Agenda Packets - 1992/08/24 - Laserfiche WebLink

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Agenda Section: 7 :15 — a. OU M'1111, REQUEST FOR COUNCIL CONSIDERATION Report Number: 9 2-3 5 3C Report Date: 8-21-92 STAFF REPORT Council Action: ❑ Special Order of Business CITY COUNCIL MEETING DATE AUGUST 2 4, 19 9 2 XI Public Hearings ❑ Consent Agenda ❑ Council Business Item Description: IMPLEMENTATION OF A GAS AND ELECTRIC FRANCHISE FEE Administrator's Review/Recommendation: - No comments to supplement this report - Comments attached. Explanation/Summarv_iattachspleme_nt sheets as necessary.) SUMMARYi Last November, the Council considered implementation of two user-fee based revenue programs: a street light utility and franchise fees on gas and electric utilities. Both programs were developed to create a much needed program and services revenue without affecting an already overburdened property tax system. The impetus for consideration of two such programs was based on the following factors: * Continued reductions of Local Government Aids * Continued costly non-funded State mandates * Restructuring of property tax classifications resulting in less property tax. revenue at a time when operational costs are increasing. * A weak economy resulting in lower investment earnings, less development, fewer expansive residential building permits. * Declining residential market values, again resulting in less revenue * Need to reduce dependence on LGA. * Need to create a more equitable method of receiving revenues from-all—C-ity service users, * Prevention of severe reductions in essential services and elimination of expected services and programs. The street light utility was adopted with a "sunset" clause causing the program to automatically terminate on December 31, 1993, unless reenacted by the Council after the required public hearing. The street light utility, although a user-fee based program, does not raise additional revenue for tha Orduno, City A ministrator $ECOMMENDATIONz Motion to waive the actual reading and introduce Ordinance No. 519 Implementing a Gas and Electric Franchise Fee, and approve the date for consideration of approval as September 14, 1992 .