charles zettek jr. center for governmental research rochester, ny 14614 czettek@cgr
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Village of Altmar Draft Dissolution Study & Plan Dissolution Study Committee Public Presentation May 11, 2011. Charles Zettek Jr. Center for Governmental Research Rochester, NY 14614 [email protected] www.cgr.org. Dissolution Study Committee. Representing the Village Corey Holcomb, Mayor - PowerPoint PPT PresentationTRANSCRIPT
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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
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Topics for Tonight Review Process Some Basic Facts about the Village and Town The Dissolution Plan
Services Assets
Fiscal and Tax Impact
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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.
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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
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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
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Population Trends
Towns and Village Populations, 1950 - 2010
Altmar Albion TOV Albion Total
1950 299 737 1,036
1960 277 848 1,125
1970 448 1,004 1,452
1980 347 1,383 1,730
1990 336 1,707 2,043
2000 351 1,732 2,083
2010 407 1,666 2,073Source: U.S. Census Bureau, Decennial Census & Population EstimatesNote: Shaded is peak.
7Table 1 on page 14 of “Proposed Dissolution Plan.”
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Taxable Assessed Values in Village and Town
Taxable Assessed ValuesFiscal Year 2011
TAV % of total
Village $10,433,911 12.56%
TOV $72,643,766 87.44%
Total $83,077,677 100.00%
Source: Oswego County Real Property Tax Service
8Table 4C on page 18 of “Proposed Dissolution Plan.”
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Expenditures & Tax Levies
Budgeted Expenditures and Tax Levies - FY 2011
Total Budgeted Expenditures
% of Total Tax Levy % of Total
Village $209,907 18% $67,009 14%Town $932,185 82% $402,195 86%
General $293,488 26% $158,448 34%General TOV $14,000 1% $0 0%Highway $303,625 27% $113,375 24%Highway TOV $238,572 21% $47,872 10%Fire District $82,500 7% $82,500 18%
Total $1,142,092 100% $469,204 100%Source: Altmar Village 2010 – 2011 Budget and 2011 Albion Town Budget
9Table 5 on page 20 of “Proposed Dissolution Plan.”
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Current Village and Town Employees
10Table 13 on page 28 of “Proposed Dissolution Plan.”
FT PT FT PTMayor/Town Supervisor 1 1Trustee/Councilman 2 4Clerk/Treasurer 1 2Assessor 2Code Enforcement 1 1Municipal Maintenance 3Court 2Highway 4 7TOTAL 0 8 4 19Source: Village of Altmar & Town of AlbionNote: Municipal Maintenance includes part-time work done in cemetery.
Village of Altmar Town of AlbionCurrent Staffing for Village & Town
FT = Full-time, PT = Part-time
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Fund Balance
Fund Balances Fund/Purpose Fund Balance
Village of AltmarAs of 5/31/10
General Fund $16,696Capital Reserve $31,667Cemetery $84,128Total $132,491
Town of AlbionAs of 12/31/10
General Fund Townwide $85,699Town-Outside-Village $107,223
Highway Townwide $146,296Town-Outside-Village $83,395
Total $422,613Source: Village and Town
11Table 11 on page 26 of “Proposed Dissolution Plan.”
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Village Lease and Town Debt ObligationsOutstanding Debt
PurposePrincipal Outstanding
Village(As of
5/31/10)
Fire truck purchased in May 20051 $78,951 Fire truck purchased in Nov. 20082 $72,255 Total $151,206
Town(As of
12/31/10)
Highway Truck and Snow Plow Equipment3 $185,314 Highway Garage4 $100,000Total $285,314
Source: Village and Town1The 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.
2The 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.
3Purchased 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.
4Debt 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).
12Table 12 on page 27 of “Proposed Dissolution Plan.”
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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.
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Basic Elements of Draft Dissolution Plan
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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.
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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.
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Plan Paragraph 5 – Elimination of Village Positions
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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.
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Plan Paragraph 6 – Village Assets
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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.
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Plan Paragraph 7 – Village Liabilities & Indebtedness
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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.
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Plan Paragraph 8 – Inter-Municipal Agreements
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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 CorporationMore Detailed Explanation in Paragraph 14 which follows.
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Plan Paragraph 9 – Continuation of Services
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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.
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Plan Paragraph 10 – Disposal of Village Assets
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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.
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Plan Paragraph 11 – Laws & Ordinances
Full listing of Village Ordinances in Appendix C of “Proposed Dissolution Plan.”
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Village will dissolve effective 12:00 a.m. on January 1, 2013
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Plan Paragraph 12 – Date of Dissolution
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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.
