Franchise fees.
Springfield, Ill., City Code § 103.41
in effect§ 103.41. - Franchise fees.
(a) The grantee shall pay to the city an annual franchise fee of 5% of gross revenues or such other maximum amount as allowed by law which is derived from its cable television operations in the franchise area.
(b) The franchise fee and any other costs or penalties shall be payable quarterly on a calendar year basis to the city. The quarterly anniversary shall be March 31, June 30, September 30, and December 31 of each year. Each quarterly payment shall be paid no later than 45 days after the dates listed in the preceding sentence. The grantee shall also file a complete and accurate statement verified by an authorized financial officer of the grantee showing the basis of the computation and such other relevant facts as may be required by the city.
(1) A grantee shall, within 90 days after the close of the grantee's fiscal year, prepare in accordance with generally accepted accounting principles (GAAP), and submit to the city a statement of gross revenues audited and certified by a certified public accountant who may be employed by the grantee, and covering the grantee's operations in and relating to the grantee's cable system.
(c) The mayor or her or his designee shall have the right, power, and authority upon reasonable notice to inspect and copy the books and records of the grantee insofar as such books and records pertain to the gross revenues of the grantee's operation in the City of Springfield, and the right to audit and to recompute any amounts determined to be payable under this article and a franchise agreement. The grantee shall furnish to the city upon request by the mayor or her or his designee such additional reports, documents, and information necessary to enable the city to verify the payments made to it by grantee.
(1) The grantee shall maintain books and records of its operations within and related to the city and the grantee's cable system in sufficient detail to show gross revenue, by service category, consistent with generally accepted accounting principles (GAAP). Said books and records shall be retained in accordance with the grantee's document retention policies, but in no event less than five years.
(d) In the event that the franchise is revoked or expires, a grantee shall file with the city, within 45 days of such revocation or expiration, a statement clearly showing the gross revenues received by the grantee since the end of the previous fiscal quarter. A grantee shall pay such partial franchise fees due at the time such statement is filed or within 45 days of such revocation or expiration.
(e) The acceptance by the city of any franchise fee payment shall not in any way be construed as an accord that the amount paid is in fact the correct amount, nor shall such acceptance of any payment be construed as a release of any claim the city may have for further or additional sums payable under the provisions of the franchise. All franchise fee payments shall be subject to audit, evaluation, and recomputation by the city in accordance with this section.
(f) A grantee shall acknowledge as follows:
(1) The franchise fee is not a tax; and
(2) The franchise fee shall be in addition to any and all taxes, other applicable fees or charges that a grantee or any affiliate shall be required to pay to the city or to any state or federal agency or authority, all of which shall be separate and distinct obligations of a grantee and its affiliates; and
The term "franchise fee" does not include:
(i) Any tax, fee, or assessment of general applicability (including such tax, fee, or assessment imposed on both utilities and cable operators or their services but not including a tax, fee, or assessment which is unduly discriminatory against cable operators or cable subscribers).
(3) Neither a grantee nor any affiliate shall have or make any claim for any deduction or other credit of all or any part of the franchise fee from or against any of said city taxes or other fees or assessments of general applicability that a grantee or any affiliate is required to pay the city except as may be identified and authorized by federal or state law; and
(4) Except as authorized by law, if a grantee or any affiliate applies or seeks to apply all or part of the amount of the franchise fee as a deduction or other credit from or against any city tax or other fee or assessment of general applicability, or if a grantee or any affiliate applies or seeks to apply all or any part of any such tax or other fee or assessment of general applicability as a deduction or other credit from or against the franchise fee, then, in any such event, such action will be deemed a violation of this article subject to the provisions of section 103.53 hereinbelow.
(g) The city may increase the franchise fee if and to the extent that the maximum allowable franchise fee is increased by an act of the United States Congress, a court of competent jurisdiction, or the FCC.
If the city desires to increase the franchise fee in that event, then the city shall provide at least 60 days' written notice to the grantee. If, within 60 days after the city's notice, a grantee so requests, the city shall conduct a public meeting on the franchise fee increase wherein the grantee shall have an opportunity to be heard, and the franchise fee increase shall not be implemented until the conclusion of the public meeting. If within the 60-day notice period, a grantee does not request an opportunity to be heard at a public meeting, then the effective date of the proposed franchise fee increase shall be implemented at the conclusion of the 60-day notice period.
(Ord. No. 613-11-02, § 1, 11-19-02)
Source: City of Springfield, Illinois, Code of Ordinances (Municode Library, library.municode.com)URL: https://library.municode.com/il/springfield/codes/code_of_ordinances?nodeId=TITIXGERE_CH103CATE_ARTIICACOSY_S103.41FRFEFetched: 11/8/2026