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Board explains limits on revenue diversions; renting CSI building and advertising restricted by tax-exempt status
Summary
Officials said the district has constrained options to raise revenue because bond-debt and tax-exempt rules limit commercial uses; while the district can host not-for-profit partners at CSI, it cannot rent facilities for profit without jeopardizing tax-exempt status.
Board members and administrators discussed potential strategies to raise revenue beyond state aid and property taxes but cautioned that many commonly cited options are legally constrained. Maureen Ladd explained that the district’s bonded debt confers tax-exempt status that limits for-profit uses of district buildings and property.
“As soon as we start doing that, we lose our tax-exempt status,” Ladd said when discussing rental or advertising revenue options for CSI. Officials suggested educational partners (BOCES, colleges) and nonprofit daycares as permissible tenants but said outright commercial rental income is restricted by bonding rules. The board said the district will continue to explore permissible alternatives, such as program-based use by nonprofits and targeted fundraising by boosters.
