Riverhead Central School District announced receipt of $5.1 million owed in PILOT payments by LIPA

Riverhead Central School District announced that they received the $5,135,948.43 owed in payments in lieu of taxes for the 2021-2022 and 2022-2023 school years by Long Island Power Authority.

“LIPA has made good on the $5,326,971.49 total of their agreement, of which $5,135,948.43 is for the district,” District Superintendent Augustine Tornatore said in a statement to the school community. According to his statement, the received payment lowered the October 2022 property tax levy by $2.8 million.

“These funds will support our programs, services and operational activities, enhancing experiences and opportunities for our students,” Mr. Tornatore said.

According to a breakdown of the funds by district’s assistant superintendent for business Rodney Asse, for the 2021-2022 school year the district received $2.5 million. For the 2022-2023 school year the district received $2.6 million.

The Riverhead Free Library also received a sizable portion of the funds, receiving a total $190,105.42 for both 2021-2022 and 2022-2023. Baiting Hollow Free Library received a total of $917.64 as well.

Last year, the district had approved a tax levy that included the money that they were expecting to come from those payments, estimated at $2.9 million. The 2014 LIPA reform act limited the PILOT increases to 2%.

The receipt of these funds puts an end to a monthslong dispute regarding the PILOT invoices. In January, the board of education approved the law firm, Guercio and Guercio, to start litigation against undisclosed parties “with respect to payments in lieu of taxes.” There was no lawsuit filed by the district.

“While the board authorized commencement of litigation, as with any dispute, an amicable resolution that accomplished the District’s goal of receiving the funds owed was desired and, in this case, achieved prior to it becoming necessary to file suit,” The district lawyer, Ashley Pope, said in an email to the News-Review Friday evening.

In late February, the district approved an agreement between Riverhead Town, LIPA, Suffolk County and all of the town’s special districts to collect what is expected to be over $10 million in PILOT payments.

The agreement authorized the town to send consolidated PILOT statements to LIPA for the 2021-2022 and 2022-2023 tax years on behalf of all the taxing districts in the town.