Selectmen Meet Resistance From GELD on PILOT Payment

Selectmen met stiff resistance from Groton Electric Light Department Commissioners when asked to restore their pervious $30,000 PILOT [Payment In Lieu of Taxes] to the town after having reduced the payment to $15,000 last year. Last year's payment was reduced to recoup a portion of the estimated $100,000 cost incurred because of the circuitous, complicated and strenuous permitting process for their new building on Station Avenue to begin construction this summer.

"One of the things that caused us to reduce the PILOT was the severe lack of cooperation in some department. There were a lot of challenges," Commissioner Kevin Lindemer said. He pointed out that Groton has the lowest electric prices, and acknowledged, "We are on the low side in terms of the percent of revenue paid as a PILOT, but we have better services and lower rates."

Lindemer stressed, "We have a conundrum. We have a low PILOT share but we have better service and lower prices. One thing that is concerning us is the expectation that GELD should pay a higher rate. This is all voluntary. You want more from us but our money comes from people already paying taxes."

Last year, GELD donated $100,000 to the Groton-Dunstable Regional School District to help out with the needed technology acquisitions for students.

Cunningham stressed to the Commissioners that the Selectmen want to work with GELD, but that it was also important for the Board to predict what the PILOT contribution would be. He pointed out that Groton School pays a lot more than their $100,000 contribution to the police and fire departments and their PILOT contribution is predictable. Pressed by Lindemer to cite an example, Cunningham said that the Groton School gave $25,000 to the fire station. Selectman Josh Degen added that Groton School also "donated $7M for Surrenden Farm to cover the shortfall for the purchase."

Degen assured Commissioners that Selectmen were reaching out to all the town's non-profits to increase their PILOTS and suggested that GELD lead by example as a move to the future.

Lindemer replied that GELD was already paying the highest PILOT of the other non-profits based on valuations. He asked how the negotiations were going with the other non-profits and if there were specific levels of increases that would be requested.

Degen pointed out that the "new headmaster at Groton School worked out a formula for payment in his former job in Andover and this is part of the ongoing discussions. Maybe this can carry over to Lawrence Academy."

Commissioner Rod Hersh told Selectmen that this is a difficult year for GELD adding that they were going to have to look at rate increases for the year. "I don't want to give up last year's profit for the gross incompetence in the schools. People believe that town government should serve them. The Light Board serves the people in Groton, not the government of Groton." Cunningham said he took exception to this comment, noting that the town does good work for people. Hersh replied, "Not after what we went through last year."

Lindemer added that if GELD was expected to contribute a PILOT in the amount equivalent to the yearly profit, "we can't sustain our business. The last thing we will do is raise rates. The difference from the other non-profits is that our customers also pay real estate taxes."

Cunningham stressed that he wanted a decision from the Commissioners on the PILOT from GELD. Both Selectmen and GELD compiled their own statistics based on how other communities were handling their PILOT donations, and they varied widely. Town Manager Mark Haddad added, "Our goal is to stabilize the budget and to forecast what we expect to receive from PILOTS."

Commissioners Lindemer and Chris Christie voted to set the PILOT for this year at $30,000 while Commissioner Hersh abstained. Lindemer said, however, he was "not willing to commit to a constant stream in their PILOT."