The Newton City Council has been discussing the implementation of franchise fees on gas and electric bills to supplement property tax revenue, which is being impacted by legislative limits. Public hearings on the franchise fees during Newton City Council meetings have spurred public comment. Joyce Prendergast, a landlord in Newton, told the council members she’s heard concerns about the franchise fees from her tenants.

“You need to give the residents of Newton the opportunity to vote on this issue. Property taxes across Iowa have increased more than 7%, our water bills are going up, and trash fees have gone up.”

Susanne Scott also encouraged the city council to not impose more cost increases on residents.

“People are already struggling to pay their bills and buy their food. And now you are going to add on another charge for them. And unlike property taxes, it’s not something they can budget for because they don’t know how much the extra percent will be.”

The Newton City Council has yet to approve the first reading of the proposed franchise fee ordinances. The proposal is to have a 2% fee on gas and electric bills the first year, a 4% fee next year, and a 5% fee in three years.