Around 53% of Burlington voters said no to franchise fees on their gas and electric bills that would have helped diversify revenue sources for the city.
The 3% fees were proposed because property tax reform at the state level and slow valuation growth are putting a crunch on the city’s budget.
City Manager Chad Bird already proposed $1.1 million in cuts or deferments to the city council.
Following Tuesday’s special election, Bird told TSPR he respects the voice of the residents of Burlington.
“I will work with the city council on finalizing the budget for fiscal year 2026,” Bird said. “The proposed cuts will remain in place for this year.”
Bird said Mayor Jon Billups has pledged to engage the city council in budget discussions throughout the coming year as the city adjusts to property tax reforms passed by the Iowa legislature.
Iowa House File 718 limits how much revenue local governments can levy from property taxes.
That took away several revenue levies for the city, including one previously approved by voters that generated around $200,000 a year for the public library.
In addition, the city’s property valuation growth is not keeping up with cost of living or the consumer price index. In some recent years, it’s actually decreased.
The franchise fees on gas and electric bills would have generated $1.5 million a year for the city. The local option sales tax would have been removed from those bills, however, reducing that revenue for the city.
The fees would have also collected revenue from non-profit organizations and government agencies that don’t pay property taxes.
The franchise fees for gas and electric bills were voted on separately in Tuesday’s special election.
For the gas franchise fee measure, 1,232 residents voted no and 1,090 voted yes. For electric, the vote was 1,222 opposed and 1,094 in favor.
Tri States Public Radio produced this story. TSPR relies on financial support from our readers and listeners in order to provide coverage of the issues that matter to west central Illinois, southeast Iowa, and northeast Missouri. As someone who values the content created by TSPR's news department please consider making a financial contribution.
