Editor's note: The headline on this article has been corrected.

Norwich - The provision in the city charter that calls for Norwich Public Utilities to pay 10 percent of gross revenues to the city is the highest amount in the Northeast and nearly twice the median nationally, according to a 2012 study submitted Thursday to the Charter Revision Commission.

NPU General Manager John Bilda addressed the commission on issues the group is considering that would involve the city-owned utility. Current charter language allows the Board of Public Utilities Commissioners to offer "no less than 10 percent" of gross revenues from electric, natural gas and water systems to the city as a payment in lieu of taxes.

The charter also allows the City Council to ask for "no more than" 10 percent from the utility, Bilda said.

With two members absent Thursday, the commission took no action on whether to recommend a change in the charter language regarding the 10 percent revenue provision. Member Arthur Lathrop, however, said he is inclined to leave the language alone. The commission is expected to discuss the issue again at its Feb. 5 meeting.

In the 11-page report from the American Public Power Association that Bilda submitted to the commission, a study of electric revenues turned over to cities, counties and states showed that the national median average is 5.5 percent of operating revenue contributions. NPU calculates its percent based on gross revenues, which are higher, Bilda said.

Bilda also weighed in on the charter commission's study of whether to change charter language that limits the city to $800,000 in bonding without needing referendum approval. NPU has no independent bonding authority, so is subjected to that limit.

"This is the biggest challenge we have," Bilda said of the $800,000 limit. He said NPU annually faces expenses that exceed $800,000, whether it be equipment or vehicle purchases, and must pay the expenses through its operating budget or special grants.

He submitted a proposed charter question written by the city's bond counsel that would exempt NPU from the referendum bonding limit provided the city forms an agreement with NPU that the bonds "shall be paid from revenues of a city utility."

Lathrop expressed reservations about the proposed language. He said he preferred to trust issues of major expenses to the voters. He said it would be up to city or utility officials to justify the expense.

The commission has not yet considered specific proposals to change the $800,000 limit. That issue also will be discussed Feb. 5.

The Charter Revision Commission is winding down its study of the city's governing document. Aside from the bonding question, the NPU revenue contribution and a request to set the capital improvement spending based on a percentage of the city budget, the commission has yet to vote on a highly controversial proposal to eliminate the city's dual fire tax and spread fire service costs citywide.

Commission Chairman Les King said the commission should receive a report on city fire expenses in time to discuss the fire tax issue at the Feb. 12 meeting.

In recent meetings, the commission took care of minor charter revision questions, such as changing the title of the council leader to deputy mayor rather than council president pro tempore. The commission also voted not to change the $100-per-month stipend that City Council members have received for decades.

The commission also voted to retain the City Council as the zoning board, an unusual and at times controversial authority for the chief elected city agency.

c.bessette@theday.com

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