VILLAGE OF HERMON DISSOLUTION STUDY AND DISSOLUTION PLAN June, 2015
Village of Hermon Dissolution Study and Dissolution Plan June, 2015 Prepared for: Village/Town Dissolution Study Committee Cathy Race, Village Mayor Dave Doiron Jeff Foster Lee Carvel, Town Council Nate Young, Village Trustee Sheri Smith Tracey Woodrow Jamie Matthews
This document was prepared with funding provided by the New York State Department of State under the Local Government Efficiency Grant Program – Contract No. T1000023
Prepared by:
Executive Director, James W. Wright Staff Contributors: Star Carter, Michelle Capone, Tom Sauter, Brian Tulip, Carrie Tuttle, Ph.D, P.E., C.S.P. Capital Consultants Architecture & Engineering (C2AE): Tim Burley, P.E. Water/Wastewater Assessment Dulles State Office Building 317 Washington Street Watertown, NY 13601 315.661-3200 23557 State Route 37 Watertown, NY 13601 315.661.3210 www.danc.org 1|Page
Village of Hermon Dissolution Study and Dissolution Plan June, 2015
EXECUTIVE SUMMARY The Village of Hermon is located in St. Lawrence County within the Town of Hermon. The 0.4 square mile Village has a population of 422 residents. The Village was incorporated in 1887 and by the late 1800’s it was thriving with numerous mills, factories, and retail shops. The Village population has been in a steady decline of residents since the 1960’s and most of the businesses in the Village have closed. Today, the Village has 3 part-time employees and 5 elected officials that comprise the Village Board. The Town of Hermon currently provides several services to the Village residents, including street maintenance, court services, code enforcement, dog control, etc. In 2014, the Village Board of Trustees applied for a New York State Local Government Efficiency Re-Organization Empowerment Grant to complete a dissolution study. The grant application was funded, and the Village organized a Dissolution Study Committee comprised of Town and Village stakeholders. The Village contracted with the Development Authority of the North Country and Capital Consultants Architecture and Engineering to assist the Committee with the study. The primary objective was to develop a detailed Dissolution Study that answers questions that Village and Town of Hermon residents have about the dissolution process, impacts of dissolution, and how dissolving would affect residents and local governments. The Dissolution Study was utilized to determine: 1) Potential Financial Savings; 2) Management Improvements; 3) Service Delivery Changes resulting from a local government re-organization; and 4) Alternatives to Dissolution. A Dissolution Implementation Plan for the Village of Hermon was developed by the Dissolution Study Committee and is the final document in this report. The Plan is the culmination of the twelve month study to determine the impacts of dissolution on tax rates and service delivery. The purpose of this Dissolution Implementation Plan is to summarize the actions that will take place to move forward with Village Dissolution and to provide details on how services, presently provided by the Village, will continue after dissolution. This Plan will be submitted to the Village and Town boards for adoption. After the Dissolution Implementation Plan is approved by the Village and Town boards, then the Village will put forth a proposition to dissolve the Village. If the proposition is approved by a majority of the Village voters, then the Village of Hermon will be dissolved effective December 31, 2016. 2|Page
Village Services Summarized If the Village residents approve the proposition to dissolve, Village services currently provided by the Village will be provided by the Town. These services include water and sewer operations, clerk and treasurer duties, Department of Public Works duties, and street lighting services. Special districts will be created in the Town for residents that currently receive water, sewer, and street lighting, so that only those residents will pay for these services.
Village Funds and Property Summarized The Village expenses, including Mayor and Trustee salaries, municipal association dues, and insurance will be eliminated. The Village General Fund balance will go to the Town of Hermon, and any unused Village-owned property will be sold. Any water and sewer fund balances will remain the property of the respective water and sewer districts.
Tax Impact Summarized If the Village dissolves, assuming a lighting district is created in the Town, the projected decrease in property taxes will be 52% for current Village taxpayers and a 1% increase in property taxes for current Town Outside Village taxpayers. This is a conservative projection. Several factors could decrease the property taxes further and possibly result in no tax impacts on Town residents. Tax Rates before and after dissolution, with a lighting district Village
Town Outside Village
Total Now
$17.07
$7.48
Total After Dissolution
$8.75
$7.54
Note: Dissolution does not impact County or School taxes. For a home assessed at $50,000, this would result in a $416 per year decrease in property taxes for a former Village taxpayer, and a $3 per year increase for Town Outside Village taxpayers.
3|Page
IMPORTANT DOCUMENTS IN THIS REPORT This document is a compilation of the important documents produced for this study, and includes the following: 1. Existing Conditions Report 2. Alternatives Report 3. PowerPoint Presentation for the Public Informational Meeting on May 14, 2015 to solicit public feedback on the Existing Conditions and Alternatives Reports. 4. Dissolution Implementation Plan
4|Page
Existing Conditions Report Town and Village of Hermon January, 2015 Prepared for: Village/Town Dissolution Study Committee Cathy Race, Village Mayor Dave Doiron Jeff Foster Lee Carvel, Town Council Nate Young, Village Trustee Sheri Smith Tracey Woodrow Jamie Matthews
This document was prepared with funding provided by the New York State Department of State under the Local Government Efficiency Grant Program – Contract No. T1000023
Prepared by:
Dulles State Office Building 317 Washington Street Watertown, NY 13601 315.661-3200 23557 State Route 37 Watertown, NY 13601 315.661.3210 www.danc.org
i|Page
Table of Contents 1.0 1.1 2.0
INTRODUCTION ................................................................................................................................. 1 BACKGROUND ............................................................................................................................... 1 POPULATION TRENDS ....................................................................................................................... 3
2.1
DEMOGRAPHICS............................................................................................................................ 5
2.2
SCHOOL DISTRICTS ........................................................................................................................ 7
3.0
PROPERTY TAXES............................................................................................................................... 8
3.1
REAL PROPERTY ASSESSMENTS .................................................................................................... 9
3.2
VILLAGE OWNED REAL PROPERTY .............................................................................................. 13
4.0
TOWN AND VILLAGE MUNICIPAL SERVICES.................................................................................... 17
4.1
HIGHWAY/STREETS ..................................................................................................................... 17
4.2
STREETS & SIDEWALKS ................................................................................................................ 23
4.3
FIRE DEPARTMENT ...................................................................................................................... 24
4.4
LIGHTING ..................................................................................................................................... 27
4.5
WATER/SEWER............................................................................................................................ 28
4.6 RECREATION, COURT, ASSESSMENT, CODE ENFORCEMENT, LIBRARY AND OTHER MISCELLANEOUS SERVICES ..................................................................................................................... 37 5.0
BUDGETARY & FINANCIAL SUMMARY ............................................................................................ 39
6.0
FUND BALANCE ............................................................................................................................... 42
7.0
DEBT LEVELS .................................................................................................................................... 43
8.0
EMPLOYEE SUMMARY .................................................................................................................... 43
9.0
LOCAL LAWS & INTERMUNICIPAL AGREEMENT SUMMARY ........................................................... 44
Appendix A – Inventory of Village Equipment Appendix B – Inventory of Town Equipment
ii | P a g e
Figures & Tables Figure 1 - Village and Town of Hermon Municipal Boundaries .................................................................... 2 Figure 2 - Population Trends ......................................................................................................................... 3 Figure 3 – 2010 Population Demographics Age, Sex, and Racial Makeup .................................................... 5 Figure 4 - School Districts.............................................................................................................................. 7 Figure 5 - 2014 Village and Town Property Taxes ......................................................................................... 8 Figure 6 - Trout and Cedar Lake Waterfront Parcels .................................................................................. 12 Figure 7 - Village Real Property Classifications ........................................................................................... 13 Figure 8 - Village Owned Real Property Map .............................................................................................. 15 Figure 9 - Village Owned Real Property Map Inset ..................................................................................... 16 Figure 10 - Picture of Village Culvert .......................................................................................................... 17 Figure 11 – Village Streets........................................................................................................................... 19 Figure 12 – Town Roads .............................................................................................................................. 20 Figure 13 – Town and Village Bridges and Culverts .................................................................................... 21 Figure 14 - Village DPW Budget .................................................................................................................. 22 Figure 15 - Town Highway Budget .............................................................................................................. 22 Figure 16 - Village Sidewalks ....................................................................................................................... 23 Figure 17- Fire and Rescue Service Area ..................................................................................................... 24 Figure 18 - Fire Department Revenue......................................................................................................... 25 Figure 19 - Fire Department Expense Breakdown ...................................................................................... 25 Figure 20 - Village Budget for Fire & Rescue Services ................................................................................ 26 Figure 21 - Village Public Lighting ............................................................................................................... 27 Figure 22 - Village of Hermon Spring Lot .................................................................................................... 29 Figure 23 - Village of Hermon Standpipe .................................................................................................... 30 Figure 24 - Village of Hermon Water System.............................................................................................. 31 Figure 25 - Village of Hermon Wastewater Treatment Control Building.................................................... 32 Figure 26 - Village of Hermon Sand Filters.................................................................................................. 32 Figure 27 - Sanitary Sewer System .............................................................................................................. 34 Figure 28 - Budgeted Water Expenditures.................................................................................................. 36 Figure 29 - Budgeted Sewer Expenditures .................................................................................................. 37 Figure 30 - Budgeted Expenditures & Tax Levies ........................................................................................ 39 Figure 31 - Town and Village Budgeted Expenditures ................................................................................ 40 Figure 32 - Village and Town Budgeted Revenue ....................................................................................... 41 Figure 33 - Fund Balances ........................................................................................................................... 42 Table 1 - St. Lawrence County Village Populations ....................................................................................... 4 Table 2 - Population Demographics Housing and Income ............................................................................ 6 Table 3 -Village and Town of Hermon Assessments ..................................................................................... 9 Table 4 - Village Percentage of Total Town Assessment .............................................................................. 9 Table 5 - Town Utility Assessments ............................................................................................................ 10 Table 6 - Town and Village Real Property Type .......................................................................................... 10 iii | P a g e
Table 7 - Total Seasonal Property Assessment ........................................................................................... 11 Table 8 - Seasonal Property Statistics ......................................................................................................... 11 Table 9- Village Owned Real Property Summary ........................................................................................ 13 Table 10 - Village-Owned Real Property Details ......................................................................................... 14 Table 11 – Village Streets & Town Roads.................................................................................................... 17 Table 12 - Village of Hermon Water & Sewer Account Summary .............................................................. 35 Table 13 - Budgeted Water Expenditures and Revenues ........................................................................... 36 Table 14 - Budgeted Sewer Fund Expenditures & Revenue ....................................................................... 37 Table 15 - Budgeted Expenditures & Tax Levies ......................................................................................... 39 Table 16 - Budgeted Expenditure Breakdown ............................................................................................ 40 Table 17 - Village and Town Budgeted Revenue ........................................................................................ 41 Table 18 - Village and Town Fund Balances ................................................................................................ 42 Table 19 - Village and Town Debt ............................................................................................................... 43 Table 20 - Town and Village Staffing ........................................................................................................... 44 Table 21 – Town and Village Employee Benefit Costs ................................................................................ 44 Table 22 - Summary of Local Laws .............................................................................................................. 46 Table 23 - Village Laws Recommended to Sunset if Dissolution Proceeds ................................................. 47 Table 24 - Village Laws to Be Further Considered if Dissolution Proceeds................................................. 48
iv | P a g e
1.0
INTRODUCTION
The primary objective of this project is to develop a detailed Dissolution Study with a recommended plan and alternatives which answers questions that Village and Town of Hermon residents have about the process, impacts, and how dissolving would affect residents and local governments. The final report will provide the Village of Hermon with a document that includes the following elements: Executive Summary, Introduction, Population Trends, Local Government Tax Rates, Assets & Real Property Information, Operating Budget Summary, Fund Balances & Outstanding Debt, Municipal Program Summaries, and Legal Issues & Impediments. This information will be utilized by stakeholders to determine: 1) Potential Financial Savings; 2) Management Improvements; 3) Service Delivery Changes resulting from a local government reorganization; and 4) Alternatives to Dissolution. These items will be summarized in the Recommendations section of the Plan. The Village Board of Trustees hired the Development Authority of the North Country to oversee the dissolution study process and C2AE to provide technical assistance related to review of the Village water and sewer infrastructure, and local law review. The Village Board also appointed a Dissolution Study Committee (DSC) which has been charged with developing a study to evaluate dissolving the Village and identifying alternatives to dissolution, including fiscal impacts, provision of service and other matters as identified. The DSC is comprised of Cathy Race (Village Mayor), Dave Doiron, Jeff Foster, Lee Carvel (Town Council), Nate Young (Village Trustee), Sheri Smith, Tracey Woodrow, and Jamie Matthews. The DSC began this initiative with a kick-off meeting on June 26, 2014. Since that time the DSC has been working to develop a basis of understanding of the Village and Town services provided, the way in which these services are provided, and the cost to taxpayers to provide these services. The results of this initial phase of the project are summarized in this report, known as the EXISTING CONDITIONS REPORT. This report is being funded by and prepared in accordance with the New York State Department of State Work Plan requirements, as outlined in Contract No. T1000023 with the Village of Hermon.
1.1
BACKGROUND
The Village of Hermon is located in the central part of St. Lawrence County near the HermonDekalb town lines. The Village was first settled in 1816; shortly thereafter, in 1828, a Post Office named Hermon was established. The Town was first organized under the name of Depau in 1830, but since there was already a Depauville in Jefferson County, the Town changed its name to Hermon in 1834. In the late 1800’s the Village was home to many types of businesses including a tannery, grist mill, distillery, butter factory, carriage making, general 1|Page
store, drug store, grocery, boots and shoe store, hardware store, meat market, furniture, blacksmith, undertaker, a local newspaper, and a hotel. The Village of Hermon was incorporated in 1887. In 1891, “water works” were built at a cost of $7,000 to give the Village a good supply of clean water. Today, the Village of Hermon is 0.4 square miles and the Town of Hermon is 54.2 miles. Figure 1 illustrates the Village and Town of Hermon municipal boundaries in relation to St. Lawrence County.
