Waukee adopts revenue purpose statement ahead of franchise‑fee public hearing to replace gas utility revenue
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Summary
Following March voter approval to sell the municipal gas utility, the council adopted a revenue purpose statement that would guide possible franchise fees on gas and electric service; staff said the fees would be used initially for property tax relief and to offset lost municipal revenue.
The council adopted a revenue purpose statement outlining intended uses for revenues from a possible franchise fee on gas and electric utilities under Iowa Code 364.24. Staff told the council that voters had approved the sale of the Waukee Municipal Gas Utility in March 2025 and that the city must identify the intended uses for any proposed franchise fee revenue prior to a public hearing.
Staff said the franchise fee revenue could be used for repair, maintenance and construction of city facilities; transportation improvements; public safety; economic development; and property tax relief consistent with state code language. Staff indicated the initial intent would be to use proceeds for property tax relief and noted that, without that revenue stream, a tax increase might be necessary to fill the budget gap created by the sale of the gas utility.
Council approved the resolution setting the revenue purpose statement and scheduled a public hearing on any franchise fee proposal for Dec. 1.
