Public Informational Meeting #1 Existing Conditions Report

January 6, 2016 6:00 pm Clifton Fine School Auditorium

Towns of Clifton and Fine

Efficiency/Consolidation Study

Visit the website: www.danc.org/operations/engineering/clifton-fine-efficiencyconsolidation-study

Study Committee

• Chuck Hooven, Town of Clifton Supervisor • Susan Westbrook, Town of Fine Supervisor • Jerry Cooper • Sherm Craig • Joe DeMart • Brian Donovan • Roger Folsom • Mark Hall • Cory Perrault • Bill Reil • Kelly Smith II • Chris Westbrook Consultant: • Development Authority of the North Country

– Carrie Tuttle, Director of Engineering – Star Carter, GIS Analyst

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Study Committee meetings are open to the public. You are encouraged to attend or follow along with the website, where all presentations, meeting minutes, and supporting documents are posted.

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Topics to Be Covered

• Funding for Study

• Efficiency/Consolidation Study Process

• Draft Existing Conditions Report

• Next Steps/Schedule

• Department of State Overview of Process

• Questions

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Efficiency/Consolidation Study Funding

• The Town Boards applied for a $25,000 Citizen Reorganization Empowerment Grant • The NYS Department of State awarded the grant to the Towns in November 2014 • The grant will cover 50% of the cost of the $50,000 Efficiency/Consolidation Study and

the remaining cost of the study will be split evenly between each Town (i.e., $12,500 paid by each Town). • NOTE: If the Towns proceed with consolidation NYS Department of State will

reimburse all but 10% of the cost of the study. This study is being funded by and prepared in accordance with the New York State Department of State Work Plan requirements, as outlined in Contract No. T00001GG-3800000.

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Efficiency/Consolidation Study Process

Phase 1: Existing Conditions • What services do the Towns provide to residents? • How are Town services provided? • Town financial, employee, and asset review • Town taxes review Phase 2: Evaluation of Alternatives • How can Town services be provided differently to increase efficiency? • Study Committee will look at many options to alternative service delivery, up to and

including Town consolidation Phase 3: Recommendations and Final Report • Study Committee will submit final report to the Clifton and Fine Town Boards • Town Boards will vote to accept Recommendations and Final Report

Phase 4: Public Hearing and Referendum • If recommendation is to consolidate the two Towns, the Town registered voters will

vote • Must be a majority vote in favor of consolidation in BOTH Towns to pass

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Efficiency/Consolidation Study DRAFT Existing Conditions Report

The following is a summary of the DRAFT Existing Conditions Report that the Study Committee has

researched and assembled over the past year.

The full report and all supporting documentation can be referenced on the study website:

www.danc.org/operations/engineering/clifton-fine-efficiencyconsolidation-study

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Clifton and Fine, NY

Town History

• The Town of Clifton was established in April 1868 ; Town of Fine was established in March 1849 • Town histories are linked to logging, mining, and paper processing

Industry • Logging was a major local industry in the early 1900s, centered around Cranberry and Star Lake areas;

The last large logging mill closed in 1927 • Mining in the Town of Clifton began in 1867, at an iron ore mine called the Clifton Mine • Mining at the Jones & Laughlin (J&L) site began in 1889 as a magnetite and martite mine • The Benson Mine was once the largest strip mine in the World • The Jones & Laughlin (J&L) iron ore processing facility ceased operations in 1977

• At its peak it employed upwards of 1,200 people and paid $2M per year in taxes • State, federal & local agencies have been working for the last ~30 years to characterize, assess and

remediate the J&L site • Newton Falls mill opened in 1895 as a saw mill, that later became a paper mill and closed permanently

and assets sold in 2013 • 26% of the APA Industrial Use classified lands are located in Clifton, including the J&L site, Benson

Mines and Newton Falls Fine Paper Mill • Combined job losses are estimated at over 2,000 in the last 39 years

Today the largest employment category in Clifton-Fine is education, health care, and social assistance

Loss of industry and jobs has resulted in a decline in population and real property tax base

Source: US Census Bureau

Census Population Data

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Clifton and Fine Town Populations, 1950-2010

Clifton Fine Total

1950 1,382 1,875 3,257

1960 1,306 2,391 3,697

1970 1,022 2,248 3,270

1980 1,005 2,243 3,248

1990 917 1,813 2,730

2000 791 1,622 2,413

2010 751 1,512 2,263

2013 Population Estimate: Town of Clifton = 745 Town of Fine = 1,479

Source: US Census Bureau

Population Trends Since 1950

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St. Lawrence County Towns by Population (2010 Census data):

