Page 66 - GrapevineFY24 Adopted Budget

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 million in FY23,
which is $191,567 less than the previous budget. Actual FY23 collections were $6,191,542 and
represent a 3% decrease from the previous year. Changes mandated by the state legislator have
resulted in decreases in the fees that can be imposed on franchisees.

FRANCHISE FEE FY-2018 FY-2019 FY-2020 FY-2021 FY-2022 FY-2023
COLLECTIONS Actual Actual Actual Actual Actual Estimate

Electric 3,543,334 3,554,552 3,403,965 3,233,122 3,252,966 3,522,473
Telephone 586,796 489,057 324,662 165,783 130,924 99,060
Natural Gas 951,886 719,834 571,092 674,328 1,125,332 961,558
Cable Television 694,023 549,183 785,989 619,582 529,666 282,852
Refuse Collection 1,117,112 1,122,845 1,130,859 1,165,682 1,330,434 1,325,599

Collections $6,893,151 $6,435,472 $6,216,567 $5,858,497 $6,369,322 $6,191,542
Gain / (Loss) $290,669 ($457,679) ($218,905) ($358,070) $510,825 ($177,780)
% Change 4% -7% -3% -6% 9% -3%

License and permit revenue include 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 the prior year’s budget. Total license &
permit revenue in FY23 was up $261,906 (19%) from FY22.

LICENSES & FY-2018 FY-2019 FY-2020 FY-2021 FY-2022 FY-2023
PERMITS Actual Actual Actual Actual Actual Estimate

Collections $1,631,113 $1,987,404 $1,385,370 $1,472,258 $1,347,472 $1,609,378
Gain / (Loss) ($279,057) $356,291 ($602,034) $86,888 ($124,786) $261,906
% Change -15% 22% -30% 6% -8% 19%

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 FY24 are budgeted at $9.8 million and represent
an increase of 2% from the previous budget year.

Charges for fleet maintenance and technology equipment are assessed to non-General fund
departments as a cost of service provided. The Utility Enterprise, Convention & Visitors, Lake
Enterprise, Stormwater Drainage, Crime Control & Prevention, and Lake Parks funds are charged
for regular maintenance and repair of vehicles and heavy machinery. These outside funds are also
charged for costs associated with the acquisition, maintenance and replacement of computers and
other technology-related equipment. The sum total of these charges is $1.6 million.

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