Council passes 2nd reading of franchise fee

BY DI STAFF | NOVEMBER 18, 2009 7:21 AM

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The Iowa City City Council voted 5-1 in favor of implementing a franchise fee on Tuesday. The vote was the council’s second consideration of the fee; it needs one more vote before the fee passes.

The proposed fee would charge MidAmerican Energy between 1 and 5 percent of its total services, which would in turn tax consumers 2 percent on their monthly utility bills.

Councilor Connie Champion voted against the fee, and Councilor Amy Correia was absent.

The increase would bring in an estimated $1.7 million to hire more firefighters and police officers, councilors have said.

— by Brian Stewart

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