Electric Fuel Excise Tax and Charging Fee IncreaseCity of Dubuque
City Council
CONSENT ITEMS # 12.
Copyrighted
January 21, 2025
ITEM TITLE: Electric Fuel Excise Tax and Charging Fee Increase
Recommendation
SUMMARY: City Manager recommending City Council adopt a resolution
increasing the established fee ($0.17/kWh fee) to $0.25/kWh
for use of public electric vehicle (EV) charging stations in
public parking facilities, to recover the state excise tax,
electric vehicle service equipment (EVSE) transaction fees
and cloud plan, and electricity, as well as adopt an overstay
fee of $2.00/hour upon vehicles reaching 85% of battery
capacity.
RESOLUTION Establishing Rates And Charges For Electric
Vehicle Charging
SUGGUESTED Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
1. MVM Memo
2. Memo_ MVM_ Electric Fuel Excise Tax and Charging Cost Increase
Recommendation_12122024
3. EV Charging Fees_Resolution_01132025
Page 126 of 740
Dubuque
THE CITY OF
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Electric Fuel Excise Tax and Charging Fee Increase Recommendation
DATE: January 14, 2025
Director of Sustainability Gina Bell is recommending City Council adopt a resolution
increasing the established fee ($0.17/kWh fee) to $0.25/kWh for use of public electric
vehicle (EV) charging stations in public parking facilities, to recover the state excise tax,
electric vehicle service equipment (EVSE) transaction fees and cloud plan, and
electricity, as well as adopt an overstay fee of $2.00/hour upon vehicles reaching 85%
of battery capacity.
The City Manager has authority to implement fees for EV charging in parking ramps
once the fee amount has been adopted. Collection of fees, pending City Council
approval, will go into effect January 27, 2025. Sustainability and Transportation staff will
work with the Public Information Office to alert EVSE users of the increased fee.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Gina Bell, Director of Sustainability
Jenny Larson, Chief Financial Officer
Randy Gehl, Chief Public Information Officer
Ryan Knuckey, Director of Transportation Services
Russ Stecklein, Parking Operations Supervisor
Page 127 of 740
THE COF
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Masterpiece on the Mississippi
MEMORANDUM
TO: Michael Van Milligen, City Manager
FROM: Gina Bell, Director of Sustainability
Dubuque
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2007-2012.2013
2017*2019
SUBJECT: Electric Fuel Excise Tax and Charging Fee Increase Recommendation
DATE: January 9, 2025
INTRODUCTION
This memo is to request City Council adopt a resolution increasing the established fee
($0.17/kWh fee) to $0.25/kWh for use of public electric vehicle (EV) charging stations in public
parking facilities, to recover the state excise tax, electric vehicle service equipment (EVSE)
transaction fees and cloud plan, and electricity, as well as adopt an overstay fee of $2.00/hour.
BACKGROUND
The City of Dubuque has been offering EV charging to the public in municipally owned parking
facilities since 2015. EVSE was installed in the Intermodal Ramp in September 2015, a fast
charger was installed at the Port of Dubuque in 2024, and additional chargers are expected to
come online in 2025.
The State of Iowa passed HF 767 in 2019 to recover road use fees that are normally collected
by legacy fuel taxes. Battery electric vehicles (BEVs) do not use any gasoline and plug-in hybrid
vehicles (PHEVs) use far less gasoline than conventional vehicles. HF 767, which phased in
additional annual registration fees for BEVs and PHEVs starting in January 2020, also included
an excise tax of $0.026 per kilowatt hour (kWh) for EV charging at non-residential locations
beginning July 1, 2023. This excise tax applies to Dubuque's public charging stations.
The City's Transportation Department has four expenses associated with the dispensing of
electric fuel at public charging stations: electricity, EVSE Plan fees, maintenance costs, and the
state excise tax on electric fuel.
DISCUSSION
Staff evaluated calendar year 2022 and 2023 utilization and expenses related to the provision of
EVSE for community use. At the time, analysis indicated that a fee of $0.17/kWh would
significantly reduce the cost burden of providing this service while covering all taxes and help to
offset a portion of expenses while staying competitive.
