FORNEY, Texas — The Forney City Council approved a new six-year agreement with Luminant, formerly NextEra Energy, for a payment-in-lieu-of-taxes in lieu of annexation and, in doing so, ceased ongoing annexation proceedings.
FORNEY, Texas — The Forney City Council approved a new six-year agreement with Luminant, formerly NextEra Energy, for a payment-in-lieu-of-taxes in lieu of annexation and, in doing so, ceased ongoing annexation proceedings.
In April, the Forney City Council set in motion the process to annex the power plant, which is Kaufman County’s largest tax payer, after it was recently acquired by Luminant.
The new agreement shortens the current agreement by one year and adds a stipulation of voluntary annexation in 2022 for the power plant to be on the tax rolls in 2023, according to Mayor Pro-Tem Ray Stephens. The previous agreement was set to expire in 2024.
Stephens says the new contract will require the passage of a new ordinance which will likely take place at the first regularly-scheduled council meeting in September.
In the new agreement, Luminant agreed to increase their annual payments by $180,000, provide a $400,000 community benefit fund, and will change their annual payment to February of each year in advance of the next year's fiscal year budget.
The city will receive its standard payment-in-lieu-of-taxes in October 2017 which will be included in the Fiscal Year 2017 budget. In February 2018, Luminant will make an advanced payment for the Fiscal Year 2018 budget. The annual payments will continue to be made in Febraury in advance of the next year's fiscal year budget until the final payment in Febraury 2022 which will be considered in the Fiscal Year 2023 budget.
With the addition of $180,000 to the annual payment, the payment structure is as follows: $2.53 million in 2018; $2.28 million in 2019; $2.28 million in 2020; $2.28 million in 2021; and $2.28 million in 2022.
“This is a win-win for both of us,” stated Stephens. “I personally believe, and I think some of the other members too, this is a fair deal for us and for the community.”
The council unanimously approved the new agreement.
“I think we came together with a great proposal and we had some things we were in conflict with,” stated Luminant Vice President of Community Affairs Kelli Rod. “We believe we had a valid agreement but we also believe in Forney and we believe in that power plant at the bottom of the hill.”
“At the end of the day, we are very excited to be a part of Forney,” stated Rod.
Rod said, in addition to the community benefit fund, Luminant would like to place three trees in commemoration of the new partnership — representing the City of Forney, Luminant, and the dedicated Luminant employees at the Forney power plant.
Editor's Note: An original version of this article described the advanced payment in Febraury 2017 as an extra payment which was how it was previously described to inForney.com. Upon clarification, the term "extra payment" was corrected to reflect "advanced payment." The terms of the agreement remain unchanged and, over the life of the agreement, Luminant will pay the same amount as previously reported with no extra annual payments.