Auburn adjusts franchise fee on electrical, water
AUBURN – The Auburn City Council adopted changes Monday to its utility franchise fees.
The city had collected the fee based on the electrical output in the city, but has switched to a percentage of gross sales.
The franchise fee is 3 percent of electrical, water and waste water receipts.
City Administrator Crystal Dunekacke said the switch to gross receipts provides better budgeting stability. She said a fee based on output did not always keep pace with the rising cost of materials and city revenue tended to decrease as energy efficiency increased.
She said the franchise fee helps the city on infrastructure projects and supports economic development.
Industrial facilities within Auburn that employ at least 100 full-time employees are exempt from the franchise fee charges.
In other action, the council approved Mayor Dan White's re-appointment of Rirchard Wilson and Michael Zaruba to the board of public works.