Page 124 - FY 2026-2027 Adopted Budget Book

Franchise Fees & Other Taxes

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, significant fluctuations 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 final 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.

ourism Development Fund:
T T Tourism Development Fund:
ourism Development Fund:
$1,191,710 (29%) $4M
$1,191,710 (29%)
$1,191,710 (29%)
$2M
Public Educ G ovt Fund:
Public Educ Govt Fund:
ovt Fund:
Public Educ G
$40,000 (1%)
$40,000 (1%)
$40,000 (1%)
eneral Fund:
G G General Fund: $0
eneral Fund:
$2,944,610 (71%)
$2,944,610 (71%)
FY 2024 Actual FY 2025 Actual FY 2026 Projection
$2,944,610 (71%)
Total (FY 2027 Proposed Budget) FY 2026 Amended Budget FY 2027 Proposed Budget
$4,176,320
General Fund Public Educ Govt Fund Tourism Development Fund General Fund Public Educ Govt Fund Tourism Development Fund
Data Updated: Sep 15, 2026, 9:54 PM View Report Data Updated: Sep 15, 2026, 9:54 PM View Report
CALCULATION
FY 2024 FY 2025 FY 2026 Amended FY 2026 FY 2027 Proposed
Actual Actual Budget Projection Budget % Change
Revenues
General Fund
Taxes
Mixed Beverage Taxes $202,765 $205,594 $206,000 $205,095 $205,000 0%
TAXES TOTAL $202,765 $205,594 $206,000 $205,095 $205,000 0%
Franchise Fees
Franchise - Gas $467,518 $516,404 $500,000 $534,785 $534,785 7%
Franchise - Telephone $84,334 $72,903 $80,000 $60,000 $65,000 -19%
Franchise - Electricity $1,554,035 $1,522,703 $1,550,000 $1,475,000 $1,436,775 -7%
Franchise - Trash $451,313 $455,050 $475,000 $455,050 $455,050 -4%
Franchise - Recycling $60,574 $62,312 $58,000 $58,000 $58,000 0%

FY 2026-2027 Adopted Budget Book · September 15, 2026 120