O’side district taxes to increase slightly

A change in the way the Long Island Power Authority is counted on the tax rolls means that the Oceanside school district will have a smaller tax levy this year and in 2016-17 than originally announced, although taxes will still increase.

Last month, the Nassau County Supreme Court ruled that LIPA had to pay school districts money it withheld from the current year’s tax rolls because of a dispute over the utility’s tax liability to the county. That money, however, will be counted as a payment in lieu of taxes, or PILOT. In Oceanside’s case, it amounted to $2.18 million, and as a result, the $118.83 million tax levy for the current school year was reduced to $116.65 million.

At the March 1 meeting of the Board of Education, Chris Van Cott, the assistant superintendent for business, explained that moving LIPA from the tax rolls to a PILOT means that the projected tax levy for the 2016-17 school year had to be revised as well.

The district expects to receive $2.1 million from LIPA in the form of a PILOT next year. As a result, the proposed tax levy for the upcoming school year is now $117.15 million instead of $119.24 million, which the district announced last month, before the court ruling. The final calculations mean that the levy will increase .43 percent, or about $500,000, in 2016-17.

Asked why LIPA’s payment next year will be $80,000 less than this year, Van Cott said, “That’s because LIPA is disagreeing with what [it owes] the county … and the judge basically said he agreed with LIPA in the calculation of what they owe. So we need to be, on advice of counsel, a little conservative, 20and budget less than what we’re receiving in the form of a PILOT this school year.”

Since 2012, the state tax cap has limited municipal tax increases to approximately 2 percent or the rate of inflation, whichever is lower. This year, the rate of inflation is .12 percent, the lowest since the law took effect. Districts can exceed the cap, but those that do need a supermajority of at least 60 percent of voters to approve their spending plans. Oceanside does not plan to exceed the cap, and the change in the tax levy will not affect the expenses in the proposed budget.

The district has not yet revealed that budget, or the amount by which taxes would increase for the average homeowner.

Oceanside is considering adding a boys’ swim team for grades 7-12 to next year’s spending plan, but an agreement with the Friedberg JCC for the use of the community center’s pool needs to be worked out first. “As of right now, the budget does include costs for a coaching stipend, supplies and busing,” Van Cott said. “We’re still working out arrangements with the provider of the pool facility. If rental fees become cost-prohibitive, we’ll need to revisit the addition of this team later in the budget development process.”

The section of the spending plan that was discussed last week, which covered special education, athletics and technology costs, can be viewed at http://bit.ly/1p2oJnQ.

The next meeting, which is scheduled for March 15, at 7:30 p.m., at School No. 5, will focus on curriculum, instruction and student services.

Residents will vote on the budget on May 17.