WEBSTER CENTRAL SCHOOL DISTRICT Brian Freeman, Assistant Superintendent for Business 119 South Avenue, Webster, NY 14580 (585)216-0017 brian_freeman@webstercsd.org
Brian Neenan, Superintendent From: Brian Freeman, Assistant Superintendent for Business Re: Appeal of Heritage Christian Services Tax Certiorari Ruling Cc: Board of Education Date: 8/7/2024 The Monroe County Supreme Court has made a decision that the Expressive Beginnings childcare program, which is owned by Heritage Christian Services, located at 10 May Street in the Town of Webster, has been declared tax exempt beginning in 2017 through present. The decision requires that the School District pay refunds as outlined below:
Year 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Tax Parcel 080.06-1-42.102 080.06-1-42.102 080.06-1-42.102 080.06-1-42.102 080.06-1-42.102 080.06-1-42.102 080.06-1-42.102
Assessment $1,387,500 $1,507,500 $1,507,500 $1,507,500 $1,507,500 $1,507,500 $1,507,500
Assessment Decision
Difference Tax Rate Refund $0 $1,387,500 $24.581671 $34,107.07 $0 $1,507,500 $25.055105 $37,770.57 $0 $1,507,500 $25.542376 $38,505.13 $0 $1,507,500 $26.198871 $39,494.80 $0 $1,507,500 $26.792067 $40,389.04 $0 $1,507,500 $27.141003 $40,915.06 $0 $1,507,500 $27.683099 $41,732.27 Total Refund Calculation $272,913.94 Expected Interest $46,000.00 Total Refund Decision $318,913.94
Last year our joint attorneys for the Town and School District filed a motion with the Court asking to declare the property as nonexempt from real property taxes and, in response, the attorneys for Heritage Christian filed a cross-motion, which sought to have the property exempt from real property taxes based on the criteria in Real Property Tax Law § 420-a. In its decision, the Court accepted most, if not all, of the statements made by Heritage Christian as true. Similarly, the Court rejected all but one of the arguments the Town and School District raised on behalf of the taxing jurisdictions in seeking to keep this property on the tax rolls. In doing so, the Court granted Heritage Christian's request to be tax exempt. It is the opinion of legal counsel that the reasoning by the Court that led to the decision is flawed and the conclusions about factual questions relating to the operation of Expressive Beginnings are inappropriate. Therefore, we would recommend filing and pursuing an appeal of this decision to reverse the decision. Our potential appeal would overturn this decision because the Court makes important factual determinations that should be determined at a trial, not based on written affidavits from Heritage Christian owners, where the School District and Town are denied the ability to cross-examine or question the validity of the allegations made by Heritage Christian. For example, the Court made a factual determination that "Expressive Beginnings”
has higher operating costs than a typical childcare facility “because of the mainstreaming philosophy” and "a greater number of well-trained staff than traditional childcare." In our view, the record does not support the Court's conclusions and should be reversed on appeal. Below you will find a resolution prepared by our school district attorney for the appeal of the decision. Based on this information, the opinion of our school district attorney in conjunction with the Town of Webster attorney, it is recommended that the Board of Education approve the attached resolution to appeal the decision made by the court. This will require a general vote of the majority of the Board of Education. Please let me know if you have any additional questions. Thank you.
Ryan McCarthy, Esq. Lori Schreiber, Treasurer
RESOLUTION At a Regular Meeting of the Board of Education of the Webster Central School District (the “Board of Education”), held on August 19, 2024; The meeting was called to order by the President of the Board of Education, and upon roll being called, the following members were: PRESENT: ABSENT: OTHERS ALSO PRESENT: The following Resolution was offered by________________ and seconded by________________. WHEREAS, Heritage Christian Services, LLC filed tax certiorari proceedings challenging the assessment and the exemption status of its property otherwise known as 10 May Street in the Town of Webster, New York, for the 2016-17 through 2023-24 tax years; and WHEREAS, the Supreme Court Monroe County, on August 6, 2024 issued its Decision, Order and Judgment, which determined that the subject property was 100% tax exempt and ordered the School District to pay refunds and statutory interest for the 2017-2018 through 2023-2024 tax years; WHEREAS, the Board of Education wishes to authorize its attorneys Ferrara Fiorenza PC to pursue an appeal from each and every party of the Decision, Order and Judgment, which is adverse to the School District. NOW, THEREFORE, BE IT RESOLVED that: 1.
The Board of Education hereby authorizes Ferrara Fiorenza PC to fully prosecute an appeal from each and every aspect of the Decision adverse to the School District to the Appellate Division, Fourth Department, and authorizes and ratifies any and all actions already taken by Ferrara Fiorenza PC to enable and effectuate such an appeal.
2.
This Resolution shall take effect immediately.
The question of the adoption of the foregoing Resolution was duly put to a vote, which resulted as follows: AYES: NAYS: The Resolution was thereupon declared adopted. Dated: _____________
____________________________________ Webster Central School District Heather Murphy, District Clerk