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Brentwood ECD Agenda

Meeting Date:	10/28/2019
Submitted by:	Kirk Bednar, Administration
Department:	Administration

Information

Subject

Resolution ECD 2019-02 - A RESOLUTION IN SUPPORT OF 911 SURCHARGE RATE RESTORATION, for adoption

Background

The Tennessee Emergency Communications Board (TECB) has proposed to restore the 911 surcharge rates to the 2010 levels of $1.50 per line. Today, the 911 surcharge is set at $1.16 statewide for all devices capable of calling 911. Two cents of the $1.16 rate is reserved to fund the Telecommunications Device Access Program, providing devices to the speech or hearing-impaired, with the remaining $1.14 being returned to Districts. This distribution would remain in place with in proposed increase; and

In 2010, the Brentwood Emergency Communications District Board petitioned the TECB to increase the per line surcharge rates in effect at that time from $0.65 to $1.50 per line for residential lines and from $2.00 to $3.00 per line for businesses. That rate increase was approved by the TECB and remained in effect until superseded by the Modernization and IP Transition Act of 2014 approved by the state legislature which established the current rates and guaranteed local districts an amount at least equal to the average of funds collected between 2010 and 2012.

Without an increase in 911 funding since 2010, districts across Tennessee are falling into negative budgets which can result in intervention by the TECB after three consecutive years. Currently, Brentwood receives base funding from the state in the amount of $864,126 which has not increased since implementation of the new rate structure in 2014. The General Fund must subsidize the Emergency Communications District in the amount of $484,700 annually because 911 service fees do not provide sufficient funding to fully cover the cost of operating the 911 dispatch center. It is projected that Brentwood would receive an additional $300,000 in annual base funding as a result of the proposed fee increase.

While Maintenance of Effort requirements would not allow the City to reduce its subsidy dollar for dollar, the additional revenue would allow the City to reallocate some General Fund costs to the ECD and likely stabilize the City's subsidy level for several years to come.

Staff recommendation

Staff recommends approval of the attached resolution in support of the TECB fee increase proposal.

Fiscal Impact

Attachments
Resolution ECD-2019-02
Signed Resolution