Village of Morristown
Village of Morristown Dissolution Study Public Informational Meeting #2 November 28, 2017, 6:00 p.m., Morristown Fire Hall
Visit the website: www.danc.org/morristown-study
Morristown Dissolution Study Committee • • • • • • • • • •
Cheryl Shatraw, Village of Morristown Mayor John Barse Phil Barse Mark Blanchard Chris Coffin Diane LaRock Jay Moore John Newtown Michele Whalen Don Woods
Consultant: • Development Authority of the North Country – Carrie Tuttle, Director of Engineering – Star Carter, GIS Supervisor 2
Topics to Be Covered Today • • • •
Dissolution Study Process Draft Alternatives Report Next Steps Questions
3
Dissolution Study Funding
•
The Village Board applied for a $15,000 Citizen Reorganization Empowerment Grant in October 2016
•
The NYS Department of State awarded the grant to the Village in January 2017
•
The grant will cover 50% of the cost of the $30,000 Dissolution 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. T00025GG.
4
Dissolution Study Process Phase 1: Existing Conditions • What services do the Village and Town provide to residents? • How are municipal services provided? • Village and Town financial, employee, and asset review • Village and Town taxes review Phase 2: Evaluation of Alternatives • How can Village services be provided differently to increase efficiency? • Study Committee explores many options to alternative service delivery, up to and including Village dissolution Phase 3: Recommendations and Final Report • Study Committee will develop an Implementation Plan based on the Alternatives Report and submit final report to the Morristown Village Board • Village Board will vote to accept Recommendations and Final Report
Phase 4: Public Hearing and Referendum • If recommendation is to dissolve the Village, the Village registered voters would be eligible to vote • Must be a majority vote in favor of dissolution to pass 5
Dissolution Study DRAFT Alternatives Report The following is a summary of the DRAFT Alternatives Report. To calculate projected cost savings from dissolution, the committee was required to make some assumptions about future budgets and contractual costs. The committee has not taken this task lightly, and thoroughly discussed and analyzed financial statements from the Village and Town and different options for each service. The information presented in this report is the committee’s best estimation of the projected cost savings and expenses, based on the actual expenses reported by the Village and the Town in their FYE 2016 Annual Update Documents (AUD) that are submitted to the State Comptroller. The committee tried to establish conservative projections of expenses and savings but acknowledges that this process requires assumptions about future conditions be made; some savings may be more and some savings may be less.
The full report and all supporting documentation can be referenced on the study website: www.danc.org/morristown-study
6
Alternatives Objectives The Committee will develop a “Base Case” for dissolution and evaluate alternatives outside of dissolution Task
Status
1. Brainstorm recommendations for alternative delivery of Village services
Complete
2. Categorize recommendations into specific budgets for potential cost savings
Complete
3. Analyze each recommendation: delivery method, cost, and cost savings
Complete
4. Draft Alternatives Report with the recommendations and details
In process
Wages & Benefits
Contractual Expenses
Other Efficiency Improvements
Tax Credits
Note: all cost figures are from FYE 2016 for the Village and Town unless otherwise noted. 7
DRAFT Alternatives Report Summary of Savings Worksheets:
Appendix A: Wages and Benefits Appendix B: Contractual
8
Special Districts - Fire The Village Fire and Rescue services are currently paid for by Village residents as part of their Village taxes. The Morristown Volunteer Fire Department provides the fire and rescue services; however, the Village owns the Fire Hall, all of the fire trucks and equipment, and there is $325,725 in debt remaining on a new fire truck. If the Village dissolved, the former Village area would become a new Fire District, which would take over all the fire related expenses, revenues, and debts; would have its own Board of Fire Commissioners elected by the district; and could contract with the Morristown Volunteer Fire Department for fire and rescue services. The Village taxpayer portion of the total expenses for fire and rescue services in FYE 2016 was $44,660; this is the estimated amount that would be applied to the taxpayers in the newly formed Fire District area. The calculated rate for the Fire District, based on the 2016 financial figures, would be $1.72 per $1,000 of assessed value for all tax payers within the fire district. Without dissolution, there would be no change to fire and rescue services.
