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The Town of Milan conducted a public hearing on the proposed 2009 budgets at 7:30 p.m. on Thursday at the town hall. Community residents were invited to attend and provide comments; about 80 people attended the meeting, this story highlights the issues...

The need for road repairs and a shortfall in revenues will drive tax rates in our town up 36 percent or more for the coming year.

"There's a lot on our plate and it's all very costly," Town Supervisor Richard Barrett said; "We hope to get a considerable amount of input (between the public hearing and adoption)," Barrett said.

The 2009 budget has been tentatively set at $1,876,886, an increase of nearly $344,000 over the current year's budget of $1,533,341. The fire protection budget for 2009 is proposed at $242,298, or 49 cents per $1,000 of assessed value. The estimated tax rate is $2.03 per $1,000 of assessed value, an increase of 36 percent over 2008.

Barrett said the town is going to have to play catch-up because former administrations have deferred road and bridge maintenance in previous years. With the delays, costs of materials have continued to increase. For instance, improvements along Odak Farm Road would have cost $143,000 last year. This year, prices have put the repairs at $207,000, Barrett said.

Former Supervisor Tom Odak stood in support of another resident of Odak Farm Road suggesting that if there was a "...pressing need for another road in town to be repaired, that the money could be reassigned from Odak Farm Road, leaving the road in in its current shape, which does cause people to slow down."

Putting it off, won't solve the problem of the costs as Mr. Barrett stated above.

"The road work has to get done," Barrett said. "We don't have the money to do it."

The highway department's portion of the budget has been increased from $699,600 in 2008 to $923,451 for 2009.

Among the many who spoke, most worried about the increase and the possible effect it would have on their personal budgets given the current economic climate. Former Supervisor Jim Jeffreys (who handed out a graph and explanation) appealed to the board to restore the proper funding to the highway department saying:

"The management of any town budget requires that the board consider contingencies and surpluses from year to year.  Surpluses, when used effectively, can minimize tax levy increases and provide a smoother transition for our residential tax payers.  This management has not been evident for the last four years."

But he said he didn't have to go back very far to illustrate what he meant.  For example, in 2007 the unexpended balance of this town was $220,000; by 2008 it was down to $90,000 and for 2009 it is projected at $50,000, perhaps less.  He then directed his comments toward the public saying: "This begs the question, where did it go?"

"How did the “then” town board (Note: Williams directed the 2007-2008 budget preparations) exceed their spending authority by $130,000?  I would suggest that it was a combination of hubris and mismanagement on a monumental scale, employing without review – lawyers, consultants, planners and the invitation of a myriad of lawsuits.

Clearly, the new members of this board were not the architects of such excess.  That excess and the budget left for them this year suggested poor fiscal management and oversight."

He illustrated the previous board’s fiscal errors.  As represented on his chart, he plotted the annual budgets for the general and highway from FY 2000 through FY 2008.  The blue line (unfortunately) represents the ever increasing push by the former administration to expend on the general side.  The reddish line represents the ever decreasing expenditures for the highway. 

 

Jeffreys continued saying, "Clearly the previous board was not keeping pace with the realities of fuel and highway maintenance costs, instead choosing to expend on legislation and consultants; even though fuel and utility prices were rising sharply."

Further, as you can see at the top of the chart, the sharp budget decline handed off to the new board was an apparent "penalty" to voters for not electing Williams; there is little else to explain the sharp cuts year over year, especially when there was a larger surplus.

"At the start of 2004 nearly 50 cents of every dollar went to maintain our highways, which is a major responsibility of the town board to protect the safety of our residents. The current year’s 2008 budget cut highway further creating the widening gap you see on the chart. We must return to adequate funding of the highway department.  Maintenance schedules are NOT being met and roads are failing into disrepair."

He went on to urge that the current board to look carefully at the request of the Highway Superintendent and provide adequate funding for Highway to restore its budget to an amount capable of adequately maintaining our highways and remaining on Superintendent Butler's schedule of 7.5 maintenance miles per year."

While some have suggested that the town bond the road repairs to get costs down, Barrett said he's concerned that the town will be paying more in the end. It will have to pay the attorney to do the bonding work and pay interest on the bonds, he said. The town also already has several bonds, including a $20,000 bond for a backhoe and bonds for bridge repairs.

The town did come out better than expected in fines and forfeitures, collecting $240,000 by the end of September, Barrett said. Revenues have fallen short, about $33,000 in mortgage tax, in addition to shortages from sales tax, leases and planning and zoning applications and fees, he said.

Councilman Williams also recommended a "reduction" in hours for employees in zoning and planning, since there is less work to do. Such reductions would reduce the tax rate hike for next year to about 15 percent, Williams said. (NOTE: Mr. William's provided no support for this assertion, but did complain that the people who spoke and stood in support of the budget were simply acting "political.")

"The proposed budget is extraordinary ..." Williams said.

The town has monitored expenses carefully, Barrett said. "We exercised a great deal of self control over expenditures this year," he said.

"It's going to be a sizable tax increase no matter what we do," Barrett said. "There's no way out."

_________________________________________

The Lawsuit That Won’t Go Away

            At a special meeting held on September 30, the town board voted 2 to 2 not to proceed with a notice of appeal in the Christensen case.  That would have (and should have) ended the matter.  The main arguments against proceeding were the cost of an appeal ($30,000 to $35,000) and the fact that the case has no tangible benefit to the town.

            On Wednesday, October 8, the town supervisor, town board attorney, called a special meeting of the town board for Thursday evening at 7:00 to discuss authorizing the town board attorney to issue a notice of intention to appeal.  This despite the fact that 1) the statutory requirement of 48 hours of written notice to the town clerk and the town board members was not met; 2) no public notice was given; and 3) the press was not notified, all requirements of town law.  Apparently the attorney convinced the supervisor that if all the members of the town board showed up at the meeting, it would be a legal meeting.  To hell with public and press notice!

            Fortunately, only two members of the town board showed up – Mr. Barrett and Mr. Williams, so no meeting was held. 

But that’s not the end of the story.  During the budget work session, Mr. Barrett announced and discussed a memo he and the board members had received from Justice Christensen, dated Thursday, October 9, which reads in part:

"No need to worry about the “Notice to Appeal” as it was filed last Thursday.  So you can advise Pam [town board attorney] not to do anything (not not (sic) want to pay them for nothing). "

Mr. Christensen attended the special town board meeting on September 30.  He even participated in the executive session before the town board rejected an appeal.  He was present during the town board’s public discussion of the issue and its vote.  Yet, two days after the town board spoke on the issue, Mr. Christensen acted to contravene the town board.  According to the town board’s attorney, Mr. Christensen acted within his rights.  The question comes down to this; who is going to pay for the appeal?  Surely not the taxpayers.  We are facing a tax rise in excess of 60 percent.  We do not need the burden of another lawsuit to drain our limited resources. 

We are most puzzled by Mr. Christensen’s unilateral action in opposition to the will of the town board.  If there are any bills resulting from his action, they would appear to belong to the initiator of the action.

________________________________________

THE IMPOSSIBLE ... almost happened, again?

