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LT SMP Costs & Funding Options <br />Franchise Fee Rates - <br />• Figure 3 in the next slide shows the number of electric and gas <br />customers throughout the city in 2011 /2012 versus the revenues that <br />can be collected based on varying monthly franchise fee amounts. <br />A monthly franchise fee of $5 per utility for residential properties, <br />which equals $10 per month, would collect $1,000,000 in annual <br />revenues. To collect $1,500,000 in franchise fees annually, the <br />monthly fee would need to be over $7, or $14 per month per <br />residential property. This assumes businesses would be charged the <br />same amount based on the past argument that businesses tend to <br />operate along County and State highways and therefore do not <br />impact residential streets to the degree that residential properties <br />do. However, many cities charge their businesses significantly higher <br />fees through their franchise fee ordinances which helps to raise <br />revenue and could keep residential rates lower. <br />August 27, 2013 CC Workshop <br />1 <br />