1. City Council
November 5, 2013

2. 2013-14 Budget
Wastewater Transfers
Explanation:
• Payment in lieu of taxes (PILOT) – when a
municipality’s General Fund receives a payment from
a non-profit, government entity, or enterprise fund to
compensate for property tax that would have been
required of a taxable entity
• Municipalities are permitted to retain a reasonable
return from other funds to support General Fund
revenues

3. 2013-14 Budget
Wastewater Transfers
History:
• In 2004, Water PILOT was discontinued per Council
direction
• No action was taken for the $500,000 Wastewater
PILOT at that time

4. 2013-14 Budget
Wastewater Transfers
Calculation:
Current PILOT is less than the computed PILOT per
the formula:
Calculation Methodology
Wastewater Property Valuation
Multiplied by Tax Rate
Computed PILOT
Budgeted PILOT
Computed Over/(Under) Budgeted
$87,754,559
x 0.00776
680,975
(500,000)
$180,975

5. 2013-14 Budget
Wastewater Transfers
FY 2013-14 Budget:
• Wastewater Fund Expense = $500,000
• General Fund Revenue = $500,000
• To reduce Wastewater PILOT, both General Fund
revenue and expense must be decreased

6. 2013-14 Budget
Wastewater Transfers
Example
• Reduce the wastewater transfer by $100,000 every
year for five years
• FY14 $500,000
• FY15 $400,000
• FY16 $300,000
• FY17 $200,000
• FY18 $100,000
• FY19 -0-

7. 2013-14 Budget
Wastewater Transfers
Example
• Reduce the wastewater transfer by half every year for
two years
• FY14 $500,000
• FY15 $250,000
• FY16 -0-