Chesterton Tribune



Town of Chesterton moves to pay for employee raises

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The Chesterton Town Council has taken the next necessary step in making the raises granted to all municipal employees in April sustainable.

At their meeting Monday night, members voted unanimously to adopt a resolution authorizing “a payment in lieu of taxes and return on the sewage treatment plant from the Chesterton sewage works.”

What that means is this: the Chesterton Utility is making over to the town two sums, and will do so on an annual basis:

¥A payment in lieu of taxes in the amount of $77,571. As a public utility, the Chesterton Utility does not pay property taxes, but under state law a municipality may collect from a utility an annual amount equivalent to what the utility would pay in property taxes if it were a private entity. Of course, the Chesterton wastewater treatment plant is actually located in the Town of Porter, so the Utility is paying a payment in lieu of taxes on its infrastructure installed in the Town of Chesterton: that is, its underground collection system and the series of lift stations.

¥A return on the wastewater treatment plant of $79,544. Or as the resolution states more specifically, “the reasonable return on the utility plant that should be charged to the town’s municipal sewage works.”

Both sums will be deposited into the town’s General Fund.

Re: Brush Collection Fee

In related business, Member Emerson DeLaney, R-5th, asked Clerk-Treasurer Stephanie Kuziela to place under New Business on the agenda for the council’s next meeting, Aug. 27, a proposed increase of the monthly brush and leaf collection fee paid by residents on their sanitary sewer bills: from $1 to $2.

Members are likely to schedule at the Aug. 27 meeting a public hearing on the proposed increase, to be held sometime in September.

The proposed increase in the brush and leaf collection fee is also intended to make the municipal employee raises sustainable going forward.



Posted 8/14/2018




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