098-22 - ORDINANCE ADOPTING A NEW SCHEDULE OF RATES AND CHARGES TO REFLECT REPEAL OF THE UTILITY RECEIPTS TAX FOR THE TOWN OF WINAMAC, INDIANA ORDINANCE NO. 3 OF 2022

ORDINANCE ADOPTING A NEW SCHEDULE OF RATES AND CHARGES TO REFLECT REPEAL OF THE UTILITY RECEIPTS TAX FOR THE
TOWN OF WINAMAC, INDIANA

ORDINANCE NO. 3 OF 2022

WHEREAS, the Town of Winamac, through its Municipal Electric and Water Utilities (“Utility”), is responsible for the safe and effective operation of an Electric and Water Utilities for the welfare of residents of the Town of Winamac, Indiana, and surrounding areas; and

WHEREAS, the Town of Winamac is not a member of the Indiana Utility Regulatory Commission (the “Commission”) jurisdiction pursuant to Indiana Code § 8-1.5-3-8; and

WHEREAS, the existing rates and charges for services provided by the Utility were placed into effect following approval by the Town Council by Ordinance; and

WHEREAS, on March 16, 2022, Indiana Governor Eric Holcomb signed House Enrolled Act No. 1002 into law, which among other things, repeals the Indiana Utility Receipts Tax (“IURT”), currently codified in Ind. Code 6-2.3, with an effective date of July 1, 2022; and

WHEREAS, House Enrolled Act No. 1002 requires that each rate or charge that includes recovery of the IURT be calculated to remove the amount designed to recover for the IURT; and

WHEREAS, House Enrolled Act No. 1002 requires that the utility provide notice to all affected customers in each of the next two regular billing cycles that the adjustment in rates or charges reflects the repeal of the IURT in House Enrolled Act 1002-2022 by the General Assembly and that the notice provided must include the amount of the adjustment reflected in the bill; and

WHEREAS, the Utility has confirmed with its financial advisor that the current rates and charges for service provide for the recovery for the IURT in the amount of 1.35% in the water utility and 1.36% in the electric utility; and

WHEREAS, to be in compliance with the IURT repeal the Utility has asked its financial advisor to run the cost-of-service model used to derive its existing rates and charges to remove the IURT and the results are reflected in the schedules attached as “Exhibits A and B.”

NOW THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF WINAMAC, INDIANA, THAT:

SECTION 1. The foregoing recitals are hereby incorporated by reference and are ratified, confirmed, and approved.

SECTION 2. The Council hereby approves the new rates and charges attached as “Exhibits A and B” to be effective July 1, 2022.

SECTION 3. The Council hereby directs the utility to include the following notice within bills in its next two billing cycles that states as follows: “This bill reflects adjustments to Utility’s rates and charges due to the repeal of the Indiana Utility Receipts Tax under IN HB 1002 effective July 1, 2022. The reduction is 1.35% in the water utility and 1.36% in the electric utility 1.4% of your bill.” 

SECTION 4. All resolutions or ordinances or parts thereof in conflict with the terms and conditions of this Ordinance are hereby repealed and replaced to the extent of the conflict.

SECTION 5. Notice of the adoption and purport of this Ordinance shall immediately be given by publication.

SECTION 6. The rates and charge set forth in “Exhibits A and B” shall be effective as of July 1, 2022. 

ADOPTED AND PASSED by the Town Council of the Town of Winamac, Indiana on the 9th day of May, 2022.

THE WINAMAC, INDIANA TOWN COUNCIL 

APPROVED: Tom J. Murray, Council President; Alvin R. Parish, Council Vice-President; Larry Weaver, Council Member; Judy Heater, Council Member; Dave Schambers, Council Member

ATTEST: Kendra K. Craft, Clerk-Treasurer

098-22 G 5/18, 5/25