4.1 ERMUSR 03-08-2022 - Laserfiche WebLink

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COMMISSIONPOLICY Section:Category: GovernanceGovernance Policies Policy Reference:Policy Title: Payment in Lieu of Taxes and Other G.2a1 Donations to the City of Elk River PURPOSE: The success of ERMU is linked with the success of our community. And the success of our community is linked with the operation of our city government and ERMU. ERMU was purchased by the City of Elk River in 1945 and separate governance was created per State Statute in 1947. Although governedseparately, ERMU is still an important component of our local government and our city services. It is typical for a municipal utility to provide a Payment in Lieu of Taxes (PILOT) and other donations to their city, regardless of a separation of governance. Although typical, this become non-competitive, or inhibit needed investment in personnel or infrastructure which may r customers. For these reasons the PILOT and other donations should be reviewed at least once every five (5) years by the ERMU Commission. POLICY: The PILOT and other donations to the City of Elk River shall be as follows: 1.Payment in Lieu of Taxes (PILOT)The PILOT transfer from Elk River Municipal Utilities electric customers,except customers qualifying for the Transmission TransformedService rate,within the corporate boundaries of the City of Elk River. For the customers that qualify for the Transmission TransformedServicerate,thePILOT transfer from ERMU to the City of Elk Rivershall befour percent (4%) of themargin remaining from the evenly split charge per kWh to cover dispatching,billing, and administrative costsincurredby the wholesale power provider and ERMU. 2.Donated ElectricityElk River Municipal Utilities shall donate all electricity to the City of Elk River for street lights and signal lights. ______________________________________________________________________________ Page 1of2 61