Norwalk council sets 1% franchise fee, approves first readings of MidAmerican gas and electric ordinances

The Norwalk City Council set a 1% franchise fee and approved first readings of separate ordinances renewing MidAmerican Energy Company's nonexclusive natural gas and electric franchises after public comment and a lengthy council debate on Thursday.

The council held two separate public hearings, one for the natural gas franchise and one for the electric franchise, before voting to set the franchise fee amount at 1% and to approve the ordinances'first readings. City attorneys and staff told the council the 1% fee would replace the local option sales tax line item that currently appears on utility bills; under that switch, staff said customers would not see an increase on their MidAmerican bills, and all of the revenue from that 1% would be retained by Norwalk rather than being distributed across Warren County under the current sales-tax allocation.

City Manager Luke Paris and City Attorney Jim (last name on the record as Jim) explained the legal process: the council must adopt franchise ordinances by ordinance readings; state law caps local franchise fees at 5% and preserves a petition process that can force a public vote if residents collect the required signatures. Paris and…