Newton City officials and staff have been looking into establishing Franchise Fees as a way to generate additional city revenue, and public hearings on that issue could be set during tonight’s city council meeting. 

Many communities have been charging franchise fees for several years. Mayor Randy Ervin says Newton has to seriously consider it as well now, due to parameters on property taxes cities are getting from the state legislature.

“We have to look at a franchise fee, and we are trying to look at the most sensible way to do it. Obviously, we want to use the franchise fee to pay down some bills so we don’t have to borrow as much money, which will benefit taxpayers in the long run.”

Mayor Ervin foresees money from franchise fees going to street repairs and big ticket equipment purchases, and that it would be collected through gas and electric bills. Staff has proposed a 3% franchise fee initially, followed by a 4% increase in the second year, and a 5% increase in the third year. The City Council is being asked to set public hearings on these proposed gas and electric franchise fees for March 16th. 

The Newton City Council is also scheduled to get an update on operations within the Jasper County Emergency Management Agency by Director Jamey Robinson during tonight’s 6 p.m. meeting at City Hall.