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Grimes council sets course to consider 3% franchise fee dedicated to public safety
Summary
Council signaled support to adopt a revenue-purpose statement and pursue an ordinance setting a 3% franchise fee to fund police and fire needs; staff estimated the fee would raise about $717,000 and warned a citizen petition could force a referendum and delay hiring.
Grimes City Council members on March 24 discussed moving forward with a proposed 3% franchise fee that the city would earmark for public safety, and gave staff direction to draft a purpose statement and ordinance for formal hearings.
City officials said the fee is intended to fund additional police and fire positions the municipal budget otherwise cannot cover. Finance staff told the council the 3% franchise fee would generate approximately $717,000 in revenue, while total public-safety spending in the current budget is substantially larger. Council members noted state limits on the general levy — described in the meeting as a 3.5% cap on annual levy growth — constrain the city’s ability to shift existing general-fund dollars to public safety.
Mayor and council members discussed implementation timing and the statutory process. Staff outlined next steps: adopt a revenue-purpose statement at an upcoming meeting, set a public hearing and first reading in April, and, barring a successful referendum petition, finalize readings so the fee could take effect with the new fiscal year. Officials warned that if a valid petition forces a referendum, implementation could be delayed until September and the city would not be able to proceed with hiring tied to the new revenue until the matter is resolved.
Public commenters at the meeting expressed opposition to the fee. Joe Herman criticized prior spending decisions and argued city projects had already used large sums he said could have funded public safety hires; the mayor and other council members responded with an explanation of legal funding constraints and the separate levy that funds building projects.
Council members emphasized the decision is not yet final: the discussion on March 24 established the purpose language and schedule staff will use to prepare formal ordinance language and public notices. The council directed staff to return with draft ordinance text and the date for the public hearing on the franchise-fee ordinance.