Figure 1 - Village and Town of Hermon Municipal Boundaries
2|Page
2.0
POPULATION TRENDS
The current population of the Village, according to the 2010 census, is 422. Populations in the Town and Village have declined since 1950, while St. Lawrence County’s population has remained relatively flat since 1960. Figure 2 illustrates the overall population trends in the Village and Town of Hermon and St. Lawrence County.
Figure 2 - Population Trends1
The Village of Hermon is one of twelve villages in St. Lawrence County. It has the fifth smallest population. Table 1 provides the population information for all villages in St. Lawrence County. One village in St. Lawrence County, the Village of Edwards, dissolved in 2011. The Town of Edwards borders the Town of Hermon to the south.
1
Village
Population from 2010 Census
Hammond
280
Richville
323
Rensselaer Falls
332
Morristown
395
Population, income, and household statistics are from US Census Bureau.
3|Page
Hermon
422
Heuvelton
714
Waddington
927
Norwood
1,657
Gouverneur
3,949
Canton
6,314
Potsdam
9,428
Massena
10,936
Table 1 - St. Lawrence County Village Populations
4|Page
2.1
DEMOGRAPHICS
The Village of Hermon has a comparable demographic profile to other small municipalities in the Northern New York with 93% of the population being Caucasian, and a median age of 35. The figures below illustrate some key demographics of the community and provide comparisons to nearby communities.
Sex Female Population: 229 54.3% Male Population: 193 45.7% Nearby Communities Town of Hermon: Female - 50.6% Male - 49.4% DeKalb Junction: Female - 48.2% Male - 51.8% Village of Gouverneur: Female - 51.6% Male - 48.4% Village of Richville: Female - 48.6% Male - 51.4%
Age Residents aged 0-19 years: 116 Residents aged 20-49 years: 159 Residents aged 50-85 years: 147 Median Age: 35 years Median Age in Nearby Communities: Town of Hermon: 37 DeKalb Junction: 46 Village of Gouverneur: 36 Village of Richville: 32
Figure 3 – 2010 Population Demographics Age, Sex, and Racial Makeup
5|Page
The Village’s median household income (MHI) of $40,417 is slightly below the Town of Hermon’s MHI of $44,286 and St. Lawrence County’s MHI of $42,303. The Village’s MHI is also less than the Village of Richville and the Town of Edwards and more comparable to the Town of Russell ($41,618). There are 186 housing units in the Village of Hermon with a 93% occupancy rate. This is comparable to the hamlet of DeKalb Junction (199 units) and slightly larger than the Village of Richville (123), but significantly less than the Town of Hermon and the Village of Gouverneur. Median Household Income
Percentage Below Poverty Level
Village of Hermon
$40,417
9.7%
Town of Hermon
$44,286
15.8%
St. Lawrence County
$42,303
16.9%
Edwards (former village)
$38,393
18.9%
Village of Gouverneur
$42,641
10.9%
Town of Edwards
$47,115
22.2%
Town of Russell
$41,618
18.5%
Village of Richville
$42,500
26.5%
DeKalb Junction
$31,779
12.9%
Housing Total Housing Units: 186 Occupied: 173 Vacant: 13 Nearby Communities Total Housing Units Town of Hermon: 467 DeKalb Junction: 199 Village of Gouverneur: 1,866 Village of Richville: 123 Table 2 - Population Demographics Housing and Income
6|Page
2.2
SCHOOL DISTRICTS
County Governments and school districts in New York State are separate taxing entities. The Dissolution study will have no impact on either school or County taxes, since these are separate from Village and Town taxes. Figure 4 illustrates the three school districts that serve the Town of Hermon. The Village of Hermon is entirely within the Hermon-DeKalb school district.
Figure 4 - School Districts
7|Page
3.0
PROPERTY TAXES
In 2014 the Village of Hermon residents planned to spend 21% and 13% of their total property taxes for Village and Town services, respectively. Town taxes for residents outside the Village pay 16%. The majority of property taxes are utilized to fund the Hermon-DeKalb public school. County services are the next largest expense for Town and Village residents, followed by highway and fire protection services, which together make up only 6% of total real property taxes. Figure 5 illustrates how Town and Village taxes are spent as a percent of total taxes and per $1,000 of assessed property value.
Current Tax Rates per $1,000 AV for a Village and Town Outside Village (TOV) Taxpayer (2014) Village TOV County (1) $8.95 $8.95 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
Figure 5 - 2014 Village and Town Property Taxes
8|Page
3.1
REAL PROPERTY ASSESSMENTS
The property assessments for the Village and Town differ significantly. The average Village assessment is $35,997 and the average Town assessment is nearly double at $66,642. The difference in the average assessment is a function of the characteristics of Town property that contribute to the higher assessment (i.e., larger lot size, newer homes, etc.). Both the Village and Town use 100% assessed value and there is no difference in the equalization rates. Assessed Values
Village of Hermon
Town of Hermon
Highest
$283,500
$399,400
Average
$ 35,977
$66,642
Table 3 -Village and Town of Hermon Assessments2
Village properties account for only 10% of the total real property taxes that are collected for the Town and Village combined. Village parcels account for 22% of the total Village/Town combined number of tax parcels. However, Village parcels are smaller in size and assessed at lower values compared to Town properties. Total Assessed Values 2014 Assessed Value
% of Total
Village
$8,814,372
10%
TOV
$75,200,090
90%
Total
$84,014,462
100%
Parcels # of Parcels
% of Parcels
Village
239
22%
TOV
856
78%
Total
1,095
100%
Table 4 - Village Percentage of Total Town Assessment
The Town of Hermon also collects taxes from utility companies that own infrastructure within the Town. This infrastructure is located on land that is not owned by the utility companies, and they have an easement to allow them to operate and maintain the utility, similar to an easement the Village would have for a water or sewer main. Utility companies are assessed by the value of the infrastructure they own within in the Town. The breakdown of assessed values 2
Assessment data and parcel breakdown data comes from St. Lawrence County Real Property 2014 records.
9|Page
for the utility companies is listed below and these values are included in the total assessed values for the Town of Hermon. The Village does not have any utility assessments in their tax base. Utility Company Assessed Values in Town Iroquois Gas Trans System
$14,931,276
Niagara Mohawk Power Corp.
$ 2,726,314
Edwards Telephone Co.
$
231,624
Verizon New York Inc.
$
62,925
Time Warner, North Region
$
2,033
New York Power Authority
$
200,000 (exempt)
New York State Transition Assessment
$
0 (exempt)
Total
$18,154,172
Table 5 - Town Utility Assessments
A review of the breakdown of property classifications between the Village and Town provide some insight into their differences. In the Village, 62% of the total assessment comes from nonseasonal residential properties. In the Town, only 29% of the total assessment comes from non-seasonal residential properties, and seasonal properties make up 17% of the Town’s total assessment, as shown in Table 6. There are no seasonal properties in the Village. Classification Codes
Town of Hermon
Code
Village of Hermon
Assessed Value $7,279,605
# of Parcels (%)
Assessed
100 - Agricultural
# of Parcels (%) (% of total) 80 (9%)
1 (0.4%)
$17,900
260 - Seasonal Residence
148 (17%)
$17,282,365
0
$0
200s3 –Residential (Non-Seasonal)
253 (29%)
$21,951,400
151 (62%)
$7,046,250
300s - Vacant Land
267 (31%)
$6,172,439
58 (24%)
$241,210
$3,661,854
2 (1%)
$35,300
51 (6%)
$18,852,427
33 (13%)
$1,506,512
873 (100%)
$75,200,090
245 (100%)
$8,847,172
900s – Wild, Forested, Conservation Lands & Public Parks Other Total
74 (9%)
Table 6 - Town and Village Real Property Type
3
“Residential Non-Seasonal” includes parcels with classification codes of 200 series, other than 260.
10 | P a g e
With respect to tax exempt properties, the Town and Village have a similar total assessed value of exempt properties; $958,200 in the Village and $1,185,500 in the Town. In terms of the total number of properties that are exempt 14%, or 35 parcels, in the Village are exempt while only 3%, or 28 parcels, are exempt in the Town. Total Assessed Value of Seasonal Residences in Town of Hermon Property Classification Code
# of Parcels (% of total)
Assessed Value (% of total)
260 - Seasonal Residence
148 (17%)
$17,282,365 (23%)
Table 7 - Total Seasonal Property Assessment
The difference between Town and Village property values is also impacted by waterfront properties. The average property value of the 148 seasonal waterfront parcels on Trout Lake is $116,773, which accounts for 17% of the total parcels in the Town. Seasonal parcels are defined by the New York State Office of Real Property as those parcels that are not designed for year rounded occupancy and are often used as an indicator of the second home market. Trout Lake and Cedar Lake properties comprise 23% of the Town’s total assessed value. Only one of the 148 seasonal properties is located on Cedar Lake. As illustrated on Figure 6, approximately half of Cedar Lake is located in the Town of Edwards, and a large portion of the property in the Town of Hermon is owned by New York State. Seasonal Residences and Assessed Values Village
0 Properties
Town
148 Properties
Highest
$327,700.00
Average
$116,772.70
Table 8 - Seasonal Property Statistics
11 | P a g e
Figure 6 - Trout and Cedar Lake Waterfront Parcels 12 | P a g e
3.2
VILLAGE OWNED REAL PROPERTY
As part of this EXISTING CONDITIONS REPORT, an inventory of the real property owned by the Village was compiled from the County’s Real Property Tax Database. The inventory indicates that the Village owned 22 parcels with a total assessed value of $221,800. With the exception of two parcels (1 and 7 in Table 10), the remaining twenty properties are tax exempt. The Village paid $79.03 in 2014 taxes on the old dump site parcel, and $1,462.90 on the water system spring lot parcel.
Figure 7 - Village Real Property Classifications
The majority of Village-owned real property is vacant or classified as community service. The remaining six parcels are classified as park service, wild/forest or recreation. Details regarding Village-owned parcels follow. Village Property Classification Codes Property Class Code
# of Parcels
Assessed Value
% of Assessed Value
311, 314, 330 - Vacant
11
$36,900
17%
652, 682 - Community Services
5
$37,400
17%
963 - Wild, Forested, Conservation 822 - Public Services
2
$35,300
16%
3
$100,200
45%
592 - Recreation
1
$12,000
5%
Total
22
$221,800
100%
Table 9- Village Owned Real Property Summary
13 | P a g e
Some of the parcels owned by the Village are no longer used, and there is no planned use for these parcels. Table 10 provides the individual tax map number, the assessed value, and whether the parcel is presently used by the Village. Regardless of the outcome of the Dissolution Process, the Village should consider selling unused properties, which would put these parcels back on the tax role, thereby increasing the overall real property tax base. Parcel ID 1 2 3 4
Property Class
116.004-1330 - Vacant 17 131.002-2314 - Vacant 2 131.036-1-13 592- Recreation and Entertainment
Used by Village? No – old dump site
$2,600
No
$12,000
No
$500 $28,100
New Water Tank (1of 2 parcels) Water Works
5
132.001-110.2 132.021-2-2
6
132.021-2-22 330- Vacant
$1,600
No
7
132.001-2-16 822- Public Services
$56,200
Water Works
8
132.029-10-26 311- Vacant
$3,300
No
9
132.029-116.2 132.029-127.1 132.029-127.3 132.029-214.1 132.029-2-15
682- Community Services
$15,300
Ball Field
963- Wild, Forested, Conservation Lands and Public Parks 340- Vacant
$25,700
WWTP
$10,000
No
963- Wild, Forested, Conservation Lands and Public Parks 330- Vacant
$9,600
Access to sewer line
$5,900
Access to sewer line
14 132.029-3-23 682- Community Services
$1,700
No
15 132.029-5-6
$15,900
Old Water Tank
$500
10 11 12 13
682- Community Services
Assessed Value $5,500
822- Public Services
822- Public Services
16 132.029-5-7.2 682- Community Services 330- Vacant
$1,100
New Water Tank (1 of 2 parcels) No
18 132.029-9-19 311- Vacant
$3,400
No
19 132.029-9-25 652- Community Services
$19,400
Municipal Office
$500
No
17 132.029-9-1
20 132.029-9-26 330- Vacant 21 132.029-9-3
311- Vacant
$1,600
No
22 132.029-9-4
330- Vacant
$1,400
No
Table 10 - Village-Owned Real Property Details
Figures 8 and 9 illustrate the locations of the parcels owned by the Village. The parcel numbers on the figures correlate with the numbering in Table 10. 14 | P a g e
Figure 8 - Village Owned Real Property Map 15 | P a g e
Figure 9 - Village Owned Real Property Map Inset
16 | P a g e
4.0
TOWN AND VILLAGE MUNICIPAL SERVICES
This section provides information on the services that are provided by the Town and Village. Each section describes how the services are provided, which municipality provides the service to the community, and the cost of the service.
