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REQUEST FOR COUNCIL CONSIDERATION Agenda Section: 8. <br /> IVOR 93-609WS <br /> STAFF REPORT Report Number: <br /> Re ort Date: 9-2-93 <br /> AGENDA SESSION DATE September 7, 1993 p <br /> DISPOSITION <br /> Item Description: Discussion of Street Light Utility Continuance/Sunset <br /> Administrator's Review/Recommendation: <br /> - No comments to supplement this report <br /> - Comments attached. <br /> Explanation/Summary (attach supplement sheets as necessary.) <br /> SUMMARY: <br /> While Council action on the street light utility is not slated until <br /> September 13th, I have placed this item on the Work Session Agenda to <br /> provide for continued discussion, questions and requests for additional <br /> information. <br /> At the August 23, 1993 , City Council meeting, the public hearing regarding <br /> Ordinance No. 528 repealing the sunset clause of the street light utility <br /> was continued to September 13, 1993 . <br /> Since that time, requests for additional information have been received by <br /> staff, namely: <br /> 1. How much money does the City collect with the utility? <br /> A: The City will collect approximately $72 , 675 in 1993 . <br /> Due to the NSP rate increase, the City anticipates <br /> more revenue in 1994, approximately $75,000. <br /> 2 . How much money will be left in the utility account at the end <br /> of 1993 and how will that money be used? <br /> A: Depending on the number of street lights installed for the remainder <br /> of the year, maintenance costs, replacement costs and sales tax (the <br /> sales tax paid on the electricity and repair materials was not <br /> foreseen when the utility was created and was, therefore, not <br /> reflected in the household and acreage rates) , the account could have <br /> an annual fund balance of approximately $25, 000. <br /> 3 . Why doesn't the City pay for street lights out of property tax money? <br /> A: The City can. However, because the utility concept spreads the <br /> costs to all users; the cost to the individual property tax <br /> payer whether residential or Commercial/Industrial is less. <br /> Property taxes t o ''increase annually. Correspondingly, if <br /> RECOMMENDATION: <br /> til-;-/ aL( IhMlnistrator <br />