The Waukee City Council gave first reading Wednesday to an ordinance that would impose a 2% franchise fee on gross revenues MidAmerican Energy collects from electric and natural gas service within the city.

City staff told the council the fee is intended to replace roughly $1,000,000 in annual revenue the city previously received from the Waukee Municipal Gas Utility, which voters authorized the sale of earlier this year and which the city sold to MidAmerican Energy in October 2025. Staff said the city used that revenue to support the gas division and portions of shared city services such as administration, finance and information services.

Staff recommended a 2% fee rather than the statutory maximum of 5%, noting that the fee would replace an existing 1% sales tax collected on utility bills. "You cannot collect both a sales tax as well as a franchise fee," staff said, and under the recommendation the franchise fee would replace the sales tax so the net customer increase would be about 1%.

Officials presented estimated customer impacts modeled for an average residential account: roughly $6 annually on gas and $10 annually on electric service, about $16 total per year. Staff also said previous average annual gas costs under the municipal utility were "just over $1,000" and anticipated post-sale gas consumption costs around $800, figures described in the presentation as estimates.

A member of the public, Justin Richardson of 815 Spruce Street, urged the council not to increase costs to residents: "Not another dime," he said, and asked the council to "find another way" while retaining local utility jobs.

Council members said they appreciated staff's analysis and were reminded that broader budget discussions will take place starting in January. After discussion, a council member introduced the ordinance and moved to approve the first reading/title only; a second was recorded and the ordinance passed on first reading in a recorded roll-call vote.

The ordinance was introduced as an initial reading; further council action will be required for final adoption.