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