Page 228 - Bedford-FY25-26 Budget

Franchise Fees & Other Taxes Summary

B4,419,000 -$64,000
(-1.43% vs. prior year)

Franchise Fees & Other Taxes Proposed and Historical Budget vs. Actual

$5M

$4M

$3M

$2M

$1M

$0
FY2023 FY2024 FY2025 FY2026
Actual Budgeted

Franchise fees are collected from utilities and are charged for the continued use of public right-of-way. The
fee structure varies from a percentage of gross receipts to a unit fee based on the number of connections
within the city limits. Franchise fees continue to be monitored closely due to the deregulation of the electric
and telephone industries, signi cant uctuations in natural gas prices, and legislation on how
telecommunication and cable industries pay franchise taxes which has resulted in a decrease in those
revenue budgets. The City also maintains a cable channel, which is funded by a 1% franchise tax from cable
providers to support the government channel.

Hotel occupancy taxes are collected from each of the eleven hotels within the City limits. The City hotel
occupancy tax rate is 7% of taxable receipts and revenues are submitted on a monthly basis. This revenue
source is the primary funding of the Tourism Fund.

The nal tax type in this category are Mixed Beverage taxes. Businesses with a mixed beverage permit must
collect and remit mixed beverage sales tax on each mixed beverage (distilled spirits, beer, ale, and wine) they
sell, prepare or serve. The mixed beverage sales tax rate is 8.25% of mixed beverages.

City of Bedford, TX | Proposed Budget FY 2025-2026 Page 228