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FD council advances franchise fee

-Messenger file photo by Bill Shea
A row of Fort Dodge police vehicles is seen near the Webster County Law Enforcement Center in January. The 40-member Police Department could get eight more officers paid for by a utility franchise fee the City Council is considering.

Utility franchise fees that would pay for hiring eight additional police officers were approved on second reading Wednesday evening by the Fort Dodge City Council.

Councilwoman Megan Secor was absent from the otherwise unanimous votes. One more affirmative vote of the council is required in order for the fees to go into effect.

“I keep hearing people say I agree that we need to add more officers, but not this way,” Councilman Cameron Nelson said. “This is the only way to make it happen.”

“I don’t like doing this, but what else can we do?” Councilman Kim Alstott said.

Former Webster County Supervisor Clark Fletcher told the council that it is “shifting the burden” by adopting franchise fees.

“It’s a use tax,” he said. “That’s all it is. I trust that it will be spread equally between commercial and residential customers.”

But he added that the fees would place a “greater burden on those in a less fortunate position.”

Before the council voted, two police officers, Lt. Zach Stanley and Sgt. Matt Webb, told the elected officials about the burden the current 40-member police force shoulders.

The fees are 5 percent levies that would be added to the electricity and gas bills of MidAmerican Energy customers. It is anticipated that they will generate $2.4 million annually.

Some of that money would be used to hire eight officers to beef up the 40 member police force.

Revenue from the franchise fee would also enable the city to reduce that part of the property tax rate that goes toward paying off general obligation bond debt. Currently, that specific levy is $4.50 per $1,000 of taxable value. If the fees win final approval, that would be reduced by $1 per $1,000 of taxable value.

The rest of the franchise fee revenue would be used to help support the Karl King Municipal Band, Citizens Central and infrastructure projects.

Alstott and Councilman Dave Flattery both talked about how changes in state law have impacted the revenue the city needs to provide services.

According to Flattery, the city is facing a $450,000 general fund deficit in the 2024-2025 budget because of changes in Iowa code.

“If we don’t do something to increase revenue there are no other places to cut than public safety,” he said.

Alstott said the governor and legislature adjusted the rollback figures which determine how much of a property’s value is taxable. He said the state promised to give local communities money to replace what they lost due to that change. But now he said, the state is reducing that backfill money.

When it came time to act on the fees Monday, there were two separate 6-0 votes, one for the natural gas franchise fee and one for the electric franchise fee.

If the franchise fees are implemented the local option sales tax now assessed on gas and electric bills will be removed.

The result would be a net increase of $3.18 per month on average residential gas bills.

There would also be a $3.68 per month net increase on average residential electric bills.

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