Special Town Board Meeting of September 30, 2008

Present: Supervisor Barrett, Councilpersons Byrne, Egan, and Williams

Absent: Councilperson May

            Supervisor Barrett called a special town board meeting for 7:45 p.m. to discuss a possible appeal of the New York State Supreme Court decision in the Christensen case.  However, before the town board meeting, the town board held an attorney-client session by telephone, which began at 7:35.  At 7:50, Justice Christensen joined the town board in the attorney-client session, which lasted another 30 minutes.  Finally, at 8:20, the town board opened its meeting to consider the appeal and immediately went into an executive session to discuss three issues:

1.               the appeal of the Christensen decision;

2.               a report by Mr. Williams on the Red Wing case; and

3.               a report by Mr. Byrne on the fire protection district contract.

The executive session ended at 9:07, and the town board reconvened.  Mr. Williams made a motion to file for re-argument of the Christensen case.  Mr. Byrne expressed his opposition to this, stating 1) even if the town won on re-argument, it would only affect the defendant, and 2) re-argument would place a heavy burden on the tax payers without resulting in any fundamental change in the law.  Ms Egan agreed with Mr. Byrne that there was no way to justify the expense.  The roll was called and the vote was 0 in favor of re-argument and 4 opposed.  Motion defeated.

Mr. Williams then made a second motion to file a notice of appeal.  He argued that

the notice of appeal should be filed in order for the town to keep its options open., that the notice carried minimal costs, and that the major expenses would not occur until next April, when a decision on actually appealing could be made.  Money could be put in the budget to cover the appeal and at that time the town board could meet with Justice Christensen in executive session.

            Ms Egan opposed the motion, stating that the $500 filing fee was just the start and that other expenses would be incurred, that the town board needs to save money, that this action could be an open door to other litigation, and that the town board should not appeal given its position in the case of the Red Wing appeal, where the town had no money to finance the appeal.  Mr. Byrne agreed with Ms. Egan, pointing out that the town board had to transfer appropriations to cover the ongoing litigation.  Mr. Barrett stated that while he favored the filing of the notice to appeal, he was going to vote against it to prevent a stalemated vote.  Mr. Williams correctly pointed out that if he favored the motion he should so vote and that there was no stalemate, because it requires three affirmative votes to carry a motion.  Justice Christensen was asked for his views, and he said that not to notice of appeal would let the State Police win.  Ms Egan asked what benefit this case, which has cost the town in excess of $22,000 so far, has for the town, and Justice Christensen said he didn’t know.  He said he saw the issues of the case as providing Justice.  “In this court,” he said, “justice is not being done.”

Mr. Barrett and Mr. Williams voted yes on the motion to file a notice of appeal; Ms. Egan and Mr. Byrne voted no.  The motion was defeated.

            (We are somewhat confused by Mr. Barrett’s vote.  We do not understand how he could vote against the appeal of the Red Wing case, which has very definite impacts on the town, on the grounds that the town cannot afford an appeal and then turn around and support an appeal that has no benefits and only costs to the town.  Both appeals will cost the same: approximately $35,000.)

            The town board then discussed possible dates for work sessions on the budget, but no action was taken.

The meeting adjourned at 9:28 p.m.

 

________________________________

Town Loses...again!

In the Matter of the Application of the People of the State of New York, Petitioner,

For a Judgment Pursuant to Article 78 of the CPLR

against

Francis J. Christensen,

in his official capacity as Justice of the Town of Milan

and CAROL I. SUSSMAN.

            On September 2 this year, New York State Supreme Court Judge George D. Marlow issued his decision in the above named case.  In this case, New York State sought a writ of prohibition “against respondent Town of Milan Justice Francis Christensen (herein after Town Justice) for exceeding his judicial authority in granting respondent Carol I. Sussman’s motion to dismiss, in the underlying prosecution of a speeding violation, to the extent of accepting a plea to a lesser offense without the consent of the prosecuting authority.”

The Facts

            In his review of the facts Judge Marlow stated the facts of the case as follows:  In 2005 Dutchess County District Attorney authorized the New York State Police to prosecute traffic cases, including “the right to set standards with respect to permissible plea bargaining.”  The New York State Police had a longstanding policy prohibiting the state police from plea bargaining, which was conveyed to the District Attorney in 2006.  After being informed of the prohibition, the district attorney continued to delegate his prosecutorial authority to the state police.

            In 2007, Mrs. Sussman was charged with exceeding the 55 mile per hour speed limit.  Justice Christensen notified her that because the state police were prohibited from plea bargaining, she should prepare for trial.  Her attorney moved to dismiss the charges, which was opposed by the state police.  Justice Christensen denied the motion to dismiss, but according the Judge Marlow, “granted Sussman’s alternative request for relief and accepted a plea to the lesser charge of failure to comply with a traffic control device in violation of Vehicle and Traffic Law.”  The District Attorney then authorized the state police to appeal Justice Christensen’s decision

            Justice Christensen, in his decision and defense, argued that

1.               the blanket prohibition against state police plea bargaining was “an improper and unreasonable position, denying the defendant “the opportunity to receive justice in the Courts”;

2.               that the state police “had no legal capacity to bring the proceeding” or to act “on behalf of the District Attorney”;

3.               that the prohibition violates equal protection;

4.               that the prohibition “applies only to an indicted defendant”;

5.               that it is illogical for him to have the power to dismiss the case and not be able to accept a plea bargain”;

6.               and that prosecution of traffic violations is not uniform throughout the state.”

In addition, Justice Christensen made a number of procedural arguments.

            The Court reviewed each of Justice Christensen’s argument and dismissed them.  The most important points made by the Judge were

1.               plea bargaining is not a right;

2.               it requires the approval of both the prosecutor and defendant;

3.               town justices cannot act in place of the prosecutor, when the prosecutor refuses to plea bargain; and

4.               the Court cannot countermand the policy set by the Division of State Police in prohibiting its troopers from plea bargaining.

Judge Marlow found that while Justice Christensen “acted out of a sincere and good faith belief that his decision was legally, ethically, and practically appropriate and sound,” . . . . “the proper remedy cannot be for this court [NYS Supreme Court] to countenance an act in excess of express statutory authority and limits.”  Judge Marlow went on to make clear the underlying issue:

"For this court to hold otherwise in face of such clear and unambiguous statutory language which three successive Governors have refused to change would, in this court’s view, compromise the State’s separation of powers.”

Judge Marlow then ruled in favor of New York State, overturning Justice Christensen’s decision in the Sussman case and ordering a new proceeding.

            While we also understand the town court’s frustration with the prohibition against the arresting state police officer plea bargaining, we wonder why Justice Christensen did not see the controlling statutes with the same clarity as Judge Marlow.  The town spent nearly $22,000 on this lost cause.  Given the town’s financial problems, was it worth it?

  _______________________________________________________________________________________

The Highway Budget: Town on the Horns of a Dilemma

            A dilemma is defined as the choice between two equally unfavorable alternatives, and that is what the town’s taxpayers will be facing during the upcoming budget process.  The dilemma is this: either the taxpayers will be faced with an extraordinary increase in taxes or must settle for diminished road maintenance.

