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Suggest Toledo could switch to local utility franchise fee

February 14, 2018
By John Speer - Editor (jspeer@tamatoledonews.com) , Toledo Chronicle, Tama News-Herald

Representatives of Alliant Energy, Amanda Accola and Keith Sherman, have recently suggested to the Toledo City Council the city could consider a franchise fee for natural gas and electrical service in the city. They presented the alternatives at the Jan. 22 city council meeting.

The fee is paid by utility customers, not the power company and has replaced local option sales tax on bills in a number communities.

Currently, Toledo collects a one-cent local option sales tax on utility bills.

Article Photos

Toledo City Council, mayor and city officials.

-Chronicle file

It was noted the Toledo electric franchise will be up for renewal later this year and the natural gas franchise, which currently has several yeas to run, could be updated and added.

The representatives said 100 of 152 cities served by Alliant have changed to a franchise fee but do not advocate for or against the changing to a fee.

Iowa code requires a purpose for collection of a franchisee fee. Accola estimated a franchise fee assessment would generate about $40,000 annually in Toledo

Sherman said in either case customers would see little difference in their utility costs. The franchise fee is based upon a percentage of the total amount a utility collects in a city.

 
 

 

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