funding approach.
The Solution
Ehlers worked with the City to update its financial management plan and complete a comprehensive franchise fee study. The team guided the City through a confidential credit rating evaluation to ensure new debt and funding strategies preserved Burnsville’s AAA credit rating, and supported decision-making through City Council work sessions and engagement with community stakeholders, including the local chamber of commerce and utility providers, to evaluate and communicate franchise fee options.
The Outcome
The City Council approved franchise fee increases ranging from 100% to 160% by user class, enabling the City to advance its facility funding strategy. The City also issued the first of two planned tranches of capital improvement plan bonds and began construction on renovations to its combined police station and City Hall.