Page 134 - CityofColleyvilleFY25AdoptedBudget

Franchise Fees Summary
Franchise fees represent the third largest source of revenue in the General Fund. These fees are paid by utility
providers for the use of the City's right of way, with the largest contributions coming from electric utility and natural
gas providers. Smaller fees are collected from cable TV, telecom providers, and sanitation services.

The projected revenue for FY 2025 is based on current year activity and trends. Since franchise fees are imposed as a
percentage charge on a customer’s bill, the revenue is directly tied to the underlying revenues of the utilities. As utility
costs rise due to in ationary pressures, the associated franchise fees also increase.

However, there has been a steady decline in franchise fees from telecommunications and cable TV providers in recent
years. As more residents switch to streaming services and cellular phones, the use of landlines and cable TV has
decreased, resulting in lower franchise fee collections from these sectors.

A2,222,250 $125,250
(5.97% vs. prior year)

Franchise Fees Proposed and Historical Budget vs. Actual
$3M

$2.5M

$2M

$1.5M

$1M

$500K

$0
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025
Actual Budgeted

City of Colleyville | Budget Book 2025 Page 134