Archive: News

In the wake of Tuesday's NYS Public Service Commission's (PSC) decision refusing approval of a plan to repower Lansing's Cayuga Power Plant with natural gas, Lansing Supervisor Ed LaVigne says that the Town is prepared for any eventuality.  The PSC ruled against the plant being repowered at NYSEG ratepayers' expense, but at the same time approved its sale to Riesling Power LLC.  Both LaVigne and Lancing Central School District Business Administrator Mary June King say they have been preparing for whatever the long-delayed decision might be.  LaVigne says the Town is especially prepared and is aggressively courting new business to increase the tax base and relieve stress on homeowner property taxes.

"The Town is in excellent shape financially, because we run it like a business," LaVigne says.  "Obviously I am disappointed with the decision, but I am optimistic that the new owners will find value for this business.  And, moving forward, that they will establish a profitable business that will be helpful not only to the employees, but also to the taxpayers."

With $3.1 million in unassigned fund balance, the township is certainly in good shape.  Last week the Town Board began discussing a new fund balance policy as well as a reserve policy that will put Lansing into compliance with the State Comptroller's recommendations while providing a way to plan for future purchases and capital improvements using reserves established for that purpose.

"We weren't waiting for this decision to come down," LaVigne said Tuesday.  "We've been very proactive and we'll continue to be proactive to try to encourage business to come to this area.  I've been very aggressive ever since November 4th.  As you know, 'Lansing is Open For Business' is the first thing we promote.  We're now looking to do something with the land across the street.  We're very aggressive.  We have multiple groups working in different directions to try to get as much done for business in Lansing as possible."

The School District, with a $28.1 million budget projected for the 2016-17 school year, has a much larger tax impact than the Town's $4.9 million 2016 budget.  Ironically the Town government has the authority to do more about relieving school revenue losses due to the power plant than the school district does, because it can attract new businesses to fill any tax gap the plant might leave.  But that doesn't mean the School District has no recourse.

"We do not know that this decision really crystallizes anything relative to this taxpayer and its future," King said.  "What I can say is that we have prepared for the worst possible financial outcome, the total loss of this part of the tax base, for several years now, relative to making sure that the Board Of Education and informed members of the public know what resources they have available to them if it happens."

Those resources became a point of contention between the New York State Comptroller's Office and the School District last month when a comptroller's audit asserted that the schools may have been over-taxing Lansing property-owners.  School officials countered that the long and uncertain wait for a decision by the PSC forced them to plan prudently for any eventuality, including the worst case scenario which would be the closing of the Cayuga Power Plant.  They noted that the public was informed of the rationale for the budget, and had voted to approve the levy.  If the plant were to close it could put the burden of an additional $1.3 million each year on district property taxpayers.


King and School Superintendent Chris Pettograsso are aggressively lobbying to get state legislative approval to create a special reserve to cushion that tax impact if the plant closes.  School districts are not allowed to create such a reserve without legislative action that gives special dispensation to save money that could reduce the tax levy instead of burdening already struggling taxpayers with large tax rate rises.

"We enthusiastically encourage the public to reach out to Assemblywoman Lifton and Senator Nozzolio and request that they propose legislation that would allow us a legal reserve in which to save money for this purpose," King said.  "We believe that a legal reserve should be created so that we can be as prepared as we are able to manage regardless of the outcome of her transition proposal.  The reserve seems like a more expedient (and responsible) action."

Tompkins County could also suffer revenue losses.  The school district is the most costly for property taxpayers.  Next is the County (followed by the Town, Fire District, and Library).

"The county will have to make about $500,000 in cuts to make up for the loss," says County Legislator Mike Sigler.  "I don't see how the school district recovers.  Our Assemblywoman (Barbara Lifton) argued there could be money from the state to offset the loss.  I hope she'll be able to pull that off and of course I'll support her in her efforts to do that."

LaVigne says he is concerned about the impact on school taxes

There may be some very negative impacts to our residents here.," he says.  "Where is the tipping point where you can no longer afford to live here?  A lot of people are on that edge already, unfortunately.  The people on the outskirts are leaving when they retire.  The people in the bigger houses will leave when their kids graduate from high school.  That's what a lot of people said to me when I campaigned for Supervisor.  It resonates, because when they say (additional taxes) is only a few percent, it's only a few percent.  The cumulative amount now has hit a critical area where it may be too much for some people.  And then what kind of town are we really going to have?"

To try to make up for any potential power plant revenue loss, the Town has put forth its 'Lansing Is Open For Business' campaign.  The purpose is to retain existing businesses as well as assisting them when they want to expand, and attracting new businesses to the Town.  LaVigne sees business density growing from the southeastern Warren Road portion of Lansing, which has been seeing notable business expansion largely due to the availability of sewer and water.

At the same time that part of Lansing has reached its limit in terms of the availability of natural gas.  NYSEG wants to bring new gas delivery pipeline through the town of Dryden to the Warren Road section of Lansing, but it has met fierce opposition by Dryden homeowners.  Their opposition was bolstered last October when Tompkins County Planning Commissioner Ed Marx wrote a strongly worded letter opposing the pipeline and urging that current natural gas users reduce their use and that the County Energy Committee evaluate the feasibility of switching from natural gas to renewable energy sources.

Sigler opposed the memorandum, saying that it was "very detrimental to Lansing."  LaVigne agrees, saying that not getting the pipeline would stunt Lansing's ability to grow its tax base, especially in the face of continuing uncertainty about the fate of the power plant.

"One of the reasons why it's so critical that we get this West Dryden pipeline in is because that is where the big growth is in Lansing," he says.  "It's really easy for other municipalities to say things when they don't have a direct result on their residents.  It's unfortunate.  But this pipeline will help Lansing a tremendous amount.  It's important we get this thing through, because the businesses are there.  The growth is there.  This is where people want growth, in dense areas.  We're trying to accommodate those concerns by not having sprawl, but by having density grow in dense areas.  The things you need are water, sewer and a source of energy, in this case, natural gas."

While the PSC decision to deny the repowering plan was a blow to Lansing, the news isn't all bad.  In December a spokesman for Riesling said the company intends to invest in the plant and to integrate its employees.  LaVigne says that may eventually mean a rosier future for the plant and the municipality.

"We'll also see what happens with the new owners," he says.  "I don't have information on that, but it is encouraging that someone is willing to buy it.  They obviously have a vision for it.  Businesses don't just throw money at something hoping that it sticks.  By being willing to buy this plant it's encouraging that they have a positive vision for their business and for the Town of Lansing."

v12i8