Video Service Provider (Special Revenue Fund)
FY2023-24 Adopted Budget
Fund Purpose:
The 2007 Video Services Providers Act (SB 284) took effect August 28, 2007 and authorizes state-issued video service franchising. Cable video service providers doing business in Springfield are assessed a franchise fee equaling five percent of gross revenues from each service provider. The fee is equally applied to all video service providers within the geographic area of a franchise entity. The funds support the City of Springfield’s City View Public Educational and Government (PEG) Channels and operations within the Department of Public Information. Programming generally deals with public affairs, board meetings and live video of special events (i.e. City Council, Planning & Zoning, Airport, City Utilities and Park Board). The Department of Public Information and its City View operation produces and broadcasts content far beyond the perfunctory explanation of government service and other public-service related programming, such as public service announcements and longer public information videos.
FY 2023-24 Budget Highlights:
Over the last decade, telecommunication companies have been shifting the base of revenue from cell phone usage to data usage. This decline of the gross receipts tax (license tax) on telecommunication companies has been significant over the past 11 years, resulting in a total loss of revenue of $3.3 million during this time.
In addition, the Wayfair legislation, eliminates one-half of the rate (2.5% of the 5% total cable franchise fee rate) over a five-year period beginning in August 2023, further eroding the municipal revenue stream. As a result, in FY2024 the General Fund will absorb the six positions in the Public Information Office originally funded by the cable franchise fee since the fee is being reduced by one-half over the five-year period.
The telecable capital fund has a small fund balance available for one-time needs only. Added $16,900 in operating supplies and services for equipment replacement and training.