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Council advances 1% franchise-fee increase to sustain fare-free transit; public hearing held
Summary
After hearing staff presentation on ridership gains under the fare-free pilot, council gave initial approval to increase electric and natural gas franchise fee from 1% to 2% and broadened the revenue purpose statement to allow transit uses; staff estimated roughly $1 million annual revenue to help sustain fare-free service.
The Iowa City Council held a public hearing June 16 on an ordinance to raise the city's franchise fee on electricity and natural gas from 1% to 2% and to expand the permitted uses of the revenue. The goal: to create a stable local revenue stream to help sustain the city's fare-free public-transit pilot, currently funded in part by one-time federal and other funds that will expire.
Staff presentation and pilot results: Kirk Lehman, assistant city manager, presented data showing the fare-free pilot…
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