MARQUETTE, Mich. (WLUC) - In less than one week, the polls will open for people to vote to change the way PILT (payment in lieu of taxes) is calculated between the city of Marquette and the Marquette Board of Light and Power (BLP).
"What we are proposing in this language change for the charter is that we calculate that differently,” said Marquette City Manager, Mike Angeli. “We calculate it based on the Board of Light and Power's gross revenue."
PILT is an annual payment made by the BLP to the city of Marquette. They do this instead of having to pay property taxes.
“There’s several points in the charter that with the Board of Light and Power that need to be addressed and this is one of them,” said Angeli.
The reason for the change is because they wanted to make their current process simpler, which will hopefully save their time and resources.
"The Board of Light and Power sees this as a benefit to the utility from an efficiency standpoint. The previous method used to calculate PILT was a lengthy process,” said Manager of Accounting and Customer Service at the Board of Light and Power, Toby Smith.
If approved, the PILT would be 5.5 percent, which will be the same as their current PILT payment and in line with national averages of other electric companies.
"We actually spent a lot of time trying to match industry norms to try to compare it with what other communities do,” said Angeli.
As far as for people who are BLP customers inside and outside city limits, officials say they won't be affected by any of the changes.
"Customers of the Board of Light and Power within the city or outside of the city limits, they should see no change in their rates moving forward. This is simply a change in the calculation, the dollar amount that we contribute to the city is going to be roughly the same,” said Smith.
For more information on the current city charter, visit their website.