WESTFIELD – Last Wednesday, the Westfield Gas & Electric Municipal Light Board met and voted to increase 
G&E’s payment in lieu of taxes (ILOT) to Westfield. Previously, the payment was capped at $500,000, from which $60,000 was deducted for traffic lights. At Wednesday’s meeting, the commissioners removed the cap, and voted to increase the payment to $621,000 minus the $60,000 credit. The total cash payment to the city went up $121,000.
The vote was the results of months of meetings and conversations between Mayor Brian P. Sullivan, Council President Brent B. Bean, III, WG&E General Manager Daniel Howard, and MLP Chairman Thomas Flaherty.
“We had some really productive meetings. The relationship between the city and G&E is something unique,” said Sullivan following the vote. Sullivan said that he and Howard both grew up in Westfield, and played against each other on Little League teams. “I respect Dan a lot. (We had) great discussions, with give and take on both sides,” he added.
Westfield Mayor Brian Sullivan (WNG file photo)
“The partnership is really good. The city should be proud of the agreement we came up with, because in the end, it will grow the city in a positive way,” agreed Bean. Both he and the Mayor said the discussion wasn’t all about money. “This cash payment was great, but we really need to get more creative with our partnership with them, to help service residents and attract new business,” Bean added.
Howard explained that in the past, there were missed opportunities to use some of the ILOT payments to the city more effectively. He gave the example of six or seven years ago, when the G&E did some audits for lighting in the schools, to see where they could be changed out. After three years, the project could have paid for itself, Howard said, adding that the project didn’t happen because the city didn’t appropriate the money.
The mayor explained that the G&E has a program to upgrade to energy efficient techniques. He said the schools lighting project wasn’t done, because the money has to be spent first to do it, and then the savings are realized. “By using some of the (ILOT) money for upgrades in lighting, then you’ll see savings,” he said.
DAN HOWARD
“When we get together to get these projects done, we save the city money, and reduce demand on our entire system during high enrollment periods. We have to pay demand charges to suppliers,” Howard said. “We’re going to try to use some of the increase to get some projects done which are mutually beneficial,” Howard said. As for the school lighting project, “We’re updating the audit, and hope to have this complete by the fall,” he said.
Both Sullivan and Bean said they also look forward to working with Whip City Fiber to market WiFi to new businesses through the local Gas & Electric collaboration, which they believe will be a strong selling point.
The ILOT payment will now go before the City Council. Seven members, the majority of the Council attended the vote last Wednesday, according to Bean.
“They uncapped the number, and didn’t put a cap back on it,” Sullivan said. “I’m hoping the Council sees how much time and effort went into this. The relationship is strong, for all the right reasons.”
