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Committee debates PILOT program revenue and whether nonprofit agreements can fund tax relief
Summary
Committee members discussed existing Payment In Lieu Of Taxes (PILOT) agreements—13–14 active pilots currently routed to the general fund—asked how much revenue they generate and whether new pilots could be directed toward tax relief. Staff said existing pilots flow to general fund by law but new approaches are being considered.
Members pressed staff about Payment In Lieu Of Taxes (PILOT) agreements with nonprofit property owners. Kathy Bono (CAFO) and staff said there are about 13–14 active pilots that currently go into the general fund; one councilor estimated the average annual yield is roughly $300,000 and staff confirmed they would provide exact figures at the next meeting.
Diana Zaino, president and CEO of the Springfield Regional Chamber, warned that new-growth is most likely to come from commercial development and that relying on broad nonprofit buy-in to generate substantial sums is uncertain. Kathy cautioned that any change in the allocation of pilot revenue would require setting up a new program structure and possibly state or local authorization; she said a theoretical maximum (if every nonprofit elected an optional payment at 25% of assessed value) could reach much larger sums, but participation is voluntary and unpredictable.
Committee members asked staff to provide exact pilot revenue figures and the legal/policy pathway to direct future pilot revenue toward targeted tax relief.
