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City manager reports positive income-tax trend, updates on public power and bond plans
Summary
City Manager Matt Lasco reported income-tax receipts were 10.8% higher through March than the same period in 2024, a first-half real-estate tax settlement $112,000 higher, an ongoing public-power rate study and upcoming bond issuance related to a third transformer.
City Manager Matt Lasco provided the council with an operational and financial update at the April 8 meeting, reporting improving income-tax receipts and developments for the municipal electric utility.
Financials: Lasco said income-tax receipts through March were up 10.8% compared with the same period in 2024, totaling about $1,275,000 and representing roughly $135,000 more than the prior year at this point. He cautioned that it was too early to call the increase a sustained trend and said staff would have a better sense by June. Lasco also reported the city’s first-half real-estate tax settlement was approximately $112,000 higher than the first half of last year; if the second half trends similarly, the city could realize an 8% benefit from the county’s recent property revaluation.
Huron Public Power: Lasco said the city is conducting a rate study for Huron Public Power. The utilities committee received the rate study once and staff will present it again April 23 with an eye toward council consideration in May and June. If adopted as an ordinance, new rates would take effect as early as July 1, 2025. Lasco also said the city took part in a bond-rating call with Moody’s ahead of a bond issuance to finance the third transformer; an updated rating call was scheduled the following morning and staff expected the rating to remain stable. Because Huron Public Power’s customer base is small and privately owned, staff anticipate that bonds for this purpose may be taxable rather than tax-exempt, which could raise interest costs.
Other finance matters: Lasco said staff plan to return to council in May with a proposed renewal of the contract with SSEG, currently set to expire June 3. He also said staff may submit federal appropriations requests this week for waterfront and water-infrastructure priorities and would seek council ratification if requests are submitted.
Why it matters: Income-tax and property-tax trends affect budget forecasts; a stable bond rating and the financing approach for the third transformer will shape borrowing costs for the public-power utility. The outcome of the rate study and any bond issuance may affect electric rates and capital planning.
Next steps: Utilities committee will review the rate study on April 23; council may consider rate legislation in May/June. Staff will complete the Moody’s call and report results, and will bring a contract-renewal recommendation for SSEG to council in May.
