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Ordinance No. 2014-020 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 grant of a franchise and the privilege of the utility using the local government'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 4.48% of all funds collected by Indian River County in FY 2012/13. Figure 6.9 shows that over the last six fiscal years franchise fee revenue collected by Indian River County decreased 6.61 %. • 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 5.35% of all funds collected in FY 2012/13. • Borrowing Figure 6.9: Franchise Fee/Tax Revenue $9,800 59 '70 $9,600 $9;400 $9,200 $9;000 $8;800 $8,600 $8,400 $8,200 $8,000 2008 2009 2010 2011 2012 2013 ■Revenue (in thousands) b Community Development Department Indian River County $9.443 58.819 58J3� $8 620 Source: Indian River County Finance Department As needed, the county uses borrowing as a financing vehicle to raise money for public purposes that are beyond the realm of current cash reserves, operating revenue and reasonable taxation. Currently, 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. According to state law, local governments 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 issuing government. Those bonds are secured by a pledge of the issuer's ad valorem taxing power. Adopted , 2014, Ordinance 2014- 11