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Revenue Purpose Statement for Franchise Fees Copyright 2014 City of Dubuque Action Items # 4. ITEM TITLE: Revenue Purpose Statement for Franchise Fees SUMMARY: City Manager recommending approval of the Revenue Purpose Statement. RESOLUTION Adopting Revenue Purpose Statement regarding use of revenues from proposed gas and electric franchise fees pursuant to Iowa Code § 364.2(4)(0 SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type ❑ Revenue Purpose Statement for Increase in Franchise Fees-MVM Memo City Manager Memo ❑ Staff Memo Staff Memo ❑ Resolution Resolutions THE CITY OF Dubuque UBE I erica .i Masterpiece on the Mississippi 2007-2012-2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Revenue Purpose Statement for Increase in Franchise Fees DATE: November 24, 2014 At a subsequent City Council meeting, the City Council will be asked to consider an increase in the franchise fees with Black Hills Energy Corporation, Maquoketa Valley Rural Electric Cooperative, and Interstate Power and Light Company. Iowa Code §364.2(4)(f) requires adoption of a "Revenue Purpose Statement" by the City Council prior to the adoption of any ordinance imposing a franchise fee specifying the purpose or purposes for which any revenue generated by a franchise fee will be used. The Revenue Purpose Statement states that all revenue generated from franchise fees assessed on the sales of gas or electricity within the city shall be deposited in the franchise fee account in the general fund and shall be used to reimburse the City for all costs associated with inspecting, supervising, or otherwise regulating its franchises. Moneys in the franchise fee account in the general fund in excess of the amounts necessary for costs associated with inspecting, supervising, or otherwise regulating its franchises shall be expended for any of the following: Property tax relief. The City will use 100% of the revenue collected from the increase in the gas and electric franchise fee for property tax relief in the form of a deposit to the City's general fund or debt service fund, and using such fees to pay obligations that would otherwise be paid that year with a property tax levy. City Attorney Barry Lindahl recommends City Council approval of the Revenue Purpose Statement. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen' MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager 2 THE CITY OF DUB E MEMORANDUM Masterpiece on the Mississippi BARRY LINDAHL CITY ATTORNEY To: Michael C. Van Milligen City Manager DATE: November 24, 2014 RE: Revenue Purpose Statement for Increase in Franchise Fees At a subsequent City Council meeting, the City Council will be asked to consider an increase in the franchise fees with Black Hills Energy Corporation, Maquoketa Valley Rural Electric Cooperative, and Interstate Power and Light Company. Iowa Code §364.2(4)(0 requires adoption of a "Revenue Purpose Statement" by a city council prior to the adoption of any ordinance imposing a franchise fee specifying the purpose or purposes for which any revenue generated by a franchise fee will be used. As required by Iowa Code §364.2(4)(0, a copy of the proposed "Revenue Purpose Statement" has been published in the manner provided by Iowa Code §362.3. The Revenue Purpose Statement states that all revenue generated from franchise fees assessed on the sales of gas or electricity within the city shall be deposited in the franchise fee account in the general fund and shall be used to reimburse the City for all costs associated with inspecting, supervising, or otherwise regulating its franchises. Moneys in the franchise fee account in the general fund in excess of the amounts necessary for costs associated with inspecting, supervising, or otherwise regulating its franchises shall be expended for any of the following: Property tax relief. The City will use 100% of the revenue collected from the increase in the gas and electric franchise fee for property tax relief in the form of a deposit to the City's general fund or debt service fund, and using such fees to pay obligations that would otherwise be paid that year with a property tax levy. I recommend that the attached resolution be submitted to the City Council for consideration and adoption. BAL:jmg cc: Jenny Larson, Budget Director OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563)583-4113/FAX (563)583-1040/EMAIL balesq@cityofdubuque.org RESOLUTION NO. 363-14 RESOLUTION ADOPTING REVENUE PURPOSE STATEMENT REGARDING USE OF REVENUES FROM PROPOSED GAS AND ELECTRIC FRANCHISE FEES PURSUANT TO IOWA CODE § 364.2(4)(f) Whereas, the City of Dubuque is considering an amendment to its current gas franchise with Black Hills Energy Corporation, and current electric franchises with Maquoketa Valley Rural Electric Cooperative and Interstate Power and Light Company (under which a franchise fee will be assessed); and Whereas, the City Council of the City of Dubuque will hold a public hearing regarding any amendment to its gas and electric franchises prior to adoption of any amended franchises; and Whereas, Iowa Code §364.2(4)(f) requires adoption of a "Revenue Purpose Statement" by a city council prior to the adoption of any franchise containing a franchise fee or any ordinance imposing a franchise fee specifying the purpose or purposes for which any revenue generated by a franchise fee will be used; and Whereas, as required by Iowa Code §364.2(4)(f) a copy of the proposed "Revenue Purpose Statement" has been published in the manner provided by Iowa Code §362.3. