Johnston council approves franchise fee increase, multiple bond issuances, utility franchises and site plan; bundle of routine measures pass

The Johnston City Council took several formal actions on Feb. 18, approving utility franchise ordinances, multiple general-obligation bond proceedings for capital projects, a site plan and several routine consent items.

Franchise fee and ordinances

The council approved third reading and final adoption of an electric franchise ordinance (Ordinance No. 11-29) with MidAmerican Energy Company and separately approved a gas franchise ordinance (Ordinance No. 11-30) with MidAmerican. Staff noted that the city had previously replaced a 1% local option sales tax on utility bills with a 1% franchise fee in 2023; the new action increases the electric franchise fee to 5% and staff said projected revenue from the increase would produce about $1.1 million annually to fund elements of the city’s five-year staffing plan, largely new public-safety positions. Staff said the franchise fee helps avoid an overall property-tax levy increase for…