Keokuk hears business concerns as council advances plan to raise electric franchise fee

Business owners and council members debated a proposed amendment to Keokuk's electric franchise fee during a public hearing and council discussion.

Miranda Goings, who described herself as employed at Amsterdam Lane, told the council she and other businesses learned about the change from a newspaper notice and said the proposed increase poses a real risk to local employers: "we didn't learn about it until I happened to read it in the newspaper ... it's scary to be operating in that business environment." She warned that concentrating a large share of municipal revenue on a few large industrial accounts creates vulnerability if a major taxpayer leaves.

Staff explained the ordinance change would amend the existing 25-year franchise agreement with the utility to raise the electric franchise fee from 3% to 5% (Iowa permits 1–5%). Council discussed the fact that the fee is collected and remitted monthly by the utility in a lump sum without a class-by-class breakdown, and that the city previously adopted a rebate program whose removal affects who bears the cost. Staff estimated the change and related rebate-program decisions would alter operating revenue by roughly $300,000 and reiterated that the amendment requires three council readings and review by the Iowa Utilities Board before implementation.

After discussion the council approved the ordinance's initial reading by roll call. The matter will return for later readings and the utility will then seek Iowa Utilities Board approval to reflect any approved change in customer bills.