Council affirms 2026 partnership agreement with Marshall Municipal Utilities; PILOT formula adjusted
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Summary
The City of Marshall and Marshall Municipal Utilities reaffirmed their multi‑partnership agreement for 2026 and approved a revision to the payment‑in‑lieu‑of‑tax formula to a five‑year rolling average with a 500,000,000 kWh floor.
The Marshall City Council voted to approve the 2026 partnership agreement between the City of Marshall and Marshall Municipal Utilities (MMU).
Pete Wyfels, general manager of MMU, told the council the partnership package includes 11 interagency agreements that coordinate shared services and costs. Wyfels said most chapters were unchanged and the committee recommended reaffirmation of the existing agreements.
The substantive revision is to the payment‑in‑lieu‑of‑tax (PILOT) calculation. The committee replaced a 10‑year rolling average with a 5‑year rolling average and established a minimum rolling average floor of 500,000,000 kilowatt‑hours so the calculation will not fall below that baseline. Wyfels said the formula change increases the PILOT payment to about $85,000 (from last year’s level) and the PILOT will be reviewed at least every three years prior to MMUA performing a cost‑of‑service study.
City and MMU staff said the revision followed a review by staff and the assessor comparing PILOT methodology with other municipal utilities and private property tax equivalents.
Council members described the partnership as longstanding and beneficial; the governing body approved the 2026 agreement by roll call vote.
Staff indicated no immediate changes to operational services beyond the PILOT formula update; attachments to the partnership agreement will be posted with city and MMU records.