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The decision on whether or not to implement a five percent franchise fee on gas and electric bills will go to the citizens of Marshalltown for a vote on Sept. 12 after three petitions for a special election garnered over 360 signatures each.
Resident Mark Eaton presented the petitions at city hall on Friday, and City Clerk Alicia Hunter confirmed that there will be a special election on the aforementioned date. Eaton, who has spoken out against the fees at several city council meetings, said he was grateful for the support the petitions had received.
"Petitions for special elections are a lot of work, especially over a holiday. Everyone who participated in this process deserves a huge thank you," he said. "Now it is up to everyone to get out and vote."
City officials had originally planned to put the matter to a public vote on March 7 before the Secretary of State, through the Marshall County Auditor's Office, determined the city could not call a special election on a franchise fee, as a special election could only be held through a petition.
To go to an election, the petition required the number of signatures of at least 10 percent of the number of voters in the most recent city election held in November of 2021, which would be around 250. At its June 12 meeting, the city council voted unanimously against putting the franchise fee on the November ballot and subsequently opted, by a 5-2 tally, to amend the city's ordinances to establish franchises with Interstate Power and Light Co. (Alliant Energy) and Consumers Energy Cooperative to implement the fees. A second reading passed by the same margin on June 26, and a third and final reading is scheduled for approval at Monday night's meeting.
According to the city's drafted revenue purpose statement, the five percent fee on gas and electric bills, if enacted, would allocate a minimum of 12 percent of the fees for property tax relief, nine percent for the "repair, remediation, restoration, cleanup, replacement and improvement of existing public improvements and other publicly owned property, buildings, and facilities," nine percent for public safety, including "the equipping of fire, police, emergency services, sanitation, street and civil defense departments," and the remaining 70 percent for "the construction, reconstruction, or repair of streets, highways, bridges, sidewalks, pedestrian underpasses and overpasses, street lighting fixtures, and public grounds, and the acquisition of real estate needed for such purposes."
Eaton commented that many of the people he has spoken to would be more likely to support the fees if 100 percent of the money went to neighborhood street repair in order of street condition based on a road report created by a third party.
"After all neighborhood streets are repaired, then 100% should go to debt service until the debt is paid down and property taxes are reduced," he said. "Other people flat out do not want it. One person on Social Security noted that they can not currently afford to run their AC."
He also expressed frustration about the council not putting the item on the November ballot, citing the estimated $20,000 cost to hold a special election. Fourth Ward Councilor Al Hoop, who has voted against changing the ordinance to implement the fees, told the T-R that a special election was "probably the right way to go."
"I'm against all of this, but if you've gotta do it, a special election is better than us, the council, passing it. Let the people have their say," Hoop said.
At-large Councilor Gary Thompson expressed a similar sentiment.
"I think it's wonderful because I've always believed the taxpayers, the citizens, should have a say in everything we do," he said, before citing the recent council vacancy created by Dex Walker's departure. "This means the Third Ward will get to choose their representative (on city council) too."
On the other side of the matter, First Ward Councilor and Mayor Pro-Tem Mike Ladehoff said he expected the issue to go to a special election and wasn't surprised to learn that it would.
"I hope people educate themselves and realize what this vote could do for Marshalltown," Ladehoff said. "Our streets and emergency services need more attention. Our streets will continue to deteriorate with what we are doing now by putting $3 million per year in fixing and patching. Over 200 other cities have implemented this tax. I don't like paying more taxes, but I am also tired of driving on bad streets."
At-large Councilor Barry Kell also counts himself as a supporter of the fees and referenced what he has heard from constituents since he was elected in 2021 as a reason to vote yes.
"One of the most voiced concerns I have heard since joining the council has been about our road conditions. The current state is not a recent development -- rather, it goes back decades. Hindsight has proved inadequate funding for maintenance, and repair and replacement has led to a majority of our roadways needing some form of attention," Kell said. "What is being proposed is an opportunity to finally make a step change that addresses these issues with an aggressive timeline while ensuring all other needed and critical city functions are maintained. I look forward to the outcome of this vote and the positive impact it will have for all citizens if approved."
Second Ward Councilor Gabe Isom reiterated Kell's comments about hearing consistent concerns on roads and finding a solution to a difficult issue, contending that while a franchise fee may not be "everyone's favorite option," it would set aside funds for important city operations, streets and public safety.
"It's a minimal impact to a given individual -- an additional 4% on a utility bill -- but collectively as a community, a large investment in the future of Marshalltown. I hope the comments I've heard over time while on council about our failing roads as the primary issue, the support I've seen to our police and fire departments, and the need to ensure money already being put to property tax relief remains intact," Isom said. "What's in front of the public to vote on is an opportunity to finally provide an answer to help move Marshalltown forward in addressing some issues that have been ignored for far too long. We are growing and evolving. I'm excited about where we are going and this being a catalyst to help. Voting yes at the special election will continue the momentum of the amazing progress we have and continually see."
Councilor Jeff Schneider could not be reached for immediate comment.
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Contact Robert Maharry at 641-753-6611 ext. 255 or rmaharry@timesrepublican.com.