Generate Municipal Revenue Without Raising Taxes
$3.6M/year potential municipal revenue (based on a 30% vendor adoption scenario). The city-wide consumer spending baseline is $6B (excl. heavy industry). Earn from transaction fees without raising taxes.
Independent splits: City share and Community Treasury share are separate (each scales with adoption). Platform keeps its own operating portion. No commingling.
Resident Annual Spend
$6–8B
Excludes industrial plants
30% Adoption Slice
$1.8–2.4B
Flows through verified vendors
Independent Splits
City & Treasury
Each: $3M–$5M+/yr @ 30%
Two Partnership Models
Choose City-Sponsored Access for predictable ROI and universal reach, or Passive Transaction Model with zero upfront cost.
City-Sponsored Universal Access
Annual Investment
$576,000
Break-even at ~4.8% vendor adoption
30% adoption = $3.6M/year annual revenue
Passive Transaction Model
Annual Investment
$0
No upfront allocation required
Revenue scales with organic vendor adoption
City-Wide Example (est.)
Processing $6B annually (excl. heavy industry)
Platform processed volume (30% adoption): $1.8B
Total processing fees (~2.9% of processed volume): $52M (paid to payment processors)
City share (0.2% of processed volume): $4M
At 100% participation, platform processed volume is $6B — City/Community share (0.2% each) becomes $12M per fund.
Estimates assume 30% adoption for scenario math, 2.9% processing rate, and a 0.2% city/0.2% community treasury share. Processing fees are paid to payment processors and are not retained by the city.
Community Treasury (Independent Fund)
$3.6M/year
Resident-controlled infrastructure fund at 30% adoption
Separate 0.2% revenue share flows to resident-controlled treasury for community improvements. Scales independently alongside city revenue.
Two Partnership Models, Same Revenue Structure
Cities earn 0.2% of verified vendor commerce flowing through the platform. Higher vendor adoption = higher revenue. Revenue scales with actual transaction volume.
(1) Passive Model: No upfront cost, slower growth, revenue-only when vendors transact.(2) Sponsorship Model: City funds infrastructure and promotes adoption via PR/business liaison outreach, faster ROI — with performance-based exit rights.
How Cities Earn Revenue
Simple performance-based model
Lake Charles Consumer Spending
Local commerce (excludes heavy industry)
Vendor Adoption
Verified payment network
City Share
Transaction fee
Annual City Revenue
Municipal income
Lake Charles Consumer Spending
Groceries, restaurants, services, local commerce
Vendor Adoption
Flows through verified network
City Share
Competitive with Stripe/Square
Annual City Revenue
Additional municipal income
Revenue Projections by Adoption Rate
Conservative Adoption
Moderate Adoption
High Adoption
What Cities Can Fund with $3.6M/year
This revenue can be earmarked for specific initiatives outside the general fund, giving cities flexibility to invest in priorities that wouldn't otherwise get funded.
Economic Development Initiatives
Small business grants, workforce training
Public Safety Enhancements
Equipment upgrades, officer training
Infrastructure Improvements
Street repairs, drainage projects
Parks & Recreation
Facility upgrades, program expansion
Digital Infrastructure
Public Wi-Fi, smart city technology
Community Programs
Youth services, senior programs
City-Sponsored Platform Access (Optional)
Cities can sponsor platform access for all residents (funded through city budget), unlocking 100% adoption and maximizing transaction volume revenue while providing free community engagement infrastructure. City breaks even at ~8% vendor adoption.
How City-Paid Sponsorship Works
What City Pays (Single-City Rate)
- Flat-fee rate: $0.60/resident/month ($7.20/year per resident)
- Lake Charles cost: 80,000 residents × $7.20/year = $576,000/year
- Annual prepayment: Flat fee, no usage tracking required
- Budget certainty: Fixed cost every year (no surprises)
What Residents Get
- 100% free access to community engagement platform
- Group purchasing: Bulk discounts on services (solar, lawn care, etc.)
- Civic participation: Digital voting, proposal submissions
- Community forums: Neighborhood discussions, event coordination
Return on Investment: City Breaks Even at ~4.8% Vendor Adoption
Break-even calculated using low consumer spending baseline ($6.0B). At ~4.8% vendor adoption, minimum city revenue equals $576K/year sponsorship cost. At higher spending scenarios, city generates surplus from day one.
