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Supervisors weigh Burlington franchise‑fee vote and county revenue impacts ahead of March 4 election
Summary
Board members discussed a March 4 Burlington ballot measure to replace a 1% local-option sales tax with a franchise (utility) fee of up to 5%, and staff outlined potential revenue losses to the county and operating cost increases for county facilities.
Supervisors spent time on Feb. 11 discussing the Burlington ballot measure set for March 4 that would replace a 1% local‑option sales tax on utilities with a franchise fee the city could set at up to 5%, and the potential effects on Des Moines County revenue and operating expenses.
County staff presented estimates of how much local-option sales tax revenue currently flows to county programs and municipalities and the likely impacts under different franchise-fee rates. Using current utility rates and distributions, staff estimated Des Moines County could lose roughly $140,000 per year in local-option sales tax revenue if Burlington adopts the fee and related distributions change; some incorporated cities and local entities would also see reduced shares. Staff also noted the county would begin paying a franchise fee on county‑owned facilities’ utility bills (courthouse, jail, sheriff’s office, public health building, Cottonwood Complex), an additional operating cost estimated at roughly $6,000 at a 3% fee, $8,000 at 4% and $10,000 at 5%, based on current utilities.
Why it matters: the change would shift local revenue streams used for secondary roads, rural basic services, sheriff and county attorney budgets and economic development; staff said up to 50% of local-option proceeds are used for secondary roads under the current distribution formula, and replacement revenue is not obvious.
Meeting notes
Board members asked how local-option sales tax dollars are allocated; staff recited the existing distribution percentages: 50% secondary roads, 20% rural basic, 10% sheriff, 10% county attorney and 10% economic development (transcript explanation). Staff emphasized the county already allocates maximum code-based property‑tax amounts to roads and that losing local-option sales tax revenue would be hard to replace.
Ending: Staff said the board must finalize levy and budget calculations in coming weeks and that the county will continue to monitor the Burlington vote and evaluate budget adjustments if the local distribution changes.