9
Special Districts - Water If the Village dissolved, the Town would create a Water District for the former Village area and all of the revenues, expenditures, fund balance, and debts related to water services would stay within the water district, and all of the people who are currently receiving and paying for water services would continue to receive and pay for those services. The Village residents currently pay for water services through quarterly water bills, not as part of their Village taxes. All of the revenues and most of the expenses related to water services are currently accounted for in the Village Water Fund; however, in FYE 2016, the Village did not account for any labor or benefits in the Water Fund. The Town would employ licensed operators to run the water system or contract for water system operation services, which is estimated to cost $28,493 annually (including labor for billing tasks). The addition of $28,493 to the Water District expenses is expected to affect water rates. In FYE 2016, the water rate was $8.00 per $1,000 gallons plus $25 of fixed costs per year per EDU, with an average annual customer rate of $236. After dissolution, the projected average annual water rate for water customers could increase 3% to $245.
10
Special Districts - Sewer If the Village dissolved, the Town would create a Sewer District for the former Village area and all of the revenues, expenditures, fund balance, and debts related to sewer services would stay within the sewer district, and all of the people who are currently receiving and paying for sewer services would continue to receive and pay for those services. The Village residents currently pay for sewer services through quarterly sewer bills, not as part of their Village taxes. All of the revenues and most of the expenses related to sewer services are currently accounted for in the Village Sewer Fund; however, in FYE 2016, the Village accounted for $67,313 in DPW labor and benefits in the Sewer Fund, but some of these labor costs were for water system tasks or general DPW tasks. The Town would employ licensed operators to run the sewer system or contract for sewer system operation services, which is estimated to cost $41,955 annually (including labor for billing tasks). The adjustment to labor expenses accounted for in the Sewer District is expected to affect sewer rates. In FYE 2016, the sewer rate for Village sewer customers was a flat rate of $360 per year. After dissolution, the projected annual sewer rate for Village customers could decrease 3% to $347. The Village labor rate for Town customers could also decrease by 3%. 11
Village and Town Debt Levels - FYE 2016 Village
Town
General Fund 1
$325,725
$0
Water 2
$589,176
N/A
Highway
N/A
$0
1998 EFC Bond: $64,707 2013 EFC Bond: $37,250
District 1: $23,450 District 2: $869,502
$1,016,858
$892,952
Sewer Total
3
1.
The Village General Fund debt is for the fire truck. The fire truck debt would be transferred to the Fire District.
2.
Village water debt would stay within the water district if dissolution occurred.
3.
Village sewer debt would stay within the newly formed sewer district. Town sewer debt would remain with the respective town districts. 12
Effect of Dissolution on Tax Levy and Property Taxes Note: This study addresses property taxes that are applied to Village or Town taxable properties, and only includes Village and Town taxes. Dissolution would not impact County or School taxes.
