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HomeMy WebLinkAbout146 - 12/16/2014 - REVISING CHAPTER 26 OF CITY CODE REGARDING PAYMENTS IN LIEU OF TAXES AND FRANCHISE FEES, AND SPECIFY ORDINANCE NO. 146, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS REVISING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS REGARDING PAYMENTS IN LIEU OF TAXES AND FRANCHISE FEES, AND SPECIFYING THAT THE OPERATION AND MAINTENANCE OF THE STREET LIGHTING SYSTEM IS AN IN KIND PAYMENT BY THE LIGHT & POWER FUND IN LIEU OF TAXES AND FRANCHISE FEES WHEREAS, prior to July 1, 1986, the operation and maintenance costs related to the City's street lighting system were paid by the City's General Fund; and WHEREAS, on July 1, 1986, City Council adopted Ordinance No. 095, 1986, which removed the municipal street lighting rate schedule from City Code and stopped internal billing of street lighting costs to the General Fund; and WHEREAS, City Council at the time determined it was consistent with Article IX, Section 2 (B) of City Charter, as it existed in 1986, for the Electric Utility to assume fiscal responsibility for operating and maintaining the.street lighting system; and WHEREAS, the agenda materials accompanying Ordinance No. 095, 1986, characterized the shift in fiscal obligation as an additional payment by the Electric Utility in lieu of taxes; and WHEREAS, voters in the City approved City Charter revisions in 1987 that eliminated the specific duties of many City departments and created broader administrative flexibility in fund and department management; and WHEREAS, in streamlining the statements of department's duties, the 1987 Charter revisions also removed any reference to which department(s) or fund(s) bore responsibility for street lighting costs; and WHEREAS, since 1987, the Light & Power Fund has maintained fiscal responsibility for the street lighting system, and the costs of street lighting have been incorporated into the electric rates paid by customers of the Electric Utility; and WHEREAS, City Council has established, pursuant to Article V, Section 23 and Article XII, Section 6 of the City Charter, that an annual cash payment in lieu of taxes and franchise fees is owed by the Light & Power Fund, Water Fund; and Wastewater Fund in the amount of 6% of the operating revenues in each fund; and WHEREAS, staff recommends clarifying descriptions of the annual operating revenues payment made by the Water Fund in Article III, Chapter 26 of the City Code, and by the Wastewater Fund in Article IV, Chapter 26 to be consistent with how the annual Light & Power Fund payment is described in Article VI, Chapter 26, to reflect that such funds are collected in lieu of taxes and franchise fees: and WHEREAS, staff also recommends updating the City Code to reflect that the Electric Utility bears fiscal responsibility for the operation and maintenance of the City's street lighting - I - system in addition to its annual payment in lieu of taxes and franchise fees consistent with previously adopted ordinances; and WHEREAS, this revision to the City Code will not affect the rates paid by customers of the Electric Utility nor increase the amount of operating revenues paid by the Light & Power Fund in lieu of taxes and franchise fees. NOW, THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That updating descriptions in the City Code to reflect the consistent purposes for which the Light & Power Fund, Water Fund, and Wastewater Fund designate a portion of operating revenues for payments in lieu of taxes and franchise fees is in the best interest of the customers of the.respective utility services and of the City. Section 2. That amending the City Code to reflect that providing street lighting system operation and maintenance is an additional in-kind component of the franchise fee paid by the Electric Utility in its annual payments in lieu of taxes and franchise fees is consistent with decisions of the City Council in 1986 and remains to be in the best interest of the customers of the Electric Utility and of the City. Section 3. That Section 26-118(c) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-118. Determination of user rates. (c) In addition to the monthly service charges set forth in §§ 26-126 and 26-127, there shall be a charge for payments in lieu of taxes and franchise. The charge shall be six and zero-tenths (6.0) percent of said monthly service charges billed pursuant to said §§ 26-126 and 26-127. Section 4. That Section 26-277(c) of the Code of the City of Fort Collins is hereby amended to read as follows: See. 26-277. Determination of user rates; annual adjustment. (c) In addition to the monthly service charges set forth in §§ 26-279, 26-280 and 26 282, there shall be a charge for payments in lieu of taxes and franchise. The charge shall be six and zero-tenths (6.0) percent of said monthly service charges billed pursuant to said §§ 26-279, 26-280 and 26-282. - 2 - Section 5. That Section 26-392 of the Code of the City of Fort Collins is hereby amended by the addition of a new Subsection (e) to read as follows: Sec. 26-392. Utility considered a City-owned enterprise. (e) The enterprise shall annually operate and maintain the City street lighting system as an additional payment in lieu of franchise fees otherwise paid by the enterprise pursuant to Article V, Section 23 of the City Charter. Introduced, considered favorably on first reading, and ordered published this 28th day of October, A.D. 2014, and to be presented for final passage on the 16th day of December, A.D. 2014. AA .. FORT • •.z Mdyor ATTEST: ORADO• City Clerk Passed and adopted on final reading on the 16th day of December, A.D. 2014. M yor ATTEST: qOF FORTc �j'�A cn City Clerk �L - 3 -