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CITY COUNCIL AGENDA ITEM BRIEFING SHEET <br />Submittal Date: Originating Department: Presented By: Agenda Item No.: <br />4/24/2008 <br />Council Date: Finance Gene Anderson 13. <br />5/12/2008 <br />RECOMMENDED MOTION: <br />Not an action item. <br />POLICY ISSUE~S~: <br />Fiscal Management; Right-of-Way Management. <br />BACKGROUND: <br />In September 2007, Atmos notified cities of their intent to raise natural gas rates <br />throughout their system. Paris and other cities suspended the proposed rate increase in <br />order to review the proposed rate hike utilizing the Atmos Cities Steering Committee to <br />coordinate those efforts. Through negotiations conducted by the Atmos Cities Steering <br />Committee and the resulting settlement agreement which decreased the proposed rate <br />hike, Atmos will approve an amendment to the City's franchise agreement to increase <br />franchise payments from 4% to 5%. The franchise payment will be calculated on gross <br />revenue from the prior quarter, with the payment being made for the privilege of gas <br />operations during the current period. <br />The impact of this franchise rate change on the average residential customer will be <br />between 50 and 60 cents per month. The estimated increase in revenue to the City would <br />be $100,000. <br />BOARD~COMMISSION RECOMMENDATION: <br />N/A <br />EXHIBITS: <br />Ordinance changing franchise tax rate. <br />ACTION: BUDGET INFO: <br />❑ Financial Report ❑ Minute Order Expense N/A <br />❑ Department Report ❑ Resolution Budgeted Amt. $470,815 <br />❑ Presentation ❑ Ordinance <br />❑ Public Hearing ❑ Other YTD Actual $236,32~ <br />Acct. Name Atmos Gas Franchise Fee <br />Acct. Number O1-7320-00-00 <br />FISCAL NOT~S: <br />None. <br />REVIEWED AND APPROVED BY: <br />~ Administration ~ City Clerk ❑ Community Development ❑ EMS/IT ~ Finance ❑ Fire <br />❑ Municipal Court ~ Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities <br />City of Paris Revised 2/04/08 <br /> <br />