13
Tax Levy The table below shows the impacts of dissolution on the tax levies and the estimated “post dissolution” Town tax levy. Village
Town
Total
$305,154
$635,281
$940,435
Savings from Wages & Benefits (subtract from total levy)
-
-
-$63,058
Savings from Contractual (subtract from total levy)
-
-
-$34,879
Annual Citizens Empowerment Tax Credit (subtract from total levy)
-
-
-$143,290
Town Tax Levy if Village Dissolves & 100% Citizens Empowerment Tax Credit is Applied
-
-
$699,208
Combined 2016 Tax Levy (not including Town special districts)
14
Village and Town Tax Rates “Before Dissolution” 2016 Tax Rates per $1,000 of Assessed Value Village Resident
Town Outside Village Morristown Fire Protection District Resident
Town Outside Village Brier Hill Fire District Resident
Town Rate
$3.56
3.56
$3.56
Village Rate
$11.75
-
-
Town-Wide Chargebacks
$0.36
$0.36
$0.36
-
$0.29
$0.29
Part of Village Tax Rate
$0.43
$1.17
$15.67
$4.64
$5.38
Town-Outside Chargebacks Fire & Rescue Services (Fire Services Only in Town Districts) Total
“After Dissolution” Projected Tax Rates per $1,000 of Assessed Value Village Resident
Town Outside Village Morristown Fire Protection District Resident
Town Outside Village Brier Hill Fire District Resident
Town Rate
$3.86
$3.86
$3.86
Town Chargebacks
$0.65
$0.65
$0.65
Fire & Rescue Services (Fire Services Only in Town Districts)
$1.72
$0.43
$1.17
$6.23
$4.94
$5.68
Dollar Change from 2016 Total
$9.44 Decrease
$0.30 Increase
$0.30 Increase
Percent Change from 2016 Total
60% Decrease
6% Increase
6% Increase
Total
15
Village and Town Tax Rates If the Village dissolved, the Village taxpayers could see an overall decrease of $9.44 per $1,000 of assessed value in their municipal taxes (60%), and the Town taxpayers could see an increase of $0.30 per $1,000 of assessed value (6%). Appendix C: Projected Tax Impacts - residents of the Village and the Town can use these tables to estimate the impact of dissolution on their property taxes based on their property’s assessed value. Please note: these impacts are for Village and Town taxes only; they do not include County or School taxes. Residents can also use the formulas below to estimate their tax impact: Village Projected Annual Tax Decrease • Taxable Assessed Value of Property ÷ $1,000 x $9.44
Town Projected Annual Tax Increase • Taxable Assessed Value of Property ÷ $1,000 x $0.30
16
Next Steps for Dissolution Study Committee Solicit and incorporate public feedback on Draft Alternatives Report. Finalize Alternatives Report and develop Dissolution Implementation Plan based on the Alternatives Report details. Submit Final Dissolution Study Report and Plan to Village Board for acceptance and approval at Village Board Meeting. Committee will have completed its scope of work.
17
Next Steps for Village Board The Village Board, when presented with the Final Dissolution Study Report and Plan at the Village Board Meeting, may:
Accept and approve the Final Dissolution Study Report and Plan. Village Board will set a date for a Public Hearing, and based on the results of the Public Hearing, would set a date for a referendum. Not accept the Final Dissolution Study Report and Plan and request changes or edits before approval is made. The Dissolution Study Committee would discuss the changes/edits requested and either make the changes to the report and resubmit, or not make the changes. Not accept or approve the Final Dissolution Study Report and Plan. The Dissolution Study Committee would have completed its scope of work and the dissolution study would be complete. The process stops unless a petition to vote on dissolution is filed with the Village.
18
Department of State Municipal Dissolution Processes: Board initiated
19
Board-Initiated Dissolution Process Day 1
Proposed Dissolution Plan Adopted
Within 35 to 90 Days
Hearing Held
Within 5 Days Within 180 Days
Process Ends
Proposed Plan Amended Final Plan Approved
Special District Dissolved
Referendum Date Set Within 60 to 90 Days
Referendum Held Referendum Passes
Village Dissolves
Referendum Fails
Four Year Waiting Period
Voter-Initiated Dissolution Day 1 Within 10 Days Within 30 Days Within 60 to 90 days Within 30 Days, Board Must Meet Within 180 Days Within 35 to 90 Days Within 60 Days After 45 Days Within 45 Days Within 30 Days Within 60 to 90 Days
Petition Filed Signatures Verified
Petition Rejected
Referendum Date Set
Appeal Possible
Referendum Held Referendum Passes
Referendum Fails
Proposed Plan Approved Hearing Held
Four Year Waiting Period
Proposed Plan Amended Final Plan Approved Dissolution Occurs Petitions Filed for Permissive Referendum Passes: Fails: No Dissolution Dissolution Occurs
Questions or Comments?
