A. In any fiscal year, a municipal utility may be required to pay to the city, in lieu of property taxes, other taxes, franchise fees and other fees and other associated cost of doing business normally placed upon private business and public utilities, an amount designated by the city council. Such amount shall not be limited by limitations placed on such taxes and fees by state law for private businesses and public utilities except for domestic water. Such amounts may include fees which reflect the difference between the interest rate paid by a municipal utility and the rate such utility would pay if it were a non-municipal utility, which difference is due to the city assuming additional financial risk on behalf of such municipal utility.
B. The amount, if any, of said in-lieu tax shall be set by resolution of the city council prior to July 1 of any fiscal year in coordination with adoption of the city’s annual budget. (Ord. 3550 § 1, 1993; Ord. 3543 § 1, 1993)