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The council voted 7-0 to approve first readings renewing electric and natural-gas franchise ordinances for 20 years and approved authorizing the State of Minnesota to collect the city's lodging tax. The franchise fee amount will not change, and the lodging-tax collection change is intended to begin January 1, 2026.
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The utility franchise renewals allow Xcel Energy to continue operating electric and natural-gas systems in Faribault and using public grounds and ways; they do not change the franchise fee. The State of Minnesota would collect lodging taxes instead of city staff, reducing payment-tracking and collection work after a year of late payments. The lodging-tax ordinance received only a first reading, with a second reading planned for September 23.
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