4.1
HIGHWAY/STREETS
The Village of Hermon has 3.71 miles of streets and one culvert within the Village municipal boundary. The Town provides snow plowing and maintenance for Village streets. The Village is also responsible for snow removal of banks/piles if they interfere with plowing activities performed by the Town, and the Village also performs street cleaning and temporary street maintenance (i.e., cold patching). The Table below summarizes the number of streets, roads, culverts, and bridges. No. of VILLAGE STREETS & TOWN ROADS
MILES
# of BRIDGES
# of CULVERTS
VILLAGE
17
3.71
0
1
TOWN
49
58.22
0
1
COUNTY
5
24.07
8
0
Table 11 – Village Streets & Town Roads
The Village-owned culvert was taken out of service in 2014 by New York State Department of Transportation because it did not pass a safety inspection. The Village is exploring options to repair or replace the culvert. One option would involve a shared services agreement with St. Lawrence County. The County has considered a box culvert type system that would structurally support/encapsulate existing structure and also has considered lengthening, along centerline of waterway, the culvert to provide adequate turning radius for large trucks. The Village/Town would
Figure 10 - Picture of Village Culvert
17 | P a g e
be responsible for providing materials. The County’s preliminary estimate for the materials is $300,000. Through an Inter-Municipal Agreement, the Town and Village could pay back the County for their engineering and labor through shared service (i.e. emergency maintenance, trucking, etc.). Both municipalities and the County passed resolutions to enter into an InterMunicipal Agreement in October 2014, which would explain the details of a shared services arrangement between the County, Town and Village to repair the culvert. However, this resolution was recently rescinded by St. Lawrence County. The Village is pursuing external funding to assist with this project and to make it more affordable for tax payers. Figures 11, 12 and 13 illustrate the streets, roads, and bridges/culverts within the Village and Town.
18 | P a g e
Figure 11 – Village Streets 19 | P a g e
Figure 12 – Town Roads
20 | P a g e
Figure 13 – Town and Village Bridges and Culverts
Village Department of Public Works (DPW) and Town Highway Department expenditures make up a considerable portion of the overall municipal budgets. In the Village, DPW expenditures make up 44% of the overall Village budget. In the Town, Highway expenditures make up 64% of the overall budget. Other general fund expenditures include code enforcement, court, dog control, fire department contracts, and lighting in the Village. Other expenditures do not include water and sewer expenditures since these are public benefit accounts, only customers that receive service are billed, and these charges are not included on real property tax bills. Other services and expenditures are discussed in Sections 4.2 through 4.6.
21 | P a g e
The Town highway department budget includes various categorical expenditures to keep track of snow removal, repairs and improvements, bridge maintenance, and equipment purchases. The Village tracks equipment and repairs and improvements separately also. Figures 14 and 15 illustrate Village and Town DPW and highway department budgeted expenditures versus total expenditures for FY14 (Town) and FY14/15 (Village).
Village DPW Appropriations
Village Budget = $202,500
DPW Expenses $90,000 44%
Other Expenses $112,500 56%
11%
Repairs & Improvements, $80,000 Equipment, $10,000
89%
Figure 14 - Village DPW Budget
Town Highway Appropriations Repairs & Improvements,
Town Budget = $957,402 Other Expenses $344,552 36% Highway Expenses $612,850 64%
$280,650 34%
46%
Bridges, $9,000 Equipment, $115,000
19%
Snow & Misc., $208,200 1%
Figure 15 - Town Highway Budget
22 | P a g e
4.2
STREETS & SIDEWALKS
Most sidewalks are the responsibility of Village home owners to maintain. However, the Village has worked cooperatively with homeowners that are interested in improving the sidewalks in front of their property. Additionally, the Village has recently undertaken an improvement project to install sidewalks along Church Street to connect the Village to the local gas station, and convenience store (i.e., Woody’s) making it easier for residents to walk to the store (shown in yellow on Figure 16). This new sidewalk becomes the responsibility of property owners to maintain. The Village does provide snow Figure 16 - Village Sidewalks removal from select sidewalk areas as a public benefit, but overall, like sidewalk maintenance, snow removal from sidewalks is the property owner’s responsibility.
23 | P a g e
4.3
FIRE DEPARTMENT The Hermon Fire Department was incorporated in 1847 as a not-forprofit corporation and provides fire and rescue services for the Town of Hermon, including the Village, and provides rescue only services for the Town of DeKalb. These services are provided in accordance with service contracts that the Fire Department has with each Town. The Fire Department is governed by a board of directors that meets monthly, and is staffed by local volunteers.
The Fire Department operates on a $130,000 annual budget. Beginning in 2014, St. Lawrence County will take over Workers’ Compensation coverage from the Village. When the County begins covering this expense it will no longer be part of local Village taxes. Fire Department revenue comes primarily from the Figure 17- Fire and Rescue Service Area contracts with the Towns and 5% of their revenue is self-generated through donations and fund raising events. The Village’s contract with the Fire Department for FY14 was $13,750. The Town of Hermon’s contract was $73,169 and the Town of DeKalb’s contract was $10,147. The Fire Department budgeted $13,510 for miscellaneous contracts which includes foreign fire tax and ambulatory services. In total, the Fire Department budgeted $110,576.14 for contracted revenue and $5,450 in donations.
24 | P a g e
Self Generated Funds 5%
FY14 Budgeted Revenue Town of DeKalb 9%
Other Contracts 11% Village of Hermon 12%
Town of Hermon 63%
Figure 18 - Fire Department Revenue
Fire Department expenditures include costs to maintain the fire house, trucks, insurance supplies and administrative expenses. The largest annual expenditure is for the mortgage the Fire Department has on its building, which was constructed in 2011. Detailed expenditures are shown below. Building Mortgage
5% 2% 2%
3%
Vehicle Loan Payments Utilities
10% 43%
Fuel for Vehicles Repairs & Maintenance
6%
Insurance
4%
Training & Conferences Equipment Fire & Rescue
13%
Supplies
12% Figure 19 - Fire Department Expense Breakdown
25 | P a g e
In 2014, Village residents will pay $1.81 per $1,000 of assessed value for Fire Protection services. This expense accounts for 7% of the total Village budget.
Fire & Rescue Protection, $14,000 (7%)
Other , $188,500 (93%)
Figure 20 - Village Budget for Fire & Rescue Services
26 | P a g e
4.4
LIGHTING The Village has public lighting that covers most of the municipal boundary. In FY14/15 lighting was budgeted to cost $12,000, or 6% of the total Village budget. Figure 23 illustrates the lighted areas of the Village.
Figure 21 - Village Public Lighting
27 | P a g e
4.5
WATER/SEWER The Village provides municipal water and sewer services to Village residents and some Town residents. The Town does not have any water or sewer districts. If the Village dissolves, centralized water and sewer will remain in effect with administration of the services passed on to the Town. The Town would manage each infrastructure type as beneficial use districts (i.e., water and sewer). Administratively, the Town would become responsible for billing and collecting fees from customers, operating the system, regulatory reporting, and maintenance. Fund balances from the water and sewer accounts would transfer from the Village into the newly formed districts, if the Village dissolved. Districts would encompass all parcels that are receiving service and would not be limited by the Village boundary. Presently, some town residents are receiving water or sewer service from the Village but they are not in a district and there is no outside user agreement between the Village and the residents that are served. Town residents that are located outside a district would be unaffected by dissolution. Town water and sewer district formation is a legal process and requires preparation of a Map, Plan and Report by an engineer. This would be an eligible grant-funded dissolution related expense, so there would be no cost to Village or Town taxpayers to form districts. The newly formed water and sewer districts would have a water use and charge law that outlines technical elements of a water connection, protection of the system, and the method of charging frequency (i.e., rates, penalties, etc.) to manage funds for sustainable operation. Existing Village Laws could be updated and adopted by the Town as part of the district formation process. The Village of Hermon sells water to the Town of DeKalb and this arrangement is detailed in an Inter-Municipal Agreement (IMA) between the two municipalities. The original agreement was executed in 1999 and has a 20 year term. This agreement could be taken over by the Town if the Village dissolves. In New York State, the Department of Health (NYSDOH) regulates potable water systems. The Village Water System ID is No. NY4404386. The village of Hermon’s water supply system (initial construction 1891) pre-dates the 1905 Public Water Supply Program and, as such, never had a NYSDEC Water Supply Permit. There is a water supply permit for town of Dekalb W.D. #1 (WSP #9843). Under the new (2011) Water Withdrawal Program (see http://www.dec.ny.gov/lands/55509.html), the village is now required to obtain a 28 | P a g e
Water Withdrawal Permit (WWP). The village’s 2013 Water Withdrawal Reporting Form indicates that they have the capacity to withdraw up to 2.88 MGD. Under the schedule in the regulations (6 NYCRR 601.7) for “Initial Permits,” the village is required to submit a Water Withdrawal Permit application by February 15, 2015. Per NYSDEC, if the village is dissolving into the town, the town is required to create a new Water District encompassing at least the existing village boundaries. Depending on timing (if and when the village dissolution becomes effective), the town would then file its own WWP application to take over the village system. The new WWP’s have a maximum ten-year term and list/authorize all external customers (e.g., Dekalb W.D. #1) on the permit for the community that has the water withdrawal source (the village or town of Hermon). The NYSDEC water supply permit allows the Village to “take” 50,000 gallons per day from its spring source for the Town of Dekalb Water District #1. At present, the spring provides adequate capacity to serve all system customers and no expansion is planned beyond the area presently served. The average Village water use is 75,000 gallons per day (gpd). The Town of DeKalb uses an average of 21,500 gpd. Per capita usage is estimated to be 150 gallons per person per day, which is about double the typical usage. Although this usage is high, it is not uncommon for communities that don’t meter their water to use twice as much as those communities that are metered. Metering provides an incentive for customers to not waste water. The Village’s Water System is comprised of a Spring Source that was established in 1891 as part of an original municipal water system. A 30,000 Gallon Clear well, chlorination and pumping system, and a 244,000 gallon standpipe were constructed in 1989 that provides water storage and fire protection. The springs were improved as part of the Dekalb Project in 1998.
Figure 22 - Village of Hermon Spring Lot
29 | P a g e
In FY14/15 the Village is planning to take the standpipe/tank offline to complete a repair. Water is supplied to Village residents through 4, 6 and 8 inch mains along Village streets. The original mains were installed in 1891. In 1989, 2,260 feet of 6 inch main was installed along Jefferson Street, and 1,660 feet of 8 inch main was installed along High, Pleasant, and Germain Streets. In 2004, a 2 inch service was installed to serve four homes on the Miles Road Extension in the Town. The easement for this service should be reviewed to ensure that it is transferred to the Town, should dissolution occur. Residents are served off the main by a service Figure 23 - Village of Hermon Standpipe
lateral and curb stop. Lateral sizes vary but are typically ½ inch to 1.25 inch, as reported in an annual New York State Department of Health (NYDOH) water inspection report from 1995. In total there are 174 billed service connections. The system is operated by a part-time Village employee. The Operator is required to hold a Grade C NYSDOH Operator license. In addition to daily testing, the Operator maintains water system equipment. The Village utilizes the same part-time employee as their water operator and for DPW tasks. There are no capital improvement projects planned for the water system and the system has operated without any violations for the last ten years. Figure 24 illustrates the Village’s water system.
30 | P a g e
Figure 24 - Village of Hermon Water System
31 | P a g e
The Village of Hermon’s wastewater system is much newer than its water system and was constructed in 1996. The sewer collection system functions by gravity, with the exception of one pump station on Miles Road. Mains are constructed of 8 inch PVC and 4 foot diameter concrete manholes with cast iron frames. In 2009, seven manholes were replaced. Figure 25 - Village of Hermon Wastewater Treatment Control Building
Wastewater from the collection system travels to an Open Sand Filter system for treatment. The system has experienced high wet weather flows and exceeded the SPDES permitted limit. Flow metering data is being reviewed and, if necessary, a Capital Project could be undertaken to address the high flows. The estimated Figure 26 - Village of Hermon Sand Filters cost of the project is $228,500. Existing sewer debt will mature in 2017. The Village is permitted to discharge 60,000 average gpd. The NYSDEC also regulates discharges of treated municipal sewage to a receiving water body. The Village of Hermon owns and operates a sewer system and treatment plant on Water Street. This system is governed by a Sewer Use Law that was established in 1996. The NYSDEC has issued a State Pollution Discharge Elimination System (SPDES) permit to the Village that details the parameters by which the Village is allowed to discharge treated wastewater into a receiving water body (Permit No. NY0257532). This permit would have to be reassigned to the Town and the Village Sewer Use Law reviewed and adopted by the Town if the Village dissolves. 32 | P a g e
The Sewer System is operated by a part-time employee that works full-time for another municipality. The Operator’s primary responsibilities are to perform daily testing and periodic sampling that is required by the Village’s SPDES permit. Figure 29 illustrates the Village’s sanitary sewer system.
