HUBBARD Annex sewer plant to city, mayor urges

The mayor says the excise tax should benefit the city rather than the state.
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
HUBBARD -- Mayor George Praznik says he wants to annex the city's sewage treatment plant located in Hubbard Township into the city.
The plant sits on about 18 acres along Elmwood Drive and is one of the largest users of the city-owned electric distribution system.
Praznik said Tuesday that if the plant remains in the township, the excise tax on electric use will be paid to the state.
If, however, the plant is annexed into the city, tax receipts will go to the city.
"We should benefit, not the state," the mayor asserted.
The city is a member city of American Municipal Power of Ohio. That group buys electricity at a wholesale rate and resells it.
About 3,280 customers are in the city, while another 280 are in Hubbard Township.
Joe Slick, superintendent of the city's electric department, said the kilowatt hour tax charged customers in the city will be collected by the city and deposited to the general fund.
Customers in the township will pay the tax to the state. The tax is effective May 1 and will be reflected in the June billing.
The tax will cost residential customers an additional $2 to $4 monthly, while businesses, such as restaurants and large grocery stores, will see an $800 to $1,000 increase per month.
Slick estimated the tax will generate $168,000 annually from city customers and $17,000 from those in the township.
Considering options: City council will be making some decision concerning the tax, Slick said.
Lawmakers can approve legislation that would transfer the tax from the general fund to the light fund. City customers would then receive a credit on their bills in an amount equal to the tax they pay, and thus not actually pay the tax.
This cannot be done for township users, Slick explained, because the tax is paid to the state.
The other decision that confronts lawmakers is whether to allow city electric customers to do business with alternative electric suppliers.
If council does do permit alternative suppliers into the city, lawmakers will have to determine how much the city will charge those other suppliers for the use of the city-owned facilities, such as transmission lines and its billing system.
Slick said those costs are now being determined.