Item B: Update on Street and Lighting Fee Development

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responsible for paying a premise’s water and sewer utility charges would be responsible for paying the street light fee which in most cases is the occupant of improved property. Undeveloped properties would be exempt. Key considerations for determining the amount and structure of the lighting fee include: Determine revenue requirements, uses and limitations on funds derived from fee; ? Determine criteria, if any, for including capital project funding in the allowable uses of ? funds; Consider potential methods and implications of accounting for differing levels of service of ? local area street lighting; Evaluate policy options for neighborhood areas to request differing levels or “opt out” of ? local street lighting service; Establish rate structures for residential customers; ? Determine sizing factors, if any, for non-residential fees; and, ? Establish billing and collection systems. ? Each key factor is further discussed below. Basis for Revenue Requirements, Capital Funding The subcommittee recommended fee revenue would be dedicated to provision of street and bike path lighting with a target net annual revenue of approximately $850,000. This target was estimated to cost the average household approximately $1.50 per month. The revenue from the fee as recommended by the subcommittee would be dedicated to provision of street and bike path lighting. The subcommittee also discussed the potential for a process by which neighborhoods could request and pay for a higher or lower level of lighting service. The city currently spends about $845,000 per year to operate and maintain the city’s street and bike path lighting system. Of this total, about $440,000 is for lighting on arterial/collector streets and $360,000 is for lighting on neighborhood streets. Cost for lighting bike paths is about $45,000. The subcommittee target revenue considers operation and maintenance requirements but does not include capital funding for rehabilitation, upgrades and new capital facilities. Staff suggest considering the potential for capital rehabilitation and upgrades within allowable uses and the use of other existing capital project funding sources and methods to fund construction of new street lights. New street light construction currently falls into two general categories, lighting on arterial and collector streets and bike paths, and lighting improvements on local streets. Three funding mechanisms are used: transportation systems development charge revenues for lighting on arterial and collector streets and bike paths; property owner funded improvements via assessments under a local improvement district; and, developer-funded lighting improvements on local streets in conjunction with new development. Local improvement districts provide a mechanism by which neighborhoods can request and pay for a higher level of lighting service. Rate Structure, Differing Levels of Service C,S&PLF P25 ATTACHMENT TREET ATH IGHTING EE AGE OF