33 | P a g e
Figure 27 - Sanitary Sewer System
34 | P a g e
Water and Sewer customers are billed a quarterly flat rate regardless of usage. Water customers pay $55 per quarter and sewer customers pay $85 per quarter. Late fees are assessed at 5% for water and 10% for sewer. There are 211 water and 207 sewer equivalent dwelling units (EDUs) served by the systems. The Clerk has a total of 180 billing accounts. Water No. of EDUs Accounts
Sewer Accounts
Water EDU
Sewer EDU
157
156
157
156
1.5 EDU’s
1
1
1.5
1.5
2 EDU’s
9
11
18
22
3 EDU’s
5
3
15
9
9 EDU’s
1
0
9
0
16 EDU’s
0
1
0
16
6.5 EDU’s
1
1
6.5
6.5
1 EDU
Total 174 173 207 211 Table 12 - Village of Hermon Water & Sewer Account Summary
Budgeted Village water expenditures and revenues are shown in Table 13 for FY14/15. The total water system, budgeted expenditures or FY14/15 are $49,750. Village of Hermon Water Budget Appropriations
Adopted FY14/15
F1950.4
Taxes of Village Property
$
3,500.00
F1990.4
Contingency
$
1,000.00
F8310.1
Home and Community Services Professional Services $
1,200.00
F8310.4
Home and Community Services Contractual Expenses $
4,250.00
F8320.1
Source of Supply Professional Services
$
6,800.00
F8320.4
Source of Supply Contractual Expenses
$
11,000.00
F8340.1
Source of Supply Professional Services
$
8,000.00
F8340.4
Transmission and Distribution Contractual Expenses $
7,500.00
F90308
Social Security
$
1,500.00
F9560.9
Reserves for Repairs
$
5,000.00
Subtotal
$
49,750.00
F2142
Unmetered Water Rents
$
40,000.00
F2148
Interest and Penalties
$
750.00
Revenues
35 | P a g e
F2401
Interest on Savings
$
5.00
F2378
Service for Other Government
$
17,000.00
Subtotal $ Table 13 - Budgeted Water Expenditures and Revenues
57,755.00
Taxes of Village Property 7%
10%
2%
2%
Contingency
3% Home and Community Services Professional Services
9%
Home and Community Services Contractual Expenses
15%
Source of Supply Professional Services 14%
Source of Supply Contractual Expenses Source of Supply Professional Services
16%
Transmission and Distribution Contractual Expenses 22%
Social Security Reserves for Repairs
Figure 28 - Budgeted Water Expenditures
Budgeted Village sewer expenditures and revenues are shown in Table 14 for FY14/15. The total sewer system budgeted expenditures for FY14/15 are $79,850. Village of Hermon Sewer Budget Appropriations
Adopted FY14/15
G1910.4 Insurance
$
800.00
G1990.4 Contingency
$
5,000.00
G8110.1 Home and Community Services Professional Services $
1,200.00
G8110.4 Home and Community Services Contractual Expenses $
4,000.00
G8120.4 Sanitation Contractual Expenses
$
4,000.00
G8330.1 Sewer Treatment Professional Services
$
16,000.00
G8330.4 Sanitation Contractual Expenses
$
14,000.00
G9030.8 Social Security
$
1,500.00 36 | P a g e
G9710.6 Debit Service
$
33,350.00
Subtotal
$
79,850.00
G2401
Interest from Savings
$
6.00
G2120
Sewer Charges
$
69,000.00
G2128
Interest & Penalties
$
2,000.00
Unexpended Balance
$
10,000.00
Subtotal
$
81,006.00
Revenues
Table 14 - Budgeted Sewer Fund Expenditures & Revenue G1910.4 Insurance
G1990.4 Contingency
$5,000.00 $800.00
$1,200.00 $4,000.00
G8110.1 Home and Community Services Professional Services
$4,000.00 G8110.4 Home and Community Services Contractual Expenses $33,350.00 $16,000.00
G8120.4 Sanitation Contractual Expenses G8330.1 Sewer Treatment Professional Services
$14,000.00 $1,500.00
G8330.4 Sanitation Contractual Expenses G9030.8 Social Security
G9710.6 Debit Service
Figure 29 - Budgeted Sewer Expenditures
4.6
RECREATION, COURT, ASSESSMENT, CODE ENFORCEMENT, LIBRARY AND OTHER MISCELLANEOUS SERVICES The Village’s only recreational asset is a ball-field. Annually, the Village budgets $1,500 per year for operating and maintenance expense (i.e., $500 Personal Services and 37 | P a g e
$1,000 Contractual Expenses). These expenses cover insurance, little league expenses on ball field, a seasonal porta potty, and playground repairs. The Village used to run a “Youth Program” but that was discontinued in 2013 due to lack of participation. The Youth Program provided transportation to and from recreation events for youths participating in the program. Several services are provided by the Town for Town and Village residents. These services include:
Code Enforcement – is a contracted service with a FY14 budget of $7,000. Assessor – is a contracted service with a FY14 budget of $11,638 for personal services, $1,200 equipment, and $1,800 for contractual services. Total FY14 Budget is $14,638. Town Justice – is an elected position. The FY14 budget is $7,425 for personal services, $2,825 for equipment, and $3,600 for contractual services. Total FY14 Budget = $13,850. Animal Control Service – is a contracted service. The FY14 budget is $5,425. Library – The FY14 budget is $17,860 personal services and $13,810 for contractual expense. Total FY14 budget is $31,670.
38 | P a g e
5.0
BUDGETARY & FINANCIAL SUMMARY
The Village of Hermon’s budgeted expenditures represent 26% of all budgeted expenditures in the Town and Village, and 13% of the combined tax levy for the FY14/15 fiscal year. This is comparable to the Village of Edwards, which had 21% of the total budgeted expenditures for the Town and Village and 8% of the total tax levy. 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%
Table 15 - Budgeted Expenditures & Tax Levies
Tax Levy
Budget
13% 26% Village
Village Town
74%
Town
87%
Figure 30 - Budgeted Expenditures & Tax Levies
As Table 16 illustrates, the single largest expenditure for the Town and Village is the Highway/DPW departments, followed by general fund expenditures. Water and Sewer are the Village’s next largest expense. Water and sewer services are not billed on taxes and are considered a public benefit for which only customers that receive the utility pay for the service. 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
39 | P a g e
Library
$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
Table 16 - Budgeted Expenditure Breakdown
Town General
Highway/DPW
Village Fire
Library
General
Highway/DPW
Fire
Library
0%
3% 8%
8% 25%
45%
47% 64%
Figure 31 - Town and Village Budgeted Expenditures
Fifty-one percent of budgeted revenues for the Town and 24% for the Village are raised by property tax. Water and sewer expenses are self-supported from customer billings. In FY14/15 the Village budgeted $10,000 to be used from the unexpended sewer fund balance and $50,000 from the unexpended general fund balance towards respective operating expenditures. Table 17 and Figure 32 detail the sources of Town and Village revenue. Budgeted Revenues – FY14/15 Village & FY14 Town Village
Town
Total
Raised by Property Tax
$80,543
$489,778
$570,321
Raised by Sales Tax
$50,000
$170,000
$220,000
$99,177
$99,177
County
40 | P a g e
CHIPS
$13,450
$90,100
$103,550
Other Sources
$8,507
$35,178
$43,685
-
$73,169
$73,169
Water
$57,755
-
$57,755
Sewer
$71,006
-
$71,006
Unexpended Fund Balance
$60,000
Total
$341,261
Fire
$60,000 $957,402
$1,298,663
Table 17 - Village and Town Budgeted Revenue
Village Revenue
Town Revenue
Property Tax
Sales Tax
CHIPS
Property Tax
Sales Tax
County
Sewer
Fund Balance
Other
CHIPS
Fire
Other
Water
4% 8%
2%
17%
24%
9% 10%
17%
51%
15% 18% 21% 4% Figure 32 - Village and Town Budgeted Revenue
41 | P a g e
6.0
FUND BALANCE
A municipality’s fund balance is the money that is unspent at the end of any fiscal year, provided that revenue received in a given year exceeded the expenditures. These surpluses are reported as the fund balance. The fund balances are tracked separately for water, General Water Sewer sewer and general funds. If expenditures exceed revenues then there will be $79,371 $$81,056 negative account balances in a given year and the overall fund balance will decrease $330,093 $258,643 to cover the shortfall. It is recommended by the Government Finance Officers Village Town Association (GFOA) that a municipality maintain a minimum fund balance of two Figure 33 - Fund Balances months of expenditures. For the Village, two months of expenditures is $33,750 for the general fund, $13,300 for the sewer fund, and $8,300 for the water fund .The Village of Hermon has a healthy fund balance totaling $419,070 as illustrated in Table 18, and exceeding the minimum recommended GFOA fund balance. Excess fund balances could be used towards capital improvements such as the culvert repair, and sewer and water infrastructure improvements or to pay down debt. If fund balances are used to pay down debt the municipality should consider the interest rate on their loans as some subsidized state financing may be 0% interest. Fund balances can also be used to lower taxes in subsequent years. In FY14/15 the Village budgeted $60,000 of their fund balance. The Town’s fund balance is $351,135 which also exceeds the recommended two months of expenditures (i.e., $159,567). Fund Balances – As of 5/31/14 (Village); As of 12/31/13 (Town) Village
Town
Fund/Purpose
Balance
General
$258,643
Water
$81,056
Sewer
$79,371
Total
$419,070
General
$351,135
Total
$770,205 Table 18 - Village and Town Fund Balances 42 | P a g e
7.0
DEBT LEVELS
The Town and Village of Hermon have very little debt. The Village’s only outstanding debt is on their sewer system. The Town’s total liabilities are $39,656 as of 12/31/13. The balance sheets for the Village and Town of Hermon indicate an overall positive financial position with little debt and signficant fund balances. Outstanding Debt – As of 5/31/14 (Village); As of 12/31/13 (Town) Village
Town
Fund/Purpose
Balance
General
$0
Water
$0
Sewer
$133,400
Total
$133,400
General
$39,656 Total
$133,400
Table 19 - Village and Town Debt
8.0
EMPLOYEE SUMMARY
Table 20 provides a breakdown of the Village and Town employee staffing at the time this report was prepared. In total, the Village has 8 employees, including elected officials, all of which are considered part-time (PT). The Town has 5 full-time (FT) employees and 17 PT employees. 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 (same as water operator)
5
5 FT, 1 PT
1 PT
-
1 PT
-
Contracted – 1 PT
1 PT
Elected Officials
Employees
Sewer Code Enforcement Officer
43 | P a g e
Assessor
-
Contracted – 1 PT
1 PT
Justice
-
Contracted – 1 PT
1 PT
Total Employees
8
14
22
Table 20 - Town and Village Staffing
Employee benefits are shown in Table 21 by department. Benefits for Village employees are 3% of total Village expenditures. For the Town, benefits are 15% of total expenditures. The difference in benefits is not surprising since the Town has nearly twice as many employees as the Village. Employee Benefit Cost By Municipality Village (FY13/14)
Town (FY2012)
Total
General Fund Employees (including Hwy Super)
$9,064
$46,650
$55,714
Water
$1,051
$1,051
Sewer
$1,037
$1,037
Highway Total
-
$83,250
$83,250
$11,152
$129,900
$141,052
Table 21 – Town and Village Employee Benefit Costs
There are currently no Village retirees receiving benefits. The Town has five retirees; one Highway Superintendent and four Highway Workers. The Town offers health insurance to its Clerk, Highway Superintendent, and Full-Time Highway Department employees. Presently, only four employees are using Town insurance. The Village does not offer health insurance to any of its employees as they are all part-time. Village employees are not represented by a Union. Town Highway Department Employees are represented by the Teamsters Local 687. The current contract is for a five year term and is due to expire 12/31/15.
9.0
LOCAL LAWS & INTERMUNICIPAL AGREEMENT SUMMARY
C2AE was contracted by the Village of Hermon as part of this study to evaluate the impacts of Village Dissolution on the local laws. When a Village dissolves, its local laws are replaced with Town laws. By comparing the Village and Town laws, stakeholders in the dissolution process can determine what differences exist between Village and Town laws. A local law review reveals which laws are approximately equivalent in terms of intent within the Village and Town and which laws are different and how they differ. The review also provides a summary of 44 | P a g e
Village ordinances. Table 22 provides a summary of the Village and Town laws. The Local laws are organized and color coded to show the laws that, based on review, cover the same intent to regulate. Table 23 provides a list of laws that have no relevancy with dissolution of the Village, and finally Table 24 lists laws that should be considered to be implemented at the town level as part of the dissolution or as part of a benefit district formation. Local Laws - Village Resolution for the Adoption of a Code of Ethics (1970)
Local Laws - Town 1972 Resolution Establishing Ethics
Local Law 1 Building Permits Procedures (1975) 1975 Building Codes - Flood Insurance Local Law 1 Accepting State Fire Prevention Code (1983) Local Law 1 Fire Prevention Building Code Admin (2005) Local Law 3 Admin of Fire Prevention Building Code (1984)
2005 No. 1 - NYS Uniform Fire Prevention and Building Code
Local Law 1 Real Property Disability Exemption (2006)
2007 - No 1 - Disabled & Low Income Property Tax Exemption
Local Law 1 Repair and Removal of Unsafe Buildings (1998) Local Law 1 Repair and Removal of Unsafe Buildings (2007) Local Law 2 Dog Leash Law (1984) Local Law 2 Firefighters Property Tax Exemption (2006) Local Law 1 (1976) Notice before Civil Action Against Village Local Law 1 Increasing Veteran Exemption (2002) Local Law 1 Junk and Junkyards (1985) Local Law 2 Junk and Junkyards (1998) Local Law 1 Open Containers (1979) Local Law 1 Open Meeting Law (1977) Local Law 1 Partial Exemption 65 Years Plus (2009) Local Law 1 Prohibiting Disability Discrimination (1994)
1998 - No. 2 - Unsafe Buildings Law
1993 - No. 2 - Dog Control Law 2010 - No. 2 - Dog Licensing Law 2006 - No. 1 Firefighter & Rescue Workers Property Tax Exemption 2005 - No. 2 Defense & Indemnification of Officers and Employees 1982 - No. 3 - Defense of Town Officers & Employees 2010 - No. 1 - Cold War Veterans Property Tax Exemption 1998 No. 1 - Establishing Sole Assessor 2011 - No. 1 - Elected Term for Town Supervisor Increased to 4 Years 2008 Inter-Municipal Agreement for Highway Dept. 2008 - No. 1 - Increasing Salary for Town Highway Superintendent Notice of Public Hearing Re Proposed Local Law 1 1993
45 | P a g e
Local Law 1 Prohibiting Discrimination (1990) Local Law 1 Prohibiting Unnecessary Noise (2000) Local Law 1 Real Property 65+ Exemption (1974) Local Law 1 Regulate Public and Private Sewer Use (1996) Local Law 1 Sidewalk Repairs (1988) Local Law 1 Snowmobile Use (1971-1972) Local Law 1 Terminating Assessing Unit (2001) Local Law 1 Workers' Compensation (1956) Local Law 2 Authorize Bingo (1994) Water Law 01-2013 Local Law 2 Regulate Outdoor Wood Furnace (2005) Local Law 2 Regulating Outdoor Junk Storage (2005) Local Law 2 Self Insurance (1956) Local Law 3 Mobile Home Standards (1998) Local Law 3 Regulate Outdoor Wood Furnace (2006) Local Law 4 Flood Damage Prevention (1998) Resolution Authorizing the Fire Department to Borrow Resolution for Snowmobile Use (1970) Village Ordinance for the Removal of Elm Trees (1963) Latest Village Ordinances (1973) Table 22 - Summary of Local Laws
46 | P a g e
The Following Village Laws are recommended to be sunset with the dissolution of the Village, as they are not applicable with the dissolution of the Village as a municipal entity.
