Franchise fees continue to be discussed

 

Franchise fees continue to be discussed

By Mike Van Sickle
Union editor

The West Union City Council intends to continue discussions on establishing a franchise fee revenue purpose statement during its Monday, June 17, regular meeting. The discussion will coincide with a public hearing to approve a 25-year nonexclusive franchise agreement with Alliant Energy.

Council members appeared to be in agreement to later establish a franchise fee agreement with both Black Hills Energy and Alliant Energy. Council discussions continue to center around the rate to charge residents and where the future funds would be utilized. 

Due to direct payment to the City by the utilities, the dollar amount generated from a 1 percent franchise fee would be greater than the current 1 percent local option sales tax charged. 

Council members are also considering a 2 percent franchise fee, which would bring in approximately $42,000 in additional City funds.

Noting potential commercial property tax relief and lack of revenue sources for the City, Councilmember Cathy Bemiss expressed her support for the 2 percent rate.

At the same time, Mayor Kent Halverson commented that residents have to be made aware that a 2 percent rate would be an increase to their utility bills.

In regard to where the funds would be used, the council continues to consider having the funds used for city street improvements, a sidewalk renovation program, and/or allowing for a broad use of funds such as the current local option sales tax purpose statement allows.

Councilman Mike Lauer noted that if the funds would be funneled to only a sidewalk program, it would be taking away monies the council previously promised to other city improvements and public safety services. 

Bob Vagts estimated it would take approximately six months before any agreed-upon franchise fee would go into effect.

Vagts encouraged any resident who had questions in regard to franchise fees to call him at City Hall at 422-3908. 

Earlier, Main Street West Union (MSWU) Director Robin Bostrom updated the council on the downtown multifamily housing and façade master plan projects.

Bostrom reported that bids would be received for the multifamily housing project on Thursday, June 6. Construction is scheduled to begin in mid-July with a Jan. 31, 2014, completion date.

The project consists of renovating the existing upper-story housing units of three buildings (owned by Dick Woodard, Steve and Pam Rogers, and MSWU, respectively) into 12 low- to moderate-income apartments.

Meanwhile, bid documents for the façade master plan are projected to be released in July and bids opened on Aug. 13. Construction is slated to begin Sept. 1, with completion in May/June 2014.

The participating buildings include Bank Block Building, Chamber of Commerce, Fuller Block Building, Lauer & Lauer Insurance, Tap’t Out Stein-n-Dine, TeKippe Engineering, Union Drug Store, Unionland Feed & Supply, West Union Dental Clinic, Williamson Building, Garvin’s LP Building. 

Later, while approving the first reading of an ordinance allowing for chickens to be raised within city limits, council members noted that they welcome any additional input from the community.

Currently, the proposed ordinance allows for up to six chickens (no roosters) to be raised on a given property. Any poultry owner would be required to first obtain a permit. They could also request that the council allow them to raise additional chickens.

The complete proposed ordinance, including all regulations, can be viewed at City Hall.

Prior to the close of Monday’s regular meeting, the council scheduled a public hearing for 6 p.m. Monday, June 17, to vacate the city-owned right of way at East Maple Street (near the former middle school basketball courts).

If approved, the City proposes to sell the right-of-way to M5 LLC (Earl Moss), the adjoining (former middle school) property owner at a rate of 10 cents per square foot. Under the proposal, M5 LLC would also reimburse the City all costs and expenses associated with the vacation and sale, including the cost of the publication notice. 

In other business, the council:

• Was informed the final downtown pavers would begin being installed today (Wednesday). The project is estimated to take four days. 

• Approved a water rate ordinance that includes requiring that any person making an application to the City for water service, and who is not the owner and who does not have a valid deposit on record, shall pay the City a deposit of $75. 

• Approved the City entering into a federal funding agreement for bridge replacement on Linden Street, west of City Hall. 

• Approved invoices totaling approximately $1,760 from Upper Explorerland for grant administration. 

• Approved the reappointment of Deb Luhman to the Cemetery Board.

• Approved the appojntment of Tom Luhman to System Board of Adjustment.

 
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