Lakota will expect to receive a Duke Energy payment of $600,000 in August This is unfortunately not impacting Lakota’s expected negative cash balance of $10 million expected in 2012, as the current five year forecast was completed prior to Duke’s decision not to pay taxes. “We certainly appreciate Duke’s effort to soften the blow, but this does not change our need for funding,” Interim Treasurer Alan Hutchinson explained. “Lakota expects to receive two payments per year of $750,000 each for a total of $1.5 million in tax revenue from Duke Energy. The recent last minute decision by Duke to remove a large portion of this revenue was not factored into the current financial planning or need, as its occurrence was so immediate. Because of this, we are happy to have the revenue, and it will provide some relief to the district, however it was not originally factored into the current cash balance shortfall expected in 2012, and thus will not help to remove our existing 2012 $10 million negative cash balance ” he continued.

Lakota received one payment in February of 2010 from Duke for $750,000. With this current information, Lakota expects to receive and August payment of $600,000. Next year’s tax revenue is up for consideration as the Ohio Taxation Department works through the situation with Duke. “This buys everyone a little bit of time, however I think it illustrates how cloudy our financial future is, when one minute you are told to expect less revenue, then you are told you will receive it. What this does is make planning extremely challenging, especially when we are forecasting five years into the future. Factor in changes at the state and concern about the state economy and it becomes even more challenging,” stated Hutchinson.

Contact: Laura Kursman, 874-5505
Date: July 14, 2010