(Atlantic) The Atlantic City Council passed a resolution on Wednesday to adopt a Revenue Purpose Statement for the use of expenditures or revenues from a Natural Gas Service Franchise Fee.
Atlantic City Administrator John Lund says the Personnel and Finance Committee met in April to discuss the long-term funding and personnel issues facing the Atlantic Police Department. He says a key finding is that over the four years of the current Union agreement, the City’s wages for a senior police officer is $1.70 less than the average wage in the pool of communities with populations between 4,925 and 8,373. Lund says Atlantic’s pay rank was 18 out of 20, meaning Atlantic is not competitive for a community of this size.
Lund says to correct this, a memorandum of the understanding proposal to align Atlantic with several of its’ Iowa peers with a more robust system for pay increases due to years of service. He proposes 13 steps, with each step earned following one year of service, with more significant increases in even years. The proposal would add $31,121 in compensation to eight patrol officers, effective January 1, 2024; this will grow to $40,705 in July 2024. Lund says the ten-year cost of this proposal is $533,696, with an annual liability ranging from $31,121.00 to $58,017.00, depending on employee retention and longevity.
Lund says implementing a five-percent natural gas franchise fee is the most transparent and responsible way to pay for it. He says this will diversify the City’s operating revenues, making them less dependent on property taxes to fund the Police Department, Fire Department, Code Enforcement, Animal Shelter, Airport, Library, Parks and Rec, swimming pool, and Finance Administration.
The effect on Alliant customers would be an increase of $4.00 per month on the average bill. Lund says the City’s local option sales tax is already charged to Alliant customers; by implementing the franchise fee, the City is eliminating the local sales tax already charged to Alliant customers.
Iowa Code requires the City Council to adopt a revenue purpose statement that outlines the purposes for which the City shall use the franchise fee revenues derived from a franchise agreement.