            It is fair to ask why?   Most assuredly part of the answer is obvious to all of us: the life blood of any highway department is petroleum, and we are all aware of the precipitous, unconscionable rise in the costs of petrochemicals.  Just to put the issue in some perspective, here is a comparison of costs of two components of the highway budget: last year gasoline cost the highway department $2.25 per gallon; for next year it is budgeted at $4.50 a gallon.  Last year blacktop cost $55 a ton; for next year it is budgeted at $85 a ton; and then there are the anticipated increases in health insurance, worker’s compensation, retirement, payroll, etc. to be considered.  The result is that to the same work in 2009 that was done in 2008 will cost an additional $300,000!  The highway budget would have to increase to $1,000,000 from the present $699,600.  And that does not take into account the $63,000 in debt service due to the bridge bonding.  Keep in mind that the budgets over the past four years have not provided sufficient funding to resurface the 7 miles of road needed just to keep pace with deterioration.

            It might have been possible to weather this financial crisis had the town board over the past four years maintained and increased a surplus to meet such a contingency, but that did not happen.  In fact, the town board went the other way and spent money faster than it came in, with the result that the town has no reserve to fall back upon.  As the accompanying table shows, the budget for the General Fund doubled between 2000 and 2008, while the budget for the Highway fund increased by two-thirds.  Last year, for example, the town board took $70,000 away from road improvements and moved it to the General Fund, at the insistence of Mr. Williams.  His justification for doing this was that the General Fund could always shift the money back if the highway needed it, or the town could just go out and borrow $70,000 for the highway.  (By the way, that borrowing would add another 15 cents per thousand to your tax rate, a 10% increase.)  Because of his insistence, the highway superintendent had to postpone resurfacing Odak Farm Road.  The cost of that resurfacing was $140,000; that same work will now cost $210,000.

            You may well ask: where did the surplus go?  You only have to look to the money Mr. Williams and company have spent on laws and lawyers over the past four years; little of which ever made it through the legal process…but left us with a crushing financial burden.

            So the dilemma: without reserves the town must either face a gigantic tax increase or reduce its road maintenance program, which in the long run will cost us more.

Bear in mind, this discussion does not include any figures for the General Fund, the section of the budget that has grown the most.

 Stay tuned.

 _______________________________________________________________________________________

Milan Faces Another Lawsuit

Carmen Otero McCulloch has filed a second lawsuit against the town, this one in state court.  According to papers recently filed with the town clerk, Mrs. McCulloch is alleging that the town forced her to enter into a Conservation Easement Agreement (CEA) and that Mr. Kingman, then chair of the Planning Board, “advised Plaintiff that unless Plaintiff had a Forest Management Agreement (FMP) established and approved by the NYS Department of Environmental Conservation (DEC), and was acting pursuant to such a program, no tree could be cut in any part of the CEA.,” and further, that the plaintiff is the only one who has been so required.  She asks the Court to nullify and void this provision.

She further alleges that the town and its officials forced her to deposit monies with the town, otherwise the MPB would not proceed with the subdivision and then spent these monies in an illegally “authorized manner.”  She alleges that she demanded  repayment but was denied.  She asks the Court to order the town to return to her the $22, 602.25 she alleges she paid and to award her compensatory and punitive damages of $200,000, plus “Such other legal and equitable .relief as the Court deems just and proper.”

Additionally, Mrs. McCulloch asks the Court to order defendant Van DeWater & Van DeWater to return to her $7,051.34; defendant Paggi, Martin & Del Bene to return to her $6,810.60; and defendant Greenplan, Inc. to return to her $8,182.50.

And finally, Mrs. McCulloch alleges that Mr. Kingman acted outside his authority causing her to lose a sale valued at $210,000, and she asks the Court to order “Lauren Kingman pay to Plaintiff the sum of $210,000, plus the sum of $5,000 per month, for each month from October 12, 2007 to March 12, 2008,” and to pay punitive damages of $100,000, “for misrepresenting his authority, and for not promptly advising Plaintiff when he learned that he had misrepresented his authority.”

This lawsuit, like the one in federal court, is being handled by the town’s insurance carrier.

As to the lawsuit filed in federal district court, Attorneys for the town moved to dismiss all claims.  On July 17, Judge Lorretta A. Preska issued her decision.  We quote from the first paragraph of that opinion.

                                    Decision

(In open court)

THE COURT:  We’re here today on defendants’ motion to dismiss.  Counsel have inundated me not only with papers but have inundated with me with out-of-circuit cases for no apparent reason.  I will, however, cite an out-of-circuit case back to counsel, and that is United States v Dunkel, 927 F. 2d, 955, 956 (7th Cir. 1991).  There the most distinguished panel said, “Judges are not like pigs, hunting for truffles buried in briefs.”  And I will also add: "Or complaints."

After this swipe at the attorneys, the Court denied certain parts of the motion to dismiss, allowing the plaintiff to proceed on its claim that she was discriminated against under the provisions of the Fair Housing Act and her equal protection claim.  The town prevailed on a number of other claims made by the plaintiff, including due process.  The Court found that there was a basis for the plaintiff’s claim for “tortuous interference, which plaintiff based on certain alleged facts: “Among those facts were that plaintiff’s property contained ‘climax forest,’ that is, virgin forest, and that plaintiff’s property contained lady slippers, that is, an exceedingly rare plant.”  Certain other claims made by the plaintiff were dismissed resulting in the lawsuit filed in state court.  The Court asked the attorneys to confer and to inform the Court within a week as to how they wish to proceed.

 _______________________________________________________________________________________

Happy Days Are Here Again?

            Having read a Letter to the Editor in a recent issue of the PoJo (Poughkeepsie Journal), we are much relieved.  Our fears of impending calamity have vanished, the clouds of gloom have been lifted, and we are safe from financial disaster.   For we are now informed the town has more than enough money, and the claims of Supervisor Barrett that the town is broke were a crass fabrication.

            We must admit that we have been guilty of the same view of the town’s financial health as Mr. Barrett, but all that is now gone.  It just took a letter to the editor to clear our foggy thinking.  No facts cited.  No facts needed (and none presented).

            Add to this the sunny pronouncement by Mr. Williams at the August town board meeting that the town will have received all its budgeted revenues by September.  After that, the rest will be gravy.  More money for more litigation some might suggest.

            What is missing from the collective understanding is that it is not enough to just reach the budgeted income; to hold taxes down the town must exceed the budgeted amount or reduce spending, and there seems to be no inclination to do the latter.   Every $46,650 added to the budgeted and not off-set by increased revenue, raises taxes by ten cents.  That amounts to a 7 percent tax increase.  In order to hold taxes at the present level ($674,301) we need to end the year with a surplus equal to last years; that is $136,000.  Breaking even is not enough.

            So we will soon see whether there will be happy days coming.  The supervisor’s tentative budget is due on September 30.

 _______________________________________________________________________________________

BudgetTime

            By this time next month the town board will have in front of it the supervisor’s tentative budget for 2009, and there will be issues galore for us to discuss.  However, before discussing any issues, we thought it well to review the steps as spelled out in New York State Town Law that lead to a final budget and a final tax rate.

