Newton City Council Holds Public Hearings on Franchise Fees

Proposed fees would be added to electricity and gas bills to generate additional revenue for the city.

Mar. 16, 2026 at 2:57pm

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Newton city officials are considering implementing franchise fees on electricity and gas bills as a way to generate more revenue for the city. Public hearings on the proposed fees will be held during tonight's city council meeting. The city is looking at an initial 3% franchise fee, with a 1% increase in the fee each of the next two years.

Why it matters

Newton is looking to establish franchise fees as a new revenue source due to limitations on property tax increases from the state legislature. The additional funds would be used to pay down bills and fund infrastructure projects like street repairs.

The details

The city is proposing a 3% franchise fee on electricity and gas bills, with plans to increase the fee by 1% each of the next two years. Many other communities have already implemented similar franchise fees. Mayor Randy Ervin says the fees would help the city avoid having to borrow as much money, which will benefit taxpayers in the long run.

  • The Newton City Council meeting, including the public hearings on franchise fees, will be held tonight at 6 p.m.

The players

Randy Ervin

The mayor of Newton who says the city has to seriously consider franchise fees due to limitations on property tax increases from the state legislature.

Newton City Council

The city council that will be holding public hearings on the proposed franchise fees during their meeting tonight.

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What they’re saying

“We have to look at a franchise fee, and we are trying to look at the most sensible way to do it. Obviously, we want to use the franchise fee to pay down some bills so we don't have to borrow as much money, which will benefit taxpayers in the long run.”

— Randy Ervin, Mayor

What’s next

The Newton City Council will decide whether to implement the proposed franchise fees after tonight's public hearings.

The takeaway

Newton is exploring franchise fees as a new revenue source to fund infrastructure and avoid taking on debt, highlighting the financial challenges cities face due to state-level restrictions on property tax increases.