Village of Hermon - Development Authority of the North Country
Village of Hermon Dissolution Study Public Informational Meeting May 14, 2015
Dissolution Study Committee • • • • • • • • •
Cathy Race, Village Mayor Dave Doiron Jeff Foster Lee Carvel, Town Councilman Nate Young, Village Trustee Sheri Smith Tracey Woodrow Jamie Matthews Consultants: Development Authority of the North Country (DANC) and Capital Consultants Architecture Engineering (C2AE) 2
Topics to Be Covered • • • • • •
History & population trends Current Village and Town taxes Services provided by the Village and Town What would change if the Village dissolves? How would taxes be impacted by dissolution? Next steps for the dissolution process
3
4
Hermon, NY Village and Town History A post office named Hermon was established in the area in 1828 The Town was first organized under the name of Depeau in 1830, but since there was already a “Depauville” in Jefferson County, the Town changed its name to Hermon in 1834 The Village of Hermon was incorporated in 1887
Today, the Village of Hermon is 0.4 square miles and the Town of Hermon is 54.2 square miles 5 Source: www.history.rays-place.com
Census Population Data Hermon Village and Town Population, 1950-2010 Village
Town
Total
1950
547
803
1350
1960
612
643
1255
1970
521
566
1087
1980
490
593
1083
1990
407
634
1041
2000
402
667
1069
2010
422
686
1108
2013 Population Estimate for the Village of Hermon is 415 Source: US Census Bureau
6
Population Trends Since 1950
In 50 years the Village’s population has declined by 23% (>100 people) while the Town of Canton’s population has increase and the County has remained relatively constant Source: US Census Bureau
7
St. Lawrence County Villages by Population (2010 Census data): Village
Population
Hammond
280
Richville
323
Rensselaer Falls
332
Morristown
395
Hermon
422
Heuvelton
714
Waddington
927
Norwood
1,657
Gouverneur
3,949
Canton
6,314
Potsdam
9,428
Massena
10,936
The Village of Hermon is one of the smallest Villages in the County
8
2013 Tax Information
This study focuses on these 4 tax items that make up 40% for Village and 22% for TOV of total Real Property Taxes
Current Tax Rates per $1,000 AV for a Village and TOV Taxpayer (2014) Village TOV TOV = Town Outside County (1) $8.95 $8.95 Village Townwide $5.37 $5.37 Village $8.81 ~ Highway $1.08 $1.08 Fire $1.81 $1.03 School (2) $16.76 $16.76 Total $42.78 $33.19 Source: St. Lawrence County Real Property Office Notes to the chart: (1) includes County tax of $8.372 and County Chargebacks of $0.580. (2) Hermon-Dekalb School District 2013 rate
9
Real Property Information Taxable Assessed Values 2014 Assessed Value
% of Total
Village
$8,814,372
10%
TOV
$75,200,090
90%
Total
$84,014,462
100%
The Village contains only 10% of the total taxable real property in the Town & Village combined
Source: St. Lawrence County Real Property 2014
10
Expenditures by Village & Town Budgeted Expenditures – FY14/15 Village & FY14 Town Village
Town
Total
General
$86,000
$238,383
$324,383
Highway/DPW
$90,000
$612,850
$702,850
Fire
$14,000
$73,169
$87,169
$500
$33,000
$33,500
Street Lighting
$12,000
-
$12,000
Water
$49,750
-
$49,750
Sewer
$79,850
-
$79,850
Total
$332,100
$957,402
$1,289,502
Library
The biggest Village and Town expenditures are highway/DPW and general fund 11
Tax Levies Budgeted Expenditures & Tax Levies – FY2014/2015 Village & FY2014 Town Total Budgeted Expenditures
% of Total
Tax Levy
% of Total
Village
$332,100
26%
$80,543
13%
Town
$957,402
74%
$562,947
87%
Total
$1,289,502
100%
$643,490
100%
The Village tax levy is 13% of the total Town/Village combined tax levy and Village expenditures are 26% of the combined total. $141,600 (43%) of the Village’s expenditures are for water/sewer and lighting (i.e., special district expenditures that won’t transfer to the Town if the Village dissolves) Comparison to Edwards 1) Budgeted Expenditures = 21% Village, 79% Town 2) Tax Levies = 8% Village, 92% Town
12
Fund Balances Fund Balances – As of 5/31/14 (Village); As of 12/31/12 (Town) Fund/Purpose
Balance
General Village
Town
$258,643
Water
$81,056
Sewer
$79,371
Total
$419,070
General
$330,093 Total
Comparison to Edwards 5/31/10 1) Village Total = $81,138 2) Town Total $409,047
$749,162
If the Village dissolves the general fund balance becomes the Town’s. Water and sewer fund balances remain the property of those special districts. 13
Debt Levels Outstanding Debt – As of 5/31/14 (Village); As of 12/31/12 (Town) Fund/Purpose
Village
Town
Balance
General
$0
Water
$0
Sewer
$133,400
Total
$133,400
General
$0 Total
$133,400
If the Village dissolves Sewer Fund debt remains the responsibility of the Sewer District (not the Town). Debt will be paid off in 2017.
