Item 2- Draft Recommendation Franchise Fees 1.0 1 of 6 — original pdf

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RESOURCE MANAGEMENT COMMISSION RECOMMENDATION 20260120-XX Recommendation on Franchise Fees for Public Entities Texas Gas Service Franchise Agreement WHEREAS, the City of Austin levies a 5% franchise fee on the gross receipts of rates and normal fuel costs, which support the City’s General Fund services; and WHEREAS, the City exempts franchise fee collections from public entities (including governments, educational institutions, and hospitals that provide indigent health care), which does not always occur in other Texas cities; and THEN BE IT THEREFORE RESOLVED that the City’s Resource Management Commission recommend that the Austin City Council implement the following policies related to the new Texas Gas Service franchise agreement: • The City should conduct a benchmark study of large Texas cities to compare the practice of exempting public entities from natural gas utility franchise fees. If the City of Austin is found to be abnormally lenient in collecting franchise fees compared to other large Texas cities, then a phased-in collection of these fees should be enacted.