Published: May 14, 2008 01:00 am      

KEN-TON SCHOOLS: Huntley budget issue resolved

NRG Huntley might not be renewing its Payment in Lieu of Taxes agreement with the Kenmore-Town of Tonawanda School District, but the more than $7 million in funds they provide the district are still coming.

The expiration of NRG’s PILOT agreement was one of the primary concerns coming into the 2008-09 budget. Talks to renew the agreement in the future are still on-going, but that can’t happen in time for this year’s budget, said Assistance Superintendent of Finance Gerald Stuitje.

“That means the money that NRG would have put into the PILOT will now have to go to the tax levy,” Stuitje said. “But that also means NRG will be put back on the tax rolls.”

In effect, NRG’s tax payments are simply shifting from one column into another, but that shift could reap some benefits for town and village residents. Although the assessed value of the Huntley plant won’t be know until the end of May, Stuitje said the move will likely result in a slightly lower tax rate for residents.

Prior to the resolution of the PILOT issue, homeowners were looking at paying $38.11 per $1,000 of assessed valuation. Stuitje is estimating the new NRG arrangement will get that figure down to $37.97.

Kenmore resident John Milner voiced some concerns about the new arrangement, particularly the way NRG might react to making future investment in the plant if taxes become too high.

“Do we have any idea how much we might pick up here?” Milner asked. “If it’s too much, maybe it’s not a good future for us with this property.”

Superintendent Mark Mondanaro said that with the upgrades that NRG is continuing to make on the plant and the benefits the company has reaped from the Empire Zone, he’s confident they will be a taxpayer at least for the short to middle term.

The final budget comes in at $142.4 million. After federal and state aid are figured in, the tax levy is estimated at $64,829,104, and increase of 3.65 percent over last year.

Mondanaro said the budget maintains existing programs and keeps class sizes at their current levels. In addition, on-going projects like the expansion of the gifted and talented program, instructional support for English language arts and math teachers at the elementary level and funding for oversight of at-risk students have all gone ahead.

More than 75 percent of the budget goes to paying employees and taking care of their benefits, which also account for the largest portion of the tax levy increase. Rising utility costs also factored in the increase.

Residents will have their opportunity to vote on the budget on May 20 from 7 a.m. to 9 p.m. For information on where to vote, residents can call the district at 874-8400.

Also on the ballot are the purchase of 11 new school busses, the creation of a capital improvement fund and the sale of the former Brighton Elementary building to Affordable Senior Housing Opportunities of Western New York for $660,000.

Contact reporter Daniel Pyeat 693-1000, ext. 158.