Lake City officials are creating a new revenue account to monitor income generated through franchise fees collected from energy providers. In Lake City’s case, MidAmerican Energy collects a three percent fee from consumers which is then paid back into the community’s general fund. City Administrator, Eric Wood, says putting that money in that fund is not the most ideal situation for the city.
Lake City does not earmark revenue from franchise fees for any particular purpose. Wood adds being able to know the exact amounts generated would provide helpful information to the city. He says the council did not need to take formal action for him to create the new account.
Wood adds that this change in financial management will not increase energy costs for Lake City residents in any way. The city collects about $50,000 in franchise fees each year from MidAmerican Energy.
