Page 71 - Grapevine FY22 Adopted Budget v2

Franchise fees represent those revenues collected from utilities operating within the City that use
the City’s rights-of way to conduct their business. The City Council has authorized a 4% fee for
the electric utility, 4% for the natural gas utility, 5% for the cable TV utility and a 2% of gross
receipts fee for refuse collection. A flat rate is charged to both telephone operators [adjusted
annually] based on the number of access lines. The City anticipates franchise fee collections of
$6.2 million, which is $690,383 less than the previous budget. Actual FY21 collections were
$5,850,190 and represent a 6% decrease from the previous year.

FRANCHISE FEE FY-2016 FY-2017 FY-2018 FY-2019 FY-2020 FY-2021
COLLECTIONS

Electric 3,647,708 3,543,123 3,543,334 3,554,552 3,403,965 3,224,815
Telephone 715,703 656,114 586,796 489,057 324,662 165,783
Natural Gas 540,056 654,037 951,886 719,834 571,092 674,328
Cable Television 900,671 786,666 694,023 549,183 785,989 619,582
Refuse Collection 857,387 962,542 1,117,112 1,122,845 1,130,859 1,165,682

Collections $6,661,525 $6,602,482 $6,893,151 $6,435,472 $6,216,567 $5,850,190
Gain / (Loss) ($162,956) ($59,043) $290,669 ($457,679) ($218,905) ($366,377)
% Change -2% -1% 4% -7% -3% -6%

License and permit revenue includes fees charged by the City for certain types of operator licenses
and permits for construction and other items regulated by City ordinances. Total revenue from
licenses and permits is budgeted at $1.6 million, similar to FY21. Total license & permit revenue
in FY21 was up $85,581 (6%) from FY20.

Charges for services consist of revenue earned by the City in exchange for specific types of
services provided. Examples of services include ambulance service, mowing charges, engineering
inspection fees and parks and recreation fees. Revenues for FY22 are budgeted at $9.2 million and
represent an increase of 2.5% from the previous budget year.

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