Utility Franchise Fee

Updated 1//2011

Action Taken

During a public meeting on Monday, January 3, 2011 the Ankeny city council passed the final reading of an ordinance establishing a utility franchise fee with MidAmerican Energy and on January 25, 2011 passed the final reading of an ordinance establishing a utility franchise fee with Consumers Energy Company. The money collected will go toward public safety and replace property taxes collected to finance increased fire and police services. The two percent franchise fee will cost a residential gas and electric customer approximately $34 a year. Commercial businesses will pay approximately $165 a year on average.

The new two percent franchise fee will generate approximately $800,000 and will be used to fund nine firefighter/paramedics at fire station #2 to provide fire services 24/7. The station currently provides only emergency medical services.

Summary

The city council has voted to establish a Utility Franchise Fee to provide adequate funding for public safety services and city infrastructure. The proposal allows the City to diversify its general fund revenue base and provides an equitable method of funding fire and police services.

The money collected from electric and gas franchise fees will allow for a reduction in the General Fund tax levy and the transfer of levy authority to pay for fire pensions, and offset an increase in the Debt Service Fund tax levy.

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What You Can Do: 

• Read about the City's budget cost reduction actions over the past 24 months
• Read hybrid plan presented at November 8th city council work session.
• Read City Manager Carl Metzger's transmittal letter to the City Council which discusses how the City of Ankeny financial plan for the FY 2011-2015 Capital Improvements Program (CIP) (Oct. 21, 2010).
• Review the 2011 CIP Rate Options Presentation, which includes information on property tax impacts and the proposed Utility Franchise
• Review the Revenue Purpose Statement - Franchise Fee
• Express your opinions, concerns and suggestions by submitting a comment. 
• Attend City Council meetings and workshops.
• Review the Proposed Utility Franchise Fee for Public Safety Services & Infrastructure Fact Sheet 
• The Public Safety Executive Summary Report is available here. 

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Previous Actions

• On January 24th the city council approved the final reading of an ordinance establishing a utility franchise fee with Consumers Energy Company.
• On January 3rd the city council held a public hearing on the establishment of a utility franchise fee with Consumers Energy Company. The first reading of an ordinance establishing a utility franchise fee with Consumers Energy was approved by the city council.
  Regular City Council meeting Monday, December 20 at 5:30 p.m., in the city hall council chambers. Council approved second reading of Ordinance 1686 establishing a utility franchise fee with MidAmerican Energy.
• Regular City Council meeting Monday, December 6 at 5:30 p.m., in the city hall council chambers. Council will hold a public hearing and consider the first reading of a Franchise Fee ordinance.
• Regular City Council meeting Monday, November 15 at 5:30 p.m. in the city hall council chambers. Council will consider a Resolution on the adoption of a revenue purpose statement for the use or expenditure of fee revenues from proposed natural gas and electricity franchise fees. Council will also consider a Resolution setting a time and place for a public hearing on the amendment to the City Code with respect to establishing a franchise fee.
• City Council Workshop November 8, 2010 at 5 p.m. The city council discussed options related to the establishment of a Utility Franchise Fee. A hybrid plan was presented by city manager Carl Metzger.

Note: We encourage you to check the website regularly as new information becomes available and the potential for modifications to the schedule outlined above.

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More information regarding the proposed FY 2012 budget is available here.