Fort Madison, IA – Some major cuts will need to be made to Fort Madison's current spending plan.
This year's budget depends on roughly $200,000 being generated by a franchise fee through Mid-American Energy.
That money will not be coming in, though, because the new 15-year franchise agreement between the city and the gas utility does not include the 5% tax.
Mayor Steve Ireland says that means the budget must be cut.
He says negotiations with business leaders on a lower tax did not go anywhere.
Ireland will make some recommendations to the council on possible cuts in the very near future.
Additional Information
* Ireland says layoffs in the police and fire departments would be last resorts.
* The money collected would have went to right-of-way maintenence so general fund money could have been spent elsewhere.
* Ireland does not believe a potential franchise agreement with Alliant Energy will contain a fee.