Council advances right-of-way standards for fiber and small wireless facilities amid tax concerns

South Beloit — The City Council on Sept. 2 reviewed proposed ordinance 28-64, which would add written standards for construction and placement of fiber-optic and other utilities in public rights of way. Staff said the draft is largely modeled on neighboring municipalities’ ordinances and aims to give the city consistent rules for depths, restoration, permit requirements and damage protections.

Nut graf: The ordinance codifies construction and permitting standards for utilities working in city right of ways and includes permit fees and enforcement language; council members raised concerns that broadband providers funded in part by federal and state grants may not pay local franchise or utility taxes.

Staff said the proposed code is intended to protect the city and avoid private providers proposing self-serving terms; the draft was modelled on the CrossCode ordinances and longstanding recommendations from municipal groups. Council members asked whether fiber providers pay the same utility taxes that water and power companies pay; staff replied that telecommunications law and prior legal advice limit the city’s ability to collect certain franchise fees from some broadband providers, though providers will still pay permit fees and other allowable charges. The city attorney noted the ordinance allows the city to charge what state and federal law permit.

Council members expressed frustration that some entities deploying fiber pay little or no ongoing tax while using the same right of way as taxed utilities; staff said the ordinance strengthens permit, restoration and damage‑liability language to protect city property and public safety.

Ending: The council moved the ordinance forward for additional consideration; staff recommended adoption to provide clear, enforceable standards when utilities excavate or install facilities in city rights of way.