Johnston City Council adopts revenue purpose statements and advances 5% electric, gas franchise ordinances

The Johnston City Council on the evening of its meeting adopted revenue purpose statements and gave first consideration to ordinances to raise electric and gas franchise fees from 1% to 5%, moves staff said are intended to fund a five‑year staffing plan focused on public safety.

City staff told the council the current 1% franchise fee generates about $295,243 annually and that a 5% fee would generate roughly $1,476,215 annually. Mike, a city staff member who presented the proposal, said the increase would help pay for new positions in police and fire departments and support administrative functions that serve those departments.

The revenue purpose statements for the franchise fees were approved by resolution (No. 25‑26 for electric; No. 25‑27 for gas), and the council approved first consideration of ordinance No. 1129 (electric) and ordinance No. 1130 (gas).

Why it matters: City staff framed the franchise fee as an alternative revenue source to property tax increases, and said the fee spreads…