DATE: October 29, 2019
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
SUBJECT:
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Consideration of Resolution 2019-120, A Resolution In Support Of A 911 Surcharge Rate Restoration And Requesting Support Of The Tennessee General Assembly. (WS 11/12/19)
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Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the proposed Resolution recommending support to restore the 9-1-1 surcharge to the previously approved $1.50 rate.
Background
Currently, the 911 surcharge rate 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 Devices Access Program, providing devices to the speech- or hearing-impaired, with the remaining $1.14 being returned to the Districts. This would remain in place with any proposed increase.
In 2012, Williamson County residents elected to increase monthly 9-1-1 surcharge rates for residential landlines to $1.50 and business landlines to $3.00, yielding an additional $370,000 in 2013. This increase was reversed when Tennessee passed the Modernization and IP Transition Act of 2014, approving an average of funds collected between 2010 and 2012. Without an increase in 9-1-1 funding since 2010, Districts across Tennessee are falling into negative budgets which can result in intervention by the Tennessee Emergency Communications Board (TECB) after three consecutive years.
The proposed Resolution recommending support to restore the 9-1-1 surcharge to the previously approved $1.50 rate, as elected by Williamson County voters in 2012. A statement from the City of Franklin encouraging legislative support will provide important guidance to our representatives at the Capitol.
The Williamson County Emergency Communications District Board unanimously approved a similar resolution at their May 21, 2019 meeting, supporting rate restoration. The Williamson County Commission passed a similar resolution on September 9, 2019. The City of Brentwood passed a resolution of support in October of 2019.
Financial Impact
There is no direct financial impact on the City of Franklin but the 9-1-1 District of which the city of Franklin is included would receive additional revenue to support emergency communication services. Currently, the Williamson County Emergency Communications District draws $1,581,396 at the rate of $1.16 per line. With the restored rate, projected revenue would be $2,130,359 at $1.50 per line (projected increase of $548,963).
Recommendation
Staff recommends approval of the proposed resolution urging the State Legislature to support the restoration of the 911 surcharge to the level approved by voters in 2012 ($1.50 per line).