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QUARTERLY REVIEW OF FRANCHISE FEE COLLECTIONS By: Diana Lund, Finance Officer Background: In October 2003, City Council adopted franchise fee ordinances with Centerpoint Energy and Connexus Energy. Section 5 of this ordinance stated that the City Council will review these ordinances at the first meeting immediately following the City's collection of the franchise fee revenue of the applicable quarter. The purpose of the review shall be fbr the City Council to determine the City's necessity to receive the revenues generated by the franchise fee. For the period ending March 31, 2004, the City received $129,839 in franchise fees from Connexus Energy and Centerpoint Energy - $65,905 and $63,934, respectively. Based on total customers information submitted by Centerpoint & Connexus in 2003, the City planned to generate $404,000 in franchise fee revenue, which is the amount included in the 2004 adopted General Fund budget. Year 2004 totals would show the City collecting approximately $519,356 based on the first quarter collection of $129,839. This would give an increase of $115,356 over 2004 budgeted numbers. A copy of the revenues collected through March 31, 2004, is attached to show how much has been collected in building permits, plan check fees, etc. This report does not include the franchise fee revenue collection of $129,839. Per the franchise fee ordinance, the City Council must quarterly adopt a Resolution stating that the revenues are necessary and that they plan to continue the franchise fee. Committee Action: Recommend to City Council to continue collecting franchise fee revenue with the determination that the continuation or repeal of the franchise fee will be determined at each succeeding quarter. Council Action: Adopt Resolution #04-04-XXX authorizing the continuation of the franchise fee. Based on the City's quarterly revenue collections, it is deemed necessary to continue revenues generated by the fi'anchise fee. FC: 4/24/04