Pictured from left to right: IAMU’s Alex Cutchey; IMU Trustee Adam Voigts; IMU Trustee Mike Rozga; Governor Kim Reynolds; Senator Julian Garrett; Representative Brooke Boden; Mayor Stephanie Erickson; IMU GM Chris DesPlanques.

On May 17, 2022, Governor Reynolds formally signed House File 2475, ending ambiguity over the process that applies for dismissing municipal utility trustees.  The independence of municipal utility boards has been at issue in many communities and in front of the legislature over the last few years.  During the 2022 legislative session, the Iowa Legislature amended Iowa Code Chapter 388, Iowa’s Municipal Utility Board Law, to clearly outline the process for removing municipal utility board members.  The new law takes effect immediately.

House File 2475 makes three primary changes to Iowa Code Section 388.3, as follows:

• Specifies that municipal utility trustees can only be removed from office by the Mayor with the unanimous approval of the city council for the following reasons:
  • Willful or habitual neglect or refusal to perform the duties of the office
  • Willful misconduct or maladministration in office
  • Corruption
  • Extortion
  • Upon conviction of a felony
  • Intoxication, or upon conviction of being intoxicated
  • Conviction of violating campaign finance laws
  • Failure to pay a fine imported for election misconduct
  • Habitual non-attendance of board meetings
• Adds that written notice of removal must be sent to the trustee, and they shall be entitled to a hearing within 30 days of removal.  After the public hearing or the passing of 30 days, the city council must vote on the approval to remove the trustee.
• The new law does not apply to cities with a population over 200,000 as of 2020.

Beginning with Oskaloosa in 2013, some Mayors have interpreted their general removal powers to extend to independent utility trustees.  The issue recently came to notoriety in 2021 when the outgoing Indianola Mayor attempted to unilaterally dismiss two utility trustees in her last 30 days of office.  Without legislation to clarify the process that applied to the removal of utility trustees, cities and utilities would have continued to engage in costly litigation to resolve questions of utility board independence.

More than 80 municipalities across Iowa have voted to form independent utility boards to insulate their utility from city politics and manage their utility so that there would never be any diminution of service.  IAMU worked to ensure the passage of HF 2475 because it preserves local control, the will of voters, and the independence of municipal utility boards.  The newly enacted law removes the ambiguity over the removal process as it applies to utility trustees and allows trustees to do their job in the best interest of ratepayers without fear of political retaliation.

For additional information on the new law and its applicability, contact IAMU Director of Government Affairs, Attorney Alex Cutchey at 515.289.5218 or acutchey@iamu.org.

Gov. Kim Reynolds announced that Iowa applicants applying for the USDA “ReConnect” Grant Program will have a significant advantage in the application process due to the Governor’s Empower Rural Iowa Initiative and Iowa’s comprehensive plan for broadband internet expansion.

In December 2018, USDA announced the “ReConnect Program,” which will support broadband with $600 Million in grants and loans for unserved rural areas that do not currently have sufficient access to broadband. To be eligible for the ReConnect Program, applicants must provide broadband service to eligible rural areas with a population of 20,000 or fewer. To locate areas in Iowa that Federal law designates as “rural,” please review the Mapping Tool at http://reconnect.usda.gov. That communication can be viewed here.  

The USDA will award applications up to 150 points for a number of different criteria. With the Governor’s signed letter articulating Iowa’s qualifications, applicants will be awarded an extra 20 scoring points on their application by the USDA – giving them a greater chance of approval by the USDA. Read a sample letter from Gov. Reynolds here.

“Improving broadband internet access continues to be a top priority because it allows our rural communities to thrive. The Governor’s Empower Rural Iowa Initiative along with our focus on broadband internet will put Iowa on the map as a hub for rural connectivity,” said Gov. Reynolds. “By leveraging state, federal, and private resources, we can open the door for even more innovation and breakthroughs.”

“Making broadband a top priority not only means leveraging state dollars, but actively pursuing federal grants that can be used for our benefit,” said Lt. Gov. Adam Gregg. “Through the Governor’s action today and through our focus on empowering rural Iowa, we are taking concrete steps to connect communities by giving these applicants a significant advantage when applying for federal funding.”

To complete an application for USDA ReConnect and maximize your scoring potential, you must submit a map showing the U.S. Census Blocks in which you are proposing to provide service. This map will be Certified and returned by the Office of the Chief Information Officer, with a letter from the Governor.