Fort Madison, IA – Fort Madison residents could soon notice a slight increase in their natural gas bills.
The city council is considering entering into a new 15-year franchise agreement with Mid-American Energy.
City Manager Larry Dinwiddie says the deal calls for a 5% franchise fee to be added to gas bills.
He says Fort madison could use the roughly $284,000 the fee would generate to pay for work being done on the city's right of way.
Dinwiddie says the city and the school district would no longer be able to add a 1% local option sales tax to gas bills if the new deal is approved.
He says Fort Madison is working on a deal to reimburse the school district for the revenue it would lose.
The new franchise agreement could be finalized after a public hearing Tuesday night.
Additional Information
* Dinwiddie says being able to use the franchise fee money for infrastructure projects could clear up tax dollars for the fire and police departments.
* He says the deal includes an out-clause after 7.5 years.