14
Services Provided by Village • Governance by Mayor and Board of Trustees • Clerk/Treasurer function – by 1 part-time clerk • DPW functions – by 1 part-time employee – Village mows ball field, park, spring lots; cold patch and street sweeping; snow removal for town plowing and limited sidewalk snow removal around bank and library
• Water & Sewer system operation – by 2 parttime employees The Town already provides most services for Village residents (plowing, court services, assessor, code enforcement, dog control, etc.) 15
Elected Officials & Employee Staffing Village
Town
Total
Mayor/Supervisor
1
1
2
Trustees/Council Members
4
4
8
Clerk/Treasurer
1 PT
1 PT
2 PT
Highway/DPW
1 PT (DPW employee also does water)
5
5 FT, 1 PT
1 PT
-
1 PT
Code Enforcement Officer
-
Contracted – 1 PT
1 PT
Assessor
-
Contracted – 1 PT
1 PT
Justice
-
Contracted – 1 PT
1 PT
Total Employees
8
14
22
Sewer
16
What Would Change if Village Dissolves? • Services presently provided by the Village would be provided by the Town – Town would assume remaining Village Clerk/Treasurer functions (several would go away like payroll, budgets, annual reports, etc.) – Town would assume DPW functions – Town would assume water/sewer operations
17
Tax Payer Savings if Village Dissolves Annual Savings • Salaries for the Village Mayor and four trustees ($3,200) • Municipal Association Dues ($727) • Elections ($281) • Insurance Savings ($3,000) • Savings that could be achieved by disposing of the former Village dump are $194 per year for real property taxes • TOTAL = $7,402 One-Time Savings • Disposition of Unused Real Property ($44,700 plus the municipal building $19,400) • TOTAL = $64,100 18
Other Potential Tax Payer Savings • The Town negotiates a new rate with the Fire Dept. more closely aligned with the current rate for Town Outside Village taxpayers; $1.03/$1,000 of assessed value versus $1.81/$1,000 of assessed value. • The Town assumes the Village Clerk/Treasurer functions that will remain post-dissolution at a cost less than the salary and benefits of the current Village Clerk ($11,691 per year). • The Town assumes the existing District of Public Works personnel functions at a cost less than the salary and benefits of the current DPW ($26,282 per year). • The Village is able to eliminate costs associated with the current Village Municipal Building (i.e., heat, electricity, phone, internet, building insurance, maintenance, etc.)
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Post Dissolution Tax Levy Village Actual Tax Levy (FYE 2014 from Open Books NY)
$80,950
Town
Total
$578,934 $659,884
Annual Citizens Empowerment Tax Credit (CETC) Savings (@100%) Estimated Annual Savings (nonCETC Tax Levy if Village Dissolves
($98,983) ($7,402) $553,499
Comparison to Edwards: $84,908 for annual “Aid to Municipality” 20
Projected Tax Rates Post Dissolution (no lighting district) Tax County Townwide Fire Village Total
Former Village
Town Outside Village $10.03 $10.03 $6.59 $6.59 Included in Townwide $16.62 $16.62
For a home assessed at $50,000 this would result in a $470 per year decrease for former Village taxpayers and a $9 per year increase for Town Outside Village taxpayers. For a home assessed at $100,000 the decrease would be $940 per year for a former Village taxpayer and a $19 per year increase for Town Outside Village taxpayers.
