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18 <br /> <br />Categorical grants support a defined program area. Categorical grants <br />typically go to local agencies that either meet predetermined funding <br />criteria or compete for project funding through an application process. <br />Block grants provide funding to a broad functional area. For example, <br />federal Community Development Block Grant (CDBG) funds support <br />local housing and economic development activities. <br /> <br />RENT FOR USE OF PUBLIC PROPERTY <br />Rents, Royalties and Concessions <br />Another way cities and counties and some special districts pay for <br />public services is to charge rent for use of the public’s property. An <br />example is royalties from natural resources taken from land the public <br />owns. Others include selling advertisements in publications or on <br />buses, as well as, receiving a percentage of net profits from <br />concessionaires operating on public property. <br />Franchise Fees <br />Franchise fees are a form of rent for use of public streets and <br />roadways. Examples of businesses that pay franchise fees include <br />trash collectors, cable television companies, electric utilities and oil and <br />natural gas pipeline companies. Federal and state law limits the amount <br />of some franchise fees (for example, video and cable television <br />franchise fees). Franchise fees for provision of video services (like <br />television programming) are limited and administered by the state. <br /> <br />FINES, FORFEITURES AND PENALTIES <br />Violations of the law often result in a fine of some kind. Fines, <br />forfeitures and penalties may be imposed for many reasons. Typical <br />examples include traffic violations, court fines, penalties and interest on <br />late or unpaid taxes. <br />• State law determines the distribution of fines and bail forfeitures <br />imposed by the state. <br />• State law apportions revenues for parking violations and <br />surcharges between issuing agencies and the counties. <br />• A city or county may impose fines, forfeitures and penalties for <br />civil violation of local ordinances. <br />• Bail for local code violations <br />charged criminally is established <br />by the local courts with input from the city or county. <br />Maintenance of Effort <br />Requirements (MOE) <br />When cities and counties <br />receive funding for programs <br />from the state or federal <br />government, such funding <br />may come with strings <br />attached. A common <br />condition is that the city or <br />county commit to a certain <br />level of funding. This <br />commitment is called <br />“maintenance of effort.” <br /> <br />Local agencies also receive <br />reimbursement for revenue <br />lost as a result of some tax <br />exemptions and reductions. <br />An example includes the <br />homeowners’ property tax <br />exemption, which eliminates <br />the property tax on a small <br />portion of the assessed <br />valuation of owner- occupied <br />residential property. <br /> <br /> <br />Page 36 of 109