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Comprehensive Plan Capital Improvements Element • Franchise Fee/Tax Counties and municipalities may exercise their home rule authority to impose a fee upon a utility for the giant of a franchise and the privilege of the utility using the local govermnent's rights-of-way to conduct the utility s business. Franchise fees are typically levied through a franchise agreement negotiated between the local government and the utility provider. Indian River County receives franchise revenue from electric, water, sewer, garbage, and cable television franchises. Table 6.1 shows that franchise fee revenue represented 3.37% of all funds collected by Indian River County in FY 2006/07. Figure 6.9 shows that over the last six fiscal years franchise fee revenue collected by Indian River County increased 67.90%. • Other Miscellaneous Revenue Included in this category are various administrative fees, licenses and permits, fines, interest income, rental income, private contributions, and other miscellaneous revenues. This source of revenue for Indian River County represented 3.02% of all funds collected in FY 2006/07. • Borrowing The county uses borrowing as a financing vehicle to raise money for public purposes that are beyond the realm of current cash reserves, operating re\ enue and reasonable taxation. Borrowing money to pay for capital improvements can be done through either short-term or long-term financing. Short term financing is usually accomplished by the use of bond pools, notes, private placements with banks, and the public placement of Voted General Obligation debt. Long term financing is usually achieved through the issuance of bonds sold on the public market. The county may sell bonds for capital improvements without a referendum of the voters if the pledge used for the bond is a non -ad valorem revenue source. Conversely, any bond issue pledging ad valorem taxes requires approval through a voter referendum. General Obligation Bonds are bonds that are secured by the full faith and credit of the county. These bonds are secured by a pledge of the issuer's ad valorem taxing power. According to state law, the amount of ad valorem taxes necessary to pay the debt service on general obligation bonds is not subject to the constitutional property tax millage limits. Such bonds constitute debts of the issuer and require approval through a voter referendum prior to issuance. Revenue bonds are bonds payable from a specific source of revenue, where the full faith and credit of the issuer is not pledged to repay the bonds Because revenue bonds are payable from identified sources of revenue, bond holders may not compel taxation or legislative appropriation of funds for Community Development Department Indian River County Supplement #13; Adopted November 18, 2008, Ordinance 2008-018 11