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CGR Charles Zettek Jr. Center for Governmental Research Rochester, NY 14614

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Presentation on theme: "CGR Charles Zettek Jr. Center for Governmental Research Rochester, NY 14614"— Presentation transcript:

1 CGR Charles Zettek Jr. Center for Governmental Research Rochester, NY 14614 czettek@cgr.org www.cgr.org

2 Inform & Empower CGR Dissolution Study Committee  Representing the Village  Corey Holcomb, Mayor  Margaret Bailey, Village Clerk  Carl Holcomb, Village Fire Department Chief  Tom Reff, Village Trustee  Philip Bortz, Resident  Representing the Town  Carl Anson Jr., Town Supervisor  Ronald Eldred, Town Council Member 2

3 Inform & Empower CGR Topics for Tonight  Review Process  Some Basic Facts about the Village and Town  The Dissolution Plan  Services  Assets  Fiscal and Tax Impact 3

4 Inform & Empower CGR Role of the Committee  The Dissolution Process being followed in Altmar is governed by General Municipal Law 17A.  On November 10, 2010, voters approved Dissolution of the Village.  The Village Board is required to develop a Dissolution Plan.  The Board appointed the Committee to develop a Draft plan.  The Plan must recommend options for how village assets, liabilities, obligations, personnel and services will be handled when the Village dissolves.  The Plan does not represent individual Committee members’ opinions about dissolution, but does represent the consensus of the Committee for what will happen when the Village dissolves. 4

5 Inform & Empower CGR Committee Process Over the Last 4 Months  Committee has met 5 times. With CGR, developed:  Initial Report for the Village of Altmar – describes how the Village and Town currently provide municipal services.  Draft Dissolution Plan – outlines how the functions and services of the Village would be continued, eliminated, or changed when the Village dissolves, and also the fiscal and tax implications of dissolution  Public feedback and suggestions requested throughout the process:  Start of each Committee meeting  Public Meeting tonight  Option to submit feedback via e-mail or phone or on-line.  Reports and information available at the project website: www.cgr.org/altmar 5

6 Inform & Empower CGR The Next Steps in the Process  Study Committee approves Draft Dissolution Plan  Plan is presented to Village Board. Village Board approves plan by May 31, 2011.  Board holds public hearing in July or August  After the Final Plan is adopted, residents have 45 days to petition for a referendum on the Plan.  If approved, Village will dissolve January 1, 2013 6

7 Inform & Empower CGR Population Trends Towns and Village Populations, 1950 - 2010 AltmarAlbion TOVAlbion Total 19502997371,036 19602778481,125 19704481,0041,452 19803471,3831,730 19903361,7072,043 20003511,7322,083 20104071,6662,073 Source: U.S. Census Bureau, Decennial Census & Population Estimates Note: Shaded is peak. 7 Table 1 on page 14 of “Proposed Dissolution Plan.”

8 Inform & Empower CGR Taxable Assessed Values in Village and Town Taxable Assessed Values Fiscal Year 2011 TAV% of total Village$10,433,91112.56% TOV$72,643,76687.44% Total$83,077,677100.00% Source: Oswego County Real Property Tax Service 8 Table 4C on page 18 of “Proposed Dissolution Plan.”

9 Inform & Empower CGR Expenditures & Tax Levies Budgeted Expenditures and Tax Levies - FY 2011 Total Budgeted Expenditures % of TotalTax Levy% of Total Village$209,90718%$67,00914% Town$932,18582%$402,19586% General$293,48826%$158,44834% General TOV$14,0001%$00% Highway$303,62527%$113,37524% Highway TOV$238,57221%$47,87210% Fire District$82,5007%$82,50018% Total$1,142,092100%$469,204100% Source: Altmar Village 2010 – 2011 Budget and 2011 Albion Town Budget 9 Table 5 on page 20 of “Proposed Dissolution Plan.”

10 Inform & Empower CGR Current Village and Town Employees 10 Table 13 on page 28 of “Proposed Dissolution Plan.” FT = Full-time, PT = Part-time

11 Inform & Empower CGR Fund Balance Fund Balances Fund/PurposeFund Balance Village of Altmar As of 5/31/10 General Fund$16,696 Capital Reserve$31,667 Cemetery$84,128 Total$132,491 Town of Albion As of 12/31/10 General Fund Townwide$85,699 Town-Outside-Village$107,223 Highway Townwide$146,296 Town-Outside-Village$83,395 Total$422,613 Source: Village and Town 11 Table 11 on page 26 of “Proposed Dissolution Plan.”