21
Projected Tax Rates Post Dissolution (with lighting district) Tax County Townwide Fire Village Total
Former Village
Town Outside Village $10.03 $10.03 $6.46 $6.46 Included in Townwide $1.21 $17.70 $16.49
For a home assessed at $50,000 this would result in a $416 per year decrease for former Village taxpayers and a $3 per year increase for Town Outside Village taxpayers. For a home assessed at $100,000 the decrease would be $832 per year for a former Village taxpayer and a $6 per year increase for Town Outside Village taxpayers.
22
Tax Impact Summary • Assuming a lighting district is created, the projected decrease in property taxes will be 52% for current Village tax payers and a 1% increase in property taxes for current Town Outside Village taxpayers. • If $4,575/year of savings is achieved from Clerk/Treasurer, DPW, or Fire Dept., consolidation or eliminating costs from Village municipal office, then there will be no increase to Town tax payers from Village dissolution. 23
Next Steps • Finalize Alternatives Report • Develop an Implementation Plan for Dissolution – Up to $100,000 is available through the NYS Dept. of State (90% grant/10% local share) to pay for costs associated with dissolution
• Present Plan to the Village and Town Boards • Schedule another Public Meeting to review Implementation Plan • Schedule vote on dissolution 24
Board-Initiated Dissolution 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
Referendum Fails
Town/Village DissolvedFour 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 30Days Within 60 to 90 Days
Petition Filed Signatures Verified
Petition Rejected
Referendum Date Set
Appeal Possible
Referendum Held Referendum Passes Proposed Plan Approved
Referendum Fails
Four Year Waiting Hearing Held Period Proposed Plan Amended Final Plan Approved Dissolution Occurs Petitions Filed for Permissive Referendum Passes: Dissolution Occurs Fails: No Dissolution
Questions
Thank you for attending! For more information go to the Hermon Dissolution Study Webpage at http://www.danc.org/operations/engineering/h ermon-dissolution-study 27
Dissolution Study Committee • • • • • • • • •
Cathy Race, Village Mayor Dave Doiron Jeff Foster Lee Carvel, Town Councilman Nate Young, Village Trustee Sheri Smith Tracey Woodrow Jamie Matthews Consultants: Development Authority of the North Country (DANC) and Capital Consultants Architecture Engineering (C2AE) 2
Topics to Be Covered • • • • • •
History & population trends Current Village and Town taxes Services provided by the Village and Town What would change if the Village dissolves? How would taxes be impacted by dissolution? Next steps for the dissolution process
3
4
Hermon, NY Village and Town History A post office named Hermon was established in the area in 1828 The Town was first organized under the name of Depeau in 1830, but since there was already a “Depauville” in Jefferson County, the Town changed its name to Hermon in 1834 The Village of Hermon was incorporated in 1887
Today, the Village of Hermon is 0.4 square miles and the Town of Hermon is 54.2 square miles 5 Source: www.history.rays-place.com
Census Population Data Hermon Village and Town Population, 1950-2010 Village
Town
Total
1950
547
803
1350
1960
612
643
1255
1970
521
566
1087
1980
490
593
1083
1990
407
634
1041
2000
402
667
1069
2010
422
686
1108
