FAQs

Are Franchise Fees just another tax?

While not technically considered a “tax," the fees are a dedicated revenue source for the city which is collected from utility users in Chanhassen; it has the same effect as a tax. However, it is not levied in the way a property tax is levied, given that Franchise Fees are not tied to the value of a property. All single-family homes would pay the same amount toward the PMP assuming they have both gas and electric services. The use of the fee rather than a tax levy is more equitable with respect to multi-family properties.
Does the city still assess property owners for street projects even with having a Franchise Fee in place?

Yes. The city assesses 40% of the eligible street costs to benefiting property owners, while the Franchise Fee revenue offsets the city’s 60% portion of the eligible street costs. While the City Council initially considered eliminating the assessments, this quickly changed and it was ultimately approved by City Council to keep the property assessments due to the financial need of the Pavement Management Program.
How much will I be charged?

Charges for residential customers are $5 each for both electric and gas. Commercial and other properties classifications are charged at a separate rate. The Franchise Fees generate approximately $1.9 million annually.

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