Skip to main content
File #: ID 25-4580    Version: 1 Name:
Type: Ordinance Status: Agenda Ready
File created: 7/23/2025 In control: City Council
On agenda: 8/4/2025 Final action:
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
Attachments: 1. Ordinance 25-07, 2. LCEC Franchise Fee Document
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
No records to display.

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.