PAY BACK: City Could Raise Franchise Fee
The Des Moines city council could raise its franchise fee on utility bills so it can pay back bonds issued to cover refunds on an illegally collected fee.
The council will consider the proposal Monday night.
In 2009 a judge ruled that Des Moines illegally collected a fee on gas and electricity customers from September 2004 through May 2009.
The legislature later changed state law to allow the fee collection, but the city must refund about $42 million to MidAmerican Energy customers. The city issued bonds to cover the refunds.
The hearing starts at 5:00 p.m.