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Dubuque: Section 1: The following "Revenue Purpose Statement" is hereby adopted by the City Council of the City of Dubuque, to wit: REVENUE PURPOSE STATEMENT REGARDING USE OF REVENUE FROM GAS AND ELECTRIC FRANCHISE FEES Pursuant to Iowa Code §364.2(4)(f) the City of Dubuque states that all revenue generated from franchise fees assessed on the sales of gas or electricity within the city shall be deposited in the franchise fee account in the general fund and shall be used to reimburse the City for all costs associated with inspecting, supervising or otherwise regulating its franchises. Moneys in the franchise fee account in the general fund in excess of the amounts necessary for costs associated with inspecting, supervising or otherwise regulating its franchises shall be expended for any of the following: Property tax relief. The City will use 100% of the revenue collected from the increase in the gas and electric franchise fee for property tax relief in the form of a deposit to the City's general fund or debt service fund, and using such fees to pay obligations that would otherwise be paid that year with a property tax levy. Section 2. The Assistant City Clerk shall cause this "Revenue Purpose Statement Regarding Use of Revenue from Gas and Electric Franchise Fees" as adopted to be published in the manner required by Iowa Code §362.3. Adopted the 1st day of December, 2014. G Karla A. Braig, N a'or Pro Tem Attest: Trish L. Gleason, Assistant City Clerk STATE OF IOWA {SS: DUBUQUE COUNTY CERTIFICATION OF PUBLICATION I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald,a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: December 05, 2014, and for which the charge is $39.73. Subscrib d to before me, a Notary Public i and for Dubuque County, Iowa, this day of , 20 Notary Public in and for Dubuque County, Iowa. MARY K, WESTERMEYER Commission Number 154885 My Comm xp, FEB. 1,2017 City-Coupcil Of the City of Dubuque, to wit: RESOLUTION REVENUEPURPOSE NO: 363-14' STATEMENT RESOLUTION'AbOPT- ING REVENUE .PUR- POSE �STATf MENT' REGARDING USE .OF; REVENUES' ' FROM PROPOSED GAS AND ELECTRIC FRANCHISE FEES PURSUANT TO IOWA: -,f' CODE § Whereas the Cityof Dubuque Is considering an. amendment to 'its -.1 current gas franchise with Black. Hills Energy Corporation, and, cur-'. rent electric franchises with'- Maquoketa Valley Rural Electric'Cooper, ative and Interstate Power - and Light Company (under which a'franchise fee will be assessed); and Whereas, the City Council of the City of Dubuque will hold a public hearing regard- ing any amendment to. its gas ,and electric franchises prior to adoption ofany amended franchises;, and Whereas, Iowa Code §364.2(4)(f) requires, adoption of a "Revenue.,, Purpose Statement" by a city council prior to the adoption of any franchise containing a franchise fee or any ordinance imposing a franchise fee speci- fying the purpose or purposes for which any revenue generated by' a franchise fee will be, used; and Whereas, as required by Iowa Code §364.2(4)(f) a copy of the proposed "Revenue Purpose . Statement" has been published in the manner ,pro ,ided by-Iowa,Code §362a. . NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Dubuque Section '1: The following "Revenue Purpose Statemelt" is hereby adopted"by,the REGARDING USE; OF REVENUE FROM GAS ANDELECTRIC FRANCHISE FEES Pursuant to Iowa Code §364.2(4)(f) the City of Dubuque states that, all revenue gen: erated from franchise fees' assessed on the sales of gas' or electricity within the city shall be deposited in the franchise fee account in the general fund and shall be used to reimburse the City for all costs associated with inspecting, super- vising ' or otherwise regulating its - fran- chises. Moneys in the:. franchise fee account in the general fund in, excess of the amounts necessary for costs associated with :in- specting, : supervising or otherwise regulating; its franchises shall be expended for any of the following: Property tax relief. The City will use 100.% of the revenue collected:; from,. 'the increase in the gas., and electric franchise fee for property tax relief in the form'of a deposit to the City's general fund or debt service fund, and using such fees to pay obligations that would otherwise be paid that year with a property;tax levy. Sectiop . 2. , The Assistant City ' Clerk shall cause this "Reve- nue Purpose Statement Regarding Use of Revenue from Gas and Electric Franchise Fees", as adopted to be published in the manner required by Iowa Code §362.3. Adopted the 1st day of December, 2014. /s/Karla A. Sraig, Mayor Pro Tem Attest: /s/Trish L. Gleason, AItssistant12/5 City Clerk