Franchises are granted by agencies to privately owned companies that utilize jurisdictional rights of way for electric, gas, water and oil pipeline purposes. Agencies award non-exclusive franchises for the construction and maintenance of community antenna television systems within their boundaries.
Agencies also award franchises for the collection and disposal of municipal refuse.
In addition, agencies may receive utility users taxes. Utility companies are charged with the responsibility of collecting the user taxes from their customers or users of the service. Numerous errors may be made in the calculation of franchise fees as well as in the assessment and collection of utility users taxes. The benefits that may be realized by the agency as a result of this review include potential revenue recoveries and the prevention of recurring deficiencies. The agency's franchise ordinances and utility users tax ordinance, the revenues received and the supporting data accompanying remittances are reviewed.