12 Inform & Empower CGR Village Lease and Town Debt Obligations Outstanding Debt Purpose Principal Outstanding Village (As of 5/31/10) Fire truck purchased in May 2005 1 $78,951 Fire truck purchased in Nov. 2008 2 $72,255 Total$151,206 Town (As of 12/31/10) Highway Truck and Snow Plow Equipment 3 $185,314 Highway Garage 4 $100,000 Total$285,314 Source: Village and Town 1 The Village pays $22,155 annually in February, but this amount covers both principal and interest. The next payment, due 2-15-12, will cover principal ($18,376) and interest ($3,780) payments for 2012. The total cost of the fire truck, including 4.79% interest, is $221,552. Payments began in 2006, and the lease will be paid off in 2015. 2 The Village pays $11,415 annually in June, but this amount covers both principal and interest. The next payment, due 6-15-11, will cover principal ($7,427) and interest ($3,988) payments for 2011. The total cost of the fire truck, including 5.52% interest, is $114,155. Payments began in 2009, and the lease will be paid off in 2018. 3 Purchased October 2010. First payment due in October 2011 = $39,798. First interest payment due same time = $7,072. Future principal/interest payments to be made annually in October installments. 4 Debt on new highway garage will be paid off in 2014. Annual principal and interest payments are due in the fall. 2011 payments = $25,000 (principal) and $4,917 (interest). 12 Table 12 on page 27 of “Proposed Dissolution Plan.”

13 Inform & Empower CGR  Plan Requirements set forward in General Municipal Law 17-A §782.  The Dissolution Plan projects how services, costs, and taxes will be affected by dissolution. 13 Basic Elements of Draft Dissolution Plan

14 Inform & Empower CGR Plan Paragraph 4 – Dissolution Cost  The fiscal estimate of the cost of the dissolution is approximately $75,000. This includes the following cost components:  Consultant fees: $42,000 (funded primarily with a New York State Local Government Efficiency grant)  Legal fees: $25,000 (includes an estimate for the fire department incorporation of $3,000 - $4,000)  Miscellaneous advertisement fees, public referendum fees, etc.: $8,000. 14

15 Inform & Empower CGR  Elimination of Village Employee Positions & Direct Savings  Mayor and Village Board - $5,850  Village Clerk – $6,850  Two part-time Department of Public Works positions – $10,100  Assumed Responsibility  Position of Cemetery Superintendent is eliminated; however, Town assumes responsibility and takes charge of restricted cemetery fund. Town decides whom to hire/contract.  Expense of part-time Municipal Building Maintenance Helper will be assumed by town. Town decides whom to hire/contract.  Expense of part-time Village Code Enforcement Officer will be assumed by town. Town decides whom to hire/contract. 15 Plan Paragraph 5 – Elimination of Village Positions

16 Inform & Empower CGR  Insured values of Village municipal structures and building contents: $905,500  Insured values of Village owned machinery and equipment: $64,400  Insured values of Village owned Fire Apparatus & Equipment: $898,600  Current General Fund balance: $16,696  Current/replacement value of Village streets, sidewalks, and storm sewers have never been determined.  Street light poles, conduits, and fixtures are owned by National Grid. 16 Plan Paragraph 6 – Village Assets

17 Inform & Empower CGR  Liabilities: None known at this time. No current lawsuits or proceedings.  Indebtedness: Village has no long-term bonded indebtedness.  Village has two long-term lease-purchase agreement for two fire trucks. Under GML 109-B, lease-purchase agreements are not classified as debt, as they are subject to annual municipal appropriations that can be terminated upon failure to appropriate funding for lease. 17 Plan Paragraph 7 – Village Liabilities & Indebtedness

18 Inform & Empower CGR  The Village and Town currently have no agreements in place in order to carry out the dissolution.  Village will seek an IMA with the Town whereby Town agrees to carry out the Board-adopted Village Dissolution Plan.  Including specific details regarding provision for fire and EMS services. 18 Plan Paragraph 8 – Inter-Municipal Agreements

19 Inform & Empower CGR  The following services formerly provided by Village will be provided by Town:  Local government representation  Clerical and administrative services (there will be no additional compensation to current Town employees)  Code enforcement service  Road, storm sewer, building maintenance, street sweeping and related services  Mowing of municipal building grounds and the cemetery  Fire and EMS under contract with the Fire Corporation More Detailed Explanation in Paragraph 14 which follows. 19 Plan Paragraph 9 – Continuation of Services

20 Inform & Empower CGR  Village will dispose of those assets remaining on the effective date of dissolution by turning them over to the Town.  Village cannot project whether there will be uncollected taxes upon date of dissolution; however, any uncollected taxes will have been turned over to County per current practice. 20 Plan Paragraph 10 – Disposal of Village Assets

21 Inform & Empower CGR  8 Village ordinances that are outdated or no longer applicable will not become part of town law  11 Village laws would need to be rewritten as Town laws but with little substantive revision  4 of the 11 closely correlate with existing Town laws  Two years after dissolution, all Town laws apply to the former Village. 21 Plan Paragraph 11 – Laws & Ordinances Full listing of Village Ordinances in Appendix C of “Proposed Dissolution Plan.”

