HomeMy WebLinkAboutItem 08 Amendment of the Utility License Fee AGENDA ITEM SUMMARY Meeting Date: 11/19/2018
Meeting Type: Regular Meeting
Staff Contact/Dept.: Nathan Bell, Fin AIC Staff Phone No: 541-723-2364
Estimated Time: 10 Minutes
S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Provide Financially Responsible and
Innovative Government Services
ITEM TITLE: A RESOLUTION OF THE CITY OF SPRINGFIELD AMENDING THE UTILITY LICENSE FEE FOR CITY OF SPRINGFIELD UTILITIES WITHIN
THE MASTER FEES AND CHARGES.
ACTION REQUESTED: Conduct a public hearing and adopt/not adopt the following resolution: A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF
SPRINGFIELD AMENDING THE UTILITY LICENSE FEE FOR CITY OF SPRINGFIELD UTILITIES WITHIN THE MASTER FEES AND CHARGES.
ISSUE
STATEMENT:
In April of 2013 the Council approved by ordinance that all utilities owned and
operated by the City of Springfield, except a municipal utility as defined by ORS 757.005(1) shall pay to the City of Springfield a utility tax fixed by resolution of
the Council. A subsequent amendment by resolution to the master fees and charges
established the rate at 3% with the revenue to be recognized in the City’s general fund. As part of the City’s five-year financial strategy staff has reviewed rates paid
by the private sector and rates by paid other municipalities for their own utilities and is recommending that the City amend its master fees and charges to set a rate of 5% of City-owned utilities
ATTACHMENTS:
1. Resolution
DISCUSSION/
FINANCIAL IMPACT:
The Master Fees and Charges Schedule currently allows for a 3% charge on gross
revenue to be levied against the City’s Sanitary Sewer and Storm Water programs. The payment by the two programs is revenue to the General Fund. The City
Council has by practice chosen to expend these funds on street maintenance by transferring the funds to the Street Fund. The current budgeted amounts for these payments are $225,300 from the Sewer Fund and $211,800 from the Storm Water
Fund for a total of $437,100. In concert with the recent discussed five-year financial strategy discussed with Council and our research of private and other public utilities, staff is recommending
that the rate be increased to 5%. The increase revenue to the General Fund would be approximately $291,400, with $151,200 from the Sanitary Sewer Fund and
$141,200 from the Storm Water Fund.
Staff is recommending that the increase expense to the two utility funds be addressed by making adjustments to the planned capital improvement program over
the next several years and that it not result in an increase to the adopted rates for
either program. The increased revenue to the General Fund would be programmed to help sustain current public safety and general services.
Attachment 1, Page 1 of 1