In 2006, the City of Council Bluffs amended its franchise ordinances for both gas and electric to provide for a 2% franchise fee to be collected on the sale of natural gas and electricity. 

By implementing the franchise fee, the City did benefit.  For every dollar of local sales tax collected in our City, we only keep about 65 cents. The state formula based upon population and property values allocates the other 35 cents to the county and other municipalities in the county. Now with the franchise fee we keep 100% of what is generated.

The ordinances that were passed in 2006 both incorporated a sunset provision; it provides that the City must pass a resolution every four years to keep the franchise fee in place.  This was done in 2010, 2014 and 2018 and now it is time to do it again otherwise our ability to collect a franchise fee will go away on June 30, 2022.  In the current fiscal year, it is projected that the franchise fee on the sale of natural gas and electricity will generate about $2,628,000.