Top, a youngster works at the Peter White Public Library. Michigan Tax Tribunal cases have depleted revenue for public services like the library. If the proposals on five ballots regarding the library pass, the library will continue to offer all of its services. (Journal file photo)

MARQUETTE — Voters in Marquette will determine Tuesday whether to approve a change in the City Charter regarding how the Marquette Board of Light and Power calculates its payment in lieu of taxes.

For nonprofit entities like the BLP, PILT are amounts paid to a state or local government in place of — most commonly — property taxes.

Currently, the BLP PILT is assessed by a formula based on the electric utility’s total capital assets. The proposal suggests changing the formula to having the BLP pay 5.5 percent of its annual operating revenues.

Rate payers would not be impacted by the change, officials have stated.

“This will not change the amount of PILT that is transferred to the city or impact the amount of any electric bills,” BLP Executive Director Tom Carpenter said in an email.

While a few residents have voiced concerns over the proposal being a way for the BLP and city to retain money, Carpenter said that’s not the case.

“It is not intended to be a money-saving measure nor will it cost more money,” he said. “The goal is administrative to simplify the process.”

Officials suggest the current way of calculating the BLP’s PILT is a time-consuming process because both city and BLP staff must organize, value and account for all of the BLP’s capital assets.

If the calculation is changed, Carpenter said it’ll provide a more consistent budgeting process that would allow for better long-term planning for both entities.

“Changing the process will be much simpler and align better with industry standards,” he said. “The majority of other municipal electric utilities utilize the proposed methodology on the ballot.”

The dollar amount paid to the city would be essentially the same as under the old method, BLP Chairman Tom Tourville said in another Journal article.

City officials agreed that the measure would be “substantially equivalent” to the present PILT payment, which is around $2.6 million annually.

The 5.5 percentage that’s proposed was also found to be in line with national averages for publicly-owned utilities, according to the BLP’s website.

This concept has been in the works for years, according to a video post from City Manager Mike Angeli and Carpenter, which explains the proposed amendment, and can be found at www.marquettemi.gov/charteramendment

Mayor Dave Campana said the city, BLP and Michigan Attorney General are 100 percent in favor of the Marquette City Charter amendment and suggest that city residents vote ‘yes’ on their ballots Tuesday.

The ballot proposal reads as follows, “Shall Sections 11-6 and 11-7 of Chapter 11 of the Marquette City Charter be amended to revise the calculation related to the payment of a portion of electric light and power utility system revenues to the city of Marquette, which payment is made in lieu of taxes that would be paid on electric light and power utility system property if it were privately owned?”

The Marquette Board of Light and Power serves nearly 17,000 customers in the city of Marquette and parts of nine townships, including Marquette, Negaunee, Ishpeming, West Branch, Richmond, Chocolay, Skandia, Sands and Forsyth.