Recommended Action
Local Law Local Law 1 (1976) Notice before Civil Action Against Village
Village will not exist
Local Law 1 Increasing Veteran Exemption (2002)
There are no Village Taxes to Collect
Local Law 1 Partial Exemption 65 Years Plus (2009)
There are no Village Taxes to Collect
Local Law 1 Prohibiting Disability Discrimination (1994)
Village will not exist
Local Law 1 Prohibiting Discrimination (1990)
Village will not exist
Local Law 1 Real Property 65+ Exemption (1974)
There are no Village Taxes to Collect
Local Law 1 Terminating Assessing Unit (2001)
There are no Village Taxes to Collect
Local Law 1 Workers' Compensation (1956)
Village will not exist nor its employees
Local Law 2 Self Insurance (1956) Village will not exist nor its employees Resolution Authorizing the Fire Department to Village will not exist. The contract for fire Borrow services will now be with Town Only. Table 23 - Village Laws Recommended to Sunset if Dissolution Proceeds
The Following laws regulate activities not associated with the Village directly that impact taxation or governmental operation of the Village as a municipal unit. The laws regulate activities of residents and the water and sewer laws would be reestablished with formation of each individual benefit use district. These are topics for further consideration by the Town, if the Village elects to dissolve. Local Law Local Law 1 Junk and Junkyards (1985) Local Law 2 Junk and Junkyards (1998) Local Law 1 Open Containers (1979)
Recommended Action Consider a Junk and Junkyard law throughout the Town or a specific zone Consider a Junk and Junkyard law throughout the Town or a specific zone Consider a law throughout the Town or a specific zone
Local Law 1 Open Meeting Law (1977) Local Law 1 Prohibiting Unnecessary Noise (2000) Local Law 1 Regulate Public and Private Sewer Use (1996) Local Law 1 Sidewalk Repairs (1988)
Consider a law throughout the Town or a specific zone Law would be developed as part of a Town Sewer District Formation Consider a law specific to zone or as part of a 47 | P a g e
district? Currently responsibility for repairs falls to individual home owners. Consider a law throughout the Town or a specific Local Law 1 Snowmobile Use (1971-1972) zone Consider a law throughout the Town or a specific Local Law 2 Authorize Bingo (1994) zone Law would be developed as part of a Town Water Water Law 01-2013 District Formation Local Law 2 Regulate Outdoor Wood Furnace Consider a law throughout the Town or a specific (2005) zone Local Law 2 Regulating Outdoor Junk Storage Consider a law throughout the Town or a specific (2005) zone Consider a law throughout the Town or a specific Local Law 3 Mobile Home Standards (1998) zone Local Law 3 Regulate Outdoor Wood Furnace Consider a law throughout the Town or a specific (2006) zone Consider a law throughout the Town or a specific Local Law 4 Flood Damage Prevention (1998) zone Consider a law throughout the Town or a specific Resolution for Snowmobile Use (1970) zone Village Ordinance for the Removal of Elm Trees Consider a law throughout the Town or a specific (1963) zone Consider a law(s) throughout the Town or a specific Latest Village Ordinances (1973) zone – Ordinance detail follows. Table 24 - Village Laws to Be Further Considered if Dissolution Proceeds
A review of the latest Village Ordinances published in 1973 indicates the following activities are being regulated: ARTICLE 1 – PUBLIC SAFETY AND GOOD ORDER 1. 2. 3. 4. 5. 6.
Disorderly Conduct Conduct in Streets Profane Language Mobs Gambling Houses & Rooms Throwing of Balls, Stones, etc., discharge of firearms, etc. that endangers property or persons 7. Indecent or Immoral Literature 8. Bathing without Clothes 9. Obstructing Sidewalks 10. Injuring Public or Private Property 11. Lounging Upon Streets 12. Disturbing Public Meetings or Worship 48 | P a g e
13. Curfew 14. Animals 15. License for Dances ARTICLE 2 NUISANCES 1. Whatever is dangerous to human life or health 2. Buildings 3. Sewers and Drains 4. Litter, Rubbish, Etc. 5. Weeds 6. Out Houses, Cess-Pools, Etc. 7. Snow, Ice and Water ARTICLE 3 – AUTOMOBILES & OTHER VEHICLES 1. Compliance with NYS Vehicle Laws 2. Speed Limit 3. Gross Weight 4. Traffic Sign and Signals 5. Parking, Etc. ARTICLE 4 – FIRE PREVENTION CODE 1. General Code Intent 2. Application of Code 3. Authority to Enter 4. Inspections 5. Elimination of Dangerous or hazardous conditions 6. Use of Explosives, ammunition and Blasting Agents 7. Fire protection Equipment 8. Precautions against fire ARTICLE 5 – POLICE DEPARTMENT 1. 2. 3. 4. 5. 6. 7.
Village Policemen Police Force Salary Official Undertakings Head of Police Force Fire Police (209c, General Municipal Law) Repeal 49 | P a g e
ARTICLE 6 – STREETS, CARE OF BY PROPERTY OWNERS 1. Space Between Sidewalk and Curb or Gutter ARTICLE 7 – SHADE TREES 1. 2. 3. 4. 5. 6.
Private Trees Planting of Trees Hitching to Trees Wire Attached to Tree Wires How to Locate Removing and Trimming
ARTICLE 8 – STREETS 1. Digging of Streets, Permission Required 2. Protection of Street Openings 3. Obstructing or Hindering Repairs 4. Building Material in Streets 5. Barriers or Excavation of Street Lines 6. Removing Lamps and Danger Signs 7. Construction and Maintenance of Sidewalks 8. Obstructing Sidewalks 9. Signs and Banners 10. Telegraph & Electric Light Wires, Etc. ARTICLE 9 – STANDARDS OF CONDUCT – ETHICS 1. Village Board & Staff Conduct ARTICLE 10 – FIRE ORDINANCES 1. 2. 3. 4. 5. 6. 7. 8. 9.
Motor Apparatus Fire Siren Activation Driving on Fire Hose Apparatus, Hose, Etc. Fire House False Alarm Fire Hydrants Conduct Building Inspection 50 | P a g e
ARTICLE 11 – AUDITING 1. Authorization of Board to Pay Village Expenses ARTICLE 12 – LICENSES 1. Garbage 2. Peddlers ARTICLE 13 – DUMPING WASTE & INFLAMMABLE MATTER
51 | P a g e
APPENDIX A VILLAGE EQUIPMENT INVENTORY
2005 GMC Dump Truck - $60,000.00 2007 John Deere Tractor model 2520 with Loader and Bucket - $20,000 1999 Case Model 580L $65,000. Miscellaneous Equipment - includes snow blower, mower, sweeper, etc. $20,000
APPENDIX B - TOWN EQUIPMENT INVENTORY
Alternatives Report Town and Village of Hermon June, 2015 Prepared for: Village/Town Dissolution Study Committee Cathy Race, Village Mayor Dave Doiron Jeff Foster Lee Carvel, Town Council Nate Young, Village Trustee Sheri Smith Tracey Woodrow Jamie Matthews
This document was prepared with funding provided by the New York State Department of State under the Local Government Efficiency Grant Program – Contract No. T1000023
Prepared by:
Staff Contributors: Star Carter, Michelle Capone, Tom Sauter, Brian Tulip, Carrie Tuttle, Ph.D, P.E., C.S.P. Capital Consultants Architecture & Engineering (C2AE): Tim Burley, P.E. Water/Wastewater Assessment Dulles State Office Building 317 Washington Street Watertown, NY 13601 315.661-3200 23557 State Route 37 Watertown, NY 13601 315.661.3210 www.danc.org i|Page
Table of Contents 1.0
INTRODUCTION ................................................................................................................................. 1
2.0
HOW WOULD DISSOLUTION AFFECT DELIVERY OF SERVICES .......................................................... 1
2.1
CLERK/TREASURER ........................................................................................................................ 2
2.2
PUBLIC WORKS .............................................................................................................................. 3
2.3
WATER/SEWER.............................................................................................................................. 3
3.0
EFFECT OF DISSOLUTION ON WATER/SEWER & STREET LIGHTING COSTS ...................................... 4
4.0
EFFECT OF DISSOLUTION ON TAXES ................................................................................................. 5
4.1 Estimated Savings ............................................................................................................................. 5 4.2 Annual State Aid for Dissolution ....................................................................................................... 6 4.3 Impact on Tax Rates .......................................................................................................................... 6 5.0
SUMMARY ......................................................................................................................................... 9
APPENDIX A – Projected Tax Rates per $1,000 of Assessed Value from $30,000 - $250,000 Assuming 100% of CETC is Appropriated to Reduce Taxes APPENDIX B – Projected Tax Rates per $1,000 of Assessed Value from $30,000 - $250,000 Assuming 70% of CETC is Appropriated to Reduce Taxes
ii | P a g e
1.0
INTRODUCTION
This purpose of this ALTERNATIVES REPORT is to document and discuss the options for delivering Village services in the event of Village dissolution. This report is the second step in the process being undertaken by the Village’s Dissolution Study Committee. The first step in the process involved documenting the Village’s current assets, services, finances and personnel. The results of this initial phase of the project are summarized in this report, known as the EXISTING CONDITIONS REPORT. The Village Board of Trustees hired the Development Authority of the North Country to oversee the dissolution study process and C2AE to provide technical assistance related to review of the Village water and sewer infrastructure, and local law review. The Village Board also appointed a Dissolution Study Committee (DSC) which has been charged with developing a study to evaluate dissolving the Village and identifying alternatives to dissolution, including fiscal impacts, provision of service and other matters as identified. The DSC is comprised of Cathy Race (Village Mayor), Dave Doiron, Jeff Foster, Lee Carvel (Town Council), Nate Young (Village Trustee), Sheri Smith, Tracey Woodrow, and Jamie Matthews. The DSC began this initiative with a kick-off meeting on June 26, 2014. Since that time the DSC has been working to develop a basis of understanding of the Village and Town services provided, the way in which these services are provided, and the cost to taxpayers to provide these services, and alternatives to providing these services should the Village elect to dissolve. This report is being funded by and prepared in accordance with the New York State Department of State Work Plan requirements, as outlined in Contract No. T1000023 with the Village of Hermon.
2.0
HOW WOULD DISSOLUTION AFFECT DELIVERY OF SERVICES
There are several services that the Village already receives from the Town including the real property tax assessing, code enforcement, municipal justice/court, dog control, library, plowing, and sharing of office space within the Town’s Municipal Building. As a result, the Village only requires three part-time employees. These positions include a part-time Village Clerk, a part-time Department of public works/water operator employee, and a part-time water/sewer operator. There are also four trustee positions and the Mayor which make up the governing board of the community. The Dissolution Study Committee, with assistance from their consultants, has evaluated each of these three government functions (i.e., Clerk/Treasurer, Public Works, and Water/Sewer 1|Page
Operations) to explore alternative ways that these services could be delivered in the event the Village dissolves. The DSC has also explored other ways for the Village and Town to share services, in the event the Village elects not to dissolve.
2.1
CLERK/TREASURER
The Village’s Clerk/Treasurer presently works 17.5 hours per week. Her duties include completing payroll for the Village’s part-time employees and elected officials, completing annual financial update reports, preparing an annual Village budget, paying bills, collection of real property taxes, and billing and payment collection for water and sewer customers. Several of these functions would go away if the Village were to dissolve. For example, payroll would not be needed, a budget and annual financial statement would not be needed, bills would not be paid separately by the Village, and Village tax bills would be eliminated. The primary function performed by the Village Clerk that would need to be assumed by either the Town Clerk or a contracted entity would be budgeting and billing for the water and sewer districts. Water and sewer is not metered and customers are billed quarterly. The Village has a software program that is utilized for billing. If the Village dissolves, the Town could assume the existing Village Clerk/Treasurer functions. The Town Clerk presently works 20 hours per week so it would not be necessary to hire an additional person to assume the Village Clerk’s responsibilities. These duties could either be assumed by the existing Town Clerk or a part-time Deputy Clerk could be hired to perform the additional services, which would provide back-up to the existing Clerk functions which doesn’t presently exist. Having a back-up would improve reliability of service by ensuring that there is more than one person that knows how to perform key duties like water/sewer billing. The Town could also choose to contract with an external entity to perform water/sewer billing. Financial services would be assumed by the Town and they presently contract with an accounting firm to perform that function. If the Village were to dissolve, there would be several redundant functions that would be eliminated. These functions include tax collection, issuing licenses, paying bills, completing budgets, and issuing budgets and financial reports. To be conservative, it’s not anticipated that there would be measurable cost savings by eliminating the Village Clerk function. There may be an opportunity to extend Clerk hours which could improve taxpayers’ access government services.
2|Page
2.2
PUBLIC WORKS
The Village performs very limited public works functions which include snow removal when there are piles that need to be removed from Town plowing, mowing and some basic maintenance activities for the Village owned-equipment and facilities. These services are provided by one part-time employee. If the Village elects to dissolve, these functions could be assumed by the Town’s Highway Department. It is not anticipated that there would be substantial savings as a result of consolidating the Public Works functions for the Town and Village since so many services are already being shared. By consolidating public works functions between the Town and Village, resources could be combined to the mutual benefit of the taxpayers.
