LINCOLN — Lincoln Electric System will pay $21.7 million to local governments in 2021 through its annual payment in lieu of tax and city dividend for utility ownership.
As a benefit of community-owned public power, LES distributed $12.8 million in payment in lieu of tax to Lincoln Public Schools, Lancaster County and the cities of Lincoln and Waverly on April 30.
The payment in lieu of tax, required by the city charter, represents 5% of the previous calendar year’s retail electric revenue from the cities LES serves. Lincoln Public Schools and local governments receive the payment from LES based on their proportionate share of property tax rates. Since the payment’s inception in 1966, LES has now given $325.1 million back to the community.
“With the annual payment in lieu of tax and city dividend for utility ownership, LES has been supporting education and infrastructure for over 50 years,” said Dustan Daniel, manager, LES financial accounting. “Contributing to the growth of the community is one of the benefits of public power.”
The payment in lieu of tax paid to local governments, based on 2020 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: $400,000
TOTAL: $12.8 million
In addition to the payment in lieu of tax, LES already made its first of two payments for its city dividend for utility ownership. LES will pay $8.85 million to the city of Lincoln in 2021 per a 2011 ordinance. Half of this amount was paid Feb. 20 and the second half is scheduled for payment Aug. 20.
To learn more about how LES powers the community, the utility’s annual report can be found at LES.com/AnnualReport.