Franchise Fee Presentation

Franchise Fee Presentation
It is the City of Salem’s policy to assure that no person shall be discriminated against on
the grounds of race, religion, color, sex, marital status, familial status, national origin,
age, mental or physical disability, sexual orientation, gender identity, and source of
income, as provided by Salem Revised Code Chapter 97. The City of Salem also fully
complies with Title VI of the Civil Rights Act of 1964, and related statutes and
regulations, in all programs and activities.
Es la política de la Ciudad de Salem asegurar que ninguna persona estará discriminada
por motivos de raza, religión, color, sexo, estado civil, situación familiar, origen nacional,
edad, discapacidad mental o física, orientación sexual, identidad de género ni fuente de
ingresos, de acuerdo con el Capítulo 97 del Código Revisado de Salem. La Ciudad de
Salem también cumple plenamente con el Título VI del Acta de Derechos Civiles de
1964, y los estatutos y reglamentos relacionados, en todos los programas y actividades.
Si necesita ayuda para comprender esta información, por favor llame 503-588-6211.
If you need help understanding this information, please call 503-588-6211.
CUPAC
Cost of Service Update Policy Advisory Committee
Franchise Fee
Franchise Fee – Salem Revised Code
70.300. Water and Sewer Utility Franchise Fee. (a) For the right and
privilege to place, lay, maintain and operate in, upon and under the
streets, alleys, public highways, and other public places a water,
wastewater and stormwater system, there shall be annually charged
to and collected from the utilities fund established pursuant to SRC
70.295 an amount equal to five percent of the gross revenues
derived from utility service charges collected inside the City. (b) The
payment of the franchise fee set forth in subsection (a) shall be made
periodically, but not less than annually, by transferring the
appropriate sum of monies from the utilities fund established
pursuant to SRC 70.295 to the General Fund.
Franchise Fee – History in Salem
64-90
Established 3.5% water and sewer utility franchise fee
Funds transferred annually from Utility Fund to General Fund
27-91
Increased franchise fee to 5%
76-94
Funds transferred to Public Works Fund Capital Improvements
Fund for street repairs caused by water or sewer maintenance work
59-99
Funds transferred to General Fund
73-07
Applied to water, wastewater and stormwater system
31-09
Renumbering and change to “utility fund” and “utility service” rather
than specific references to water and sewer
Franchise Fee – Definition
 Fee for operating in the public right-of-way
 Applied to all utilities: telephone, cable, solid waste
SRC 47.097 – Solid Waste
SRC 35.120 – Gas Utilities
SRC 35.160 – Electric Utilities
SRC 35.190 – Telegraph Utilities
SRC 35.220 – Telephone Utilities
SRC 43.080 – Cable Utilities
SRC 70.300 – Water, Sewer, Stormwater Utilities
 Most utilities add fee as surcharge on customer bills
Franchise Fee Collection
 Salem currently collects a 5 percent franchise fee as part of
water and sewer rates effective January 2012
 The franchise fee will be itemized on bills beginning in
February 2013.