KANSAS CITY, Mo. — The Unified Government of Wyandotte County and Kansas City, Kansas, says its announcement about removing the PILOT fee from residents Board of Public Utilities bills by Oct. 1 was "premature."
Promise from UG to customers
This announcement came Aug. 1 at the end of the Unified Government’s budget presentation, given by county administrator David Johnston.
At the end of the meeting, County Administrator David Johnston announced a proposal to no longer charge residents for PILOT, which stands for payment in lieu of taxes.
The UG owns BPU, but because the utility is tax-exempt; this fee makes up for the property taxes it doesn’t collect.
PILOT adds an additional 11.9% to a resident’s total utility bill.
In an Oct. 4 statement, the UG addressed the concerns about the PILOT fee still being present on BPU customer bills:
"County Administrator David Johnston has been working with the Board of Public Utilities (BPU) General Manager Bill Johnson to develop options to regarding the PILOT charges on the BPU bill. Prior to implementation, the UG Board of Commissioners will need to discuss and agree to support a path forward," the statement read. "Although the announcement to implement changes by October 1 was premature, the Unified Government leadership is working to address the issue in a timely manner."
Mixed reaction from customers
At the time of the original announcement, KSHB 41’s Rachel Henderson spoke with community members optimistic about the news, which seemed like a sense of relief during ongoing property tax and other hikes Wyandotte County residents face.
However, there were other residents who were more skeptical of the news with questions about where that additional money would come from to make up for the lost PILOT fee, since that would still have to be paid somehow.
In a mid-September check-in with Mayor Tyrone Garner about the status of the PILOT, Garner said residents could still expect to see the fee off their bills.
He also emphasized the desire to have more meetings with BPU even after Oct. 1, as some specific decision-making involving the PILOT was BPU-specific, according to Garner.
The BPU made no public on-camera statement between the Aug. 1 announcement and the Oct. 1 deadline concerning the PILOT, but it did confirm throughout this period that it was in "ongoing discussions" with the UG about the matter.
PILOT fee shows up on October bills
In the BPU’s Oct. 2 regular session meeting, a resident asked about the PILOT fees showing up on bills during the public comment portion.
Board president Bill Johnson offered a response.
"The conversation we’re having publicly is BPU is still having conversations with the Unified Government about the PILOT fee, so we haven’t arrived at that conclusion yet as to when anything would change related to the PILOT being on the bill," Johnson said during the meeting.
An Oct. 7 email from a BPU spokesperson confirms the PILOT fee is still on customer bills with no concrete timing of if or when it’ll be removed:
“No changes to how the PILOT fee structure appears on a customer’s bill have been implemented as of now. BPU and the UG continue active discussions to find a balanced solution that addresses both customer and community needs. The UG has acknowledged that its announcement of changes to the PILOT fee by Oct. 1 was premature. Discussions are ongoing to ensure all technical, administrative, and billing processes and potential customer impacts are fully considered before implementing changes. We are committed to transparency, and any changes will be communicated to customers in advance to avoid confusion and ensure understanding."
UG Mayor Tyrone Garner comments on matter
KSHB 41’s Charlie Keegan asked UG Mayor Tyrone Garner about any updates to the PILOT news Tuesday at an ACLU language access event, where he said the UG is "actively working on it."
Garner also said he plans to call a special meeting of the commissioners to address the issue.
"That’s one of the things I’m calling for and hopefully bring our commission together to find a real solution to the challenge that we know is involving people that are struggling to pay their utility bills," Garner said. "And part of that is brought about by the PILOT, so stay tuned for that conversation, hopefully it’ll happen in short order."
Time is of the essence for these struggling residents, something Garner says he understands.
"It is a priority for me that I am seeking to fast-track so we can get a little more clarity as to that whole payment in lieu of tax issue that so many of our residents have said has been a challenge," Garner said.
There is not a definitive date or time for the meeting Garner wants to set, but says he is aiming for this week.
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