Norwich — After wrestling with controversial last-minute budget cuts late Monday, the City Council passed another surprise resolution with an eye on increasing city revenues two budget years from now.

The resolution — added to the agenda at the start of Monday’s meeting — formally requests that the city utilities commission increase utility revenue turned over to the city in the 2018-19 utility budget from 10 percent to 12 percent. The city would not see the revenues until the 2019-20 fiscal year — “and thereafter,” the resolution states — because utility contributions are based on audited revenue figures from the previous budget year.

Norwich Public Utilities General Manager John Bilda said the new resolution was a “complete surprise” and no one from the City Council had warned him that the item would be added to the agenda.

“I found out about it when I watched TV,” Bilda said, referring to the live cable TV broadcast of council meetings. “No one from the council asked us what it would do to our ratepayers. It absolutely would result in an increase of rates to every single NPU customer. It was done without any chance for NPU or any NPU customers to comment.”

The city charter calls for NPU to turn over to the city’s general fund “not less than 10 percent” of gross revenues from its electric, natural gas and water divisions each year. The 2017-18 city budget approved Monday includes nearly $8.5 million in utility revenue, down slightly from the $8.67 million last year, mainly because of lower electric rates and the warm winter, Bilda said.

The council approved the resolution 6-1 with Mayor Deberey Hinchey voting against, voicing objection that the item was added to the agenda at the last minute for no reason. Hinchey said the resolution “easily” could have been brought forward a week earlier at the agenda-setting meeting.

Co-sponsor William Nash said he has been trying to understand for years why the percent of contribution from NPU never increases over time, when other fees and revenues have increased. He called the NPU contribution one of the city’s “sacred cows” and questioned why it hasn’t been touched.

“After all, we own it,” Nash said of the city-owned utility. “It’s ours.”

Bilda said the 10 percent revenue turned over to the city is figured into electric, gas and water rates, calling it a "back-door tax.” Increasing the amount would affect the rates for all three divisions to the point where he would consider proposing placing a notation on the bill calling it a “2 percent City Council surcharge.”

Bilda said the national average contribution by municipally owned utilities to host cities is 6.5 percent, and many other utilities base the contributions on net revenues, rather than gross revenues.

The issue of possibly increasing the 10 percent threshold was discussed during the last charter revision process in 2015 and the Charter Revision Commission voted to keep the 10 percent language in the charter.

According to a chart provided by NPU on Tuesday, the utility has contributed $78.69 million to the city’s general fund from the 2008-09 fiscal year through the 2017-18 fiscal year. Amounts have ranged from $7.1 million to the $8.67 million in 2016. NPU Division Manager Steve Sinko said the amounts vary based on utility costs and weather.

But the revenue figures also are starting to reflect the 20 percent increase in natural gas customers added to the system through NPU’s voter-approved aggressive natural gas expansion project.

The City Council’s request will be forwarded to the Board of Public Utilities Commissioners, which has seen a major transition in recent months. Three new members have been added this year alone, and the longest serving member, retired Three Rivers Community College President Grace Jones, has served for three years. The commission next meets June 27.

c.bessette@theday.com