Antonen said the city will need to raise additional money because it is looking at a projected $200,000 deficit in the next 10 years due to the state property tax valuation rollback on commercial and multi-family dwellings. The deficit is according to what the Iowa League of Cities has projected for Centerville, Antonen said.
The state property tax rollback takes what started at 100 percent down to 95 percent this year and 90 percent next year, Antonen said.
“We’re going to have a deficit here with our taxable valuations,” Antonen said. “So the city will be losing out on that property tax valuation.”
More than 80 Iowa communities have adopted franchise fees, Antonen said. Those communities are both large and small and include Exline, Chariton, Knoxville, Oskaloosa, Des Moines and West Des Moines.
“Most cities are switching over to the franchise fee,” Antonen said.
Some communities, like Storm Lake and Albert City, authorized a 3 percent franchise fee in October of 2013. Central City authorized a 5 percent franchise fee in April of 2012.