3% fee on utility receipts helps city develop infrastructure and economic development
Wednesday January 12, 2022, 9:23 a.m. CST
AUBURN – Auburn City Council passed changes to its utility franchise fees on Monday.
The city had collected the fees based on the city’s electricity production, but switched to a percentage of gross sales.
Franchise fees are 3 percent of electricity, water and wastewater revenues.
City administrator Crystal Dunekacke said the shift to gross revenue provides better fiscal stability. She said a production-based royalty did not always keep pace with the rising cost of materials, and the city’s income tended to decline as energy efficiency increased.
She said the franchise fee helps the city with infrastructure projects and supports economic development.
Auburn industrial facilities that employ at least 100 full-time employees are exempt from franchise fees.
In another action, the council approved the reappointment by Mayor Dan White of Rirchard Wilson and Michael Zaruba to the public works council.