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Board backs move to a city dividend: utility payment-in-lieu-of-tax to be separated from rates
Summary
The Hastings Utilities Advisory Board recommended transferring the utilities’ payment-in-lieu-of-tax (pilot) out of utility rates and into a city dividend controlled by City Council; proposed percentages cited were 6.5% for gas, 5.7% for electric and 7.64% for water, with an expected effective date of Oct. 1 if billing systems are ready.
The Hastings Utilities Advisory Board on Aug. 14 recommended the City Council adopt ordinances to remove the payment-in-lieu-of-tax (pilot) from utility rate ordinances and make it a city-managed dividend, a change staff said will increase transparency and make Hastings’ rates more comparable with neighboring communities.
Staff said the proposal removes the dividend amount from utility rate calculations and instead places that percentage on the fee schedule (overseen by council) so City Council can set the annual percentage during the budget process. Staff cited…
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