As the Union County Commissioners prepare to vote on the tax option for two solar companies in the North Union Local Schools District, the school board sought clarification on the financial impact of the solar farms.
Commissioner Chris Schmenk said the commissioners plan to make the decision about granting the Payment in Lieu of Taxes (PILOT) agreements to the Cadence and Acciona solar projects in two to four weeks at a regular meeting. She added that the commissioners will approach the PILOT agreements on a case-by-case basis.
Schmenk told the North Union Board of Education on Monday that North Union is on the state guarantee, so state aid will not be affected “if we do or if we don’t do a PILOT agreement under the current funding formula.”
The commissioners hired Dr. Howard Fleeter of Fleeter and Associates, an economic consulting firm in Columbus, to provide an analysis on the financial impact of the Acciona and Cadence solar projects. According to his report, PILOT agreements “generally are good for schools because it gives you certainty” to budget, Schmenk said.
Schmenk said the commissioners plan to ask the solar companies for an inflation adjuster or an inflation guarantee if they pursue the PILOT agreements.
Board member Matt Staley said he believes the board stands behind the initial statement to remain neutral and put trust in the commissioners to make the right decision for the county.
With the development of solar technology, Staley asked if the PILOT payments would be adjusted if “they upgrade equipment over the course of 35 years.” Schmenk replied that Fleeter’s firm did not evaluate that aspect in the analysis.
Board member Shelly Ehret said she is worried about the unknown elements of the PILOT agreements.
“I do have a concern of how our school district has been put in this situation,” Ehret added. “I think that should be taken into consideration that we’re talking about our children’s education … to us our children’s education is the most important thing.”
Schmenk empathized with the board, saying “I don’t think any of us issued an invitation to the solar companies to come look at Union County.”
The Cadence and Acciona solar projects predated Senate Bill 52, so the commissioners do not have the authority to prohibit the solar companies from building in the county.
“I think our job, similar to yours, is to do the best you can with the facts we know,” she said. “As one of my cohorts said, ‘If you’ve got the devil to dance with, try to pick the song.’”
The board members asked Schmenk to determine the timeline of the PILOT payments if the commissioners choose that tax option. North Union Treasurer and CFO Scott Maruniak advised the board not to make any purchases until revenue from the solar companies is received.
Schmenk said some PILOT payments do not begin until the deadline for the payment of typical property taxes.
“I have heard of some counties, who have asked for PILOT payments upfront,” she added.
She also clarified that if the solar project is solely in the North Union School District, such as the Acciona project, the PILOT payments would benefit only the North Union Local Schools District and Tri-Rivers Career Center. Cadence will be within the Marysville and North Union school districts, so PILOT payments would support those taxing districts.
As the solar companies are known for providing community incentives with the PILOT agreements, Schmenk said the commissioners ask the school districts and local fire departments to provide “wish lists” for negotiation over the next week or two.
“We’re limited in power. We have no power in this actually, but we can have opinions,” said Board member Matt Hall. “We just ask that we may always be listened to fairly and honestly because the fact of the matter is the decisions that are made today are going to be taken up by a board that is not us 35 years from now.
“The next generation is the one that’s going to have to deal with this if things go sideways,” he said.
In other news, the board:
-Discussed an alternative to buying a new van to transport students. Maruniak said Ford canceled the contract for the procurement of a vehicle about a month ago, and Ford is no longer manufacturing eight-passenger vans. ”The problem is if you go with a nine-passenger van, the drivers have to have a bus license,” he said. Maruniak suggested an eight-passenger Chevrolet Traverse for about $33,000. He added that it could not be purchased with federal funds. Hall suggested Maruniak request a quote from Honda Marysville for an Odyssey van that seats eight.
-Approved the cost of course fees for the 2022-23 academic year.
-Approved a memorandum of understanding for released time for religious instruction.
-Accepted the resignation of Lisa Bumgarner, an elementary school cafeteria worker, and Stephanie Stephens, an elementary school intervention specialist.
-Approved a list of substitutes and Wildcat mentors, for the 2022-23 academic year, pending clearance.
-Approved the employment of an elementary school educational aide, a high school intervention specialist and an elementary school intervention specialist, pending licensure verification and clearance. Superintendent Richard Baird said two positions are still vacant – an IT instructor and an elementary art teacher. “It’s still early for us, so we’re going to continue to solicit for those positions to be filled,” he said.
-Approved the 2023 fiscal year contract with North Central Ohio Educational Services Center (NCOESC) for student and staff services.
-Approved one-year limited expiring supplemental contracts for the high school yearbook adviser, the assistant athletic director and the middle school football coach, effective for the 2022-23 school year, pending clearance and pupil activity licensure.
The next regular school board meeting is scheduled for Monday, Aug. 15, at 6:30 p.m. at North Union High School, 401 N. Franklin St. Richwood.