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Keokuk council approves electric franchise ordinance amendment, reaffirms revenue plan for proposed gas fee increase
Summary
The Keokuk City Council approved a third reading amendment to the electric franchise ordinance and reaffirmed a revenue-purpose statement as it prepares to consider raising natural gas franchise fees to help balance the FY2026–27 budget.
The Keokuk City Council voted to approve a third reading amendment to the city's electric franchise ordinance and adopted a revenue-purpose statement that officials say is needed if the city proceeds with raising natural gas franchise fees.
City staff told the council the ordinance amendment revises provisions of Ordinance 2018 relating to electric franchise fees and was part of steps identified during the FY2026'27 budget process to help balance revenues and expenses. If enacted, the city will notify Alliant Energy and the Iowa Utilities Board, which would adjust franchise fees on customer electric bills after required approvals later this year.
Council members then reaffirmed a revenue-purpose statement required for a proposed increase in the natural gas franchise fee. The staff explanation said the revenue purpose language identifies qualifying uses under state law and noted the city typically relies on a section that allows dedicating funds to public safety: "public safety including the equipping of fire, police, emergency services, sanitation, street and civil defense departments," which can be used to cover portions of police and fire operating costs.
Officials said the natural gas proposal under consideration would increase the franchise fee from 2% to 5%, but the council's action on the revenue-purpose statement does not itself change the fee. Staff described the vote as a procedural step required before any formal fee change is adopted. The council completed the ordinance's third reading by roll call and approved the revenue-purpose resolution by motion.
Council members did not provide a detailed public breakdown of individual votes in the transcript for the revenue-purpose resolution beyond the formal roll call procedure recorded on the meeting record. The staff said the city will proceed with formal notifications to the utility and state regulators if the ordinance and fee changes progress through required steps.
