Keokuk council backs franchise‑fee changes and other revenue moves to close budget gap

Keokuk’s City Council approved a set of revenue measures and fee adjustments intended to reduce a projected general‑fund deficit exceeding $1.5 million.

Councilors voted to approve changes to franchise‑fee policy (items 3–5 on the staff list) and separately approved two operational revenue items: a one‑time or recurring increase from the city water department’s payment to the general fund and modest increases to building permit fees. City staff said the combination of these items — together with earlier identified cuts — would close roughly $1.2 million of the $1.6 million shortfall.

City Administrator Jim told the council the measures were aimed at “spreading the pain” across ratepayers and avoiding deeper staff cuts. He explained that the franchise‑fee change would be structured so that industrial users that benefit from proposed property‑tax levy reductions would still see a net benefit under the overall plan, while some renters (who do not receive property‑tax relief) could bear more of the increase.

“We are shifting where we can collect revenue so we can avoid more staff reductions,” Jim said, adding the council could still adjust fees to remain comparable with neighboring cities.

Councilors stressed the distributional consequences of fee increases. Several members voiced concerns that renters — rather than property owners who would see a levy decrease — might shoulder a larger share of the increases, and asked staff to monitor equity impacts.

The council also moved to accept a slightly larger payment from the water department (an increase from $200,000 to $210,000) and directed staff to present a revised building‑permit fee schedule that would remain competitive with neighboring cities while producing about $10,000 in additional revenue.

What happens next: City staff will finalize franchise‑fee language for ordinance or resolution as required, update the fee schedules, and report projected net impacts to the council and the public as the budget process continues.