Carrie Tuttle, Director of Engineering 315-661-3259 [email protected]
Robert Roeckle, Department of State 518-486-4669 [email protected]
Star Carter, GIS Supervisor 315-661-3261 [email protected]
22
Visit the website: www.danc.org/morristown-study
Morristown Dissolution Study Committee • • • • • • • • • •
Cheryl Shatraw, Village of Morristown Mayor John Barse Phil Barse Mark Blanchard Chris Coffin Diane LaRock Jay Moore John Newtown Michele Whalen Don Woods
Consultant: • Development Authority of the North Country – Carrie Tuttle, Director of Engineering – Star Carter, GIS Supervisor 2
Topics to Be Covered Today • • • •
Dissolution Study Process Draft Alternatives Report Next Steps Questions
3
Dissolution Study Funding
•
The Village Board applied for a $15,000 Citizen Reorganization Empowerment Grant in October 2016
•
The NYS Department of State awarded the grant to the Village in January 2017
•
The grant will cover 50% of the cost of the $30,000 Dissolution 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. T00025GG.
4
Dissolution Study Process Phase 1: Existing Conditions • What services do the Village and Town provide to residents? • How are municipal services provided? • Village and Town financial, employee, and asset review • Village and Town taxes review Phase 2: Evaluation of Alternatives • How can Village services be provided differently to increase efficiency? • Study Committee explores many options to alternative service delivery, up to and including Village dissolution Phase 3: Recommendations and Final Report • Study Committee will develop an Implementation Plan based on the Alternatives Report and submit final report to the Morristown Village Board • Village Board will vote to accept Recommendations and Final Report
Phase 4: Public Hearing and Referendum • If recommendation is to dissolve the Village, the Village registered voters would be eligible to vote • Must be a majority vote in favor of dissolution to pass 5
Dissolution Study DRAFT Alternatives Report The following is a summary of the DRAFT Alternatives Report. To calculate projected cost savings from dissolution, the committee was required to make some assumptions about future budgets and contractual costs. The committee has not taken this task lightly, and thoroughly discussed and analyzed financial statements from the Village and Town and different options for each service. The information presented in this report is the committee’s best estimation of the projected cost savings and expenses, based on the actual expenses reported by the Village and the Town in their FYE 2016 Annual Update Documents (AUD) that are submitted to the State Comptroller. The committee tried to establish conservative projections of expenses and savings but acknowledges that this process requires assumptions about future conditions be made; some savings may be more and some savings may be less.
The full report and all supporting documentation can be referenced on the study website: www.danc.org/morristown-study
6
Alternatives Objectives The Committee will develop a “Base Case” for dissolution and evaluate alternatives outside of dissolution Task
Status
1. Brainstorm recommendations for alternative delivery of Village services
Complete
2. Categorize recommendations into specific budgets for potential cost savings
Complete
3. Analyze each recommendation: delivery method, cost, and cost savings
Complete
4. Draft Alternatives Report with the recommendations and details
In process
Wages & Benefits
Contractual Expenses
Other Efficiency Improvements
Tax Credits
Note: all cost figures are from FYE 2016 for the Village and Town unless otherwise noted. 7
DRAFT Alternatives Report Summary of Savings Worksheets:
Appendix A: Wages and Benefits Appendix B: Contractual
8
Special Districts - Fire The Village Fire and Rescue services are currently paid for by Village residents as part of their Village taxes. The Morristown Volunteer Fire Department provides the fire and rescue services; however, the Village owns the Fire Hall, all of the fire trucks and equipment, and there is $325,725 in debt remaining on a new fire truck. If the Village dissolved, the former Village area would become a new Fire District, which would take over all the fire related expenses, revenues, and debts; would have its own Board of Fire Commissioners elected by the district; and could contract with the Morristown Volunteer Fire Department for fire and rescue services. The Village taxpayer portion of the total expenses for fire and rescue services in FYE 2016 was $44,660; this is the estimated amount that would be applied to the taxpayers in the newly formed Fire District area. The calculated rate for the Fire District, based on the 2016 financial figures, would be $1.72 per $1,000 of assessed value for all tax payers within the fire district. Without dissolution, there would be no change to fire and rescue services.