Step 1 – Each department submits its estimates of revenues and expenditures on or before September 20th to the budget officer (in the case of Milan, that is the Supervisor). (Sect. 104)

Step 2 – The Supervisor reviews the estimates with the departments, if he or she so chooses, and then prepares a tentative budget, which must be filed with the town clerk on or before September 30. (Sect. 106, paragraph 1 & 2)

Step 3 – The town clerk presents the tentative budget to the town board at a regular or special meeting on or before October 5. (Sect. 106, paragraph 3)

Step 4 – The town board reviews the tentative budget and after review, approves the budget with modifications, if any.  This becomes the preliminary budget, a copy of which is filed with the town clerk. (Sect. 106, paragraph 4)

Step 5 – The town board holds a public hearing on the preliminary budget on or before “the Thursday immediately following the general election.”  Prior to the public hearing the town clerk is required to publish notice of the hearing and the proposed salaries of the town board, Supervisor, town clerk and highway superintendent. (Sect. 108)

Step 6 – After the public hearing the town board may make further modifications to the preliminary budget, which must be approved no later than November 20th.

            During all of these steps, the public has a right to listen and has access to all of the budget documents.  During the public hearing the public has the right to speak.

 _______________________________________________________________________________________

LIMITING PUBLIC COMMENT? WHY?

          We must admit that we a re puzzled by the town board’s majority to limit public comment to items on the agenda at the beginning of the town board meetings.  As long as we can recall, free, unfettered public comment was allowed.  It serves the public interest, as well as the town board’s, because it allows the airing of concerns about which the town board members may not be aware; it offers alternate views on pending issues, and, when proper decorum is maintained, it enriches the public discourse.

            It is true that there is no statutory basis for public participation in town board meetings, and it is true that the town board has the power to place rules on public participation, but all that aside, our town has a long history of public involvement in issues before the town board.  It is also true that at times individuals have crossed the line of public decorum, and the chair has the right and obligation to stop such behavior.  We have had recent examples of such behavior, which the chair should have censured but did not.  We also note that some individuals cannot resist the temptation to impose their voices on the town board’s deliberation during the meetings.  That should be discouraged, particularly since there is the opportunity to speak to any concerns at the meeting’s

            The Supervisor, acting as chair, has made the argument that allowing discussion at the beginning of the meeting causes the meeting to run excessively long and interferes with the legislative duties of the town board.  We do not see this.  What is the difference if it takes 20 minutes at the beginning of a meeting to allow participation or 20 minutes at the end? The only way the time could be shortened is if individuals who had something to say at the beginning of the meeting left before its end: that would be a sad outcome, and one we hope is not part of the town board’s intent.

            We urge the town board’s majority to reconsider its position and allow full expression at the opening of the meeting.  We have been told that the limitation on speech at the beginning of the meeting is one practiced by other towns.  That may well be true, but so what?  That does not make it a good procedure for Milan.

 

_________________________________________________

Special Town Board Meetings of October 27, 2008

Present: Supervisor Barrett, Ms Egan, Mr. Byrne, and Mr. Williams

Absent: Mrs. May

            The town board held two special meetings this past Thursday, the first to approve the 2009 fire contract and the second to adopt a preliminary budget.

Fire Contract

            Mr. Byrne presented the fire contract to the town board, but only figuratively, since no copies were made available, and Mr. Byrne was less than informative as to its contents.  The town board voted to accept the contract and present it to the public at a hearing.  (We wonder why bother, since it has already been accepted?  Normally, a town board authorizes that copies of a proposed contract be made available to the public for its review prior to a hearing, after which it takes action.  But perhaps public input is not important.)  The special meeting was then adjourned.

Preliminary Budget

            After being informed by the town clerk that it was necessary to open the meeting and have the clerk read the public notice, Mr. Barrett presented a second tentative budget to the town board and launched into a discussion of it.  Ms Egan attempted to make the necessary motion to adopt the tentative budget as the preliminary budget with modification, but she was unable to receive a second.  Finally, after some urging from the audience (which was limited to three), Mr. Barrett realized that 1) he is only allowed one tentative budget and that one was the one he submitted under the title of “Raw Data Budget,” and 2) a motion was required to made before deliberations and amendments could occur. (i.e.: Ms. Egan was correct.)

            Having settled these matters, the town board members continued, making changes to the tentative budget.  In another departure, instead of making motions, seconds, etc., they simply stated the changes, and after they and run through the budget, Mr. Williams made a motion to amend the tentative budget, which was seconded and voted upon.  Ms. Egan, Mr. Byrne, and Mr. Barrett voted yes and Mr. Williams abstained (we find it odd that he would make a motion only to abstain.). They then voted to adopt the amended tentative budget as the preliminary budget, with Mr. Williams again abstaining.

            The discussion of the tentative budget, which lasted four hours, centered on three issues: unexpended balances, financing highway expenditures, and elected and employee pay.

Unexpended Balance

            Mr. Barrett proposed an unexpended balance in the General Fund of $175,000.  Mr. Williams thought this was too high and suggested that it be lowered to $150,000 in order to increase the unappropriated balance.  There was much discussion on this point but no recourse to financial evidence that either number was correct.  The balance remained as recommended by Mr. Barrett.   Mr. Barrett proposed an unexpended balance for the highway of $15,000, but when Highway Superintendent was asked his opinion, he expressed a strong doubt that he would have no more than a few dollars left at the end of the Year.  The balance was reduced to $10,000.  (It is important to note two things here:  1) the larger the unexpended balance, the less that has to be raised by taxes, and 2) any shortfall in predicted unexpended balance could result in a budget shortfall.  Every $46,648 adds or subtracts a dime from the tax rate.)

Highway Funding

            Mr. Barrett began the discussion by saying that the highway budget had been cut back for many years and that he was not willing to cut it back anymore.  He said it was time to “bite the bullet and do what has to be done.”  Mr. Williams took the position that it was more economical to borrow the money to do Odak Farm Road rather than pay it up front.  (The cost of improving Odak Farm Rd. is $153,000, of which $90,000 will come from the Consolidated Highway Improvement Program (CHIPS), leaving a balance to be paid by the town of $63,000.)  Mr. Byrne agreed with Mr. Williams and advocated borrowing.  Ms Egan agreed with Mr. Barrett and favored pay-as-you-go.  Mr. Williams recommended that the town borrow the entire $153,000 and use the CHIPS money to pay for part of the cost of repairing the two bridges.  He and Mr. Byrne busied themselves on their respective computers, generating numbers to prove their case, while the discussion dragged on for about twenty minutes and remained unresolved.  (By the way, their final tallies were incorrect anyway.)  Mr. Byrne announced that borrowing $60,000 would reduce the tax rate next year by 15 cents.  (The actual reduction is 12.86 cents.)

The issue is simple: Should the town borrow money to fund road improvements?  Mr. Williams has taken the position that the town should borrow every year to cover the costs of improvements lasting at least five years.  Mr. Barrett and Ms Egan have disagreed)

Salaries and Wages

            Mr. Byrne stated that he thought the town board should consider whether to give a 3 percent raise this year.  He said that he was a "fiscal conservative" and that the town board should consider doing away with raises to cut the budget.  (The total cost of all the raises on the general side of the budget is $8,209, excluding the $1,500 increase to the highway superintendent, which Mr. Byrne agrees is warranted.  The total of the wages on the highway side of the budget for next year is $201,461, which is $6,662 less than this year (but why let facts get in the way)  Oddly enough, though a proclaimed “fiscal conservative,” Mr. Byrne has no problem supporting a 58 percent increase in the recreation budget.  One must ask, where are their priorities?

