New PILOTs shrink Scotia‑Glenville27s allowable tax levy; board signals it will stay at or below the cap

District finance staff presented an updated budget outlook at a work session after two recent payments‑in‑lieu‑of‑tax (PILOT) filings from Metroplex altered the district27s tax‑cap formula.

Drew (district finance) explained that the arrival of two PILOTs—one from Best Glenville LLC and a larger agreement affecting a commercial cheese facility referenced in the transcript as "Bella"—reduced the allowable tax‑levy increase from 2.22% to 1.78%. The larger PILOT reduced assessed value on the tax rolls by about $11.2 million, lowering the district27s taxable base and shifting tax burden to remaining taxpayers.

Drew reported the allowable dollar increase under the new cap is roughly $615,267; after the current budget draft the district stands about $554,635 over that cap. The presenter said the commercial facility had previously been on and off a PILOT and that the new amendment reduces assessed value in the tax rolls to about $7.5 million and places the facility on a five‑year PILOT paying approximately $126,660 in lieu of the prior ~$280,000 in tax revenue.

To close the gap, staff described about $2.2 million in reductions identified so far: closure of Glen Warden school (estimated savings about $1.31 million and roughly 17 FTE impact), elimination of several unfilled vacancies (six FTEs, about $448,000), attrition and other non‑staff savings (roughly $198,000), and a modest TRS pension rate decrease (~$121,000). Staff emphasized that reductions through attrition and vacancies were targeted to limit changes to student programming; the district said class sizes and special‑education service continuums would be maintained under the current plan.

Board members went around the room and indicated a preference to remain at or below the 1.78% tax‑cap allowance rather than seek an override, citing the prior community vote and concerns about taxpayer impact. The finance staff asked the board to state whether it intended to stay at the cap; several members said they would not seek to exceed it.

Why it matters: the PILOT filings materially changed the district27s tax‑cap room and require the board to choose whether to override the cap (which would require a supermajority) or continue identifying reductions and use of reserves. Staff will continue refining the budget and return with a recommended approach for the board to vote on in coming weeks.

The meeting concluded with a board motion to adjourn.