Lansing Development News

Lancing City Council Reviews BWL Budget, ROE Agreement, and Millage Restoration

The Lancing City Council reviewed and discussed the proposed budget for the Board of Water and Light (BWL) for the fiscal year ending June 30, 2027, along with the Capital Improvement Plan (CIP) for FY27 through FY32. The council also considered an amendment to the BWL's return on equity agreement. Key points included planned rate increases for electric (2.04%), water (2.3%), and steam (5.51%), with no increase for chilled water. BWL departments collaboratively reduced forecasted expenditures by $7 million to maintain low rate increases while meeting financial metrics. The ROE budget was slightly higher than the city's budget, benefiting the city by approximately $130,000. The capital plan includes an average annual spend of $90 million for ongoing improvements, plus spending for new renewable energy projects and a steam-to-hot-water conversion project. The ROE agreement amendment extends the current agreement for two years until June 30, 2028, maintains a 6% payment on revenues, removes the portion related to inter-utility sales, and accelerates the timing of the first three quarterly payments. The council also discussed the essential services millage restoration, proposing to renew the existing operating millage to avoid significant reductions in the city's operating budget and maintain its credit rating. The proposed millage aims to continue funding police and fire protection (3 mills) and road/sidewalk maintenance (1 mill). Finally, the Local Development Finance Authority (LDFA) budget for FY2027 was presented, which has no financial impact on the city of Lancing due to a negative capture of taxable value from East Lancing. An amendment to the FY25-26 budget was also presented, proposing adjustments to general fund revenues and expenses, including increased income tax revenue, reduced licenses and permits, decreased state grants, and increased charges for services, among other adjustments for Gatsby purposes.