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Council adopts revenue-purpose statement for proposed franchise fees and sets public hearing on a 3% fee

Grimes City Council · April 16, 2026

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Summary

The council adopted a revenue-purpose statement restricting proposed gas and electric franchise revenues to public safety uses and set a public hearing date/time for a proposed 3% utility franchise fee at the next regular meeting.

The Grimes City Council voted April 14 to adopt a revenue-purpose statement that would limit any future gas and electric franchise-fee revenues to funding public safety, and the council also set a public hearing for a proposed 3% utility franchise fee.

Council member/staff speaker Jake summarized the process: "Step 1, adopt a revenue purpose statement. What is the proposed use for these fees? Step 2, send a date and time for public hearing on the proposed ordinance. ... Step 3, take up the ordinance at subsequent readings before adoption," he said. The revenue-purpose statement the council adopted specifies the permitted use for any franchise revenues would be public-safety funding; council members clarified that approving the statement does not itself adopt a franchise fee.

The council then passed a separate resolution that sets the time and place for a public hearing on a proposed 3% gas and electric franchise fee to be held at the next regular council meeting (staff indicated the published start time would be 5:30 p.m.). Both resolutions passed by roll call.