Page 51 - CityofHaltomFY23Budget

CITY OF HALTOM CITY ANNUAL BUDGET, FY2023 Budget overview

FRANCHISE FEES

The City imposes a 4% to 8% franchise fee on utility companies for the use of right-of-ways. These
include gas, electricity, telephone, fiber optics, cable television, solid waste collection, water and
sewer, and drainage. Due to legislative changes, some franchise fee will be reduced.
Franchise revenues are recorded in the General Fund and PEG (Public, Education and Government)
Fund.

Outlook
Franchise fee revenue is projected to decrease slightly (1.7%) due to decrease in telecommunications
franchise fee.

Major Influence
Factors affecting franchises include population, utility gross sales, rate of charges, and fluctuation
in weather, which affects electricity, gas, and water revenues.

Percent of
Fiscal Year General Fund PEG Fund Total
Change
2015 4,141,783 86,590 4,228,373 0.9%
2016 4,033,636 66,681 4,100,317 -2.6%

2017 4,065,408 63,053 4,128,461 0.8%
2018 3,982,000 60,000 4,042,000 -2.1%

2019 4,052,000 60,000 4,112,000 1.8%
2020 4,152,000 60,000 4,212,000 2.5%
2021 3,648,000 50,000 3,698,000 -12.1%

2022 3,548,000 50,000 3,598,000 -2.7%

2023 3,486,220 50,000 3,536,220 -1.7%

Franchise Fees Revenues

$4.60
$4.40
$4.20 $0.06
$0.06
$4.00
Millions $3.80 $4.14 $4.15 $0.05 $0.05 $0.05
$3.60

$3.40 $4.03 $4.07 $3.98 $4.05
$3.65 $3.55
$3.20 $3.49
$3.00
2015 2016 2017 2018 2019 2020 2021 2022 2023

General Fund PEG Fund