            Around midnight, the town board finally adopted a preliminary budget and authorized the town clerk to publish the salaries of the supervisor, town board, town clerk, and highway superintendent.  Mr. Byrne wanted to reserve the right to lower these salaries, but this cannot be done once the preliminary budget (FY 2009 Preliminary Budget here…) is adopted.  Apparently Mr. Byrne hasn’t read the town law.

After all this talk, these are the results:

                                    Less                Less            

                 Appropriation      Revenue             Balance          Taxes

General Fund     $   899,726        $576,659            $175,000         $148,067

Highway          $   923,501        $113,570            $ 10,000         $799,931

Totals           $ 1,823,227        $690,229            $185,000         $947,998

This amounts to a tax rate of $2.0322 per thousand of assessed value. 

This is a 36 percent increase in the tax rate.

There will be a public hearing on the Preliminary Budget for 2009 at the town hall on Thursday, November 6, at 7:30 p.m.

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The Second Town Board Budget Work Session

October 9, 2008

            The town board met Thursday evening at 7:30 p.m. to continue its review of the supervisor’s tentative budget.  All present except Mrs. May.

            The town board met with Scott Hobson, Assessor Chairman, to review his budget.  After considerable discussion, they agreed to a 3 percent increase in the hourly pay of the assessor clerk in keeping with the percent increase of other employees.   (There does not appear to be any pay for the Assessment Board of Review.)  The town board also reduced the contractual line.

            The town board then moved through each account in the budget making reductions.  Principal among these are the following:

Attorneys reduced from $100,000 to $65,000;

Zoning contractual reduced from $12,915 to $4,000; and

Planning contractual reduced from $25,500 to $5,000.

In addition, the town board made a number of smaller cuts totaling some $30,000.

However, the town board was required to increase the expenditure line for insurance from $1,500 to $40,000, offsetting a good share of the savings.  In addition, the town board has yet to include the funds to pay the principal and interest on the bridge bond.

            At the end of the meeting Mr. Williams provided the town board with his proposal for reducing the tax burden this year.  He proposes to borrow funds ($235,640) to improve Odak Farm Road.  By fiscal legerdemain (Definition: sleight of hand; magic tricks; any illusory feat) he manages to reduce the tax rate from $2.40 to $1.547.  There are far too many things wrong with his proposal to consider it the solution to this fiscal mess. 

            The meeting ended at 9:40 p.m.  The next meeting is set for Thursday, October 16, at 7:30 p.m.

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The First Town Board Budget Work Session

Monday October 6, 2008

            The town board met at 7:30 PM in the conference room to review the 2009 Tentative Budget.  In attendance were Supervisor Barrett, and town board members Byrne, Egan, and Williams, as well as two members from the public.  Mrs. May was absent.

            The first order of business was a review of the highway budget with Superintendent Butler, but before that began, Ms. Egan asked the supervisor for the tax rate based on the tentative budget; he had no answer.  She then asked if the $240,000 of appropriated unexpended balance represented a sum that he anticipated would be left at the end of the year.  He replied that as he had made clear at the October 1st Special Meeting, this was the balance in the General Fund at the end of August.  He and the bookkeeper had not yet figured out the year end balance yet.  This surprised Mr. Williams (although we don’t know why it should have, since we have been telling him and everyone else that he and before him Talmage had spent more money than they were taking in and that the surplus was gone).  Mr. Williams then stated that the budget was out of sight; “so far out of the realm of being reasonable that we can’t leave anything.”  The budget shows “an increase in taxes of 65.5 percent,” according to Mr. Williams.  (Of course, he is not taking into account the $100,000 left out of the taxes, or the $200,000 more or less that will, in all likelihood, not be left at the end of the year.)  

            To make his point Mr. Williams and the board members spent the next ten minutes debating whether to cut $500 from account 3310 traffic signs and then did nothing.  (We feel this falls under the heading of “arranging the deck chairs on the Titanic.”)  The town is under mandate from the state to replace all of its signs within 9 years.  The newly mandated signs have greater reflectivity.  Mr. Williams asked what would happen if the town refused, and Mr. Butler answered that the town would be liable (another penny-wise and pound foolish suggestion; another invitation to evade state law).

            Mr. Butler defended his proposal to increase the highway employees’ pay by 3 percent.  Mr. Williams took the opportunity to raise the issue of no pay increases.  He said, “This is the year we need to protect ourselves.”  (We would argue that we are long past the time to protect ourselves; that should have occurred to Mr. Williams before he launched us on his social experiment that has eaten up the town’s financial resources through litigation.)  There was a short discussion, Councilperson Egan expressed that employees were valuable and should receive at least a 3% increase, at the end of which Mr. Williams suggested a 2 percent raise.

            The subject then turned to the highway budget, which has a proposed increase of $370,962.  Mr. Butler went through each section of the budget, pointing out the reason for the increases.  The substance of his argument was that the town board over the past four years has under funded the highway, with the result that the roads have deteriorated.  This means that it costs more to maintain them and the maintenance lasts for shorter periods.  Mr. Williams suggested (as he has done before) that the town borrow money each year for road improvements.  He argued that would mean that we would pay less next year and that after that we would start paying the principal and interest and it will take five years before the town will have a road expense equal to what is proposed for next year.  (Of course, the town will also have increasing interest payments.)  Mr. Butler opposed this solution.  He took the position that it is bad management to borrow for the expected road improvement, and the only justification for borrowing is either to build a new road or to increase the number of roads to be improved.  The town has 44 miles of paved road, which have a 6 year life span.  This means that the highway department has to seal 7 miles each year.  Mr. Williams would reduce this number again.

            The discussions continued for the better part of two hours, and the highway budget was tentatively reduced by $10,000.  However, there will be further board discussions.

            At the end of the meeting Mr. Williams proposed that the financial controls be taken from the supervisor and given to anew position of town manager.  The supervisor’s salary would be reduced to that of a town board member.  He stated, “We don’t have the money to get the competence we need.”  Mr. Campisi pointed out that the town board does not have the power to change state law; that the control of finances is a statutory responsibility of the supervisor.  The only legal alternative is to appoint a comptroller, but that would mean that the town board would have no audit and oversight of expenditures.  Mr. Campisi stated that he thought it was important for the town board to maintain its powers to audit and approve expenditures and transfers.  It was a necessary check and balance.

The meeting adjourned at 9:30.  The next meeting is Thursday, October 9th at 7:30 p.m.  The Assessor and Town Justice departments’ budgets will be under review.

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The Oh So Tentative Budget for 2009...

            On Wednesday morning, October 1st, the town clerk handed the town board members Supervisor Barrett’s tentative budget for 2009.  The total expenditures proposed for 2009 is $1,997,985, an increase of $464,644 over last year.  About 80 percent of the increase is a result of higher costs to maintain the town roads and bridges; the rest is in the General side of the budget.  The total does not include the proposed fire protection budget, which totals an additional $272,000, ands increase of $55,977 over this year (25.9 percent increase).

            Without including the fire protection budget, the tentative budget tax rate for 2009 under will be $2.40.  This is a 61 percent increase taxes!  But that is not all, and that is not the worst.  Let’s begin with the first page, the one entitled “Raw data budget   FY2009.”  This shows under the column “less Unexpended Balance” that the supervisor anticipates that at the year’s end the town will have at least “240,000 left over to offset taxes.  This is just fantasy.  The town will be lucky to have $40,000 left at the end of the year, which means that either $200,000 must be cut from the budget or additional revenues found.  Otherwise, our taxes will be increased by another 43 cents. ($2,83 or a 90 percent increase). 

