ELDRED, NY — After seemingly contradictory statements last month, the Eldred School Board acknowledged at its November 8 meeting that it does indeed intend to exceed or “bust” the tax cap in the next fiscal year. The board declined to state the amount of the increase, saying that until the tax cap computation is announced from Albany—which should happen no later than January—the board cannot determine the percentage by which the increase would exceed the cap.

Taxpayers were billed $10,414,000 this fiscal year. District treasurer Caleb Russell reported that cash on hand is about $8 million. Normally the tax collection period would be complete by this time, but a series of billing issues delayed the mailing of invoices, resulting in a need to extend the payment period until November 30.

The board gave approval to Russell to open a brokerage account to invest the cash not needed for normal operations on a monthly basis. These funds will be invested in short-term U.S. treasury obligations, which will earn additional interest compared to what would be earned in the bank. 

Russell also reported that the Millennium Pipeline compressor station will be included in the tax base in the next fiscal year. The assessed value of the station will be determined by the Town of Highland assessor. The amount of the assessment will not be known until March 2019. Including this new assessed value will serve to spread the amount of taxes over a larger base. This will help to mitigate the effect of the proposed increase on current taxpayers.

There was discussion as to whether the improvements at the former Eldred Preserve would increase revenues to the district. The short answer is “no.” The owners of the former preserve property negotiated with the Sullivan County Industrial Development Authority to pay no additional property or school taxes for five years after the resort opens for business. After five years, the property value subject to taxation will increase 10% each year for 10 years. The owners won’t pay their full share of taxes until 15 years after operations begin.

In other business, Jean Maxson, who filled in last school year as high school principal after then-principal Scott Krebs was reassigned and then came back this school year after the resignation of Virginia Keegan, was asked to serve through the 2019-2020 school year. The board also hired an additional teaching assistant for the senior high school with an annual salary of $29,108 and approved the hiring of Alice Foster as assistant tax collector. The board also approved an increase of $15 per day for non-certified substitute teachers, making their pay $90 per day. Board members said that this was to keep pace with other districts.