Title
Ordinance in the Amount of $109,030 Amending the FY 17-18 General Fund Budget
Body
Department: Budget & Evaluation
Council District: All
Public Hearing: No
Advertising Date/By: N/A
Contact 1 and Phone: Larry Davis, 373-2582
Contact 2 and Phone: Jason Martin, 373-4516
PURPOSE:
To amend the FY 17-18 General Fund Budget to reflect necessary changes in revenues related to telecommunications fees.
BACKGROUND:
In 2016, the General Assembly passed Senate Bill 481 which amended §160A-296 by restricting how cities may charge fees to certain companies for utility use of rights-of-way. The law becomes effective July 1, 2017, and provides that if a city were to charge for activities conducted in the right-of-way, the fee must be calculated to be the difference between a city’s right-of-way management expenses and the distributions a city receives from the state Under Article 5 of Chapter 105. In preparation for the new law, and in accordance with Council’s instructions, city staff have been planning for the elimination of this fee for the past year. Currently, the City charges a rate of $0.30 per linear foot for occupation in City rights-of-way. However, based upon research of similar sized cities, multiple conversations with industry representatives, and in keeping with Greensboro’s goal of encouraging telecommunications businesses to locate to Greensboro, eliminating the per-linear-foot fee, at a rate of zero dollars and zero cents ($0.00) per linear foot, is appropriate.
BUDGET IMPACT:
This change will result in a reduction of $109,030 in revenues currently budgeted in the FY 17-18 budget. In order to balance this change in revenue, an additional $109,030 of fund balance must be appropriated.
RECOMMENDATION / ACTION REQUESTED:
Staff respectfully recommends City Council approve this ordinance amendment.