 |
|
|
|
|
| 10/14/2009 12:08:00 AM | Email this article • Print this article | LaFave:Regulating district will pay taxes late
Heather Nellis
Recorder News Staff
Though it originally intended on paying its school taxes on time, the Hudson River-Black River Regulating District will be making those payments late - an expense that may have to be absorbed by the counties.
That's according to Executive Director Glenn LaFave, who said it was "not accurate" to define the situation as a deferment, and also refuted the idea that paying taxes would leave them without money to operate with.
"At this moment, the board is waiting for approval from the Office of the State Comptroller to transfer some funds," he said. "And until those funds are transferred or a different, adequate revenue source is identified, the regulating district will be paying those taxes late."
The United States Court of Appeals issued a ruling in November 2008 that ended the regulating district's 83-year-old practice of levying annual headwater benefit charges from Hudson River hydroelectric power companies licensed by the Federal Energy Regulatory Commission - resulting in a shortfall of $4 million of a $5.4 million operating budget for the Hudson River area.
In an attempt to gather funds to pay school taxes this month, the board was forced at its meeting in Saratoga Springs in September to authorize the liquidation of Sentinel assets into revenue accounts as deemed necessary. The board authorized two separate accounts for liquidation - $1.2 million from the Hudson River area and $2.6 million from the Black River area. The $2.6 million would be used to pay taxes.
All budget transfers are subject to review and written approval from the state Office of the Comptroller, which it apparently has yet to receive.
The regulating district issued letters to all affected school districts and counties to notify them they may be unable to pay taxes for 2010, but LaFave said the district "plans to pay the school taxes [for 2009], but not immediately. It's my understanding that some of them aren't even due yet."
Broadalbin-Perth Central School District Superintendent Stephen Tomlinson said he heard the news of the potential deferment from an "inner circle of superintendents," though he hasn't received formal confirmation.
Tomlinson said payment is due "now," for taxes, and the regulating district owes $256,000. "Historically, the regulating district is always the last to pay their taxes."
"I expect this to be a big hit to our county," he said. "It's up to them to make everyone whole."
According to Fulton County Treasurer Michelle Ippoliti, the regulating district's county taxes for 2009 amounted to $625,293.47.
LaFave said the board approved the notion of hiring of a consultant to undertake a reapportionment study to identify new downstream beneficiaries to levy property taxes against, though the board does not expect the study will be done until June 1, 2010 at the earliest.
---
Contact Heather Nellis at heather.nellis@recordernews.com.
|
Article Comment Submission Form
|
|
|
|
|
