Community Update: LIPA Settlement and District Capital Projects

Dear Mount Sinai Community,

At our September 16th Board of Education meeting, we shared information regarding the Town of Brookhaven’s settlement with the Long Island Power Authority, or LIPA, and what it means for Mount Sinai taxpayers. We know the question most residents have is simple: What does this mean for me?

For a home with the District’s average assessed value of $3,700, we now estimate that the LIPA settlement will result in approximately $3 more per month than what had been projected when the 2026-2027 budget was approved in May. The estimated monthly tax increase for an average-assessed home was approximately $6.92 based on the voter-approved budget. Following the LIPA adjustment, that estimate is approximately $9.58 per month.

Why did this change?

Historically, LIPA properties were included on the taxable portion of the Town’s assessment roll, and LIPA paid its obligation through the regular property tax levy. Beginning with the 2026-2027 school year, those properties are being removed from the taxable assessment roll. Instead, LIPA will make Payments in Lieu of Taxes, commonly referred to as PILOT payments.

It is important for our community to understand that Mount Sinai School District, like the other affected school districts, was not a party to the litigation between LIPA and the Town and did not participate in negotiating the settlement. The District was required to respond to the financial consequences of the agreement once its terms and impact became known.

In response to this change, the District reduced its 2026-2027 tax levy by $597,152, from $48,687,033 to $48,089,881. As a result, the District’s total tax levy is actually -0.51% lower than last year’s levy.

However, there is an important difference in how the new arrangement works. In prior years, when LIPA did not pay the full amount it was billed, Suffolk County made up the difference. With the properties now moving to PILOT status, the County is no longer legally permitted to fund that shortfall. As a result, a greater portion of the cost is shifted to the remaining taxable properties within the District.

What does this mean going forward?

The longer-term impact is also important. Because the District’s tax levy has been reduced, future levy growth will be calculated from a smaller base. In addition, increases in LIPA PILOT payments are not necessarily tied to increases permitted under the tax levy cap. Over time, this may result in a greater portion of the District’s tax levy being supported by residential and other taxable properties.

Building Our Future

We also want to take this opportunity to update the community on the significant progress made on the capital projects approved by Mount Sinai voters.

The new elementary school playground is complete and available for our students. The first phase of the elementary and middle school bathroom renovations has also been completed, providing updated facilities for students. In addition, the high school auditorium renovation is substantially complete, with only minor finishing work remaining.

The elementary school roof project is also nearing completion. These projects were among the major facility improvements highlighted for the community at the September Board meeting.

These projects represent important investments in our schools and are tangible examples of the work made possible through the community’s support of the District’s bond referendum. Additional projects will continue according to our capital improvement schedule.

We recognize that both long-term financial planning and investment in our facilities directly affect our students, families, and taxpayers. The Board of Education and District administration remain committed to carefully managing these responsibilities, communicating openly with our community, and ensuring that our decisions support both the educational program and the long-term financial health of the District.

Thank you for your continued support of the Mount Sinai School District.

Sincerely,

Dr. Christine Criscione, Superintendent and the Mount Sinai Board of Education