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Peosta approves gas and electric franchise fee ordinance on second reading
Summary
After discussion about longstanding Makoka Valley account treatment and growth on a 144-acre development, the council voted to approve an ordinance amending Title 11 on gas and electric franchise fees on second reading; members discussed revenue implications and timing.
The Peosta City Council approved on second reading an ordinance amending Title 11 (business regulations) to change gas and electric franchise fees. Council discussion focused on inconsistent treatment for Makoka Valley accounts, which the council said remain under an agreement through 2039, and on the potential revenue impact from future development in the area where utilities are split among providers.
Council members reviewed account counts presented in the meeting—Alliant was cited as having roughly 486 city accounts (419 residential, 52 commercial) and other providers were discussed as having dozens to hundreds of accounts. Several council members argued the city should examine historical agreements that treat Makoka Valley differently and consider whether future development on a 144-acre parcel would shift the balance of revenue.
After discussion about timing and communication, the council proceeded to a vote on the ordinance’s second reading and the presiding officer announced the motion carried. Council members asked staff to evaluate the existing agreements and to coordinate communications as the ordinance moves through the implementation timeline.
Council members noted the matter will take months to complete administratively and that revenues from the franchise fee changes will affect road funding and other projects. The council did not record a detailed roll-call tally in the transcript; the presiding officer announced the motion carried.
