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Council approves Ordinance 1531 to raise natural-gas franchise cap, offsets electric fee
Summary
Baldwin City Council approved Ordinance 1531 to raise the natural-gas franchise fee toward the 6% maximum and offset the change by cutting the electric franchise fee from 6% to 5%, a package staff said would net about $60,000 annually to the general fund.
The Baldwin City Council voted to approve Ordinance 1531, a change to the city's franchise-fee structure that would raise the natural-gas franchise fee toward the statutory 6% cap and reduce the electric franchise fee from 6% to 5% to offset the impact on customers. Staff said the net projected effect to the general fund was roughly $60,000 per year.
"If the council wants to do that kind of net, net 0 impact effect ... the 3% natural gas franchise fee would be increased, lowering the electric franchise fee from 6 to 5, would offset that from a fund perspective," staff member (speaker 1) said while explaining the forecast. Council members asked about timing and how seasonal billing would affect the distribution of revenue during the year; staff and the city's finance advisors reviewed implementation windows in June through August.
Council then made a motion to approve the ordinance and, after a roll call, the motion carried. The council did not attach immediate additional allocations to the projected revenue; staff noted the change can be revisited later if unintended consequences arise.