2013 Population Estimate for the Village of Hermon is 415 Source: US Census Bureau
6
Population Trends Since 1950
In 50 years the Village’s population has declined by 23% (>100 people) while the Town of Canton’s population has increase and the County has remained relatively constant Source: US Census Bureau
7
St. Lawrence County Villages by Population (2010 Census data): Village
Population
Hammond
280
Richville
323
Rensselaer Falls
332
Morristown
395
Hermon
422
Heuvelton
714
Waddington
927
Norwood
1,657
Gouverneur
3,949
Canton
6,314
Potsdam
9,428
Massena
10,936
The Village of Hermon is one of the smallest Villages in the County
8
2013 Tax Information
This study focuses on these 4 tax items that make up 40% for Village and 22% for TOV of total Real Property Taxes
Current Tax Rates per $1,000 AV for a Village and TOV Taxpayer (2014) Village TOV TOV = Town Outside County (1) $8.95 $8.95 Village Townwide $5.37 $5.37 Village $8.81 ~ Highway $1.08 $1.08 Fire $1.81 $1.03 School (2) $16.76 $16.76 Total $42.78 $33.19 Source: St. Lawrence County Real Property Office Notes to the chart: (1) includes County tax of $8.372 and County Chargebacks of $0.580. (2) Hermon-Dekalb School District 2013 rate
9
Real Property Information Taxable Assessed Values 2014 Assessed Value
% of Total
Village
$8,814,372
10%
TOV
$75,200,090
90%
Total
$84,014,462
100%
The Village contains only 10% of the total taxable real property in the Town & Village combined
Source: St. Lawrence County Real Property 2014
10
Expenditures by Village & Town Budgeted Expenditures – FY14/15 Village & FY14 Town Village
Town
Total
General
$86,000
$238,383
$324,383
Highway/DPW
$90,000
$612,850
$702,850
Fire
$14,000
$73,169
$87,169
$500
$33,000
$33,500
Street Lighting
$12,000
-
$12,000
Water
$49,750
-
$49,750
Sewer
$79,850
-
$79,850
Total
$332,100
$957,402
$1,289,502
Library
The biggest Village and Town expenditures are highway/DPW and general fund 11
Tax Levies Budgeted Expenditures & Tax Levies – FY2014/2015 Village & FY2014 Town Total Budgeted Expenditures
% of Total
Tax Levy
% of Total
Village
$332,100
26%
$80,543
13%
Town
$957,402
74%
$562,947
87%
Total
$1,289,502
100%
$643,490
100%
The Village tax levy is 13% of the total Town/Village combined tax levy and Village expenditures are 26% of the combined total. $141,600 (43%) of the Village’s expenditures are for water/sewer and lighting (i.e., special district expenditures that won’t transfer to the Town if the Village dissolves) Comparison to Edwards 1) Budgeted Expenditures = 21% Village, 79% Town 2) Tax Levies = 8% Village, 92% Town
12
Fund Balances Fund Balances – As of 5/31/14 (Village); As of 12/31/12 (Town) Fund/Purpose
Balance
General Village
Town
$258,643
Water
$81,056
Sewer
$79,371
Total
$419,070
General
$330,093 Total
Comparison to Edwards 5/31/10 1) Village Total = $81,138 2) Town Total $409,047
$749,162
If the Village dissolves the general fund balance becomes the Town’s. Water and sewer fund balances remain the property of those special districts. 13
Debt Levels Outstanding Debt – As of 5/31/14 (Village); As of 12/31/12 (Town) Fund/Purpose
Village
Town
Balance
General
$0
Water
$0
Sewer
$133,400
Total
$133,400
General
$0 Total
$133,400
If the Village dissolves Sewer Fund debt remains the responsibility of the Sewer District (not the Town). Debt will be paid off in 2017.
