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February 17, 2007

Buried Unfunded Liability

REPAIRS ARE IN THE PIPELINE:

In the old days a horse and buggy would deliver water house to house for 15 cents a barrel.

Today, the most up-to-date water delivery systems have miles of pipeline, computerized mapping systems to quickly locate valves and sophisticated acoustical equipment to pinpoint leaks.

But all the technology in the world can't stop a 120-year-old pipe from wearing out.

Forestville residents found that out. Breaks in their pipes - including some installed before Abraham Lincoln was president - drained their water tank, leaving the 800 customers in the Chautauqua County village without water for almost a week earlier this month.

And Buffalo, with hundreds of miles of lines 100-plus years old, loses nearly 12 billion gallons of water a year to leaks and breaks in pipes.

Some lines in Western New York are less than a year old and pose no problems. But the middle-aged pipes are starting to show their age.

"It's a challenge this country faces in its infrastructure," said Robert A. Mendez, executive director of the Erie County Water Authority. "A significant amount was done after World War II. Now that's 50 years old."
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A respected trade association estimates it will cost a minimum of $250 billion nationwide to replace the aging underground infrastructure over the next 30 years. Finding that much money - and essentially burying it in the ground - is difficult.

February 11, 2007

Health Insurance

INSURANCE COSTS MAY SPUR TOWNS TO COALESCE:

Health insurance premiums for employees in the town of Webster increased $120,000 last year. In Penfield, the increase was more than $96,000.

Town officials say such costs have been climbing 10 percent to 15 percent for the past several years, prompting officials to study whether buying health insurance as a group could get them a better price.

"My costs are absolutely skyrocketing," said Webster Supervisor Ronald Nesbitt.

Nesbitt said he is searching for "anything that can lower these 10 percent increases that we've been having every year."

School districts in Monroe County joined together in the 1990s to get better health insurance premiums, said Jody Siegle, executive director of the Monroe County School Boards Association.

"The process of joining together for health insurance has saved millions and millions of dollars," Siegle said.

Penfield Supervisor George Wiedemer is chairing a committee of the Monroe County Council of Governments looking into the idea. He's awaiting the results of a survey of municipal officials to gather information about differences among communities regarding health insurance.
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Although Wiedemer hopes to have a plan outlined this year, he realizes that it is unrealistic to expect to have all municipal employees under one umbrella quickly.

Most municipalities have established health insurance coverage under multi-year contracts. Changing those arrangements would require renegotiating contracts or waiting for them to expire and including the proposal in future talks.

Wiedemer would like to hire a consultant, with the cost shared among municipalities, to thoroughly research the issue and present town and village officials with a list of options.

Bill Mulligan, deputy supervisor for Henrietta, said he is "very optimistic" about the idea of forming a coalition to buy health insurance.

"I think a concerted effort like that makes a lot of sense and hopefully there could be substantial savings to the different municipalities," Mulligan said.

February 08, 2007

Town of Webb

FROM $12,281 TO $0: WEBB FUNDING CUT:


Town of Webb officials will have to find places to save money this year to make up for $12,281 of state aid it will no longer receive.

The state restructured its Aid and Incentives for Municipalities program this year with an increased focus on fiscally distressed municipalities, said state budget division spokesman Jeffrey Gordon.

For Webb, that meant going from $12,281 in state funding to $0.

The state cut funding for municipalities such as Webb in which the losses would have minimum impacts on their overall budgets, and also looked at property wealth and property tax capacity in such communities, Gordon said.
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Under the proposed Aid and Incentives for Municipalities funding for 2007-08, New York City would receive no money as well, down from the $328 million it got last year. Towns and villages such as Webb would receive about $200 million less overall, Gordon said.

There was a $50 million increase toward distressed municipalities. The criteria for selecting distressed municipalities were: population decline, property rate, property wealth and property tax capacity.

Money not given out in Aid and Incentives for Municipalities funding this year will be spread out to support various state operations, Gordon said.


October 04, 2006

Town of Seneca Falls

SF TOWN BOARD WANTS ZERO TAX TO CONTINUE:

For the fourth consecutive year, town officials plan to adopt a budget that carries no general fund tax.

The budget will, however, include taxes for special districts, such as lighting, fire and highway.

Copies of the proposed $4.7 million spending plan for 2007 were expected to be available today. Town Supervisor Peter Same told the Town Board Tuesday that it pretty much consists of department head requests at this point.

Workshops are scheduled for 5:30 p.m. Oct. 11 and 25 at the Community Center and 6 p.m. Oct. 17 at Vince's Park. A public hearing is planned for 7 p.m. Nov. 8, the town's next regular board meeting (which is delayed a day by Election Day).

Same said that besides keeping the tax rate at zero percent, other major issues include continuing with water projects and the building of a tax stabilization fund; and deciding whether to keep and renovate the pool at Vince's Park, for an estimated $750,000.
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The tax stabilization fund was started last year with $1 million to guard against big tax increases after the town's revenue stream from Seneca Meadows/IESI stops in about 20 years. Under a host community agreement with the landfill, the town receives 4.5 percent - about $2.5 million a year - of the landfill's gross revenues.

September 19, 2006

Town of New Hartford

NEW HARTFORD DISSOLVES CITIZENS BUDGET PANEL:

Town residents will not participate this fall in drafting the 2007 town of New Hartford budget, town officials said Monday.

Unlike the past two years, citizens have not been invited to sit in on committee meetings between Town Board members and department leaders.

William Jenkins of Slaytonbush Lane, one of four members of last year's committee, said residents' participation is necessary when putting together a financial plan for the town.

"They should have our input," Jenkins said. "I know last time we were there, we had quite a bit of input as far as what could be approved or not approved on the budget."

Town Supervisor Earle Reed said residents will have a chance to comment on the proposed budget at a public hearing in November.

"My philosophy is, citizens don't have all the information we have," Reed said. "My (department) leaders have too many things going on to sit with residents on the committee."

A tentative 2007 town budget must be submitted no later than Sept. 30 to Town Clerk Gail Wolanin Young, who then can release copies of the budget to the public. The board, meanwhile, will continue to modify the budget. A final budget must be adopted no later than Nov. 20.


April 04, 2006

Town of Cicero

CICERO LOOKS FOR WAYS TO SPEND ITS SURPLUS:


Over the last three years Cicero has stockpiled $5 million in surplus money. The town is sitting on the cash and has no plan to use it.

That's the same amount collected from taxpayers this year to run the town. And it's roughly the equivalent of $167 for each of Cicero's 30,000 residents.

So far, a fraction of that money has been used to ease the burden on taxpayers.
The surplus is equal to about 65 percent of Cicero's $7.7 million 2005 budget, but it's not part of that budget. Surpluses of comparable Onondaga County towns usually range between 15 percent and 20 percent of their budgets.

The state says towns should maintain a reasonable surplus as a percentage of the total budget. However, Cicero's surplus is much higher than the state comptroller's office recommends.

"Ten to 15 percent is a good rule of thumb, but it depends on the specifics of that locality," said state comptroller spokeswoman Jennifer Freeman. "In general, if a municipality comes to us and they have a high fund balance we would recommend

that they consider using the money for one-shot expenses like reducing debt, pay-as-you-go capital projects or other one-time funding needs."

Cicero has no long-term debt.

Town officials say they are committed to spending down the surplus, reversing the previous town board's decision to hold onto the money.