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West Branch council advances three utility franchise ordinances amid uncertainty over HF718
Summary
The City Council gave first readings to three 25-year franchise ordinances for Linn County Rural Electric and Interstate Power and Light (Alliant Energy) for electric and natural gas distribution while staff warned a pending state bill (HF718) could eliminate franchise fees as a revenue source.
The West Branch City Council on March 3 advanced three first-reading ordinances that would grant 25-year nonexclusive franchises to Linn County Rural Electric Cooperative and Interstate Power and Light Company (Alliant Energy) to provide electric and natural gas services in the city.
Finance Officer Heidi Van Auken told the council the Iowa League of Cities had circulated guidance about a pending state bill, HF718, which, if enacted, could abolish cities’ ability to collect franchise fees effective July 1, 2025. Van Auken said cities are pursuing franchise fees in part to replace revenue shortfalls created by property tax reform proposals. She recommended the city proceed with its ordinance process because the legislative outcome remained uncertain; City Attorney Kevin Olson said he agreed.
The council opened and closed public hearings on the proposed franchise agreements for Linn County Rural Electric Cooperative and for Interstate Power and Light Company — first for electric service and then for natural gas — with no members of the public offering comment.
Councilmembers approved the first readings on voice votes. The motions were recorded as follows: Ordinance 823 (Linn County Rural Electric Cooperative franchise) — motion by Tom Dean, second by Colton Miller; Ordinance 824 (Alliant electric franchise) — motion by Colton Miller, second by Tom Dean; Ordinance 825 (Alliant gas franchise) — motion by Tom Dean, second by Colton Miller. All votes were AYES: Dean, Miller, Horihan, Sexton; Absent: Stoolman.
Why it matters: franchise fees have been a routine local revenue source tied to utility companies’ use of public right-of-way; Van Auken said some Iowa cities are moving to secure those fees now because HF718 would remove that option if it becomes law. Proceeding with the ordinances preserves the city’s legal options while the Legislature considers changes.
Next steps: These measures were approved only on first reading; the council may hold subsequent readings, additional public notice and a final vote depending on legal timelines and the state Legislature’s action on HF718. The city clerk set the first-reading approvals into the docket for future action.
