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The data in this chart shows that the electric customer would pay 73.25% and the gas customers would pay 26.75% of the total amount of franchise fees collected. Each residential customer would pay $2.75 per month for electric and $2.75 per month for gas. The electric residential customer pays 22.79% of the total electric franchise fee and the gas residential customer pays 55.64% of the total gas franchise fee. Combined, the residential customer pays 31.58% of the City Fee total franchise fee collected. (This will show up as a on all the customer bills.) Based on a franchise fee of 2.75 percent converted to a flat fee plan, the City is expected to receive $603, 075 in new revenue. To compare the impact to the home owner for the annual franchise fee ($2.75 x 2 = $5.50 x 12 = $66 per year) verses an increase in the property taxes to generate this same $603,075 amount, the Director of Finance and Administrative Services has developed the following chart: $603,075 Annual Revenue Generated from Franchise Fee versus Property Tax HomeHomeCost per Home MarketValueFranchisePropertyCost ValueAfter MVEFeeTaxDifference $ 140,550$ 115,959$ 66.00 $ 66.00 $ - $ 200,000$ 243,326$ 66.00 $ 102.89$ 36.89 $ 257,400$ 243,326$ 66.00 $ 138.46$ 72.46 $ 350,000$ 344,260$ 66.00 $ 195.94$ 129.94 $ 500,000$ 500,000$ 66.00 $ 284.55$ 218.55 $ 750,000$ 750,000$ 66.00 $ 462.40$ 396.40 $ 900,000$ 900,000$ 66.00 $ 569.10$ 503.10 As you can see in the above chart, the impact to home owners for generating revenues of $603,075 to home owners is typically less with a franchise fee verse increasing the City tax rate. It should be noted that when the franchise fee is converted to a flat fee rate, then the rate does not change over time. There is no inflation factor added annually. The only growth in the total fee collected for the City would come from new development; such as what is planned to happen on TCAAP. th The staff memo for the June 17 work session included comments on the need to move the street maintenance and trail rehabilitation expenses out of the PIR fund as these are really operating expenses and not capital expenses. Moving this expense out of the PIR Fund increases the chances that the General Fund transfer to the PIR Fund will be spent on the PMP program. Since the General Fund cannot absorb these expenses without impacting other City services, this funding of street and trail maintenance expenses with franchise fee revenues is a top staff priority. Additionally, the equipment capital fund needs financial help and it is 35 Page of