LINCOLN – Lincoln Electric System will pay more than $12.7 million to the Lincoln Public School District, city of Lincoln, Lancaster County and the city of Waverly in its annual payment in lieu of tax April 28.
LES has already made its first of two payments for its city dividend for utility ownership, which also goes to the city of Lincoln, in 2017. The first transaction of $3.1 million occurred Feb. 20 with the second scheduled for Aug. 20.
The payment in lieu of tax, required by the City Charter, represents 5 percent of the 2016 retail electric revenue from the cities LES serves. The Lincoln Public School District and local governments receive the payment from LES based on their proportionate share of property tax rates. Since its inception in 1966, LES has given more than $270 million back to its community through the annual payment.
“When viewed as a percentage of retail revenue and combined with the city dividend, our transfers remain just slightly less than the average transfers of large, public power utilities across the country,” said Emily Koenig, LES director of finance and rates. “These funds stay in our community and help support local budgets that fund education and infrastructure.”
The money paid to local governments, based on 2016 revenues, will be distributed as follows:
Lincoln Public Schools - $8.3 million
City of Lincoln - $2.2 million
Lancaster County - $1.9 million
City of Waverly - $300,000
Total - $12.7 million
The payment date to the city of Lincoln, Lancaster County and Lincoln Public Schools is the last business day of April; this year’s payment will be April 28. Payments to the city of Waverly are scheduled quarterly.
For more information about LES’ commitment to the community, visit LES.com.