14
Services Provided by Village • Governance by Mayor and Board of Trustees • Clerk/Treasurer function – by 1 part-time clerk • DPW functions – by 1 part-time employee – Village mows ball field, park, spring lots; cold patch and street sweeping; snow removal for town plowing and limited sidewalk snow removal around bank and library
• Water & Sewer system operation – by 2 parttime employees The Town already provides most services for Village residents (plowing, court services, assessor, code enforcement, dog control, etc.) 15
Elected Officials & Employee Staffing Village
Town
Total
Mayor/Supervisor
1
1
2
Trustees/Council Members
4
4
8
Clerk/Treasurer
1 PT
1 PT
2 PT
Highway/DPW
1 PT (DPW employee also does water)
5
5 FT, 1 PT
1 PT
-
1 PT
Code Enforcement Officer
-
Contracted – 1 PT
1 PT
Assessor
-
Contracted – 1 PT
1 PT
Justice
-
Contracted – 1 PT
1 PT
Total Employees
8
14
22
Sewer
16
What Would Change if Village Dissolves? • Services presently provided by the Village would be provided by the Town – Town would assume remaining Village Clerk/Treasurer functions (several would go away like payroll, budgets, annual reports, etc.) – Town would assume DPW functions – Town would assume water/sewer operations
17
Tax Payer Savings if Village Dissolves Annual Savings • Salaries for the Village Mayor and four trustees ($3,200) • Municipal Association Dues ($727) • Elections ($281) • Insurance Savings ($3,000) • Savings that could be achieved by disposing of the former Village dump are $194 per year for real property taxes • TOTAL = $7,402 One-Time Savings • Disposition of Unused Real Property ($44,700 plus the municipal building $19,400) • TOTAL = $64,100 18
Other Potential Tax Payer Savings • The Town negotiates a new rate with the Fire Dept. more closely aligned with the current rate for Town Outside Village taxpayers; $1.03/$1,000 of assessed value versus $1.81/$1,000 of assessed value. • The Town assumes the Village Clerk/Treasurer functions that will remain post-dissolution at a cost less than the salary and benefits of the current Village Clerk ($11,691 per year). • The Town assumes the existing District of Public Works personnel functions at a cost less than the salary and benefits of the current DPW ($26,282 per year). • The Village is able to eliminate costs associated with the current Village Municipal Building (i.e., heat, electricity, phone, internet, building insurance, maintenance, etc.)
19
Post Dissolution Tax Levy Village Actual Tax Levy (FYE 2014 from Open Books NY)
$80,950
Town
Total
$578,934 $659,884
Annual Citizens Empowerment Tax Credit (CETC) Savings (@100%) Estimated Annual Savings (nonCETC Tax Levy if Village Dissolves
($98,983) ($7,402) $553,499
Comparison to Edwards: $84,908 for annual “Aid to Municipality” 20
Projected Tax Rates Post Dissolution (no lighting district) Tax County Townwide Fire Village Total
Former Village
Town Outside Village $10.03 $10.03 $6.59 $6.59 Included in Townwide $16.62 $16.62
For a home assessed at $50,000 this would result in a $470 per year decrease for former Village taxpayers and a $9 per year increase for Town Outside Village taxpayers. For a home assessed at $100,000 the decrease would be $940 per year for a former Village taxpayer and a $19 per year increase for Town Outside Village taxpayers.
21
Projected Tax Rates Post Dissolution (with lighting district) Tax County Townwide Fire Village Total
Former Village
Town Outside Village $10.03 $10.03 $6.46 $6.46 Included in Townwide $1.21 $17.70 $16.49
For a home assessed at $50,000 this would result in a $416 per year decrease for former Village taxpayers and a $3 per year increase for Town Outside Village taxpayers. For a home assessed at $100,000 the decrease would be $832 per year for a former Village taxpayer and a $6 per year increase for Town Outside Village taxpayers.
22
Tax Impact Summary • Assuming a lighting district is created, the projected decrease in property taxes will be 52% for current Village tax payers and a 1% increase in property taxes for current Town Outside Village taxpayers. • If $4,575/year of savings is achieved from Clerk/Treasurer, DPW, or Fire Dept., consolidation or eliminating costs from Village municipal office, then there will be no increase to Town tax payers from Village dissolution. 23
Next Steps • Finalize Alternatives Report • Develop an Implementation Plan for Dissolution – Up to $100,000 is available through the NYS Dept. of State (90% grant/10% local share) to pay for costs associated with dissolution
• Present Plan to the Village and Town Boards • Schedule another Public Meeting to review Implementation Plan • Schedule vote on dissolution 24
Board-Initiated Dissolution 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
Referendum Fails
Town/Village DissolvedFour 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 30Days Within 60 to 90 Days
Petition Filed Signatures Verified
Petition Rejected
Referendum Date Set
Appeal Possible
Referendum Held Referendum Passes Proposed Plan Approved
Referendum Fails
Four Year Waiting Hearing Held Period Proposed Plan Amended Final Plan Approved Dissolution Occurs Petitions Filed for Permissive Referendum Passes: Dissolution Occurs Fails: No Dissolution
Questions
Thank you for attending! For more information go to the Hermon Dissolution Study Webpage at http://www.danc.org/operations/engineering/h ermon-dissolution-study 27
