City Hoping To Implement Franchise Fees To Help Offset General Fund Deficit

Customers of MidAmerican Energy and Black Hills Energy residing within the city limits of Glenwood could soon be paying a 3-5 percent fee on their monthly utility bills to help generate dollars for the city’s general fund account.

The Glenwood City Council has taken the first step toward the implementation of “franchise fees” for the city’s energy providers by approving a revenue purpose statement and scheduling a public hearing for Tuesday, Feb. 14, at 7 p.m. at City Hall.

According to the revenue purpose statement approved at the council’s Jan. 24 meeting, the collected fees would be placed in a “franchise fee account” within the city’s general fund and could be used for a variety of purposes, including road repair and construction, maintenance and improvements to publically-owned buildings, public safety purchases, property tax abatement and economic development activities and projects.

Mayor Brian Tackett and members of the council began exploring the implementation of franchise fees early last year as a means of addressing a general-fund operating deficit that’s plagued the city since the 2013-14 fiscal year.

At a Jan. 10 council meeting, financial consultant Clint Fichter encouraged the city council to address a revenue shortfall that’s resulted in a general fund deficit of around $300,000. Fichter also questioned the restrictions placed on the city’s Local Option Sales Tax (LOST) revenue, which is designated exclusively for recreational purposes, such as the Mills County YMCA / Community Center and Glenwood Aquatic Center.