Council passes final reading of ordinance to establish utility franchise fees

The Glenwood City Council has passed the third and final reading of ordinances that establish franchise fees on the city’s two major utility providers - Black Hills Energy and MidAmerican Energy.

The establishment of the 5-percent franchise fees were approved unanimously at the city council’s regular meeting Tuesday, March 28.

Beginning July 1, natural gas customers of Black Hills Energy and electrical customers of MidAmerican Energy residing within the city limits of Glenwood will begin seeing the 5-percent franchise fee on their monthly statements.

Glenwood City Clerk Angie Winquist said several procedural steps must now be taken before the fees will be implemented, beginning today with the formal publication of the city council’s action in The Opinion-Tribune newspaper.

Subsequent steps will require  the city to provide Black Hills Energy and MidAmerican Energy with proof of publication of the ordinances and a customer list that shows which city accounts would be exempt from paying the franchise fees, like City Hall and the Glenwood Cemetery.

The council elected to establish the franchise fees as a means of helping to eliminate a $300,000 general fund shortfall that’s plagued the city for the past three years. The franchise fees are projected to create around $215,000 annually for the city. The city is also raising its tax levy rate from 13.58 to 15.50 on July 1 to bolster its general fund account.