Q: What is the agreement between Phillips Academy and the Town of Andover regarding Phillips Academy's annual payment in lieu of taxes that it makes in return for services provided by the Town?
A: Phillips Academy, as a non-profit entity, does not have to pay property taxes. However, it does receive services from the Town, so in recognition of that it makes an annual payment in lieu of taxes (PILOT) contribution. The current Phillips Academy donation agreement, which expires June 30, 2013, is for 5 years. In FY 2009, they paid $150,000 and will contribute $153,900 in FY 2010. The agreement has an escalation clause tied to the increase in the average single family tax bill, which increased 2.6% in FY2010. When the current agreement expires, it can be renegotiated.
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That sounds like a good deal...for Phillips. Has anyone gone around and assessed their buildings lately? Does that PILOT "contribution" include their faculty housing? I hope the renegotiation is aggressive; PA needs to cough up a LOT more than they're doing now...no wonder taxes for the average schmuck are going up. We're covering those guys!
ReplyDeleteWho in Andover negotiated that agreement? This is disgraceful.
ReplyDeletePhillips is certainly not paying their fair share, especially in light of the cutbacks the rest of Andover is facing.
ReplyDeleteIn answer to the question above regarding who negotiates the agreement: the PILOT contribution agreement between the Town and Phillips Academy is negotiated by the Town Manager, with assistance from the Finance Director and the Assessor, and it is reviewed by the Board of Selectmen and Town Counsel. The Board of Selectmen votes to give the Town Manager Authority to sign it on behalf of the Town.
ReplyDeleteI agree with other people here. We need to negotiate much more from Phillips. They benefit from town services among other things (that we the taxpayers are funding) and what exactly are they giving back to our community that is worth what we could get in $$$? The average citizen derives no benefit from Phillips' presence. Plus they can unilaterally make changes that hurt Andover -- changes to perks we probably considered when negotiating what they pay in lieu of taxes. For example, this year they cut an Andover summer camp this year -- and I'm sure there's more.
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