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Grimes council advances 3% utility franchise fee on first reading after public debate
Summary
On first consideration the Grimes City Council voted to advance an ordinance imposing a 3% franchise fee on electricity and natural‑gas sales to fund public safety positions; Councilmember Johansen cast the lone 'no' vote. Residents questioned impacts on nonprofits, solar customers and businesses.
The Grimes City Council on April 28 advanced Ordinance 8-12 on first consideration, authorizing a 3% franchise fee on gross revenues from electric and natural-gas service inside city limits to fund public-safety positions. Council voted to move the ordinance forward after a lengthy public hearing and council discussion; Councilmember Johansen voted no.
City staff said the fee was projected to generate about $700,000 annually (staff estimated roughly $717,000) and would exempt public schools, an exemption staff estimated would be worth about $17,000–$18,000 a year. “This ordinance … will generate about…
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