9
Special Districts - Water If the Village dissolved, the Town would create a Water District for the former Village area and all of the revenues, expenditures, fund balance, and debts related to water services would stay within the water district, and all of the people who are currently receiving and paying for water services would continue to receive and pay for those services. The Village residents currently pay for water services through quarterly water bills, not as part of their Village taxes. All of the revenues and most of the expenses related to water services are currently accounted for in the Village Water Fund; however, in FYE 2016, the Village did not account for any labor or benefits in the Water Fund. The Town would employ licensed operators to run the water system or contract for water system operation services, which is estimated to cost $28,493 annually (including labor for billing tasks). The addition of $28,493 to the Water District expenses is expected to affect water rates. In FYE 2016, the water rate was $8.00 per $1,000 gallons plus $25 of fixed costs per year per EDU, with an average annual customer rate of $236. After dissolution, the projected average annual water rate for water customers could increase 3% to $245.
10
Special Districts - Sewer If the Village dissolved, the Town would create a Sewer District for the former Village area and all of the revenues, expenditures, fund balance, and debts related to sewer services would stay within the sewer district, and all of the people who are currently receiving and paying for sewer services would continue to receive and pay for those services. The Village residents currently pay for sewer services through quarterly sewer bills, not as part of their Village taxes. All of the revenues and most of the expenses related to sewer services are currently accounted for in the Village Sewer Fund; however, in FYE 2016, the Village accounted for $67,313 in DPW labor and benefits in the Sewer Fund, but some of these labor costs were for water system tasks or general DPW tasks. The Town would employ licensed operators to run the sewer system or contract for sewer system operation services, which is estimated to cost $41,955 annually (including labor for billing tasks). The adjustment to labor expenses accounted for in the Sewer District is expected to affect sewer rates. In FYE 2016, the sewer rate for Village sewer customers was a flat rate of $360 per year. After dissolution, the projected annual sewer rate for Village customers could decrease 3% to $347. The Village labor rate for Town customers could also decrease by 3%. 11
Village and Town Debt Levels - FYE 2016 Village
Town
General Fund 1
$325,725
$0
Water 2
$589,176
N/A
Highway
N/A
$0
1998 EFC Bond: $64,707 2013 EFC Bond: $37,250
District 1: $23,450 District 2: $869,502
$1,016,858
$892,952
Sewer Total
3
1.
The Village General Fund debt is for the fire truck. The fire truck debt would be transferred to the Fire District.
2.
Village water debt would stay within the water district if dissolution occurred.
3.
Village sewer debt would stay within the newly formed sewer district. Town sewer debt would remain with the respective town districts. 12
Effect of Dissolution on Tax Levy and Property Taxes Note: This study addresses property taxes that are applied to Village or Town taxable properties, and only includes Village and Town taxes. Dissolution would not impact County or School taxes.