2.3
WATER/SEWER
The Village currently employs two individuals on a part-time basis as the licensed operators for the water and sewer systems. The dissolution of the Village and creation of two districts (one for water, and one for sewer) does not negate the need for the same level of service to run the respective operations. Performing water/sewer operator functions requires special licenses within the State of New York. The cost for training an employee to obtain their sewer and water licenses is approximately $6,000 initially, and there are on-going annual training and recertification requirements. Additionally, after training, there is no guarantee that the employee will be able to pass the licensing exam. If the Village dissolves, the current arrangement will have to change and there are essentially two available options for consideration: 1. Performing Water/Sewer Operations by the Town
The Town board could retain the existing part-time staff in an employment arrangement similar to the Village’s current operation at the same level of compensation with no effect upon the existing water and sewer rates. This option would require establishing new job descriptions through St. Lawrence County Civil Service.
Another option could be to have the Town Highway employees perform the service. The Highway employees would have to acquire water and sewer licenses as regulated by the New York State Department of Environmental Conservation and New York State Department of Health.
2. Performing Water/Sewer Operations on a Contractual Basis 3|Page
3.0
The Town board could retain water/sewer operations through a contractual agreement without hiring any additional staff. The cost for a contractual arrangement is likely to be less expensive because the Town would not be hiring new employees that would be provided health insurance, New York State retirements and other fringe benefits. Contractual arrangements typically have a set fixed fee for routine services and an hourly rate for emergency/additional services.
The Town could consider letting a Request for Qualifications (RFQ) for purposes of soliciting a new firm that could manage both the water and sewer operations in aggregate. This should provide some possibility of savings as it provides some measure of scale making the responsibility for both systems a single entity responsibility. It is important that if consideration that a scoping document be prepared as the basis of entering into a contractual relationship. For comparison purposes the scoping document should compare current operational activities versus those that might be expanded to provide a better level of service.
If existing Village water/sewer employees are interested in continuing to perform services, they could submit a proposal to the Town for consideration. Existing Village employees are knowledgeable of the systems’ operation, have many years of experience, and the proper licenses required by New York State.
As identified in C2AE’s assessment of water and sewer services, another option is contracting with the Development Authority of North Country. This would be similar to the service that the Authority is presently providing as the operator for the Town of DeKalb. Development Authority staff are cross trained in water and sewer operations, visit the WWTP in Hermon daily checking the DeKalb rechlorination equipment.
EFFECT OF DISSOLUTION ON WATER/SEWER & STREET LIGHTING COSTS
If the Village dissolves there will be no changes to Town taxpayers that presently don’t receive water or sewer service – only taxpayers paying for water and sewer prior to dissolution will pay for water and sewer after dissolution. Current customers will be put into newly formed water and sewer districts within the Town of Hermon and the Town board will oversee the districts. Water and sewer rates and costs will not be affected by the dissolution process. 4|Page
The Town will decide whether Village street lighting will be included in a special lighting district. If a district is created then the costs of street lighting ($10,6941 per year) will be the responsibility of taxpayers that are within the newly formed district, where lighting presently exists. The Town board would oversee the newly formed lighting district. Only those customers within the lighting district will be responsible for paying the costs for lighting. In this scenario, dissolution will not affect the cost of lighting as these costs are presently paid for by Village taxpayers. After dissolution the cost of lighting would continue to be paid for by district taxpayers through the creation of a lighting district. If the Town elects not to form a lighting district, then the cost of lighting would be added to Town expenses and paid for by all Town and former Village taxpayers.
4.0
EFFECT OF DISSOLUTION ON TAXES 4.1
Estimated Savings
If the Village were to dissolve there would be some cost savings. The savings that would be achieved include the following: 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 Potential savings may be achieved from the consolidation of the Village Clerk/Treasurer and District of Public works with the Town, and will be dependent on the level of service established
One-Time Savings
Disposition of Unused Real Property ($44,700 plus the municipal building $19,400)
The total annual savings that could be achieved through Village dissolution are $7,402. The total one-time cost savings that could be achieved are $64,100. One-time savings
1
2014 Village Annual Update Document
5|Page
would be added to the Village’s fund balance and turned over the Town along with other assets and liabilities if dissolution proceeds.
4.2
Annual State Aid for Dissolution
Annual savings from New York State aid, awarded if the Village proceeds with dissolution, are $99,710. In accordance with New York State requirements, 70% of the Annual Citizens Empowerment Tax Credit (CETC) must be utilized to reduce property taxes. In this case, we have assumed that 100% of the CETC could be used to reduce property taxes.
Village Actual Tax Levy (2014 from Open Books NY)
$80,950
Town $578,934
Annual Citizens Empowerment Tax Credit (CETC) Savings (@100%) Estimated Annual Savings (nonCETC Tax Levy if Village Dissolves
Total $659,884
($98,983)
($7,402) $553,499
Table 1 – Post Dissolution Tax Levy
4.3
Impact on Tax Rates
In 2014 the Village had a total taxable assessed value of real of property of $8.8 million and the Town Outside Village (TOV) had a taxable assessed value of $75.2 million. If the Village dissolves, then future taxes will be levied on the combined total taxable assessed value of $84 million. Taxable Assessed Values FY2014 Village $8,834,660 (11%) Town Outside Village (TOV) $75,179,798 (89%) Total $84,014,458 (100%) Table 2 – Total Assessed Values
6|Page
Taxes in the Village include County, Town, Village and Fire Taxes. Water and sewer fees are also assessed to Village taxpayers that receive service. These won’t change if the Village dissolves, and water and sewer fees are not included in the Village annual tax levy. Town Outside Village taxpayers pay County, Town, Town Outside Village, and Fire taxes. The total tax rate per $1,000 of assessed value in 2014 for a Village taxpayer was $26.02 and $16.43 for a Town Outside Village taxpayer. Both Town and Village taxpayers also pay school taxes. However, school taxes have a separate tax levy and would not be impacted by Village dissolution. Tax Village Town Outside Village County2 $10.03 $10.03 Town wide $5.37 $5.37 Fire $1.81 $1.03 Village $8.81 Total $26.02 $16.43 Table 3 – 2014 Tax Rates per $1,000 of Assessed Value Fire Protection Expenses: The cost of fire protection services in the Village is $0.78 per $1,000 more than it is in the Town ($1.81 versus $1.03). The current contract with the Village for Fire Protection services is $13,750 for the Village and $73,169 for the Town. If the Village dissolves, then the Town will negotiate a new Fire Protection agreement that includes the Village. The Village’s 2014 budget also included some additional expenses for workers’ compensation which is now being handled by St. Lawrence County and will be included in the total chargeback to the Town. Village Street Light Expenses: If the Village of Hermon dissolves, the Town and the Village would become one municipality and a single taxing entity. As such, there would not be a separate Village tax or Town Outside Village tax rate. Table 1 shows that the combined tax levy would be $553,499 distributed over a combined taxable assessed value of $84 million (from Table 2). This would result in a new Town wide tax rate of $6.59 per $1,000 of assessed value, which includes Fire Protection3. Table 4 shows the projected new tax rates assuming a new lighting district is not created and the costs of lighting are distributed among all taxpayers town wide. This would result in a new Town and County tax rate of $16.62 which would be a decrease for current Village taxpayers of $9.40 but would result in an increase for Town Outside Village taxpayers of $0.19 per $1,000 of assessed value. For a home assessed at $50,000 that would be a $470 per 2
Includes County tax of $8.372, Highway tax of $1.08, and County Chargebacks of $0.580. The actual tax rate for the first year after dissolution will depend on the most recent tax levy and assessed values for the full fiscal year immediately prior to dissolution. The tax rates presented are projections based on current financial data.
3
7|Page
year decrease for 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 Village taxpayer and a $19 per year increase for Town Outside Village taxpayers. Tax County1 Town wide Fire Village Total
Village Town Outside Village $10.03 $10.03 $6.59 $6.59 Included in Town wide $16.62 $16.62
Table 4 – Projected Tax Rates per $1,000 of Assessed Value (No Lighting District)
If a lighting district were created, then the expenses for lighting of $10,694 per year would be deleted from the combined total tax levy and allocated only to current Village taxpayers. This would result in $1.21 per $1,000 of assessed value for Village taxpayers and a combined town wide tax rate of $6.46. Table 5 shows the projected tax rates including a new lighting district. The Village taxpayers would pay a tax rate of $17.70 and Town Outside Village taxpayers would pay a rate of $16.49. For a home assessed at $50,000 this would result in a $416 per year decrease for 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 Village taxpayer and a $6 per year increase for Town Outside Village taxpayers. Appendix A provides estimates of tax impacts for a range of assessments assuming 100% of the CETC is utilized to reduce property taxes and Appendix B provides estimates of tax impacts assuming 70% of the CETC is utilized to reduce property taxes.4 Tax 1
County Town wide Fire Village Lighting District Total
Village Town Outside Village $10.03 $10.03 $6.46 $6.46 Included in Town wide $1.21 $17.70
$16.49
Table 5 – Projected Tax Rates per $1,000 of Assessed Value (With Lighting District)
4
The tax impacts of applying 70% of the CETC towards property tax reductions versus 100% would be an annual savings of $394 versus $416 for a Village home assessed at $50,000, or about a $22 per year difference. For a Town home assessed at $50,000, the difference would be a $25 per year increase versus a $3 per year increase.
8|Page
5.0
SUMMARY
If the Village dissolves, assuming a lighting district is created, the projected decrease in property taxes will be 52% for current Village taxpayers and a 1% increase in property taxes for current Town Outside Village taxpayers. Property taxes may be decreased further if: -
The Town negotiates a new rate with the Fire Department that more closely aligns with the current rate for Town Outside Village taxpayers; $1.03/$1,000 of assessed value versus $1.81/$1,000 of assessed value5.
-
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 ($14,5396 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 ($16,9155 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.)
If a total of $4,575 per year of savings is achieved from any of the items listed above, then there will be no post-dissolution tax impact on town residents. If the cost savings achieved is greater than $4,575 per year then there would be additional tax savings for both Town and current Village residents.
5
The Village and Town of Edwards had the same tax rate per $1,000 for fire protection prior to dissolution. Their 2015 rate is $1.31/$1,000 of assessed value. The Town of DeKalb’s rate is $1.22/$1,000 and the Town of Russell’s rate is $1.58/$1,000. 6 Clerk/Treasurer and DPW wages and benefits are computed from the 2014 Annual Update Document.
9|Page
APPENDIX A - Projected Tax Rates per $1,000 of Assessed Value Assuming 100% of CETC is Appropriated to Reduce Taxes from $30,000 - $250,000
Village & Town Inside Village Taxes7
Assessed Value
Current ($15.99)
$30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $110,000 $120,000 $130,000 $140,000 $150,000 $160,000 $170,000 $180,000 $190,000 $200,000 $210,000 $220,000 $230,000 $240,000 $250,000
7
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
480 640 800 959 1,119 1,279 1,439 1,599 1,759 1,919 2,079 2,239 2,399 2,558 2,718 2,878 3,038 3,198 3,358 3,518 3,678 3,838 3,998
New With Lighting District ($7.67) $ 230 $ 307 $ 384 $ 460 $ 537 $ 614 $ 690 $ 767 $ 844 $ 921 $ 997 $ 1,074 $ 1,151 $ 1,227 $ 1,304 $ 1,381 $ 1,458 $ 1,534 $ 1,611 $ 1,688 $ 1,764 $ 1,841 $ 1,918
Projected Savings With Lighting District $250 $333 $416 $499 $582 $665 $749 $832 $915 $998 $1,082 $1,165 $1,248 $1,331 $1,414 $1,497 $1,580 $1,664 $1,747 $1,830 $1,914 $1,997 $2,080
New Without Lighting District ($6.59) $ 198 $ 264 $ 329 $ 395 $ 461 $ 527 $ 593 $ 659 $ 725 $ 791 $ 856 $ 922 $ 988 $ 1,054 $ 1,120 $ 1,186 $ 1,252 $ 1,318 $ 1,384 $ 1,449 $ 1,515 $ 1,581 $ 1,647
Town Outside Village Taxes Current ($6.40)
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
192 256 320 384 448 512 576 640 704 768 832 896 960 1,024 1,088 1,152 1,216 1,280 1,344 1,408 1,472 1,536 1,600
New With Lighting District ($6.46) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
194 258 323 388 452 517 581 646 711 775 840 905 969 1,034 1,098 1,163 1,228 1,292 1,357 1,421 1,486 1,551 1,615
Projected Increase With Lighting District $2 $2 $3 $4 $4 $5 $5 $6 $7 $7 $8 $9 $9 $10 $10 $11 $12 $12 $13 $13 $14 $15 $15
Tax Rates don’t include County taxes since they will remain unchanged by Village dissolution.
10 | P a g e
New Without Lighting District ($6.59) $ 198 $ 264 $ 329 $ 395 $ 461 $ 527 $ 593 $ 659 $ 725 $ 791 $ 856 $ 922 $ 988 $ 1,054 $ 1,120 $ 1,186 $ 1,252 $ 1,318 $ 1,384 $ 1,449 $ 1,515 $ 1,581 $ 1,647
APPENDIX B - Projected Tax Rates per $1,000 of Assessed Value Assuming 70% of CETC is Appropriated to Reduce Taxes from $30,000 - $250,000
Assessed Value
Village & Town Inside Village Taxes8 Current ($15.99)
$30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $110,000 $120,000 $130,000 $140,000 $150,000 $160,000 $170,000 $180,000 $190,000 $200,000 $210,000 $220,000 $230,000 $240,000 $250,000
8
$480 $640 $800 $959 $1,119 $1,279 $1,439 $1,599 $1,759 $1,919 $2,079 $2,239 $2,399 $2,558 $2,718 $2,878 $3,038 $3,198 $3,358 $3,518 $3,678 $3,838 $3,998
New With Lighting District ($8.11) $243 $324 $406 $487 $568 $649 $730 $811 $892 $973 $1,054 $1,135 $1,217 $1,298 $1,379 $1,460 $1,541 $1,622 $1,703 $1,784 $1,865 $1,946 $2,028
Projected Savings With Lighting District $236 $315 $394 $473 $552 $630 $709 $788 $867 $946 $1,024 $1,103 $1,182 $1,261 $1,340 $1,418 $1,497 $1,576 $1,655 $1,734 $1,812 $1,891 $1,970
New Without Lighting District ($7.03) $211 $281 $352 $422 $492 $562 $633 $703 $773 $844 $914 $984 $1,055 $1,125 $1,195 $1,265 $1,336 $1,406 $1,476 $1,547 $1,617 $1,687 $1,758
Town Outside Village Taxes Current ($6.40)
$192 $256 $320 $384 $448 $512 $576 $640 $704 $768 $832 $896 $960 $1,024 $1,088 $1,152 $1,216 $1,280 $1,344 $1,408 $1,472 $1,536 $1,600
New With Lighting District ($6.90) $207 $276 $345 $414 $483 $552 $621 $690 $759 $828 $897 $966 $1,035 $1,104 $1,173 $1,242 $1,311 $1,380 $1,449 $1,518 $1,587 $1,656 $1,725
Projected Increase With Lighting District $15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 $70 $75 $80 $85 $90 $95 $100 $105 $110 $115 $120 $125
Tax Rates don’t include County taxes since they will remain unchanged by Village dissolution.
