Franchise Fee Worries Chamber - KGWN –Cheyenne, WY– Scottsbluff, NE News,Weather, Sports

Franchise Fee Worries Chamber

The Cheyenne city council is considering a new 25-year franchise agreement with Cheyenne Light at Monday night's meeting. It would raise the fee by one point five percent over that time period.

A recent survey by the Cheyenne Chamber of Commerce shows more than three-fourths of businesses are against the rate hike.

"The franchise fee has gone up a lot over time. It started out collecting about a million dollars 20 some years ago. Now it collects over $3 million a year. So, the percentage hasn't increased, but in fact it has increased as your energy bill went up," said Dale Steenbergen, CEO of the Cheyenne Chamber.

Steenbergen believes if city council decides to pass the fee it would have negative implications for attracting new businesses to locate in Cheyenne as well as hurt current ones.

If passed the fee would go up by half a percent three times over the next 25 years, the first increase coming in January of 2013.

City councilman Jim Brown is for the increase because it hasn't gone up in 22 years.

He says it's the fair thing to do.

"I guess I would ask anybody that wants to be opposed to the half a percent, in 1991 have you done anything since then that's only increased a half a percent? I don't think so. You know, we need to be fair to the city also and I'm hoping the residents will understand that," Brown said.