The Cincinnati City Council during their March 10 regular meeting passed a resolution to adopt a revenue purpose statement for a gas franchise fee set at 2 percent.
The council followed that resolution with an ordinance granting Iowa Power and Light — Alliant Energy — a 25-year non-exclusive gas franchise and to set the franchise fee at 2 percent.
The council approved the first reading of the ordinance and waived the second and third readings.
Cincinnati residents who use natural gas supplied by Alliant Energy will have the 2 percent franchise fee added to their monthly bill.
The money collected from the franchise fee will go back to Cincinnati’s general fund budget.
The Daily Iowegian last week placed two telephone calls to the mayor of Cincinnati to ask about the franchise fee and revenue purpose statement but he never responded to our request for a return call.
Iowa code requires municipalities adopt a revenue purpose statement, which spells out what the franchise fee can be used for or spent on.
Items a through i are allowed uses for franchise fee revenues as established by Iowa Code:
a. Inspecting, supervising and otherwise regulating each franchise approved by the City.
b. The repair, remediation, restoration, cleanup, replacement and improvement of existing public improvements and other publicly owned property, buildings and facilities.
c. Projects designed to prevent or mitigate future disasters as defined in Iowa Code Section 29c.2.
d. Energy conservation measures for low-income homeowners, low-income energy assistance programs and weatherization programs.
e. Public safety including the equipping of fire, police, emergency services, sanitation, street and civil defense departments.
f. The establishment, construction, reconstruction, repair, equipping, remodeling and extension of public works, public utilities and public transportation systems.
g. The construction, reconstruction, or repair of streets, highways, bridges, sidewalks, pedestrian underpasses and overpasses, street lighting fixtures, public grounds and the acquisition of real estate needed for such purposes.