13
Tax Levy The table below shows the impacts of dissolution on the tax levies and the estimated “post dissolution” Town tax levy. Village
Town
Total
$305,154
$635,281
$940,435
Savings from Wages & Benefits (subtract from total levy)
-
-
-$63,058
Savings from Contractual (subtract from total levy)
-
-
-$34,879
Annual Citizens Empowerment Tax Credit (subtract from total levy)
-
-
-$143,290
Town Tax Levy if Village Dissolves & 100% Citizens Empowerment Tax Credit is Applied
-
-
$699,208
Combined 2016 Tax Levy (not including Town special districts)
14
Village and Town Tax Rates “Before Dissolution” 2016 Tax Rates per $1,000 of Assessed Value Village Resident
Town Outside Village Morristown Fire Protection District Resident
Town Outside Village Brier Hill Fire District Resident
Town Rate
$3.56
3.56
$3.56
Village Rate
$11.75
-
-
Town-Wide Chargebacks
$0.36
$0.36
$0.36
-
$0.29
$0.29
Part of Village Tax Rate
$0.43
$1.17
$15.67
$4.64
$5.38
Town-Outside Chargebacks Fire & Rescue Services (Fire Services Only in Town Districts) Total
“After Dissolution” Projected Tax Rates per $1,000 of Assessed Value Village Resident
Town Outside Village Morristown Fire Protection District Resident
Town Outside Village Brier Hill Fire District Resident
Town Rate
$3.86
$3.86
$3.86
Town Chargebacks
$0.65
$0.65
$0.65
Fire & Rescue Services (Fire Services Only in Town Districts)
$1.72
$0.43
$1.17
$6.23
$4.94
$5.68
Dollar Change from 2016 Total
$9.44 Decrease
$0.30 Increase
$0.30 Increase
Percent Change from 2016 Total
60% Decrease
6% Increase
6% Increase
Total
15
Village and Town Tax Rates If the Village dissolved, the Village taxpayers could see an overall decrease of $9.44 per $1,000 of assessed value in their municipal taxes (60%), and the Town taxpayers could see an increase of $0.30 per $1,000 of assessed value (6%). Appendix C: Projected Tax Impacts - residents of the Village and the Town can use these tables to estimate the impact of dissolution on their property taxes based on their property’s assessed value. Please note: these impacts are for Village and Town taxes only; they do not include County or School taxes. Residents can also use the formulas below to estimate their tax impact: Village Projected Annual Tax Decrease • Taxable Assessed Value of Property ÷ $1,000 x $9.44
Town Projected Annual Tax Increase • Taxable Assessed Value of Property ÷ $1,000 x $0.30
16
Next Steps for Dissolution Study Committee Solicit and incorporate public feedback on Draft Alternatives Report. Finalize Alternatives Report and develop Dissolution Implementation Plan based on the Alternatives Report details. Submit Final Dissolution Study Report and Plan to Village Board for acceptance and approval at Village Board Meeting. Committee will have completed its scope of work.
17
Next Steps for Village Board The Village Board, when presented with the Final Dissolution Study Report and Plan at the Village Board Meeting, may:
Accept and approve the Final Dissolution Study Report and Plan. Village Board will set a date for a Public Hearing, and based on the results of the Public Hearing, would set a date for a referendum. Not accept the Final Dissolution Study Report and Plan and request changes or edits before approval is made. The Dissolution Study Committee would discuss the changes/edits requested and either make the changes to the report and resubmit, or not make the changes. Not accept or approve the Final Dissolution Study Report and Plan. The Dissolution Study Committee would have completed its scope of work and the dissolution study would be complete. The process stops unless a petition to vote on dissolution is filed with the Village.
18
Department of State Municipal Dissolution Processes: Board initiated
19
Board-Initiated Dissolution Process Day 1
Proposed Dissolution Plan Adopted
Within 35 to 90 Days
Hearing Held
Within 5 Days Within 180 Days
Process Ends
Proposed Plan Amended Final Plan Approved
Special District Dissolved
Referendum Date Set Within 60 to 90 Days
Referendum Held Referendum Passes
Village Dissolves
Referendum Fails
Four Year Waiting Period
Voter-Initiated Dissolution Day 1 Within 10 Days Within 30 Days Within 60 to 90 days Within 30 Days, Board Must Meet Within 180 Days Within 35 to 90 Days Within 60 Days After 45 Days Within 45 Days Within 30 Days Within 60 to 90 Days
Petition Filed Signatures Verified
Petition Rejected
Referendum Date Set
Appeal Possible
Referendum Held Referendum Passes
Referendum Fails
Proposed Plan Approved Hearing Held
Four Year Waiting Period
Proposed Plan Amended Final Plan Approved Dissolution Occurs Petitions Filed for Permissive Referendum Passes: Fails: No Dissolution Dissolution Occurs
Questions or Comments?
Carrie Tuttle, Director of Engineering 315-661-3259 [email protected]
Robert Roeckle, Department of State 518-486-4669 [email protected]
Star Carter, GIS Supervisor 315-661-3261 [email protected]
22
