New Revenue

An Untapped Source of New Revenue

Published 5/15/13

 Hillsboro city council by unanimous votes has passed an ordinance raising the fee it collects from Time Warner Cable from 3 percent to 5 percent.

The measure, which was identified earlier this year as a way to generate more revenue for the city, replaces a 15-year agreement that had long kept the franchise fee at 3 percent of gross revenues.

Wilmington’s 2012 general fund revenue from Time Warner was $80,882. If the fee were increased to 5% the revenue would be an estimated $134,803 per year. Would the increase constitute a hidden tax increase for Time Warner subscribers? Wilmington’s current contract calls for a 3% share of gross revenues.