Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance topic
No spam. Unsubscribe anytime.
Council OKs pilot payments from utility fund tied to rate changes
Summary
Council approved by second vote a payment-in-lieu-of-taxes (PILOT) pilot funded by increased utility rates, with staff projecting roughly $301,700 in 2026 and escalating amounts through 2029; the measure passed with a recorded roll call of 5–2.
Council approved ordinance 2025 G21 on its second vote to establish a utility pilot (PILOT) that will transfer surplus utility earnings to the general fund, funded by the wastewater and stormwater rate increases. Staff presented projected pilot amounts of $301,700 for 2026, $401,700 for 2027, $901,700 for 2028 and $1,201,700 for 2029 (staff presentation, SEG 344–348).
The motion to approve was made and seconded; the clerk recorded the second vote as "5 in favor and 2 in opposition" (vote record, SEG 360–363). Council discussed that these transfers are permitted under Indiana code as payments in lieu of taxes for municipally owned utilities; staff emphasized they function as revenue to the general fund rather than property taxes from private utilities (staff explanation, SEG 335–341).
Why it matters: the pilot funnels a meaningful recurring revenue stream from utility operations to general-government needs and is explicitly tied to the rate increases council approved. Staff said the council previously voted for the pilot at the Oct. 7 meeting and tonight completed the required second vote (staff, SEG 349–351).
Next steps: staff will track transfers and report financial impacts in budget and CIP updates as required.
