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Decorah council adopts limit on tax use for municipal electric utility funding
Summary
Decorah City Council approved a resolution saying existing property tax dollars will not be used to fund a municipal electric utility; councilmembers split on the measure amid concern about timing and state legislation that could change franchise-fee authority.
The Decorah City Council on Monday approved a resolution saying the city will not use existing property tax dollars to fund a municipal electric utility and that, if the measure to form a municipal utility passes in Tuesday’s special election, the city will rely on electric franchise fee revenues or general-obligation bonds following a bond referendum.
The resolution, introduced by Councilmember Neil and seconded by Councilmember Zittagruen, passed after debate about timing and the potential effects of pending state legislation. The roll-call recorded, among others, Veil: “Aye”; Zittagruen: “Aye”; Olsen: “No”; Chissell: “No”; Whittle: “Aye”; Parker: “Aye”; Miss Linage: “No.”
The council’s stated limit is a response to residents’ repeated questions about whether a municipal electric utility (MEU) would raise property taxes. The resolution limits initial funding to three categories: electric franchise fees, grants and donations, and general-obligation bonds only…
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