Franchise fee.
Cape Coral Code of Ordinances § 15-16
in effect§ 15-16 - Franchise fee.
(a) A franchisee, as compensation for the privilege granted under a franchise for the use of the city's streets to construct and operate a cable system, shall pay to the city a franchise fee in an amount up to a maximum of either:
(1) Five percent of the franchisee's gross revenues derived directly or indirectly from the operation of its cable system within the city to provide cable services during the term of its franchise; or
(2) In the event the Communications Act or other applicable law is amended to permit the city to assess a franchise fee of a greater specific amount or on a broader revenue basis than that specified in subsection (a)(1) above, the franchisee agrees to pay to the city the new amount after a public hearing in which the public and franchisee are given an opportunity to comment on the impact of the higher fee. In no event shall a franchisee pay a franchise fee greater than the maximum permitted by applicable law.
(b) A franchisee shall pay the franchise fee due to the city on a quarterly basis. Payment for each quarter shall be made to the city not later than 45 calendar days after the end of each calendar quarter.
(c) A franchisee shall file with the city, on a quarterly basis with the payment of the franchise fee, a financial statement setting forth the computation of gross revenues used to calculate the franchise fee for the preceding quarter and a detailed explanation of the method of computation. The franchisee will bear the cost of the preparation of the financial statements.
(d) Subject to applicable law, no acceptance by the city of any franchise fee payment shall be construed as an accord that the amount paid is in fact the correct amount, nor shall the acceptance of payment be construed as a release of any claim the city may have for additional sums payable.
(e) The franchise fee payment is not a payment in lieu of any other tax, fee or assessment.
(f) The city may, from time to time, but not more than annually, and upon reasonable notice, inspect, and audit any and all books and records of the franchisee, for the current and five prior years, relevant to the determination of gross revenues and the computation of franchise fees due, and may recompute any amounts determined to be payable under the franchise. The cost of the audit will be borne by the franchisee if, as a result of the audit, the city determines that the franchisee has underpaid the franchise fees owed in an amount, equal to or exceeding 2% of the franchise fees actually paid excluding amounts underpaid due to miscoded accounts where the city has failed to advise the franchisee of an annexation. A franchisee shall make all books and records necessary to satisfactorily perform the audit readily available to the auditors at the system office in the city, for inspection and copying.
(g) In the event that a franchise fee payment is not received by the city on or before the due date set forth in subsection (b) above, or is underpaid, the franchisee will pay a late charge of 18% of the amount of the unpaid or underpaid franchise fee payment, computed on an annual basis, provided, however, that the rate does not exceed the maximum amount allowed under Florida law. Any interest and/or late charge paid by franchisee is intended to be a charge incidental to the enforcing of a franchise within the meaning of § 622(g)(2)(D) of the Communications Act, 47 U.S.C. § 542(g)(2)(D), and may not be deducted from the franchise fee imposed by this article or any franchise agreement.
(h) When a franchise terminates for whatever reason, the franchisee shall file with the city within 90 calendar days of the date its operations in the city cease a financial statement, certified by a certified public accountant or the franchisee's chief financial officer, showing the gross revenues received by the franchisee since the end of the previous fiscal year. Adjustments will be made at that time for franchise fees due to the date that the franchisee's operations ceased. Payments under this subsection shall be due and payable within 45 days of the date the determination of fees due to the city is made, and subject to late charges as described in subsection (g) above.
(i) Any transaction or arrangement which has the effect of circumventing payment of required franchise fee and/or evasion of payment of franchise fee by non-collection, non-reporting of gross revenues collection of revenues by affiliates, bartering or any other means which evade the actual collection of revenues subject to the franchise fee by franchisee is prohibited.
(Ord. 90-00, § 3, 9-11-2000)
Source: City of Cape Coral, Florida, Code of Ordinances, City Charter and Land Development Code (Municode Library, library.municode.com)URL: https://library.municode.com/fl/cape_coral/codes/code_of_ordinances?nodeId=CH15FR_ARTICACO_S15-16FRFEFetched: 11/4/2026