11 | P a g e
New Without Lighting District ($7.03) $211 $281 $352 $422 $492 $562 $633 $703 $773 $844 $914 $984 $1,055 $1,125 $1,195 $1,265 $1,336 $1,406 $1,476 $1,547 $1,617 $1,687 $1,758
6/15/2015
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
1
6/15/2015
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
2
6/15/2015
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
3
6/15/2015
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
4
6/15/2015
2013 Tax Information
Current Tax Rates per $1,000 AV for a Village and TOV Taxpayer (2014) Village TOV TOV = Town Outside $8.95 $8.95 County (1) 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
This study focuses on these 4 tax items that make up 40% for Village and 22% for TOV of total Real Property Taxes
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
5
6/15/2015
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 Village
$332,100
% of Total
Tax Levy
26%
$80,543
% of Total 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
6
6/15/2015
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
7
6/15/2015
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 part‐ time 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
8
6/15/2015
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
9
6/15/2015
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 (non‐ CETC Tax Levy if Village Dissolves
($98,983) ($7,402) $553,499
Comparison to Edwards: $84,908 for annual “Aid to Municipality” 20
10
6/15/2015
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
11
6/15/2015
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
12
6/15/2015
Board‐Initiated Dissolution Day 1
Proposed Dissolution Plan Adopted
Within 35 to 90 Withi 35 t 90 Days
Hearing Held
Within 5 Days Within 180 Withi 180 Days
Process Ends
Proposed Plan Amended Final Plan Approved
Special District Dissolved
Referendum Date Set Within 60 to 90 Withi 60 t 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 Withi 60 t 90 days Within 30 Days, Board Must Meet Within 180 Withi 180 Days Withi 35 t 90 Within 35 to 90 Days Within 60 Days After 45 Days Within 45 Days Within 30Days Within 60 to 90 Withi 60 t 90 Days
Petition Filed Signatures Verified
Petition Rejected
Referendum Date Set
Appeal Possible
Referendum Held Referendum Passes
Referendum Fails
Proposed Plan Approved
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
13
6/15/2015
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
14
Dissolution Implementation Plan of the Village of Hermon June, 2015 Prepared for: Village/Town Dissolution Study Committee Cathy Race, Village Mayor Dave Doiron Jeff Foster Lee Carvel, Town Council Nate Young, Village Trustee Sheri Smith Tracey Woodrow Jamie Matthews
This document was prepared with funding provided by the New York State Department of State under the Local Government Efficiency Grant Program – Contract No. T1000023
Prepared by:
Staff Contributors: Star Carter, Michelle Capone, Tom Sauter, Brian Tulip, Carrie Tuttle, Ph.D, P.E., C.S.P. Capital Consultants Architecture & Engineering (C2AE): Tim Burley, P.E. Water/Wastewater Assessment Dulles State Office Building 317 Washington Street Watertown, NY 13601 315.661-3200 23557 State Route 37 Watertown, NY 13601 315.661.3210 www.danc.org i|Page
Table of Contents INTRODUCTION .............................................................................................. Error! Bookmark not defined. A) Name of Local Government Entity to be Dissolved .............................................................................. 1 B)
Territorial Boundaries of the Village of Hermon................................................................................... 1
C)
Type and/or Class of the Village of Hermon ......................................................................................... 2
D)
Fiscal Estimate of the Cost of Dissolution ............................................................................................. 2
E)
Plan for the Transfer or Elimination of Public Employees .................................................................... 3
F) Village of Hermon Assets, Including but not Limited to Real and Personal Property and the Fair Value Thereof in Current Money of the United States ................................................................................. 5 G) Village of Hermon Liabilities and Indebtedness, Bonded and Otherwise, and the Fair Value Thereof in Current Money of the United States......................................................................................................... 6 H) Any Agreements Entered into with the Town in Which the Village of Hermon is Situated in Order to Carry Out the Dissolution.............................................................................................................................. 6 I) Manner and Means by which the Residents of the Village of Hermon will Continue to be Furnished Municipal Services Following the Village of Hermon’s Dissolution .............................................................. 6 J) Terms for the Disposition of the Village of Hermon’s Assets and the Disposition of its Liabilities and Indebtedness, Including the Levy and Collection of the Necessary Taxes and Assessments Therefor ........ 7 K) Findings as to Whether any Local Laws, Ordinances, Rules or Regulations of the Village of Hermon Shall Remain in Effect After the Effective Date of the Dissolution or Shall Remain in Effect for a Period of Time Other Than As Provided by Section Seven Hundred Eight-nine of This Title....................................... 8 L)
Effective Date of the Proposed Dissolution ........................................................................................ 12
M) Time and Place or Places for a Public Hearing or Hearings on the Proposed Dissolution Plan Pursuant to Section Seven Hundred Seventy-six of this Title ..................................................................... 12 N)
Any Other Matter Desirable or Necessary to Carry Out the Dissolution ............................................ 12
ii | P a g e
INTRODUCTION This document sets forth the Dissolution Implementation Plan for the Village of Hermon that was developed by the Dissolution Study Committee. The Plan is the culmination of a twelve month study that the Village undertook to determine the impacts of dissolution on tax rates and service delivery. The purpose of this Dissolution Implementation Plan is to summarize the actions that will take place to move forward with Village Dissolution and to provide details on how services, presently provided by the Village, will continue after dissolution. This Plan will be submitted to the Village and Town boards for adoption at their August 2015 board meetings. After the Dissolution Implementation Plan is approved by the Village and Town boards, then the Village will put forth a proposition to dissolve the Village. If the proposition is approved by a majority of the Village voters, then the Village of Hermon will be dissolved effective December 31, 2016. This report is being funded by and prepared in accordance with the New York State Department of State Work Plan requirements, as outlined in Contract No. T1000023 with the Village of Hermon. The Department of State provides funding of up to $50,000 (90% grant, 10% municipal share) per community for activities associated with the implementation of dissolution. This Dissolution Implementation Plan identifies items that are recommended for completion prior to, or in conjunction with, dissolution and the estimated costs of completion.
A) NAME OF LOCAL GOVERNMENT ENTITY TO BE DISSOLVED The Village of Hermon would dissolve and become part of the Town of Hermon.
B) TERRITORIAL BOUNDARIES OF THE VILLAGE OF HERMON The Village of Hermon has a village boundary line within the Town of Hermon. Please see Figure 1 for a map showing the Village boundary lines.
Figure 1 - Map of Village of Hermon Boundary Lines
1|Page
C) TYPE AND/OR CLASS OF THE VILLAGE OF HERMON Hermon is a Village.
D) FISCAL ESTIMATE OF THE COST OF DISSOLUTION The Department of State provides grant funding for up to $50,000 per municipality for activities associated with Village. For the Village and Town of Hermon this could total $111,111.10 with $100,000 of the funding being provided through grant and the Village and Town covering the remaining 10%. The following items have been identified for inclusion in Village and Town Implementation Grants. These items will not impact Village or Town tax rates as they will be paid for will NYS Department of State grant funds and Village fund balance to cover the local share: 1) Comprehensive Plan: The Village and the Town do not have a Comprehensive Plan. The estimated cost to develop a Comprehensive Plan is $25,555.55. 2) Water District Formation: The estimated cost to complete the water district formation process is $4,000. 3) Sewer District Formation: The estimated cost to complete the sewer district formation process is $4,000. 4) Lighting District Formation: The estimated cost to complete lighting district formation is $4,000. 5) IT Integration: The estimated cost to integrate the Village and Town computers, software, printers and other technology is $5,000. 6) Disposition of Real Property & Records Management: The Village would like to dispose of unused real property prior to dissolution. The Village Clerk/Treasurer relocated from the Village municipal office to the newly renovated Town offices in 2015. As a result, the Village’s municipal office serves only as a storage location for Village records. If these records were converted into an electronic format, then the municipal office could be sold. The Village is presently paying utility and maintenance costs, and the property is exempt from real property taxes since it’s owned by the Village. Additionally, digitization of town records would provide additional storage space at the joint Town/Village office for records storage. Expenses associated with digitizing records are estimated to be $20,000, purchase of a new scanner is estimated to be $5,000, and 2|Page
improvements to records management storage within the Town municipal building are estimated to be $2,000. An additional $10,000 is estimated for costs associated with real property disposition which will includes surveys, title work, recording fees, etc. 7) Local Law Revisions: The estimated cost to complete a detailed review of these laws and to develop new or amended Town laws is $15,000. 8) Asset Management Plans: The Village would like to develop comprehensive asset management plans for the water, sewer and other Village-owned infrastructure. These plans would include a detailed asset inventory, asset life, recommended preventive maintenance tasks and frequencies of maintenance, and recommendations for annual contribution to replacement reserves. The estimated cost to complete asset management plans for the Village’s infrastructure is $16,555.55. The table below summarizes items to be considered for implementation grants: Hermon Implementation Grant Budget Comprehensive Plan Water District formation Sewer District formation Lighting District formation IT Integration Records Management: Digitization Records Management: Purchase of Scanner Records Management: Storage Real Property Disposition Local Law Review Asset Management Plan Totals
Village
Town $25,555.55 $4,000 $4,000 $4,000
$5,000 $10,000 $5,000 $2,000 $10,000 $7,000 $16,555.55 $55,555.55
$10,000
$8,000 $55,555.55
E) PLAN FOR THE TRANSFER OR ELIMINATION OF PUBLIC EMPLOYEES The following Village elected and appointed positions will be eliminated: 1) The Village Mayor and four trustee positions will be eliminated. 2) The part-time position of Village Clerk/Treasurer will be eliminated and the duties of this position will become the responsibility of the Town Clerk and contracted accountant. This will include the transfer of water and sewer billing. Several current Village Clerk3|Page
Treasurer duties will be eliminated with Village dissolution and the Town may achieve cost savings if the remaining duties can be performed at a cost less than the Village Clerk/Treasurer’s salary and benefits of $14,539 as of 5/31/14. 3) The part-time Village DPW position will be eliminated and the duties of this position will become the responsibility of the Town Highway Department. The Town Highway Department will be responsible for the maintenance of streets, culverts, and other formerly owned Village infrastructure in the same manner that it is currently responsible for maintaining Town-owned infrastructure. The Village spent $16,915 per year on salary and benefits for DPW functions in fiscal year ending 5/31/14. It is anticipated that the DPW duties transferred to the Town after dissolution can be performed at or below the cost that the Village currently pays to provide these services. 4) The position of part-time Village Water Operator will be eliminated with Village dissolution. The responsibility for operating and maintaining the water system will transfer from the Village to the Town. The Village spent $14,905 on salary and benefits for water operator functions in fiscal year ending 5/31/14. It is anticipated that the Town will create a new position of part-time Town Water Operator and perform water system duties in the same manner that they are presently being performed; or that the Village hires a contract operator to perform these duties at a cost at or below the current cost to provide these services. 5) The position of part-time Village Sewer Operator will be eliminated with Village dissolution. The responsibility for operating and maintaining the sewer system will transfer from the Village to the Town. The Village spent $15,088 per year on salary and benefits for sewer operator functions in fiscal year ending 5/31/14. It is anticipated that the Town will create a new position of part-time Town Sewer Operator and perform sewer system duties in the same manner that they are presently being performed; or that the Village hires a contract operator to perform these duties at a cost at or below the current cost to provide these services. 6) There are no Village retirees receiving benefits, so there will be no transfer of retiree costs to the Town upon dissolution.
4|Page
F) VILLAGE OF HERMON ASSETS, INCLUDING BUT NOT LIMITED TO REAL AND PERSONAL PROPERTY AND THE FAIR VALUE THEREOF IN CURRENT MONEY OF THE UNITED STATES 1) Upon dissolution, title to real property presently owned by the Village will be transferred to the Town. Village property consists of the following parcels. Parcel ID
Property Class
116.004-1-17
330 – Vacant
Assessment Value $5,500
Used by Village?
