City of Des Moines Franchise Payment
Wednesday, September 28, 2016
City of Des Moines Franchise Payment
City of Des Moines water rate payers will see a nearly 6% franchise payment added to their water bill starting September 1, 2016. Although the District would have preferred City residents have no additional payment, it is much better than the 16% utility tax the City was planning to add to water and sewer bills last October. Thanks to strong opposition by Highline Water District, Midway Sewer District, Southwest Suburban Sewer District, and many city citizens, the City Council decided it was in everyone's best interest to work on a franchise agreement with the three utility districts. The only other alternative was for the districts to litigate the City's proposed utility tax with an uncertain outcome.
After months of amicable negotiations, the utility districts agreed to the City's 6% franchise payment for the right to operate within the City's public rights of way. The 10-year franchise agreement includes provisions for better communication and cost sharing on certain capital improvement projects within the City's roadways which may save City citizens money over the long run. The average single family resident with an $80.00 bi-monthly water bill will have an additional $4.78 City Franchise Payment. The District will collect the payment but keep none of it; instead it will remit most of it to the City and a small portion to the State.
