The Mayor and City Council met on Tuesday, January 20, and covered a range of items, including the first reading of an ordinance and discussion centered on new electric and natural gas franchise agreements with MidAmerican Energy.

• Why it matters: These agreements replace 25-year-old contracts and modernize how utilities operate within city rights-of-way, including updated rules for construction, maintenance, relocations, and vegetation management.

A key component of the new agreements is the introduction of a 1% franchise fee on electric and natural gas services.

• City staff emphasized that this fee is not an additional tax for residents. Instead, it replaces the existing local option sales and services tax (LOSST) that already appears on most utility bills.
• Residential households will see no change in their overall utility costs.

By the numbers: The franchise fee is expected to generate about $500,000 annually, helping stabilize the city’s budget without increasing costs for typical residential customers.

• Yes, but: Some nonprofit or tax-exempt accounts that previously did not pay LOSST may see a modest new charge on their bill—on average, less than $5.00/month.

The bottom line: The changes are expected to take affect around spring time.