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Plan Paragraph 14 – Specific Service Impacts
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Plan Paragraph 14 - Fire Summary of Fire Services – Effectively no change in
services1. Village Fire Dept. will become an independent fire corporation2. Town will contract with Fire corporation just like it currently
contracts with the Village3. Current Village owned equipment will become Town owned4. Town will Lease Town equipment to the fire corporation5. Town will continue to lease the fire garage and hall to the fire
corporation6. Over time, fire corporation will own all its equipment7. Fire corporation will provide annual budget to Town to approve8. All town taxpayers share the costs equally
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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.
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Plan Paragraph 14 – Fire Detail
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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.
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Plan Paragraph 14 - Fire Detail (Continued)
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Fiscal and Tax Impact Analysis Projected savings State Consolidation Incentive Funding Current Tax Rates Projected Tax Impact Sample Municipal Property Tax Costs
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Projected Savings
28Table F1 on page 10 of “Proposed Dissolution Plan.” For detailed expenditure and revenue impacts, see Appendix B.
Category Personal Services Equipment Contractual TotalLegislative $3,600 - - $3,600Executive $2,000 - - $2,000Clerk $4,800 - $1,700 $6,500Municipal Staff (Attorney & Elections) $1,000 - $400 $1,400Unallocated Insurance - - $3,600 $3,600Public Health Vital Stats $50 - - $50Highway & Sanitation $8,500 $500 $500 $9,500Youth Program (No longer exists) - - $225 $225Tug Hill Commission - - $550 $550Records Management - - $150 $150Employee Benefits - - $3,565 $3,565Worker's Compensation - - $2,900 $2,900Unemployment Insurance - - $2,500 $2,500TOTAL $19,950 $500 $16,090 $36,540
Summary of Savings from Village Dissolution
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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.
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Projected Savings
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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
30Page 12 of “Proposed Dissolution Plan.”
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Altmar & Albion: Current Municipal Tax Rates
31Table F2 on page 11 of “Proposed Dissolution Plan.” For more on current tax rates, see pgs 16-17.
Expenditures $932,185
Revenues $529,990
Property Tax Levy Needed $402,195General $271,823 $3.27Highway TOV $47,872 $0.66Fire $82,500 $1.06
Total for TOV Taxpayer $4.99
Expenditures $209,907Revenues $142,898Property Tax Levy Needed $67,009
General (Village) $67,009 $6.45Townwide $3.27
Total for Village Taxpayer $9.72
TAX RATE
TAX RATE(Per $1000)
Current Tax Levy and Tax RatesTABLE F2
ALBION
ALTMAR
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New Tax Rates Without New AIM
32Table F3 on page 12 of “Proposed Dissolution Plan.”
Expenditures $1,023,052Revenues $581,113Property Tax Levy Needed $441,939
General $335,768 $4.04Fire $97,171 $1.17
$5.21Village Street Lighting $9,000 $0.86
$6.07
TABLE F3
Townwide Total for All Taxpayers
TAX RATE(Per $1000)
Post-Dissolution Tax Levy and Tax Rates
Townwide plus Lighting District for Village
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New Tax Rates With New AIM
33Table F4 on page 12 of “Proposed Dissolution Plan.”
Expenditures $1,023,052Revenues $581,113Additional AIM $58,006Property Tax Levy Needed $383,933
General $277,762 $3.34Fire $97,171 $1.17
$4.51Village Street Lighting $9,000 $0.86
$5.37
Townwide Total for All Taxpayers
Townwide plus Lighting Distrist for Village
TABLE F4
Tax Rate(Per $1000)
Post-Dissolution Tax Levy and Tax Rates with Additional AIM
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Summary of Municipal Tax Impact
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CurrentCurrent Tax Rate Change % Tax Rate Change %
TOV Town Taxpayer $4.99 $5.21 $0.22 4% $4.51 -$0.48 -10%
Village Taxpayer $9.72 $6.07 -$3.65 -38% $5.37 -$4.35 -45%
TABLE F5Impact of Dissolution on Tax Rates (Tax Rate per $1,000)
Post-Dissolution (Without AIM) Post-Dissolution (With AIM)
Note: Table only represents impact of dissolution on Town and Village Tax Rates
Table F5 on page 13 of “Proposed Dissolution Plan.”
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Sample Change in Municipal Property Tax Rates
Table F5 on page 13 of “Proposed Dissolution Plan.”
Town Village Town Former Village Town Former Village$25,000 $125 $243 $130 $152 $113 $134$50,000 $250 $486 $261 $304 $226 $269$75,000 $374 $729 $391 $456 $338 $403
TABLE F6
With Add'l AIMWithout Add'l AIM
Projection of Actual Municipal Property TaxesPost-DissolutionCurrentAssessed Value
Note: Projections include town-wide and fire taxes. Former Village projections include special lighting district tax.
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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
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THANK YOU!
All reports and information are available at www.cgr.org/altmar
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