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File #: 220523    Version: 1 Name:
Type: Ordinance Status: Passed
File created: 6/6/2022 In control: Council
On agenda: 6/30/2022 Final action: 6/30/2022
Title: Amending Chapter 19, Code of Ordinances, entitled "Franchise Fee," by repealing Section 19-82, Franchise fee, to change the rates on the gross revenues received from five percent down to two- and one-half percent over the course of five years by decreasing the rate by one half percent per year.
Attachments: 1. Fact Sheet Change in Cable Rate FY2023, 2. Fiscal Note Cable Franchise Fee Rate Change 2022, 3. 220523com, 4. Cable Franchise Fee Rate Change Presentation 6.22.2022, 5. Authenticated Ordinance 220523
ORDINANCE NO. 220523

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Amending Chapter 19, Code of Ordinances, entitled "Franchise Fee," by repealing Section 19-82, Franchise fee, to change the rates on the gross revenues received from five percent down to two- and one-half percent over the course of five years by decreasing the rate by one half percent per year.

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WHEREAS, by Ordinance No. 930358, the Council of Kansas City established a franchise fee, an annual fee paid by cable and video service operators to the City for the operator's use of the streets and other right of way; and

WHEREAS, by Ordinance No. 930358, the Council of Kansas City set the franchise fee rate to five percent of an operator's gross revenues received from operation of the system in the City; and

WHEREAS, the 101st General Assembly of Missouri passed Senate Bill Numbers 153 and 97, amending Section 67.2689 of the Revised Statutes of Missouri, and authorizing reduction of video franchise fees incrementally over the course of five years; and

WHEREAS, the City of Kansas City is expressly prohibited from charging a fee in excess of the state statutory limit; and

WHEREAS, the City must codify these changes for purposes of tax administration and to appropriately budget for revenues, NOW THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. Chapter 19, Article VII, Section 19-82, Code of Ordinances of the City of Kansas City, Missouri, entitled "Franchise Fees," is hereby amended by repealing Section 19-82 and enacting a new section of like number and subject matter, to read as follows:

Sec. 19.82. Franchise fee.

(a) Use of streets/cost of regulation. In consideration of the rights, powers, privileges, permission and authority granted to an operator for use of the city's streets and other public property, an operator shall pay to the city an amount equal to five percent of its gross revenues received from the operation of the ...

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