            But wait (as they say in those TV adds), the highway department shows no unexpended balance, meaning that the town will have to borrow money to cover the first two months of the highways operation (it may also have to borrow to cover some of the general funds operation during the same time period).  That cost is not included in the budget.

            And then there is the cost of repaying the bridge loan.  According to the tentative budget, that equals $64,969 for next year.  The money to pay this loan does not appear in the highway budget, nor is it shown on the first page as Debt Service Fund, so as far as we can tell, the town board needs to add the $64,969 to the taxes.  That adds another 14 cents to the tax rate ($2.97 or a 99 percent increase).   

            And if you think we are done, check out the town’s insurance account.  The tentative budget allocates just $1,500 for fire and liability insurance on all of the town’s properties; this year we have budgeted $39,000.  (If the town can get coverage on the millions of dollars of property for fifteen hundred dollars, we want to know the name of that insurance company.)  Clearly the budget will have to be raised by at least $37,500, adding another 8 cents to the taxes, making the tax rate 3.05 or a 105 percent increase

And we still have a lot of the budget to review.

            We need to look at one more aspect of the budget, and that is the highway department.  Highway Superintendent Butler has proposed a budget increase of 53 percent.  But the budget he proposes does nothing more than what he has been able to do this year with the insufficient funds he was provided.  The excesses of Talmage-Williams et al. have come home to roost in the budget.  In 2007, they had an unexpended balance of $220,000; this year they could appropriate only $90,000, and next year we will be lucky if we have half that left to reduce taxes.  In two years that have managed to spend over $130,000 more than they took in and to wipe out the town’s reserves.   The problem facing the town is simple: do we pay to maintain our roads, or take the route recommended by Mr. Williams and cut the highway budget again and postpone the care of the infrastructure so we will have the money to pay for the endless string of court cases he has brought to the town.

            That is the debate.  We urge everyone to attend the hearings; these are our dollars, not the town board’s.

MORE TO FOLLOW IN FUTURE ARTICLES...

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Special Town Board Meeting of October 1, 2008

Present: Supervisor Barrett, Councilpersons Egan, May, and Williams

Absent: Byrne

The special meeting was held at 10:05 a.m. for the purpose of receiving the 2009 supervisor’s tentative budget from the town clerk.  However, the supervisor submitted what he called a “Raw data budget” on October 1. (The state law requires the submission of a tentative budget to the town clerk by September 30, but what the hey!; we should be able to treat it as a recommendation.)

            The town board, after some desultory and disjointed discussion, decided on the following dates, relative to the 2009 budget process:

Public hearings at 7:30 p.m. on Monday October 6, Thursday October 9, Thursday October 16, and Monday October 20;

Approval of a preliminary budget on Monday October 27;

Public hearing on the preliminary budget on Thursday November 6; and

Approval of final budget on Monday November 17.

            Mr. Barrett spoke about some items in the budget, including the unexpended balance, the justice budget, assessors contractual, attorneys contractual, employee benefits and revenues (we’ll have more to say on these subjects later).  There was a separate discussion of the highway budget at which point Mr. Williams stated that because of the uncertainty of the economy, he felt that the town board should keep as much of the highway budget as possible in the general budget.  “That way,” he stated, “we’ll remain flexible.’  He went on to say that if need be, the town could take a year off on the highway maintenance. 

            The meeting adjourned at 10:55 a.m.

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Ross Williams in Dreamland:

            When it comes to obfuscating reality and covering the financial blunders he has foisted on the town, the ever euphoric Mr. Williams has provided another stellar example of why we are in the financial condition we are in.  At last Monday’s town board meeting he submitted his financial assessment proving (to his satisfaction at least)., that the town’s finances are in excellent shape.  He proposes that the town will end up with 121 percent of its estimated revenues by the end of the year, and he told the public that by next month (presumably September 1) the town will have met its budgeted income projections for the year.  It’s seems that he is Alfred E. Newman re-incarnated: “What, me worry!”

            But before we start spending all this extra money Mr. Williams assures us we will be receiving, we should take a look at his numbers.  Here is what he handed out:

He states that as of July 31 the General Fund has received $543,376 out of an appropriation of $762,961, or 71 percent of the total. 

Income through July 31                                         $543,376

He then adds to this amount the following:

Wilcox Trust                                   $  33,000

Interfund Transfers

            BIRF (Bond Interest Reserve Fund)  $  25,000

            Fire WC (Workers Compensation)     $  20,000

            Parkland Funds                     $   6,000

            Sales Tax                          $  58,227

Mortgage Tax                             $  48,496

Fines & Forfeitures                      $  75,000

Parcel Reimbursement                     $   8,500

Sub-Total                                                $ 274,223

To this he adds:

Star Relief                              $   1,000

Town Clerk                               $     400

PB & ZBA Fees                            $   8,000

Interest                                 $   3,800

Facilities Leases                        $  20,000

And

“item at going rate – IF!”

Fines & Forfeitures, another             $  75,000

Sub-Total                                                $ 108,200

For a Grand total of                                           $ 925,799

This would be the best of his "Pollyanna Projections" to date, but for the fact that some of his numbers are wrong.  He makes two mistakes.  First, he includes as revenues to be received revenues that have already been received.  The General Fund has already received $13,238.75 from the BIRF and it has received $8,912.12 from the Wilcox Expendable Trust.  That’s $22,150 that needs to be subtracted.  Second, he overestimates the revenues to be received.  The Fireman's Workers Compensation owes the General Fund $17,040, not $20,000.  That’s $8,000 less than estimated; and the Justice fines are overstated by at least another $30,000.  All of this means that Mr. Williams has inflated his numbers by a hefty $60,000.

But that’s not all the alchemy in his projection.  Mr. Williams maintains that we can “not unrealistic[ally]” expect to get an additional $150,000 in fines over the next 4 months.  Now, for your information, the General Fund received around $200,000 in fines for the first 8 moths of the year, an average of $25,000 net a month.  For the General Fund to receive an additional $150,000 in 4 months the net fines would have to increase to $37,500 a month.  Keep in mind that the town pays to the Comptroller approximately 40 percent of the fines received.  To achieve Mr. Williams’s projection for court revenue over the next 4 months the court will have to average over $62,000 a month!  To our knowledge, that mark has never been reached.  It is more reasonable to expect that the court will raise $100,000.

            There are other problems with his numbers.  He expects zoning and planning to bring in $8,000 in 4 months when they only brought in $4,500 in the first 8 months.  He expects to earn 3,800 in interest when the General Fund only received $1,470 in 8 months.  Lastly, all this is predicated on our getting another $100,000 from mortgage and sales taxes.

            We hope Mr. Williams is right, and we are wrong, because the consequences of any less revenue will be disastrous for the tax payers.    But given Mr. Williams’s past budgetary record (he was the chief proponent of the present budget which placed us in this mess), we are doubtful of his accuracy.  Mr. Williams’s approach to town government is Procrustean2 – he stretches the data to conform to the argument.  The first test, of course, will be in September, when we can expect to have received the total of all the revenue budgeted.

