www.mymanatee.org
Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - July 30, 2013
REVISED July 30, 2013 - Regular Meeting
Agenda Item #24


Subject
Payment in Lieu of Franchise Fees

Briefings
None

Contact and/or Presenter Information
Jim Seuffert, Director Financial Management, 3730

Action Requested
Adoption of Resolution No. R-13-135

Enabling/Regulating Authority
Section 2-31-103 Code of Ordinances;  R-91-21

Background Discussion
  • The Manatee County Code of Ordinances provides authority for the County Water and Wastewater System to make payments in lieu of franchise fees to the county general fund, just as a private utility might be required to make similar payments.  Manatee County Resolution R-91-21, which established the current composition of the Manatee County Utility System, includes franchise fees in a specific listing of items that could be considered as operating expenses for the system.   Although the county has not previously enacted this option, doing so is a reasonable and appropriate allocation of costs to the Utility System.
  • In the Budget Message for the FY 2014 and 2015 Biennial Budget recommendations submitted to the county commission on May 30, 2013, implementation of an internal charge for franchise fee payments from the County Water and Wastewater System to the General Fund was recommended as a source of revenue enhancement. This was also discussed in a budget workshop in June, 2013.
  • Staff analysis has shown that the fees can be implemented without requiring a water and sewer rate increase, and the fees will not be placed on the customer’s bill.  All other obligations of the system, including bond obligations, can continue to be met even as the new fees are paid.
  • The franchise fees will be paid at a rate of 5.9% applied to the gross revenues of the Water and Wastewater Operating Fund (Fund 401).  The fees are expected to generate approximately $5.9 million in the first year that they are applied.


County Attorney Review
Other (Requires explanation in field below)

Explanation of Other
Resolution Created by the County Attorney's Office - Maureen Sikora

Reviewing Attorney
N/A

Instructions to Board Records
Signed copies of resolutions to marjorie.lofts@mymanatee.org, lori.stephens@manateeclerk.com,
susan.flowers@manateeclerk.com, robin.amos@manateeclerk.com, abby.lindecamp@manateeclerk.com,
sheila.ballesteros@manateeclerk.com

Cost and Funds Source Account Number and Name
NA

Amount and Frequency of Recurring Costs
NA


Attachment:  R-13-135.pdf
Attachment:  Revised R-13-135.pdf
Attachment:  Revised R-13-135 (Blackline Version).pdf
Attachment:  Revised R-13-135 (Letter).pdf