Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Transit Funding topic
No spam. Unsubscribe anytime.
Des Moines council approves franchise-fee increases for transit funding over dissent about governance and oversight
Summary
The Des Moines City Council approved ordinances to increase electricity- and gas-franchise fees to fund regional transit service, voting 4-3 on each measure after lengthy debate over DART governance, funding formulas and whether the city should seek voter approval.
The Des Moines City Council on a 4-3 vote approved ordinances to increase franchise fees on electricity and gas to generate additional funding for the Des Moines Area Regional Transit Authority (DART). The two votes (one for electric franchise language, one for gas) were taken after extensive council debate about DART governance, regional funding formulas and whether Des Moines should require a public referendum before enacting the fee.
Council members who opposed the measures said the city lacked sufficient assurances about how DART would use the new revenue and whether suburbs would continue to reduce their own contributions. One council member warned the change was effectively a tax on city residents and asked for stronger conditions tying new money to governance and long-term stability. Another council member said the measures were needed to stabilize DART operations while a regional "reimagined DART" review proceeds.
Why it matters: The ordinances rely on authority in Iowa Code provisions that allow certain cities to levy franchise fees for transit and require that fees be applied only for transit purposes; the council discussion repeatedly referenced Iowa Code sections cited in the ordinance language. Supporters said quick enactment could preserve service stability and buy time for a broader governance and funding review; critics said the council should withhold votes until DART provides a clearer plan and that voters should decide.
What council did: The council approved both franchise-fee ordinances after the public hearing closed and members debated governance, funding formulas and the possibility of a referendum. Votes on both franchise items were 4 in favor, 3 opposed. Council directions included continuing conversation with the DART commission and pursuing the "reimagined DART" review of service design, funding and governance.
Public comment: No members of the public registered to speak during the public hearings on these franchise-fee items.
Background and next steps: Council members said the fee increases would not become effective immediately and that implementation timing depends on ordinance publication and administrative steps. Several council members urged the mayor's DART representatives to continue pushing for changes to the regional funding formula and governance while the additional city funds are available. Council members also discussed the history of prior litigation and referenda related to franchise fees and noted legal constraints in state statute about when a referendum is required.
Details and votes: The council recorded 4 yes and 3 no votes on each ordinance; both measures passed. The ordinances reference Iowa Code sections cited in the agenda materials; the council record notes the fee is limited by statute to transit uses.
