Staff Capacity and Project Complexity Limit Right-of-Way Revenue

King County is projecting a $50 million shortfall in General Fund revenue for 2025, increasing the importance of complete and accurate revenue collections countywide. One of the County’s newer revenue sources is franchise compensation—payment by water, sewer, gas, and electric utilities for using road rights-of-way in unincorporated areas. King County collected $5 million in franchise revenue in 2021 and 2022 combined, 46 percent lower than the projected $9.2 million the County budgeted. For 2023 and 2024, we estimate that franchise revenues will reach $7.6 million, 37 percent below projected revenues of $12 million. Limited staff capacity, competing priorities, and a lack of guidance on how to raise revenue equitably have hindered the ability of the Facilities Management Division and Real Estate Services to meet strategic and programmatic goals. To help achieve these goals, the County will need to establish program priorities, increase efficiency, and develop an equity lens.