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West Branch council opts to pursue 1% franchise fee on gas and electric bills
Summary
After debate at its July 15 meeting, the West Branch City Council decided to pursue a 1% franchise fee on gas and electric service to replace revenue formerly collected through the local option sales tax on energy bills; council asked staff to draft a revenue purpose statement.
The West Branch City Council on July 15 voted to pursue a 1% franchise fee on gas and electric service that the council said would replace revenue lost from the local option sales tax on energy bills.
Council members reached the decision after discussing possible rates and uses for the revenue; they indicated they do not want to pursue a rate above 1%. Councilmember Jerry Sexton suggested directing franchise-fee revenue toward projects in the city's capital improvement plan, while Councilmember Mike Horihan expressed support for dedicating funds to public safety. Councilmember Jodee Stoolman said the revenue purpose statement should reflect the language voters previously approved in a local option sales tax referendum.
The council did not adopt an ordinance or set a final effective date at the meeting; members instructed staff to prepare a revenue purpose statement and return with language and options for next steps. The item will require formal ordinance drafting and further council action before any fee appears on utility bills.
