Franchise Fee

Franchise fees are another source of funding the Village uses to deliver high-quality services. Franchise fees are assessed on cable and utility companies as part of a franchise agreement with the village to serve customers in its jurisdiction. As provided and/or required by federal and state law, a franchise agreement grants permission for the cable operator and utility provider to operate and maintain their cable system and public utilities in the Village’s right-of-way. The franchise agreement allows cable and utility providers to use the public right-of-way to upgrade their equipment, install new lines, move their facilities by excavating and replacing streets, and bury pipes and lines. The franchise fee serves as compensation to the local government for the industry’s use of the right-of-way.

Fee Rates

Comcast and Xcel Energy pay franchise fees based on their current franchise agreements with the Village. The franchise fees are calculated based on 3% (with a maximum of 5%) of the company’s gross revenues within Greenwood Village. Comcast and Xcel Energy collect the 3% franchise fee from their Greenwood Village customers’ monthly bills, and then transfer the franchise fee payments to the city.

Where Do Franchise Fees Go?

Depending on the community's needs, franchise fees can be earmarked for a dedicated service or contributed to a local government’s general revenues. The Village collects approximately $1.8 million in franchise fees annually, which are distributed into the city's general fund for service delivery.