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.

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Franchise Fee

CUPAC CUPAC Cost of Service Update Policy Advisory Committee

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.