Moline City staff outlines plan to use franchise fees and property-tax growth to boost CIP, presents bond options for city hall and fire station

City staff told the Moline City Council at a special meeting that a previously adopted 2023 ordinance includes a 3% increase in the natural gas and electric franchise fee, effective Jan. 1, 2026, and that the fee is projected to generate about $1,846,000 for 2026. Staff said that revenue would allow the city to increase its annual capital improvement fund (CIP) transfer from $1,000,000 to $2,000,000 and move toward a strategic goal of $3,000,000 in annual CIP funding.

The explanation and revenue projections were presented as part of a broader review of revenues and expenditures for the city’s special CIP and 10-year capital plan. Carol, a city staff presenter, said the ordinance adopted in 2023 includes the 3% rate and that no immediate action by the council was required to implement the 2026 increase. Carol also noted that the city would need to notify MidAmerican to implement the fee and said the utility requires time to put the change in place.

Why it matters: staff told council members the franchise fee and property-tax growth together are the principal revenue drivers for the CIP and for a riverfront redevelopment program. Council members repeatedly pressed for variations on the revenue assumptions and asked staff to provide spreadsheets that do not rely on assumed future rate increases beyond the 3% already in the ordinance.

Property tax and levy-rate options Staff recommended the council consider maintaining the city’s levy…