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Summary of the Town Board Meeting of August 11, 2008

Present: Richard Barrett, David Byrne, Roberta Egan, and Ross Williams

Absent: Diane May

Meeting opened with the Pledge of Allegiance, followed by the introduction of Mr. Mark Castiglione, Acting Executive Director of Greenway, who announced that the New York State Attorney General (AG) has agreed to take the appeal of Judge Brand’s decision in the Red Wing case, if the town board so decided.  He further said that there would be no further expenses for the town.  He was pressed on this by Ms. Egan.  The town board then voted 4 to 0 to request that the AG’s office handle the appeal; and named Mr. Williams as its liaison for the appeal.

Public Comment

Mrs. Sheila Buff commended the town board for proceeding with the appeal process. (FYI: last month she referred to the board as “moral cowards”- my, my how quickly things have changed!)

Mr. Jack Campisi questioned the cash balance for the General Fund as shown by the supervisor.  He stated that the sum of $277,366.22 was in error because it included the funds in the Bond Interest Reserve Fund (BIRF) ($81,553.18), which is a separate restricted fund that cannot be used to pay town bills.  That means that the cash at the end of July was $195,813.04.  He also questioned the total of all funds because the BIRF was counted twice by the supervisor.  Finally, he asked why the BIRF had been reduced by $13,000 during the month.  Mr. Barrett responded that a Certificate of Deposit (CD) had come due and had been deposited in the General Fund to pay the interest due on the building loan.  Mr. Campisi pointed out that the amount due was less than the amount of the CD ($12, 282.50) and that the supervisor had no independent authority to make the fund transfer without expressed town board approval.

Mr. David Groth spoke on the status of the Woody Row Rd. tower.  He said that the four wings had been removed from the tower and that the county had begun work on the interior for its use and that payments would begin as of this August 1st.  Mr. Barrett said that the revenue account for cell towers would be $15,000 less than anticipated because of the county’s delay in starting the payment for the lease.

Mr. William May asked why the supervisor was trying to stifle free speech, which Mr. Barrett denied. Mr. May stated that the town board had passed a resolution allowing the public to speak at the beginning of meetings, but Mr. Barrett has restricted that privilege. (The issue here relates to a decision by Mr. Barrett to restrict speech to items on the agenda.  Some of us who have been in town for a long time – some all our lives, cannot recall the town board ever restricting speech at the opening of the meeting before.) 

Mr. May argued that it was an inconvenience to the public and deprived the town board of public input that might assist in its decision making.  Mr. Barrett argued that the demands of the agenda required a limitation and that the meetings were not so long as to cause undue problems for the public.  (We wonder if the meetings are not that long, why the opportunity to speak at the beginning of the meeting should be restricted at all.)  Mr. Barrett then read from a series of advisory letters from Mr. Freeman (Committee on Open Government) opining that speaking at a town board meeting was a privilege and that the town board could set limits on that speech.  

Finance

Mr. Williams opened the discussion by saying that the accountants had said that the town was in a slight revenue mess, and that he thought the town was in very good shape.  To support his assessment he handed out a sheet showing that the town would receive between 107 and 121 percent of its anticipated revenues and that the town will have received 100 percent of its anticipated revenues by next month.  (Some of the numbers Mr. Williams gave seemed to be overly optimistic and others downright wrong.  For example, he claimed that the town had $25,000 to transfer from the Fire Protection Fund to cover the workers compensation, when the bill was for only $17,030.00 and there is only $18,356.68 in the fund.  But we have become used to Mr. Williams’s “Pollyanna approach” to town finances.)

Durst Tax Certiorari Case

Mr. Barrett explained that Durst sued the town in 2003, alleging that the town had over assessed the golf course.  This case is to be heard in four months.

Mr. Byrne made a motion to add $2,700 from the Parkland Deposit Fund to the Recreation Appropriation account 7020.4.  Mr. Williams recommended that the transfer be limited to the exact amount needed to pay the bills for the construction of the Announcer’s stand.  Motion passed unanimously.

Mr. Byrne reported that the trail running around part of the recreation area has been shifted so that it does not go on private property.  He asked for authorization to spend town funds to install a map and a registration box.  The town board authorized a sum not to exceed $150 (further indicating there is no financial crisis).

Mr. Barrett announced that a meeting between the three planning, zoning and town boards and Durst to discuss their revised plan set for next week had been cancelled and would be re-scheduled.

Mr. Barrett raised the question of the claim signed by Planning Board Chair Lo Brutto and held by the town board for further review.  Mr. Williams had said that the bill should have been charged to Mr. Carrothers and that Mr. Lo Brutto had misused his authority in making the charge a town cost.  Mr. Barrett said he had spoken with Mr. Lo Brutto and the Planning Board Secretary and was satisfied that the bill was a town charge.  Ms. Egan pressed him on Mr. Williams on his accusations, asking if he believed Mr. Lo Brutto had intentionally acted in violation of state law.  Mr. Williams said he believed that it was an expedient situation and that Mr. Lo Brutto had filed a false affidavit in another case.  (It is unclear what the alleged “false affidavit” accusation has to do with the bill in question.  If Mr. Williams means what he says, and is not just showing his usual level of personal animus toward Mr. Lo Brutto, as an elected official and a guardian of the public coffers, shouldn’t he institute an action against Mr. Lo Brutto?  After all, he is accusing Mr. Lo Brutto of committing perjury.  What about it Mr. Williams; do you have the guts?)  It may be interesting for the public to know that in the 7 months Mr. Lo Brutto spent less than $2,000.00, while his predecessor, Mr. Kingman, spent over $6,500.00 in the same time period the previous year.  To our knowledge, Mr. Williams never questioned any of those bills. In fact, to our knowledge, Mr. Williams never questioned any bills in the four years prior to the election of the current town board.)

The town board accepted the resignation of Mr. Lo Brutto as chair and member of the Planning Board and appointed Mr. Peter Goss as chair and Mr. Douglas Cook as member, replacing Mr. Lo Brutto.

The town board voted to allow the supervisor to pay any Staples bill before audit by the town board (which is not a legal act).

                                                                        Excess Chairs

Mr. Barrett proposed that the town board sell excess folding chairs and the historic antique church benches in the downstairs.  He said that due to the chairs purchased by the court, there was not room to store the excess.  There was strong objection to the selling of the benches, and Mr. Vavra suggested that the supervisor speak with the town historian, Mr. Higgins before the town board contemplates any action.  (FYI: It is interesting that a similar proposal was made by town board members in 2004, and it was rejected at that time.) 

Public Comment

Mr. Campisi pointed out to the town board 1) that the motion to transfer funds from a revenue account to an appropriation account was a nullity, because the increase of an appropriation account can only be made by reducing another appropriation account or accounts by the same amount, and 2) that the town board cannot waive its responsibility to audit bills before they are paid except in very limited case as specified by Town Law (see Section 118 (2) of New York State Town laws).  This law limits payments before audit to a limited number of utilities and makes the official(s) who approved the payments liable for reimbursement should the town board deny the bill.  (The town board listened politely and then ignored the admonitions, paid the bills without correcting the error and adjourned by 9:30 p.m.)

