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Franchise Fees

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 ser vices.

The projected revenue for FY 2026 is based on yearly 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 ser vices and cellular phones, the use of landlines and cable TV has decreased,
resulting in lower franchise fee collections from these sectors.

Revenues by Fund
FY 2025
Adopted
FY 2025 FY 2026
FY 2024 FY 2025 Budget vs. FY
Category Adopted Proposed
Actuals Projected 2026 Proposed
Budget Budget
Budget (%
Change)
General Fund
Oncor Electric Delivery $915,334 $910,000 $887,583 $910,000 0.00%
Tri-County Electric $191,546 $185,000 $172,925 $185,000 0.00%
Atmos Energy $629,385 $600,000 $682,980 $600,000 0.00%
At&T Ser vices $11,582 $15,000 $9,534 $15,000 0.00%
Verizon/Others $9,655 $12,000 $7,462 $12,000 0.00%
Garbage/Recycling $320,936 $300,000 $313,431 $300,000 0.00%
Cable Tv $224,807 $200,000 $186,044 $200,000 0.00%
Network Nodes $250 $250 $250 $250 0.00%
Total General Fund $2,303,495 $2,222,250 $2,260,209 $2,222,250 0.00%
Total Revenues $2,303,495 $2,222,250 $2,260,209 $2,222,250 0.00%

FY 2025-2026 Annual Budget | Colleyville Page 91