Frequently Asked Questions

Franchise fee revenue is anticipated to be approximately $850,000 per year. If the City were to raise the property tax levy by $850,000 it would result in an additional $145/year tax increase to the average valued home. 

By implementing franchise fees, every residential address will pay the same flat rate per month, totaling approximately $120/year, a cost savings of $25/year for the average valued home vs. increasing property taxes.  

By implementing franchise fees, every residential address will pay the same flat rate per month, totaling approximately $120/year, a cost savings of $25/year for the average valued home vs. increasing property taxes.  

Historically, pavement maintenance and rehabilitation projects in the community have been primarily funded through state aid funding. This funding cannot be used on neighborhood streets, which is where the high need areas currently are. 

Playground replacements were not something the City was regularly doing as part of it’s maintenance plan. Playground systems typically have a useful life of 20-25 years. Over the course of the last 18 months, City staff have conducted an inventory of all the City’s park systems, including identifying installation date and assessment of the condition of the parks. A solid plan has been built moving forward to focus on one park replacement per calendar year. This will ensure all playgrounds stay safe in the community. 

No. Franchise fees would cover identified capital replacement or rehabilitation needs in the street and park systems. Playground replacements have historically not occurred regularly within the community and compete for funding with all other capital investment needs like roads, facilities, and equipment. Street mill and overlay recently has been paid for with state aid dollars, which neighborhood streets are not eligible for. The City’s park and street line items in the general fund are related to staff salaries, general street maintenance like patching & potholing, plowing operations, park mowing, turf maintenance, etc.

While cities can change where they allocate franchise fees, it is not common practice to do so. The City is looking at ways to write into ordinance where it would state that a 4/5 vote of the City Council is required to reallocate the franchise fee funds from pavement maintenance and rehabilitation and playground replacement to a different area. Playground replacement and pavement maintenance and rehabilitation are two maintenance activities that will always be necessary and important to have a funding source for. 

The City of Waconia will hold a public hearing on this on December 22, 2025 at the 6:00 pm City Council Meeting to hear community feedback. A vote will be held in early 2026. No final decision has been made on the approval or dollar amount for the fees.