Break-Even Scenario: ~4.8% Vendor Adoption
Transaction Volume
$288M/year
City Revenue (0.2% share)
$576K/year
City Sponsorship Cost
-$576K/year
Net City Benefit
+$0/year profit
(City breaks even and starts generating surplus)
Conservative Scenario: 20% Vendor Adoption
Transaction Volume
$1.2B/year
City Revenue (0.2% share)
$2.4M/year
City Sponsorship Cost
-$576K/year
Net City Benefit
+$1.8M/year profit
(City makes 4.2x return on sponsorship investment)
Moderate Scenario: 30% Vendor Adoption
Transaction Volume
$1.8B/year
City Revenue (0.2% share)
$3.6M/year
City Sponsorship Cost
-$576K/year
Net City Benefit
+$3.0M/year profit
(City makes 6.3x return on sponsorship investment)
High Adoption Scenario: 50% Vendor Adoption
Transaction Volume
$3.0B/year
City Revenue (0.2% share)
$6.0M/year
City Sponsorship Cost
-$576K/year
Net City Benefit
+$5.4M/year profit
(City makes 10.4x return on sponsorship investment)
Performance Partnership: Shared Responsibility for Success
Platform success requires collaboration between ToolboxLogic (infrastructure provider) and Lake Charles (adoption driver via PR, business outreach, and departmental integration). This is a 3-year partnership model with performance-based exit rights if adoption falls short.
Partnership Timeline
Infrastructure Buildout (6-12 months)
Platform development, city department integrations, champion elections, vendor onboarding system setup. Payment: $576,000 (50% upfront, 50% on deployment-ready delivery). Non-refundable.
Live Deployment & First Year Operations
Platform goes live to all residents. City runs PR campaigns (mayor announcements, business liaison outreach). Adoption tracking begins. Payment: $576,000 (paid quarterly or annually). Non-refundable.
Validation Year & Exit Decision
24 months of live adoption data available. If vendor adoption remains below ~4.8% break-even threshold, city can exit partnership without penalty (no Year 4+ payments). If adoption meets/exceeds targets, partnership continues at city's discretion.
ToolboxLogic Responsibilities
- Build enterprise-grade platform infrastructure (payments, security, compliance)
- Integrate with city departments (live data feeds, API connections)
- Provide easy vendor onboarding system (no technical barriers)
- Train city liaisons and champion coordinators
- Quarterly adoption reports (vendor participation, transaction volume, revenue tracking)
Lake Charles Responsibilities
- PR campaigns (mayor endorsements, city communications, news coverage)
- Business liaison outreach (Chamber of Commerce partnerships, vendor recruitment)
- Department integration support (assign liaisons, coordinate data access)
- Champion recruitment campaigns (leverage existing community networks)
- Optional: Mandate vendor participation via city ordinance (fastest path to 100% adoption)
Performance-Based Exit Rights
Scenario 1: Below Break-Even
After 24 months live, vendor adoption < ~4.8% → City can exit without penalty (no Year 4+ payments)
Scenario 2: Near Break-Even
After 24 months live, adoption close but below target → City and platform negotiate (extension, mandate strategy, or exit)
Scenario 3: Profitable
After 24 months live, adoption ≥ ~4.8% → Partnership continues indefinitely at city's discretion (annual renewal)
Legal note: Total 3-year investment: $576,000 × 3 = $1,728,000. Years 1-2 are non-refundable (infrastructure buildout + first year operations). Exit rights apply Year 3+ if adoption falls below ~4.8% threshold after 24 months of live deployment. Partnership terms subject to contract negotiation and city council approval.
Budget Offset from Community Treasury
Community Treasury also receives 0.2% of transaction volume, generating significant resident-controlled funds. This offsets city budget by funding smaller infrastructure projects (parks, playgrounds, neighborhood improvements) that would otherwise require city appropriations.
- Residents fund local improvements via treasury, not city budget
- City focuses on major infrastructure (roads, utilities, public safety)
- Reduces citizen complaints about "small stuff" city ignores
100% Adoption = Maximum Revenue
When all residents have free access, city can encourage (or mandate) vendor participation. Higher vendor adoption = more transaction volume = more revenue for both city and community treasury.
- No "paywall" barrier - every resident can access vendor marketplace
- Vendors see entire city as potential customer base (80K residents)
- Network effects: More residents = more vendors = more commerce
Even Better: Join a Statewide Network for Deeper Discounts
If Lake Charles partners with other Louisiana cities (Lafayette, Baton Rouge, New Orleans, Shreveport, Alexandria), the entire network qualifies for statewide network pricing: $0.35/resident/month(42% cheaper than single-city $0.60/month rate).
Single-City Rate (Current)
- Rate:$0.60/resident/month
- Annual cost (80K residents):$576,000/year
Statewide Network Rate
- Rate:$0.35/resident/month (42% savings)
- Annual cost (80K residents):$336,000/year
- Annual savings:$240,000/year
Statewide Network Break-Even: ~2.8% Vendor Adoption
With statewide pricing ($336K/year cost), city breaks even at only ~2.8% vendor adoption ($168M/year transaction volume = $336K/year city revenue).
City Cost
$336K/year
Break-Even Adoption
~2.8%
At 30% Adoption
+$3.3M/year profit
Potential Louisiana Statewide Network: Lake Charles, Lafayette, Baton Rouge, New Orleans, Shreveport, Alexandria. All cities benefit from statewide commerce bridging and bulk payment processing rates.
