RESOLUTION NO. 10725-020607

BY:  COMMITTEE OF THE WHOLE

RESOLUTION URGING THE GOVERNOR AND WISCONSIN STATE LEGISLATURE

TO ENACT LEGISLATION FAIRLY COMPENSATING LOCAL GOVERNMENTS

FOR HOSTING EXISTING AND NEW POWER GENERATION SITES

WHEREAS, utility property was once taxed at the local level by local units of government in the same way as most other property; and

WHEREAS, the state converted the utility tax to a gross receipts tax over 20 years ago and established it in lieu of local property taxes on utility property; and

WHEREAS, utilities are not subject to local property taxes, but the state still compensates municipalities that serve the State as hosts for power plant facilities under the same property value-based formula; and

WHEREAS, the difference between state-collected utility tax dollars and the state payments to host municipalities has hindered needed development of new power generation for years; and

WHEREAS, this increasing shortfall between power generation needs and power generation capacity will adversely impact Wisconsin’s economy and threatens to seriously impact potential growth in this state;

WHEREAS, it is necessary to change state law in order to rectify the inequity in the distribution of the utility tax to host municipalities;

NOW, THEREFORE, BE IT RESOLVED, that the City of Oak Creek Common Council urges the Governor and the Wisconsin State Legislature to enact legislation that fairly compensates local governments for hosting existing and new power generation sites; and,

BE IT FURTHER RESOLVED, that copies of this resolution be sent to Governor Jim Doyle, State Senator Jeff Plale and State Representative Mark Honadel with the request that they continue their efforts to enact a new and fair compensation system for host communities.

Introduced at a regular meeting of the Common Council of the City of Oak Creek held this 6^th day of February, 2007.

Passed and adopted this ____ day of February, 2007.

                                                                                                                ________________________________

                                                                                                                President, Common Council

Approved this ___ day of February, 2007.

                                                                                                                ________________________________

                                                                                                                Mayor

ATTEST:

___________________________________                                              VOTE:    AYES _____ NOES _____

City Clerk