Finance director and assessor seek $40,000 appraisal fund after Milford Power pilot expires

City Finance Director Peter Arredici and Assessor Marcus Eric told the Board of Finance that Milford Power Company declined to renegotiate a long‑running pilot agreement that expired Oct. 1, 2024, and that the city needs a specialized appraisal to determine fair market value for tax assessment purposes.

Assessor Marcus Eric said the pilot had been renegotiated in 2015 and expired in October 2024; Milford Power’s representatives have indicated they prefer to be assessed under the normal tax valuation process rather than extend a pilot. Eric recommended a two‑phase appraisal from a specialist firm to establish a defensible valuation.

“The first phase is the part that I really want to get to,” Eric said, describing phase one as a documented valuation and methodology that can stand up to review. He estimated phase one at about $25,000; if litigation were required the second phase would add about $15,000 for a total of roughly $40,000.

Why it matters: Milford received $2,350,000 in January under the pilot (twice annually, $4,700,000 per year), Arredici told the board, so determining a fair taxable value for the company is material to the city’s tax base and revenue forecasting.

Key points - Pilot history and expiration: The pilot agreement with Milford Power was renegotiated in 2015 and expired Oct. 1, 2024. Milford Power has not expressed interest in extending the pilot and instead prefers normal property and personal property valuation. - Appraisal scope and cost: Assessor Eric proposed a two‑phase appraisal. Phase one (opinion of value and supporting methodology) estimated at $25,000; phase two (litigation‑grade appraisal) estimated at $15,000 more if needed. Eric said he has identified a firm under consideration and recommended funding be added to the reevaluation operations line. - Current payments under pilot: Arredici said Milford received two semiannual payments of $2,350,000 (total $4,700,000 per year) under the expired pilot; he and the assessor characterized the appraisal as warranted given the sums involved. - Budget request and timing: The assessor asked the finance department to add funds to the reevaluation operations line; during the meeting the suggested line was raised from $50,000 to $90,000 to cover the appraisal and revaluation workload. - Revaluation schedule change: Eric said the Office of Policy and Management (OPM) realigned municipal revaluation schedules, shifting Milford from a five‑year to a four‑year cycle and effectively reducing one year of revaluation funding, which influences the city’s reevaluation sinking fund timing and available balances.

Board response: Chair and board members asked about the pilot payments and the appraisal cost. Peter Arredici said he expects a technical correction to the budget and did not receive objections when he proposed increasing the reevaluation operations line to $90,000 to cover the appraisal. City attorneys were present but did not request immediate additional action in the meeting.

Ending: Arredici said the technical correction will be included in the updated budget materials and the appraisal funding will be brought forward for formal appropriation as needed.