Agenda Item: 14(B) |
Prepared By: Casey Lucius, Ph.D., Assistant City Manager |
Business: Ordinance - First Reading |
Department: Executive |
Title
Ordinance - First Reading - Amending Ordinance 04-18 Relating to the Electric Franchise Fee Granted to Lee County Electric Cooperative (LCEC) to Establish the Franchise Fee Payable to the City for Fiscal Year 2026 at 3%, Casey Lucius, Ph.D., Assistant City Manager
Body
BACKGROUND:
In 2004 the City passed Ordinance 04-18 establishing a LCEC Franchise Fee payable to the City at 5%. This fee is charged to LCEC for the non-exclusive right to construct, operate and maintain easements and rights-of-way, and other public spaces to place electric lights and power facilities. The term of the agreement is until 2034. However, in 2009, the City reduced the fee to 3.6%, then to zero in October 2009. In an effort to diversify revenue for the City’s General Fund operations, staff recommends reestablishing the LCEC Franchise Fee at 3%, which can be amended or terminated at any time through 2034.
Attached is the Ordinance as reviewed by the City’s attorney and LCEC Counsel.
FUNDING SOURCE / FISCAL IMPACT: The LCEC franchise will generate approximately $1.5 million in new revenue for FY26. The impact on residents will be an additional 3% on their electric bill, for example a $300 electric bill will increase to $309.
PUBLIC NOTICE REQUIREMENTS: Ordinance read by title on at least 2 separate days and shall be noticed in a newspaper of general circulation at least 10 days prior to the second reading.
NOTICE APPEARANCE DATE(S): A Business Impact Statement is not required for Ordinances relating to the adoption of budgets or budget amendments, including revenue sources necessary to fund the budget.
RECOMMENDATION: Approval of the first reading of Ordinance 25-07.
POTENTIAL MOTION: Move to approve the first reading of Ordinance 25-07.