After the fee was established, we have continued to monitor the utilization of EVSE and
expenses and in October 2024 we reevaluated the fee structure. From July 1, 2023, to
Page 128 of 740
December 31, 2024, 64,040 kWh of electric fuel has been disbursed using City -owned EVSE.
Usage from July 2023 to December 2024 increased by 128%. Also noted during this time, were
electric vehicles staying in EV charging spaces, even after reaching a full charge. To
encourage and allow for additional usage of EVSE, a stay fee is proposed to encourage EVs to
leave charging stations once charging is completed.
The City Manager has authority to implement fees for EV charging in parking ramps once the
fee amount has been adopted. Collection of fees, pending City Council approval, will go into
effect January 27, 2025. Sustainability and Transportation staff will work with the Public
Information Office to alert EVSE users of the increased fee.
BUDGETIMPACT
Through December 31, 2024, the City owes $1,665.06 in electric fuel excise tax to the State of
Iowa. It is estimated that the new fees will generate -$15,000.00 per year, owing the state
-$1560.00 of the collected fee. The remaining revenue will be used to offset cost of EVSE
transaction fees, cloud plans, maintenance, and electricity expenses.
REQUESTED ACTION
The requested action is for the City Council to set the fee at $0.25/kWh for use of public EV
charging stations and an overstay fee of $2.00/hour upon vehicles reaching 85% of battery
capacity.
cc: Ryan Knuckey, Director of Transportation Services
Russ Stecklein, Parking Operations Supervisor
Crenna Brumwell, City Attorney
Jenny Larson, Director of Budget and Finance
Randy Gehl, Chief Public Information Officer
Page 129 of 740
Prepared by: Crenna M. Brumwell, Esq. 300 Main Street Suite 330 Dubuque IA 52001 563 589-4381
RESOLUTION NO. 15-25
RESOLUTION ESTABLISHING RATES AND CHARGES FOR ELECTRIC VEHICLE
CHARGING
Whereas, Section 9-14-321.631 of the City of Dubuque Code of Ordinances
authorizes the City Manager to arrange for the installation of appropriate devices to
regulate vehicles in municipal parking ramps for the collection of fees; and
Whereas, Section 9-14-321.651 of the City of Dubuque Code of Ordinances
authorizes the City Manager to establish fees and charges for the rental of city lots or
portions of lots; and
Whereas, the City offers electric vehicle charging to the public in parking facilities;
and
Whereas, the City is responsible for an excise tax on electric fuel, which requires
the City as an owner of electric charging stations to report and pay to the Iowa Department
of Revenue $0.026 per kilowatt hour of electric fuel dispensed; and
Whereas, the excise tax remittance began on July 1, 2023; and
Whereas, after the first year of reporting and paying excise tax on the City's
charging stations the current charges are not covering the City's costs of providing the
service; and
Whereas, the City has determined that there should be an adjustment to the fees
for electric vehicle charging in an amount sufficient to reimburse the City for the excise
tax, the cost of the electricity, the cost of the platform to facilitate the charging session,
and the administrative costs for managing this portion of the parking system; and
Whereas, the City has determined that a fee of $0.25 per kilowatt hour should be
assessed and periodically reviewed by the City Manager and adjusted accordingly; and
Whereas, to incentivize public access and deter long term parking in stalls
intended for use only while charging to a certain level, and in accordance with industry
best practices, an overstay fee of $2.00 per hour will be charged upon a vehicle reaching
100% of battery capacity, with a grace period after a courtesy notification the charge will
begin.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The fee of $0.25 per kilowatt hour is hereby adopted and approved in
addition to any other fees appliable for use of the parking ramp or lot.
Section 2. The fee of $2.00 per hour is hereby adopted and approved for overstaying
100% of battery capacity in an EV charging parking stall, with a grace period after a
courtesy notification the charge will begin.
Section 3. The City Manager is authorized to periodically review the fee and update
the fee(s) if review demonstrates the existing rate is not covering City costs.
Passed, approved, and adopted this 21 sc day of January, 2025.
Bra ff Ca g , Mayor
Attest:
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. a /", � � � Adrienne N. Breitfelder, City Clerk