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Town Population

Clare 105

Piercefield 310

Clifton 751

Pitcairn 846

Rossie 877

Macomb 906

DePeyster 998

Hopkinton 1,077

Hermon 1,108

Edwards 1,156

Hammond 1,191

Colton 1,451

Fine 1,512

Madrid 1,735

Lawrence 1,826

Russell 1,856

Town Population

Morristown 1,974

Parishville 2,153

Fowler 2,202

Waddington 2,266

DeKalb 2,434

Brasher 2,512

Pierrepont 2,589

Louisville 3,145

Stockholm 3,665

Lisbon 4,102

Oswegatchie 4,397

Norfolk 4,668

Gouverneur 7,085

Canton 10,995

Massena 12,883

Potsdam 16,041

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St. Lawrence County Hamlets and other “Census Designated Places” by Population: (2010 Census Data unless otherwise noted)

Hamlets and Places Population

Wanakena (estimate based on sewer customers - no census data)

105

Cranberry Lake 200

Remainder of Clifton including Newton Falls

293

Colton 345

Winthrop 510

DeKalb Junction 519

Hailesboro 624

Parishville 647

Brasher Falls 669

Madrid 757

Star Lake (Town of Clifton 258, Fine 551) 809

Remainder of Fine including Oswegatchie & Fine 856

Hannawa Falls 1,042

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School Districts The consolidation study will have no impact on either school or County taxes, since these are separate from the Town taxes.

The data below is for reference purposes only.

Source: NYS Education Department; https://reportcards.nysed.gov/schools.php?district=800000038857&year=2006

The Clifton-Fine School District has lost 75% of its students

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Special Districts - Water and Sewer The results of this study will not affect Water and Sewer Special District boundaries or charges. Residents who are currently within a Water or Sewer District will continue to pay for and receive these services. The debt and fund balances for each district will also remain part of the district, regardless of what the Towns decide in respect to consolidation. Water and sewer operations were evaluated to identify potential opportunities to improve efficiencies and delivery of services.

Town of Fine Water & Sewer Districts Town of Clifton Water & Sewer Districts

Star Lake Water District Newton Falls Water District

Wanakena Sewer District

Star Lake Water District (formerly Woodhaven Water District)

Newton Falls Sewer District

Note: Wanakena Water is supplied by a private water company and not under the jurisdiction of the town; as such this Study does not include the operation/delivery of

services for this district.

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Special Districts - Fire and Rescue This study will not directly affect the Fire and Rescue Special Districts, but the complexity of the current situation within the Towns suggests that there may be options for making fire and rescue service more efficient. There are 8 different Fire/Rescue Districts, 4 in each Town.

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$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2012 2013 2014 2015

Fine: Star Lake Ambulance

Fine: Fine Fire District

Fine: Star Lake FD

Fine: Star Lake FireProtection District

Clifton: Star Lake FPD

Clifton: West CliftonAmbulance

Clifton: Newton Falls

Clifton: Cranberry Lake

Clifton-Fine Fire & Rescue Annual Tax Levies

Total Clifton: $254,345 Total Fine: $261,164

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2015 Real Property Information

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Taxable Assessed Value (TAV) % of Total

Clifton $188,177,623 60%

Fine $126,000,937 40%

Total $314,178,560 100%

60% 40%

Total Taxable Assessed Value

Clifton Fine

Source: 2015 Tax Rolls St. Lawrence County Real Property: http://www.co.st-lawrence.ny.us/departments/realproperty/

Clifton’s TAV is higher due to: • More seasonal property with higher value

$44M TAV versus $16M $146,050 median value versus $56,300

• More taxable State land $76M TAV versus $24M

• Fine has several large tax-exempt properties Ranger School Clifton-Fine Central School Hospital

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Breakdown of Town Revenues 2014 Actuals

Clifton Fine Total

General Fund $567,403 $529,190 $1,096,593

Highway $721,564 $874,196 $1,595,760

Total $1,288,967 $1,403,386 $2,692,353

52% 48%

General

Clifton Fine

45% 55%

Highway

Clifton Fine

Source: 2014 AUDs Town of Clifton and Town of Fine

Note: • Fine has 2 times the road miles to maintain and receives more CHIPS funds to cover expenses

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Clifton Revenues - General Fund 2014 Actual Total: $567,403

