City raises franchise fees for $104k increased revenue

The City of Gonzales has conducted an evaluation of the existing franchise agreements and then compared the rates that other municipalities are charging.

After speaking with Texas Disposal Systems it was determined that the six percent franchise fee that the city is being paid was significantly lower than in other cities doing business with Texas Disposal Systems.

City staff has approved an increase from 6 percent to 10 percent on residential accounts, 6 percent to 12 percent on commercial accounts and 6 percent to 15 percent on direct billed accounts.

According to city staff, approving this ordinance will increase the franchise revenues by approximately $104,000 annually.

The city informed the public of the proposed changes and allowed for public comment on the increase. As per Section 10.02 Franchise; Power of City Council, the amendment to a franchise agreement shall be read at two separate regular meetings of the city council, and shall not be finally passed until thirty days after the first reading; and no such ordinance shall take effect until thirty days after its final passage, which was November 14.