22 Inform & Empower CGR  Village will dissolve effective 12:00 a.m. on January 1, 2013 22 Plan Paragraph 12 – Date of Dissolution

23 Inform & Empower CGR  Village cemetery will be preserved and maintained by Town. Current Village cemetery fund will kept as separate restricted fund. Only interest is available for use to maintain cemetery.  Street lighting within former Village will be continued by Town but costs shall be levied through special assessment district that includes all former Village properties.  Sidewalk maintenance, repair and replacement will become responsibility of Village residents. Town law regarding requirements will be developed.  Brush and leaf pick-up will be eliminated.  Spring street sweeping and storm sewer maintenance will be provided by Town. 23 Plan Paragraph 14 – Specific Service Impacts

24 Inform & Empower CGR Plan Paragraph 14 - Fire  Summary of Fire Services – Effectively no change in services 1. Village Fire Dept. will become an independent fire corporation 2. Town will contract with Fire corporation just like it currently contracts with the Village 3. Current Village owned equipment will become Town owned 4. Town will Lease Town equipment to the fire corporation 5. Town will continue to lease the fire garage and hall to the fire corporation 6. Over time, fire corporation will own all its equipment 7. Fire corporation will provide annual budget to Town to approve 8. All town taxpayers share the costs equally 24

25 Inform & Empower CGR  Fire & EMS Services will continue to be provided from what is the current Village fire department, with these changes:  Former Village will be included in Town fire protection district  Current Village Fire Department will incorporate as an independent not-for-profit fire corporation  Town will contract with new fire corp. and will levy separate tax on all required properties  Current Village-owned fire department assets will transfer to Town  Town will lease the assets to new fire corp. for a $1/year.  The lease-purchase agreement for the 2 fire trucks will be assumed by new fire corp., pending agreement from leasing company. Otherwise this will go to Town. 25 Plan Paragraph 14 – Fire Detail

26 Inform & Empower CGR  Other assets leased by Town to new fire corp. will remain Town assets for useful life of assets.  New fire corp. will build into its annual operating budget an equipment and asset reserve fund used to purchase new apparatus, equipment and miscellaneous assets as needed.  At some point, all assets used by fire corp. will be owned by fire corp. with the exception of the building, which remains Town-owned.  Town will lease building the houses current Village fire department to new fire corp. Town may provided costs in kind to offset fire corp.’s annual budget.  The Town will lease to the fire corp. for a nominal amount, for a 99 year lease, the former Village property on Mexico St. which serves as a holding pond to provide water needed for use in firefighting, or will enter into some satisfactory arrangement that protects holding pond for use. 26 Plan Paragraph 14 - Fire Detail (Continued)

27 Inform & Empower CGR Fiscal and Tax Impact Analysis  Projected savings  State Consolidation Incentive Funding  Current Tax Rates  Projected Tax Impact  Sample Municipal Property Tax Costs 27

28 Inform & Empower CGR Projected Savings 28 Table F1 on page 10 of “Proposed Dissolution Plan.” For detailed expenditure and revenue impacts, see Appendix B.

29 Inform & Empower CGR  Projected reduction in expenditures is estimated to be $36,540.  Most Village revenues go to Town  Gross Utilities Tax and Prior Year Taxes revenues will no longer apply after dissolution, reducing revenues by $5,250.  Projected Net Cost Savings: $31,290. 29 Projected Savings

30 Inform & Empower CGR State Consolidation Incentive Funding  AIM Consolidation Incentive Money from NYS  Now called Citizens’ Empowerment Tax Credit  State will increase AIM funding by 15% of current combined Village and Town levies on an on-going basis.  NEW AIM estimate to be added to current AIM = $58,006  Dissolution plan shows tax impact with and without New AIM  All AIM is subject to annual appropriations in the New York State budget process  70% of the additional funding must go to property tax relief 30 Page 12 of “Proposed Dissolution Plan.”

31 Inform & Empower CGR Altmar & Albion: Current Municipal Tax Rates 31 Table F2 on page 11 of “Proposed Dissolution Plan.” For more on current tax rates, see pgs 16-17.

32 Inform & Empower CGR New Tax Rates Without New AIM 32 Table F3 on page 12 of “Proposed Dissolution Plan.”

33 Inform & Empower CGR New Tax Rates With New AIM 33 Table F4 on page 12 of “Proposed Dissolution Plan.”

34 Inform & Empower CGR Summary of Municipal Tax Impact 34 Table F5 on page 13 of “Proposed Dissolution Plan.”

35 Inform & Empower CGR 35 Sample Change in Municipal Property Tax Rates Table F5 on page 13 of “Proposed Dissolution Plan.” Note: Projections include town-wide and fire taxes. Former Village projections include special lighting district tax.

36 Inform & Empower CGR The Next Steps in the Process  Study Committee approves Draft Dissolution Plan  Plan is presented to Village Board. Village Board approves plan by May 31, 2011.  Board holds public hearing in July or August  After the Final Plan is adopted, residents have 45 days to petition for a referendum on the Plan.  If approved, Village will dissolve 1/1/13 36

37 Inform & Empower CGR 37 THANK YOU! All reports and information are available at www.cgr.org/altmar QUESTIONS/COMMENTS


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