131.002-2-2
314 – Vacant
$2,600
No
$12,000
No
$500
Yes - New Water Tank
No – old dump site
131.036-1-13
592- Recreation and Entertainment
132.001-1-10.2
682- Community Services
132.021-2-2
822- Public Services
$28,100
Water Works
132.021-2-22
330- Vacant
$1,600
No
132.001-2-16
822- Public Services
$56,200
Yes - Water Works
132.029-10-26
311- Vacant
$3,300
No
132.029-1-16.2
682- Community Services
$15,300
Yes - Ball Field
132.029-1-27.1
963- Wild, Forested, Conservation Lands and Public Parks
$25,700
Yes - Wastewater Treatment Plant
132.029-1-27.3
340- Vacant
$10,000
No
132.029-2-14.1
$9,600
Yes - Access to sewer line
132.029-2-15
963- Wild, Forested, Conservation Lands and Public Parks 330- Vacant
$5,900
Yes - Access to sewer line
132.029-3-23
682- Community Services
$1,700
No
132.029-5-6
822- Public Services
$15,900
Yes - Old Water Tank
132.029-5-7.2
682- Community Services
$500
Yes - New Water Tank
132.029-9-1
330- Vacant
$1,100
No
132.029-9-19
311- Vacant
$3,400
No
132.029-9-25
652- Community Services
$19,400
Yes - Municipal Office
132.029-9-26
330- Vacant
$500
No
132.029-9-3
311- Vacant
$1,600
No
132.029-9-4
330- Vacant
$1,400
No
2) Personal property and other fixed assets owned by the Village at the time of dissolution will become the property of the Town. Personal property includes vehicles, equipment, office furniture, computers, and any other item commonly considered to be personal property. 5|Page
G) VILLAGE OF HERMON LIABILITIES AND INDEBTEDNESS, BONDED AND OTHERWISE, AND THE FAIR VALUE THEREOF IN CURRENT MONEY OF THE UNITED STATES 1) General fund balance, existing at the time of dissolution, will be transferred to the Town’s general fund. Water and sewer fund balances will be transferred to the newly formed Town water and sewer districts. Fund Balances – As of 5/31/14 (Village); As of 12/31/13 (Town) Village
Fund/Purpose
Balance
General
$258,643
Water
$81,056
Sewer
$79,371
Total
$419,070
2) There is no existing Village debt besides a loan of $133,400 (as of 5/31/14) for the sewer fund which will be paid off in 2017. Existing Village sewer debt will be transferred to the newly formed Town sewer district.
H) ANY AGREEMENTS ENTERED INTO WITH THE TOWN IN WHICH THE VILLAGE OF HERMON IS SITUATED IN ORDER TO CARRY OUT THE DISSOLUTION The Town of Hermon, at its Town Board Meeting on June 23, 2015, passed a resolution to endorse the Village of Hermon Dissolution Plan. There are no other agreements between the Village of Hermon and the Town of Hermon at this time.
I) MANNER AND MEANS BY WHICH THE RESIDENTS OF THE VILLAGE OF HERMON WILL CONTINUE TO BE FURNISHED MUNICIPAL SERVICES FOLLOWING THE VILLAGE OF HERMON’S DISSOLUTION This section of the Dissolution Implementation Plan describes how Village functions/services will be provided after dissolution. Upon dissolution, the following actions will take place: 1) The Village Board of Trustees and position of Mayor will be eliminated. The size of the Town Board will not change and no additional costs will be incurred to assume administrative functions as a result of Village dissolution. Cost savings of $3,200 will be achieved as a result of the elimination of 5 paid elected position.
6|Page
2) The Town will form a water district that will include the customers that are presently receiving these services from the Village. The ongoing cost of these services will be paid for by user fees which will be established by the Town Board. The water system does not have any existing debt and it had a fund balance of $81,056 as of 5/31/14. Any debt or water fund balance, at the time of dissolution, will revert to the newly formed district. 3) The Town will form a sewer district that will include the customers that are presently receiving these services from the Village. The ongoing cost of these services will be paid for by user fees which will be established by the Town Board. The sewer system had an existing loan of $133,400 and fund balance of $79,371 as of 5/31/14. Any debt or sewer fund balance, at the time of dissolution, will revert to the newly formed district. 4) The Town Board will form a lighting district that will include customers that are presently located within the Village limits. The ongoing cost of lighting will be paid for by the customers that are located within the newly formed district. The annual cost of lighting was $10,694 in fiscal year ending 5/31/14. 5) Fire protection and emergency rescue services in the community will remain unchanged and will continue to be provided by the Hermon Fire Department. The Village’s existing contract for services will be eliminated and the Fire Department will establish a new rate for services to be provided to the Town and former Village service area. 6) Village Clerk/Treasurer, Department of Public Works (DPW), Water Operator, and Sewer Operator functions will be assumed by the Town. 7) Services presently provided to Town and Village taxpayers will remain unchanged and include, court functions, animal control, code enforcement, real property assessment, vital records, and library services.
J) TERMS FOR THE DISPOSITION OF THE VILLAGE OF HERMON’S ASSETS AND THE DISPOSITION OF ITS LIABILITIES AND INDEBTEDNESS, INCLUDING THE LEVY AND COLLECTION OF THE NECESSARY TAXES AND ASSESSMENTS THEREFOR 1) Personal property and other fixed assets owned by the Village at the time of dissolution will become the property of the Town. Personal property includes vehicles, equipment, office furniture, computers, and any other item commonly considered to be personal property. 7|Page
2) General fund balance, existing at the time of dissolution, will be transferred to the Town’s general fund. Water and sewer fund balances will be transferred to the newly formed Town water and sewer districts. Fund Balances – As of 5/31/14 (Village); As of 12/31/13 (Town) Village
Fund/Purpose
Balance
General
$258,643
Water
$81,056
Sewer
$79,371
Total
$419,070
3) There is no existing Village debt besides a loan of $133,400 (as of 5/31/14) for the sewer fund which will be paid off in 2017. Existing Village sewer debt will be transferred to the newly formed Town sewer district. 4) The Village of Hermon cannot project whether or not there will be uncollected taxes upon the date of dissolution; however, any uncollected taxes will have been turned over the County per current practice and the County will make the Village whole.
K) FINDINGS AS TO WHETHER ANY LOCAL LAWS, ORDINANCES, RULES OR REGULATIONS OF THE VILLAGE OF HERMON SHALL REMAIN IN EFFECT AFTER THE EFFECTIVE DATE OF THE DISSOLUTION OR SHALL REMAIN IN EFFECT FOR A PERIOD OF TIME OTHER THAN AS PROVIDED BY SECTION SEVEN HUNDRED EIGHT-NINE OF THIS TITLE As part of this study, a review of Village and Town laws was performed to determine Village laws that should be considered for incorporation into Town laws. Village laws and ordinances will be retained for two years after the Village dissolves. The Town will adopt or revise relevant Village laws and ordinances, as part of an Implementation Grant. The following table identifies the laws recommended for further incorporation into Town law. Village Law Local Law 1 Junk and Junkyards (1985) Local Law 2 Junk and Junkyards (1998)
Recommended Action Consider a Junk and Junkyard law throughout the Town or a specific zone Consider a Junk and Junkyard law throughout the Town or a specific zone 8|Page
Local Law 1 Open Containers (1979)
Consider a law throughout the Town or a specific zone
Local Law 1 Open Meeting Law (1977) Local Law 1 Prohibiting Unnecessary Noise (2000) Local Law 1 Regulate Public and Private Sewer Use (1996) Local Law 1 Sidewalk Repairs (1988) Local Law 1 Snowmobile Use (1971-1972) Local Law 2 Authorize Bingo (1994) Water Law 01-2013 Local Law 2 Regulate Outdoor Wood Furnace (2005) Local Law 2 Regulating Outdoor Junk Storage (2005) Local Law 3 Mobile Home Standards (1998) Local Law 3 Regulate Outdoor Wood Furnace (2006) Local Law 4 Flood Damage Prevention (1998) Resolution for Snowmobile Use (1970) Village Ordinance for the Removal of Elm Trees (1963) Latest Village Ordinances (1973)
Consider a law throughout the Town or a specific zone Law would be developed as part of a Town Sewer District Formation Consider a law specific to zone or as part of a district? Currently responsibility for repairs falls to individual home owners. Consider a law throughout the Town or a specific zone Consider a law throughout the Town or a specific zone Law would be developed as part of a Town Water District Formation Consider a law throughout the Town or a specific zone Consider a law throughout the Town or a specific zone Consider a law throughout the Town or a specific zone Consider a law throughout the Town or a specific zone Consider a law throughout the Town or a specific zone Consider a law throughout the Town or a specific zone Consider a law throughout the Town or a specific zone Consider a law(s) throughout the Town or a specific zone – Ordinance detail follows.
The latest Village Ordinances published in 1973 indicates the following activities are being regulated: ARTICLE 1 – PUBLIC SAFETY AND GOOD ORDER 1. 2. 3. 4. 5. 6.
Disorderly Conduct Conduct in Streets Profane Language Mobs Gambling Houses & Rooms Throwing of Balls, Stones, etc., discharge of firearms, etc. that endangers property or persons 9|Page
7. Indecent or Immoral Literature 8. Bathing without Clothes 9. Obstructing Sidewalks 10. Injuring Public or Private Property 11. Lounging Upon Streets 12. Disturbing Public Meetings or Worship 13. Curfew 14. Animals 15. License for Dances ARTICLE 2 NUISANCES 1. Whatever is dangerous to human life or health 2. Buildings 3. Sewers and Drains 4. Litter, Rubbish, Etc. 5. Weeds 6. Out Houses, Cess-Pools, Etc. 7. Snow, Ice and Water ARTICLE 3 – AUTOMOBILES & OTHER VEHICLES 1. Compliance with NYS Vehicle Laws 2. Speed Limit 3. Gross Weight 4. Traffic Sign and Signals 5. Parking, Etc. ARTICLE 4 – FIRE PREVENTION CODE 1. General Code Intent 2. Application of Code 3. Authority to Enter 4. Inspections 5. Elimination of Dangerous or hazardous conditions 6. Use of Explosives, ammunition and Blasting Agents 7. Fire protection Equipment 8. Precautions against fire ARTICLE 5 – POLICE DEPARTMENT 1. Village Policemen 10 | P a g e
2. 3. 4. 5. 6. 7.
Police Force Salary Official Undertakings Head of Police Force Fire Police (209c, General Municipal Law) Repeal
ARTICLE 6 – STREETS, CARE OF BY PROPERTY OWNERS 1. Space Between Sidewalk and Curb or Gutter ARTICLE 7 – SHADE TREES 1. 2. 3. 4. 5. 6.
Private Trees Planting of Trees Hitching to Trees Wire Attached to Tree Wires How to Locate Removing and Trimming
ARTICLE 8 – STREETS 1. Digging of Streets, Permission Required 2. Protection of Street Openings 3. Obstructing or Hindering Repairs 4. Building Material in Streets 5. Barriers or Excavation of Street Lines 6. Removing Lamps and Danger Signs 7. Construction and Maintenance of Sidewalks 8. Obstructing Sidewalks 9. Signs and Banners 10. Telegraph & Electric Light Wires, Etc. ARTICLE 9 – STANDARDS OF CONDUCT – ETHICS 1. Village Board & Staff Conduct ARTICLE 10 – FIRE ORDINANCES 1. Motor Apparatus 2. Fire Siren Activation 11 | P a g e
3. 4. 5. 6. 7. 8. 9.
Driving on Fire Hose Apparatus, Hose, Etc. Fire House False Alarm Fire Hydrants Conduct Building Inspection
ARTICLE 11 – AUDITING 1. Authorization of Board to Pay Village Expenses ARTICLE 12 – LICENSES 1. Garbage 2. Peddlers ARTICLE 13 – DUMPING WASTE & INFLAMMABLE MATTER
L) EFFECTIVE DATE OF THE PROPOSED DISSOLUTION If the proposition is approved by a majority of the Village voters, then the Village of Hermon will be dissolved effective December 31, 2016.
M)TIME AND PLACE OR PLACES FOR A PUBLIC HEARING OR HEARINGS ON THE PROPOSED DISSOLUTION PLAN PURSUANT TO SECTION SEVEN HUNDRED SEVENTYSIX OF THIS TITLE A Public Hearing will be held on August 17, 2015, at 7:00 pm, in the Town/Village Municipal Offices in the Village of Hermon: 109 Church Street, Hermon, NY 13652.
N) ANY OTHER MATTER DESIRABLE OR NECESSARY TO CARRY OUT THE DISSOLUTION If the Village were to dissolve there would be some cost savings. The savings that would be achieved include the following: Annual Savings
Salaries for the Village Mayor and four trustees ($3,200) 12 | P a g e
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 Potential savings may be achieved from the consolidation of the Village Clerk/Treasurer and District of Public works with the Town, and will be dependent on the level of service established Annual savings from New York State aid, awarded if the Village proceeds with dissolution, are estimated to be $99,710. The total annual savings achieved through Village dissolution are $107,112.
One-Time Savings
Disposition of Unused Real Property ($44,700 plus the municipal building $19,400) The total one-time cost savings that could be achieved are $64,100. One-time savings would be added to the Village’s general fund balance and transferred to the Town upon dissolution.
Tax Impact For a home assessed at $50,000 this would result in a $416 per year decrease for Village taxpayers and a $3 per year increase for Town Outside Village taxpayers. If the Village dissolves, assuming a lighting district is created, the projected decrease in property taxes will be 52% for current Village taxpayers and a 1% increase in property taxes for current Town Outside Village taxpayers. Property taxes may be decreased further if: -
The Town negotiates a new rate with the Fire Department that more closely aligns with the current rate for Town Outside Village taxpayers; $1.03/$1,000 of assessed value versus $1.81/$1,000 of assessed value1.
-
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 ($14,539 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 ($16,915 per year).
1
The Village and Town of Edwards had the same tax rate per $1,000 for fire protection prior to dissolution. Their 2015 rate is $1.31/$1,000 of assessed value. The Town of DeKalb’s rate is $1.22/$1,000 and the Town of Russell’s rate is $1.58/$1,000.
13 | P a g e
-
The Village is able to eliminate costs associated with the current Village Municipal Building (i.e., heat, electricity, phone, internet, building insurance, maintenance, etc.)
If a total of $4,575 per year of savings is achieved from any of the items listed above, then there will be no post-dissolution tax impact on town residents. If the cost savings achieved is greater than $4,575 per year then there would be additional tax savings for both Town and current Village residents.
14 | P a g e