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7 Agenda Section: 9 . 1 <br /> 11111y6 REQUEST FOR COUNCIL CONSIDERATION Report Number: 91-116 <br /> STAFF REPORT Report Date: 11-20-91 <br /> ° Council Action: <br /> ❑ Special Order of Business <br /> CITY COUNCIL MEETING DATE NOVEMBER 25, 1991 ❑ Public Hearings <br /> ❑ Consent Agenda <br /> RI Council Business <br /> Item Description: ORDINANCE NO. 497 IMPLEMENTING A STREET LIGHT UTILITY <br /> Administrator's Review/Recommendation: <br /> - No comments to supplement this report <br /> - Comments attached. <br /> Explanation/Summary (attach supplement sheets as necessary.) <br /> ISUMMARY; <br /> In response to the growing need to secure new revenue sources which will <br /> provide both short and long term remedies to the ever-increasing <br /> reduction to the City's revenues, a street light utility is proposed for <br /> Council consideration. <br /> Past practice has been that the costs associated with installation, <br /> lighting and maintenance of street lights has been a General Operating <br /> Fund expense - paid from general tax levy revenues. <br /> Levy limits, reductions in. Local Government Aid and other outside <br /> factors have forced cities to find alternative revenue sources which <br /> utilize other revenue sources. A street light utility is such a revenue <br /> source. <br /> Structured as a municipal utility, similar to a water or sewer utility, <br /> the street light utility fee is based on aggregate consumer use. Unlike <br /> the water utility, which is volume-based, the street light utility is a <br /> flat fee based on property classes -- residential, C/I, apartment, etc. <br /> The fee is calculated to pay the costs of lighting and maintaining <br /> exist a s-treet-l4ghts, instal-14ng new lights and r-eplaring damaged <br /> lights . An inflation factor for eletricity cost of 5 .5% is included in <br /> the costs as well as a 5% Administrative Fee. A 5% contingency fee is <br /> also included to provide funds to address unforseen installation or <br /> maintenance problems (tornado, severe storms, accidents) . <br /> The proposed rate structure, revenue and expense projections are <br /> attached to this staff report. <br /> a—Avt.4p- ( uyezz_ti‘ <br /> -ntha Ordu o, City A Cnistrator <br /> RECOMMENDATION; <br /> Motion to waive the reading and adopt Ordinance No. 497 Implementing a <br /> Street Light Utility Program <br />