Real Property

Taxes 86%

Departmental Income

1%

Intergovernment Charges

<1%

Total Use of Money and Property

1%

Total Licenses and Permits

<1%

Total Fines and Forfeitures

3%

Sale of Property and Compensation

for Loss 5%

Miscellaneous Local Sources

<1%

State Aid 4%

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Fine Revenues - General Fund 2014 Actual Total: $529,190

Real Property

Taxes 84%

Departmental Income

1%

Intergovernment Charges

<1%

Total Use of Money and Property

1%

Total Licenses and Permits

<1%

Total Fines and Forfeitures

3%

Sale of Property and Compensation

for Loss <1%

Miscellaneous Local Sources

<1%

State Aid 11%

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Town Revenues - Highway 2014 Actual

81%

8%

7%

3%

0% 0% 0%

1%

Clifton Highway: $721,564

Real Property Tax

State Aid- CHIPS

Snow Removal

Interfund Transfer

Interest &EarningsSales of Scrap

InsuranceRecoverySales ofEquipment

75%

2% 0%

1% 0%

2%

20%

Fine Highway: $874,196

Real PropertyTax

Snow Removal

Interest &Earnings

Sales of Scrap

InsuranceRecovery

InterfundTransfer

State Aid- CHIPS

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Breakdown of Total Expenditures 2014 Actuals

48% 52%

General

Clifton Fine

Clifton Fine Total

General Fund $518,182 $570,835 $1,089,017

Highway $622,708 $1,008,696 $1,631,404

Total $1,140,890 $1,579,534 $2,720,421

38% 62%

Highway

Clifton Fine

Source: 2014 AUDs Town of Clifton and Town of Fine

Note: • Fine purchased new equipment in 2014, increasing their expenditures

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Clifton Expenditures - General Fund 2014 Actual Total: $518,182

General Government Support

36%

Public Safety 1%

Health 3%

Transportation 20%

Economic Assistance and Opportunity

<1%

Culture and Recreation

10%

Home and Community Services

2%

Employee Benefits 15%

Debt Service <1%

Interfund Transfer <1%

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Fine Expenditures - General Fund 2014 Actual Total: $570,835

General Government Support

42%

Public Safety 4%

Health 8%

Transportation 5%

Economic Assistance and Opportunity

6%

Culture and Recreation

1%

Home and Community Services

9%

Employee Benefits 10%

Debt Service 11%

Interfund Transfer 4%

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Total Expenditures - Highway 2014 Actual

21%

0%

7%

37%

28%

7%

Clifton Highway Expenditures: $622,708 Maintenance of

Roads andBridgesPermanentImprovements

Machinery

Snow Removal

Benefits

Debt

15%

23%

21%

24%

16%

1%

Fine Highway Expenditures: $1,008,696

Maintenance ofRoads andBridgesPermanentImprovements

Machinery

Snow Removal

Benefits

Services to otherGovernments

Note: • Fine has 2x the road miles to maintain and receives more CHIPS funds to cover expenses • Fine purchased new equipment in 2014, increasing their expenditures

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Actual Fund Balances as of December 31, 2014

Clifton Fine

General Fund $46,062 (96%) $112,596 (57%)

Highway $2,053 (4%) $85,440 (43%)

Total $48,115 (100%) $198,036 (100%)

Unexpended Fund Balances can be credited back to respective Town taxpayers in the year before consolidation

takes effect or used to pay down existing debt.

Source: 2014 AUDs Town of Clifton and Town of Fine

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Projected Debt Levels as of 12/31/15 Clifton Fine

General Fund $0 $180,000 3

Highway $305,562 1 $0

Water $0 $0

Sewer $710,000 2 $182,300 4

Total $1,015,562 $362,300

1 Clifton’s existing Highway debt will be paid off in 2020. 2 Newton Falls Sewer debt will be paid off in ~30 years. 3 Fine’s existing debt for the Highway Barn will be paid off in 2018. 4 Sewer debt will be paid of ~29 years.

Source: Debt Schedule Documents from Town of Clifton and Town of Fine

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2015 Total Tax Levy

Tax Levy % of Total

Town of Clifton $1,220,423 52%

Town of Fine $1,134,895 48%

Total $2,213,409 100%

52% 48%

Total Combined Tax Levy

Clifton Fine

Source: 2015 Budgets Town of Clifton and Town of Fine

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2015 Tax Rates Per $1,000 of Assessed Value

2015 Property Tax Item* Clifton Fine

Town $2.737616 $3.822054

Highway $3.747937 $5.188969

Total $6.49 $9.01

* County and School taxes are not affected by consolidation or efficiencies, and therefore are not included as part of this study. Taxes on special districts, including water, sewer, and fire protection, are not included in this presentation because they are applied only to properties within each special district (at different rates) and are not Town-wide. This table shows the Tax Items that are applied to all properties Town-wide and at the same rate.

