Resolution 89-03-28-89-01
RESOLUTION NO. tr9-, 3 ;(~~;1~;I
A RESOLUTION URGING THE TEXAS LEGISLATURE TO
RAISE THE CAP ON STREET USE CHARGES FOR
ELECTRIC AND GAS UTILITIES.
WHEREAS, Texas cities and towns grant gas and electric
utility companies the privilege of using City
property and rights-of-way as the most effective
way to provide services to end user customers; and
WHEREAS, without such privilege, gas and electric companies
could not provide such services and realize
profits; and
WHEREAS, Texas cities and towns may charge a fee for the
use of their property under the laws of the State
of Texas, and may not constitutionally make a gift
or lend its credit to a private person or entity;
and
WHEREAS, in 1941, the Texas Legislature restricted the
amount of street use charge a city or town could
charge to an electric or gas utility within the
city, limiting the total charges to two percent
(2%) of gross receipts of the public utility from
the sale of gas or electricity within the city,
absent an agreement with the gas or electric
company; and
WHEREAS, since 1941, the cost of providing such right-of-
way by cities and towns has increased such that
through the passage of time the two percent (2%)
cap compels Texas cities and towns to provide
valuable property rights to gas and electric
companies contrary to the Texas constitution,
thereby compelling local taxpayers to subsidize
the business operations of the utility companies;
and
WHEREAS, the federal Cable Franchise Policy and
Communications Act of 1984 authorizes a franchise
fee of up to five percent (5%) of gross receipts
for the operation of cable television system
within a city; and
WHEREAS, several utility companies have voluntarily agreed
to pay a street use charge in excess of the 1941
cap for electric and gas utilities; and
WHEREAS, bills have been filed in the House and Senate (HB
2155 and SB 1040, respectively) which, if passed,
would allow cities to be more fairly compensated
for the use of their properties and rights-of-way;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF WYLIE, TEXAS,
SECTION 1 That the City Council hereby strongly urges the
Texas Legislature to amend Section 182.025 (b) of
the Texas Tax Code to allow Texas cities and towns
to charge a fee for the use of city streets,
alleys, or public ways by a public utility up to
five percent (5%) of the gross receipts of the
public utility for the sale of gas, electric or
water within the city.
SECTION 2 That the City Council urges the Texas Legislature
to pass either HB 2155 or SB 1040 relating to this
issue.
SECTION 3 That this resolution shall be forwarded to the
Governor, Lieutenant Governor, Speaker of the
Texas House of Representatives, and all members of
the local State Legislative delegation
representing the city.
DULY PASSED
ON THIS THE
BY THE CITY COUNCIL OF THE ~F WYLIE,
28TH DAY OF MARCH, 1989~ _ /
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Chuck Trimble, Mayor
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TEXAS
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ATTEST: