Now about that franchise fee shortfall that calls for this "$todola Mega Tax Increase"

An interesting note about my comment in the last post....

THE DEVIL ARE IN THE DETAILS!

We have been told that we now have a POSSIBLE $600,000 shortfall in our franchise fees and so we needed to discuss new revenue sources for the city...that we now know resulted in a proposal to raise our taxes by $500 million over the next ten years.

So we need to generate more revenue in our franchise fees (that are actually NOT regressive in application) and the only answer was to raise our sales tax????

Now comes this interesting message through the grassroots mailing world from Kathy Wells....

more on the jump:

Fyi, fellow officers.

Below is research shared from a friend, who asked Ark. Municipal League about utilities capping franchise fees paid to cities.

Yes, they do. Utilities must consent to higher franchise fees.

Or voters could impose these. Not surprised this was unknown. Not surprised city leaders never took to voters a proposal to hike franchise fees of utilities.

Still, this remains an option.

And those fees are passed back to the ratepayers, so I do wonder why any utility would balk at city increasing such a fee.

When the question arises:

How else could a city gain more revenue?

Here is one answer. At least, this is one avenue to maintain a current level, when other rates change, and city loses revenue.

One reason for the current sales-tax increase proposal in LR today is franchise fees are declining, from a combination of rate changes, and weather that results in less consumption, so less percentage of consumption sent onward to the city. Weather always is variable; rate changes are permanent.

Best wishes,

kathy

So, in other words, the state statute, found here clearly shows that LRCH can offer us an option to raise those franchise fees and the utilities CANNOT do anything about it...but then these are details that or CH Reps would like to keep us in the dark about!!!