Source: 2015 Tax Rates St. Lawrence County Real Property: http://www.co.st-lawrence.ny.us/departments/realproperty/

Services Provided by the Towns • Highway Department

– Maintains roads, bridges, culverts, sidewalks, mowing, snow removal, gravel pits, cemeteries, etc.

– Fine has more than 2x the miles of roads to maintain

– Each Town has 1 Highway Superintendent and 6 full time highway employees

– Transportation costs per road mile: • Clifton: $19,901

• Fine: $13,568

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Services Provided by the Towns

• Fire Protection and Rescue

• Water, Sewer, and Street Lighting

• General

– Clerk, Tax Collection, Real Property Assessment, Code Enforcement, Town Justice, Dog Control, Insect Control, Buildings, Safety Officer, etc.

• Recreation and Library

– Arena, Golf Course, Beach, Youth Program

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Current Shared Services

The Towns have a history of shared services. Intermunicipal agreements (IMA) exist to share the

costs, maintenance, and operations for the:

• Clifton Fine Golf Course

• Clifton Fine Arena

• Joint Youth Program

Elected Officials & Employee Staffing

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8 Elected Officials in Each Town 1 Supervisor 4 Board Members 1 Clerk 1 Highway Superintendent 1 Justice

Staffing Totals

Clifton: 9 Full-time 30 Part-time and/or seasonal

Fine: 10 Full-time 44 Part-time and/or seasonal

Town Expenses for Salaries and Benefits

Town Costs per Employee (Total Salaries & Benefits / Total # of Employees)

Clifton: $18,291 Fine: $15,831

SOME Potential Cost Savings from Consolidation

• Citizens Empowerment Tax Credit • Insurance Costs

– Employee health insurance/benefits – Property insurance

• Municipal association dues • Software license fees • Board member salaries • Consolidation of contracted services (i.e., dog

control) • Other Efficiencies…TBD (Part 2 of Study)

35 Source: 2015 Tax Rolls St. Lawrence County Real Property, 2015 Town Budgets

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Clifton-Fine Consolidation Estimated Tax Credit

Total Tax Levy 2015 $2,355,318

Estimated Citizens Empowerment Tax Credit (15% of total levy in year prior to consolidation)

($353,298)

IMPORTANT NOTES

Tax Credit is paid by NYS in perpetuity in the form of additional state aid.

70% of the tax credit must be applied to tax reductions.

These preliminary figures are based on current assessed values (2015). The actual combined tax rate and tax credit will based on the assessed values at

the time of consolidation. These projected figures may change.

Source: 2015 Tax Rolls St. Lawrence County Real Property, 2015 Town Budgets

Next Steps

• Evaluation of Alternatives (Part 2 of Study)

• Existing Conditions: We now understand how services are delivered and how much they cost

• Now we consider if there are more efficient ways to deliver services

• Are there opportunities for additional shared services to save tax payers dollars?

• How would consolidation impact tax rates in both towns?

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Efficiency/Consolidation Study Schedule

Study Phase/Activity Date

Existing Conditions January 2015 - December 2015

Public Informational Meeting #1 Existing Conditions Report

January 6, 2016

Evaluation of Alternatives February 2016 - June 2016

Public Informational Meeting #2 Alternatives Report

July 2016

Recommendations and Final Report August 2016

Public Informational Meeting #3 Public Hearing

September 2016

Potential Referendum November 2016

New York State Department of State

Rob Roeckle

Land Use Training Specialist

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Board-Initiated Consolidation Proposed Consolidation Plan Adopted

Hearing Held

Proposed Plan Amended

Process Ends

Final Plan Approved

Referendum Date Set

Special District

Dissolved

Referendum Held

Referendum Passes

Towns Consolidate

Referendum Fails

Four Year Waiting Period

Day 1

Within 180 Days

Within 35 to 90 Days

Within 5 Days

Within 60 to 90 Days

Questions?

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www.danc.org/operations/engineering/clifton-fine-efficiencyconsolidation-study

Thank you for attending the 1st Public Informational Meeting

Please visit the Study Website at:

Chuck Hooven Town of Clifton, Spvs supervisorhooven@gmail.com 315-848-2821 Susan Westbrook Town of Fine, Spvs. finetownsupervisor@gmail.com 315-848-3121 ext. 305

Carrie Tuttle Development Authority of the North Country ctuttle@danc.org 315-661-3259