Grimes Considers 3% Franchise Fee to Fund Emergency Services

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The city of Grimes, Iowa is considering implementing a 3% franchise fee on gas and electric bills to fund additional fire, EMS, and police staff to keep up with the city's growing population and increased emergency call volumes. The fee would add about $2.71 per month, or $32 per year, to an average resident's utility bills.

Why it matters

Many growing communities are turning to franchise fees to fund essential services as property tax revenues struggle to keep pace with inflation and population growth. Grimes says its first responder systems are under stress, with a 10% increase in fire/EMS calls and a 23% increase in police calls over the previous year.

The details

The proposed franchise fee would fund nine new staff positions, including four fire/EMS personnel, two fire support staff, a fire prevention specialist, a public safety support specialist, and three additional Polk County Sheriff's deputies. Grimes says its fire department currently cannot respond to multiple calls at once, requiring the second emergency to wait for crews from neighboring jurisdictions.

• In the 2024-2025 fiscal year, Polk County Sheriff's deputies responded to 23% more calls in Grimes than the previous year.
• Calls to the Johnston-Grimes Metropolitan Fire District increased about 10% over the previous year.

What’s next

The Grimes city council will decide whether to implement the proposed 3% franchise fee.