Page 495 - FY 2020-21 Blue Book Volume II
P. 495
TELECOMMUNICATIONS LIQUIDATED DAMAGES AND
LOST FRANCHISE FEES FUND
TELECOMMUNICATIONS DEVELOPMENT ACCOUNT
BASIS FOR THE PROPOSED BUDGET
The 2020-21 Proposed Budget for the Telecommunications Development Account (TDA) relates to current year
funding as follows:
Amount % Change
2019-20 Adopted Budget $ 19,704,181
2020-21 Proposed Budget $ 20,341,736
Change from 2019-20 Budget $ 637,555 3.2%
The TDA is funded by cable television franchise fees and liquidated damages. The cable television franchise fee is
a payment to the City for the use of City streets and rights-of-way. It is calculated at the rate of five percent of gross
revenue received by the cable companies. Pursuant to Los Angeles Administrative Code Section 5.97, the
telecommunications franchise fees are divided between the TDA and the General Fund, with 40 percent of all funds
received or collected deposited into the TDA and the remaining 60 percent deposited into the General Fund. TDA
funding may be used for Public, Educational, and Government (PEG) access programming and other
telecommunications uses. The five percent franchise fee funding can also be transferred to the General Fund to be
used for other purposes.
In addition to the five percent franchise fee, the TDA also receives one percent of franchise holders’ gross receipts
for capital costs related to PEG access programming. Pursuant to Council File 16-0022, a portion of these funds are
eligible to be used for PEG operational costs. Funds from the PEG capital cost franchise fee that are not appropriated
for specific purposes are held in a reserve account.
2019-20 2020-21
REVENUE Adopted Proposed
Cash Balance, July 1 $ 36,121,927 $ 35,582,590
Less:
Prior Years’ Unexpended Appropriations 34,917,746 33,710,854
Balance Available, July 1 $ 1,204,181 $ 1,871,736
Receipts:
Franchise Fees 12,333,950 12,361,000
PEG Access Capital Franchise Fees 6,166,050 6,074,000
Miscellaneous Receipts -- 35,000
Total Revenue $ 18,500,000 $ 18,470,000
Telecommunications Development Account Available Funds $ 19,704,181 $ 20,341,736
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