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    Saturday, May 11, 2024

    Norwich Charter Commission approves changes for NPU

    Norwich – Officials at Norwich Public Utilities told the City Council Monday that the city-owned utility supports several proposed charter changes that could expand NPU’s boundaries, borrowing ability and contract terms.

    The Charter Revision Commission considered several major issues and numerous minor proposed charter changes over the past 16 months, approving several provisions that would apply to NPU. The City Council held a public hearing Monday on the charter revision recommendations that could be placed on the November ballot for a referendum.

    NPU Assistant General Manager Chris LaRose said the charter revisions represent many “positive” changes or NPU.

    “The utility is wholeheartedly in favor of this revision,” LaRose said.

    Thirteen people – including city officials and two members of the charter commission – attended Monday’s hearing.

    The commission in February rejected the most controversial item up for review, whether to scrap the dual fire tax and spread central city fire department costs citywide. The commission recommended instead that city administrators attempt to find ways to provide tax relief to the central city district through the annual budget.

    The commission also rejected a request by the City Council to raise the $800,000 cap on bonding for city projects without needing a referendum.

    The commission did, however, exempt NPU from the bonding cap as long as the bonds would be paid through utility revenues, such as the three natural gas line expansion projects that are being funded through new hook ups and new customers’ bills.

    NPU would benefit from other proposed charter changes that would lift a border restriction and allow NPU to expand its gas and electric franchise beyond Norwich and Preston and also would allow NPU to market its new fiber optic system to residents and businesses. Another measure would extend the utility’s ability to enter into long-term contracts from 10 to 20 years.

    The charter commission also voted to keep the charter provision that NPU must pay 10 percent of its gross revenues to the city for tax relief.

    Board of Education member John LeVangie urged the City Council to accept the charter revisions as presented by the commission and to place all the recommended changes on the November ballot for a referendum. LeVangie said other issues could be studied by a future charter revision commission, but it would not be enough time for the current council to ask for more revisions in time for a November referendum.

    Resident John Blackburn said he had hoped the controversial dual fire tax could be “looked into just a little bit more,” but he too recommended accepting the report and sending the changes to referendum.

    c.bessette@theday.com

    Twitter: @Bessettetheday

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