Legislative Mandate: Unlocking Full Economic Potential
Cities can pass local ordinances requiring payment network adoption, achieving 100% vendor participation and unlocking maximum revenue potential.
Phase 1: Small Business & Local Commerce Mandate
City Council passes ordinance requiring all local businesses (retail, restaurants, services) to process payments through approved payment network. This ensures 100% of local commerce ($6B annually) flows through platform, maximizing revenue for both city and community treasury.
What Gets Mandated
- Retail stores, grocery stores, gas stations
- Restaurants, bars, clubs, entertainment venues
- Service providers (plumbers, HVAC, lawn care, salons)
- Local healthcare providers (dentists, urgent care)
Revenue Impact (100% Small Business Adoption)
Phase 2: Industrial & B2B Commerce Expansion (Long-Term Vision)
After small business mandate proves successful, city (or state legislature) can expand to include industrial/B2B transactions. Lake Charles industrial economy processes $19B annually (refineries, LNG terminals, petrochemical plants, port freight). Adding 0.2% fee to this volume generates transformational revenue for both city and community.
Full Economic Integration Scenario
Small Business Commerce
$6B/year
Industrial B2B Commerce
$19B/year
Total Annual Transaction Volume
$25-27B/year
City Revenue (0.2% of $25-27B)
$50-54M/year
Community Treasury (0.2%)
$50-54M/year
Why Industrial Mandate Is Feasible
- •Plants can't relocate: Refineries/LNG terminals are anchored infrastructure (can't move to avoid 0.2% fee)
- •Minimal cost impact: 0.2% on $19B = rounding error for industrial contracts (margins are much larger)
- •Tax equivalent: Treated as payment processing fee, not additional sales tax (legally distinct)
- •Community benefit: $0.05-0M/year to community treasury transforms Lake Charles infrastructure capacity
Enterprise-Grade, City-Scale Payment Network
Secure, compliant, and scalable payment infrastructure trusted by global platforms.
Enterprise Payment Processor
Platform powered by enterprise payment infrastructure trusted by companies processing hundreds of billions annually. Same technology used by global marketplaces serving millions of users across 100+ countries.
- PCI DSS Level 1 compliant (highest security standard)
- SOC 2 Type II certified (audited security controls)
- Trusted by Fortune 500 companies
- Processes $100B+ annually for enterprise clients
Clean Legal Structure
City receives revenue as a municipal service fee, not sales tax. Platform handles all payment compliance (PCI, fraud prevention, dispute resolution).
- No money transmitter license required for city
- Clean separation: Processor handles funds, city receives share
- Automated revenue routing: Split settlements to city account
- Full audit trail: Quarterly reports for municipal accounting
No Additional Cost to Vendors
Vendors pay competitive payment processing fees (~2.9% (estimated) range, similar to Stripe/Square). There is no "extra fee" on top of normal card processing costs. The city's revenue share comes from the same transaction fee vendors already pay to payment processors - we just route part of it locally instead of sending it all to Silicon Valley payment companies.
The More Cities Join, The Better It Gets
As more cities adopt the platform, bulk transaction volume enables better payment processor rates, which means more savings for vendors and more revenue for cities.
Lake Charles Alone
- •Transaction volume: $6B/year (30% adoption)
- •Vendor payment cost: ~3%
- •City revenue: $3.6M/year
Louisiana (5 Cities)
- Combined annual commerce: $555-810B (Houston, Dallas, San Antonio, Austin, Fort Worth)
- Est. 30% adoption volume: ~$166-243B/year
- Vendor cost: ~2.95% (bulk pricing)
- City revenue increases OR vendor savings grow
100+ Cities
- Combined annual commerce: $3-6T (top 100 US cities, excluding heavy industry)
- Est. 30% adoption volume: ~$900B-1.8T/year
- Vendor cost: ~2.9% (enterprise rates)
- Maximum savings for all stakeholders
Early-mover advantage: Cities that join first benefit from lower implementation costs and get positioned as leaders in civic innovation. As the network scales, bulk volume negotiating power improves rates for everyone.
Important Disclosures
Revenue projections are illustrative estimates based on economic modeling of Lake Charles consumer spending data. Actual results depend on vendor adoption rates, transaction volumes, payment processor contract terms, and economic conditions. Payment processing infrastructure is provided by a third-party enterprise processor - cities do not handle payment data or require money transmitter licenses. Legal structure (municipal service fee vs other classifications) requires review by city legal counsel and may vary by jurisdiction. Implementation timeline and partnership terms subject to negotiation and city council approval. This is not an offer or guarantee of specific revenue amounts.
Ready to Explore Partnership?
Schedule a consultation to discuss how Lake Charles can generate $3.6M/year in performance-based revenue.