At a Thursday town‑hall, Council Bluffs Mayor Jill Shudak explained that the city lost roughly $4.3 million in revenue in 2024 because an old utilities ordinance gave Google a special franchise‑fee rate that was not permitted under Iowa law. The franchise fee, which every electricity customer pays for the use of city land for power lines, should be uniform. Instead, Google’s rate was capped at 2 percent regardless of what other customers paid.
Ordinance error and legal review
Mayor Shudak said the city’s outside counsel reviewed the 2011 ordinance that created the carve‑out for Google and concluded it violated state statutes. The city council acted quickly to repeal the illegal provision, restoring a single, consistent fee structure for all utility users. “Lifting that cap means one rule for everyone,” Shudak said.
Property‑tax abatements under scrutiny
The mayor also addressed the two 20‑year property‑tax abatements granted to Google for its Southlands development in 2009. While she noted the deal has benefited Council Bluffs, she believes it could have been more advantageous for the community. The original agreement called for a single 20‑year clock per development phase, but the city inadvertently started a new 20‑year clock each time construction progressed, resulting in fourteen overlapping clocks.
“The fix is simple. One clock per phase, exactly as the 2009 agreement says,” Shudak said. The council is now working with the city’s financial advisors to calculate the exact amount of taxes that may have been forfeited and to explore options for recouping those funds.
Community concerns and next steps
Local resident Steve Riso asked whether the city could recover any of the lost money. “Those taxes, that are not being clawed back from Google or whomever, would have had an impact on our taxes, I would think,” he said. Mayor Shudak acknowledged the concern and said the city’s outside counsel and financial team are identifying the dollar amount before deciding on the best course of action.
She assured attendees that new safeguards are being put in place to prevent similar oversights. “We will put processes in place to ensure this does not happen again,” Shudak promised.
Implications for Council Bluffs
Correcting the franchise‑fee ordinance restores fairness for all utility customers and protects future municipal revenue. Reviewing the tax‑abatement clocks may also yield additional funds for city services, infrastructure, or community projects. The mayor’s proactive stance demonstrates a commitment to fiscal responsibility and transparent governance, aligning with the values of Council Bluffs residents who expect their local government to manage public resources wisely.
City officials plan to release a detailed report on the financial impact of the abatements within the next few weeks. In the meantime, the council will continue to monitor utility fee collections and ensure compliance with state law.
Original reporting: KMTV 3 News Now (Scripps) – local — read the source article.