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Six Month Report on the State of the Town’s Finances

            If we were to listen to the town board, particularly Mr. Williams, we would be convinced that the town is in great financial shape.  The point is continuously being made that we have received $154,012.75 from the justice court in just the first six months, out of anticipated revenue of $175,000, and that is going to cure all our financial problems.  No mention is made of the revenue accounts that are not going to reach their estimated revenues; facility lease short $10,000, interest short $5,000, ZEO permits short as much as $18,000, for a starter.  (One point on the interest; the supervisor’s accounts show that the town has received $3,919.18 out of $8,000 anticipated, but that is wrong.  The interest was from the Bond Interest Reserve Fund - $2,645.38 – and was incorrectly credited to the General Fund.)

            More to the point is the fact that the supervisor’s 6 month report shows that the town has spent $20,088.24 more than it has taken in over the first half of the year.  This might not be so bad, but for the fact that when we looked at the individual expenditure accounts, we found that not all the expenditures for June were included in the total.  For example, the supervisor shows the total spent for attorneys (1420.4) was $66,232.44, while the actual amount spent was $73,290.00, a difference of $7,057.56,  (This account was originally budgeted for $63,000 for the year.)  and there are other accounts with claims missing.

            The town board members keep thinking that if the town receives all the revenue it anticipated, all will be right with the world. “T’ain’t so.”  If the town received and spent all of the money budgeted, and then passed exactly the same budget next year, taxes would go up.  Why?  The previous town board last year included $90,000 of unexpended balance in this year’s budget to lower taxes.  If that is spent it will have to be made up in additional taxes.  How much would that impact taxes, you ask?  It would add an additional 19.3 cents per thousand, an increase of 13 percent in the tax rate.  The same math holds true for the highway; if their $46,000 unexpended balance is spent, that will add a dime to the tax rate, all of this without increasing the 2009 budget one cent!  And it is clear that the budget is not going to stay the same.  The town has borrowed money to fix the bridges.  It faces increased energy costs, pay for employees, etc. 

            The other problem this town board has is that it is running out of authorization to spend to pay the bills.  Just because a town has cash doesn’t mean it can spend it; it has to live within the budget the voters approved.  So far the town board has spent $453,682 of the general fund; it has $368,869 left to meet the obligations over the next 6 months, and it cannot raise the budget until its revenues exceed the amount budgeted.  If it does raise the budget instead of curtailing spending, that will reduce the amount of unexpended funds available to lower taxes.  How’s that for a Catch 22?

            This town board is stuck with an impossible budget ushered through by previous Williams run town board.  That is the reality.  But it is up to this town board to deal with the problems; otherwise the tax payers will be facing a huge tax increase.

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The State of Milan’s Finances – Part 2 of 2

            Milan’s present financial woes, although worsened by the increased costs of fuel and the decline in revenue, were four years in the making.  As we pointed out in the first of this series of articles, Williams-May made changes in the budget after the election that regardless of economic conditions resulted in the financial crisis the town now faces.  However, the town’s financial problems today are exacerbated by the free spending approach of the town boards over the previous four years – 2004 through 2007.  Spending in three areas in particular grew exponentially; attorneys, zoning, and planning.  Here is a comparison between the spending on these areas 2004 – 2007, and 2000 – 2003.

(All amounts shown below were taken from the town’s annual reports to the NYS Comptroller.)

Attorneys (1420)         2000-2003                   2004-2007       Difference       % Increase

                                    $  69,855                     $ 136,332        $  66,477           +95.2

Zoning (8010)             2000-2003                   2004-2007       Difference       % Increase

                                    $   72,807                    $  164,136       $  91,329         +125.4

Planning (8020)           2000-2003                   2004-2007       Difference       % Increase

                                    $   33,849                    $  220,704       $ 186,855        +552.0

Between 2000 and 2003 the town board (aka: Jeffreys, Odak, Balletto & Campbell) spent on these three accounts a total of $176,511; in the last four years  the town board (aka: Talmage, Clark, Williams & May)spent a whopping $521,171, nearly three times the previous amount.  And this does not include all of the money wasted on the two, court voided, comprehensive plans!  That was another $19,845 wasted.

            What were the benefits the taxpayers received from the spending?  Six lawsuits, the comprehensive plan overturned twice, the elimination of the Floating Light Industrial Zone Law once, and the Wetlands law once.  And who were the architects of these disasters?  Williams-May. 

And the end is not in sight.  Make no mistake about it, even if the town board proposed no increase (nada, zero, zilch!) in the budget for next year, and even if the town gets all of pie-in-the-sky revenue Williams-May put in the present budget, we taxpayers will be facing a minimum 15 to 20 percent tax increase. 

And who can we thank for that?  You guessed it – Williams-May.

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The State of Milan’s Finances – Part 1 of 2

            Despite Williams-May alibis, the town’s finances are in terrible shape.  The question is: how did they get that way?  We have heard Williams-May say that there were no changes made in the 2008 budget after last year’s election, and we know that is not true.  The two of them held the passage of the budget up for nearly two weeks while they made cuts in expenditures, shifted funds from the highway department to the general budget, and over estimated revenues.  Perhaps they forgot what they did.  Perhaps they suffer from a serious lapse of memory.  Surely they are not intentionally misleading us to cover their gross incompetence.  If you compare the tentative budget proposed by Mr. Talmage with the one rammed through by Williams-May, the one the present town board is stuck with, you will see that the two financial wizards cut the preliminary budget by $104,000.  They more than doubled the taxes for the general budget while cutting $118,600 from the highway’s revenue.  They lowered most departments’ appropriations, except for attorneys; here they increased the budget from $36,000 to $63,000.  All this occurred after the electionYou draw your own conclusion on their motives.

            Williams-May say they are prepared to live within the present budget.  July will put them to the test.  There is only $421.15 left to cover postage and mailing for the rest of the year.  There is only $720.54 to cover Recreation for the rest of the year, and there is a much larger bill due for the stairs to the second floor of the announcer’s booth.  And the one that tops them all:  There is only $1,405.18 left to pay attorneys for the rest of the year, and the town has not yet received their bills for May and June; this is just the beginning.  There will be other accounts that exhaust their appropriations before the year ends.  Where will they get the spending authorizations to cover these accounts?

            Will they take it from the Justices?  Assessors?  Planning and Zoning?  Will Williams-May propose cutbacks in payroll?  Or will they do what they have done thus far: point their fingers at the majority and say "it’s not our problem."  Come on Williams-May, tell us how you propose to live within the budget.  One thing you can expect they will not recommend, and that is cutting the attorney costs.  Their egos are too wrapped up in that. 

              Maybe we haven’t lost enough lawsuits to convince them they were wrong.

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TOP STORIES                                                                                    07/31/2008

Milaners to update recreation trail

By Erikah Haavie, Correspondent

  

MILAN – Several years ago, Kyle Morris saw a need for more trails in Milan.

 

While there were recreational trails in Pine Plains, Morris wanted to do more to offer outdoor opportunities in his hometown.

So for his Eagle Scout project, Morris decided to cut a new trail at the Milan Recreation Park for individuals and families to use.

"I thought it would be an interesting thing to do," Morris said.

As a community project and a follow-up to Morris' work, the Milaners Youth Group will be working on the trail on Aug. 9.

The Milaners Youth Group completed their first project in March with painting and field work at the recreation park.

About 25 people are expected to participate in this second project, set to run from 8:30 a.m. until work is completed at about 2 p.m., said Town Board Member David Byrne.

Part of the work to be done includes marking the trail and shifting a portion of the trail from the Raptor Center's