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Comprehensive Plan Capital Improvements Element <br />• Franchise Fee/Tax <br />Counties and municipalities may exercise their home rule authority to impose a fee upon a utility for <br />the grant of a franchise and the privilege of the utility using the local government's rights-of-way to <br />conduct the utility's business. Franchise fees are typically levied through a franchise agreement <br />negotiated between the local government and the utility provider. Indian River County receives <br />franchise revenue from electric, water, sewer, garbage, and cable television franchises. <br />Table 6.1 shows that franchise fee revenue represented 3.13% of all funds collected by Indian River <br />County in FY 2004/05. Figure 6.9 shows that over the last six fiscal years franchise fee revenue <br />collected by Indian River County increased 41.42%. <br />• Other Miscellaneous Revenue <br />Included in this category are various administrative fees, licenses and permits, fines, interest income, <br />rental income, private contributions, and other miscellaneous revenues. This source of revenue for <br />Indian River County represented 0.63% of all funds collected by Indian River County in FY 2004/05. <br />• Borrowing <br />The county uses borrowing as a financing vehicle to raise money for public purposes that are beyond <br />the realm of current cash reserves, operating revenue and reasonable taxation. Borrowing money to <br />pay for capital improvements can be done through either short-term or long-term financing. Short <br />term financing is usually accomplished by the use of bond pools, notes, private placements with <br />banks, and the public placement of Voted General Obligation debt. Long term financing is usually <br />achieved through the issuance of bonds sold on the public market. <br />The county may sell bonds for capital improvements without a referendum of the voters if the pledge <br />used for the bond is a non -ad valorem revenue source. Conversely, any bond issue pledging ad <br />valorem taxes requires approval through a voter referendum. <br />General Obligation Bonds are bonds that are secured by the full faith and credit of the county. These <br />bonds are secured by a pledge of the issuer's ad valorem taxing power. According to state law, the <br />amount of ad valorem taxes necessary to pay the debt service on general obligation bonds is not <br />subject to the constitutional property tax millage limits. Such bonds constitute debts of the issuer and <br />require approval through a voter referendum prior to issuance. <br />Revenue bonds are bonds payable from a specific source of revenue, where the full faith and credit of <br />the issuer is not pledged to repay the bonds. Because revenue bonds are payable from identified <br />sources of revenue, bond holders may not compel taxation or legislative appropriation of funds for <br />payment of debt service. Pledged revenues may be derived from operation of financed projects, <br />Community Development Department Indian River County <br />11 <br />