Merry Christmas

Remember those serving overseas and their families, as well as those who serve here - police, fire, ambulance, doctors and nurses and may not be with loved ones.

 

And the winner is ...

I submit that East Greenbush actually won the Casino Siting Decision, not because the City of Schenectady was selected, but because the issue activated and energized many Town residents to become involved.

Going back a few years, I was shocked to see that I was the only member of the public at the 2009 Budget Hearing.  That Budget called for a $1.1 million tax increase (+16.1%) spread across all funds.  I honestly don’t think the Board Members were aware of the combined magnitude of the increases as, to a person, they appeared stunned when I disclosed it (none of the current Board Members were on that Board). 

Back to the present - there have been people coming to Town Board Meetings over the past eight months who may never have been in Town Hall before – at least not for Town Board Meetings!  Speaking out on numerous issues and concerns – not just the casino. 

Hopefully this high level of interest and involvement will continue – Town governance will be the better for it.  Vox populi!

Witness this past Wednesday (12/17/14) - townsfolk actually challenged the Board, not only on the proposed Sewer Rate increases, but for voting on those increases the same night as the Public Hearing, arguing that the Board Members had already made up their minds and nothing the public could say would sway them.  The proposed Sewer Rates (and Water Rates) were defeated (at the 12/11/14 Pre-Board Meeting, Councilpersons Mangold and Matters expressed reluctance to adopt them now).  Good stuff! 

The Sewer and Water Rate questions have been turned over to the Citizens Fiscal Advisory Committee for review and recommendation.  CFAC is also charged with developing internal controls.  More good stuff!

Tom Grant (the Elder) frequently reminds us that transparent process is important – so true!

Wednesday evening a gentleman showed me a quote that I’d posted online a few years back.  He was so taken by it that he’d actually stored it in his cell phone!  The quote was President Lincoln speaking in Albany on his way to his inauguration:

“Citizens may swear allegiance to one party or the other and believe with all their might that they are right, but once an election is passed, and until the next election, they should be one people.”

We should now become “one people” with unified eyes on East Greenbush and its future.

 

Pete Stenson

Proposed 2015 Sewer Fee Increases

I respectfully offer the following questions/comments concerning the Proposed 2015 Sewer Fee Increases: 

Proposed 2015 Sewer Fee Increases

 

The 2013 AUD (page 36) shows that, as of 12/31/13, the combined Sewer Funds had:

• $1,629,656 in Cash (65% of 2015’s Combined Sewer Operating Budgets of $2,513,895).
• $1,247,520 is Due From Other Funds (50% of 2015’s combined Sewer Operating Budgets).

The 2015 Budget (page 20) shows no change in the combined Sewer Funds’ Fund Balance expected for 12/31/14 (admittedly, the value of the Fund Balance components may change).

Questions:

• Given the above, are the proposed Fee increases needed?
• What is the value of the proposed Fee increases?
• What is the effective date of increase for the 18 residential users in Hampton Manor that are on meters (charged the same as for users in the General Sewer District), February or July?
• Is the assumption that the existing multi-family units having in excess of three (3) or more units refers to those not separately metered, correct?  Note that “in excess of three (3) or more units” is redundant.

EFC Debt Service

The 2015 Sewer Budgets are in balance, i.e., revenues = appropriations, and reportedly include funds sufficient to cover the $60,000 in new EFC Debt Service payments.

Although I dislike tax or fee increases as much as anyone and realize there are likely some “tail” revenue increases in 2016 due to the effective dates of the proposed 2015 fee increases, I am more concerned about the  impending additional EFC Debt Service payments needed in 2016 and 2017, $120,000 and $420,000, respectively, than the proposed 2015 structure.

The 2015 combined Sewer Revenues total $2,513,895 and would have to increase by:

• 4.8% in 2016 ($120,000 / $2,513,895 = 4.77%); and
• Another 16.7% in 2017 ($420,000 / $2,513,895 = 16.71%); for total increases of
• 21.5% over the two years ($540,000 / $2,513,895 = 21.48%).

All other things being equal and absent any savings due to potential Sewer Debt refinancing, in order to meet these future EFC Debt Service requirements, either:

• Sewer Taxes would have to increase by a total of 44.2% over 2016 and 2017 ($540,000 / $1,221,912 = 44.19%).
• Alternatively, other Sewer Revenues would have to increase by a total of 41.8% over 2016 and 2017 ($540,000 / $1,291,983 = 41.80%)
• Or some combination thereof.

Taxes vs. Fees

I’ve long favored taxes over fees for the simple fact that the Federal and State Governments subsidize local taxes for those who itemize deductions.

I also prefer that taxes support Capital Projects and fees support Operating Expenses.

Furthermore, taxes are due January 31 while user fees are billed and paid throughout the year. 

• The Town can earn more in interest on the tax payments than the fee payments;
• Taxes ensure that the cash to pay the Debt Service is available when needed, the sporadic fee payments do not.

Citizens Fiscal Advisory Committee Review

I respectfully suggest that action on 2015 Sewer Fees be deferred until the Citizens Fiscal Advisory Committee has the opportunity to review and develop recommendations on both the proposed 2015 Sewer Fee increases and the approach to be used to support the impending additional EFC Debt Service payments needed in 2016 and 2017, $120,000 and $420,000, respectively.

 

Sincerely,

Peter Stenson

SCHENECTADY IT IS !

So the siting commission has made their intentions public.  East Greenbush and Rensselaer lost out to the City of Schenectady.   

So this naturally begs the obvious question,   what does Keith Langley do now ?  How will he ever solve the Towns financial mess without the easy money promised by the Casino developers?

Will Keith Langley be able to effectively do his duties as the Towns Chief  Financial Officer. Does he have the ability to do so efficiently ?

The Town Board meets Tonight .  This is shaping up to be one heck of a Town Board meeting !

The Ethics Board

"Ed Gilbert is the embodiment of everything that's wrong with East Greenbush right now, and the fact that he's the Chairman of the Ethics Board is too much to bear. Gilbert's implantation on the EB is Langley's way of showing his disdain for the board. Just something else to add to the list of reasons why we won't vote to re-elect Keith (Mr. Miserable) Langley."

The above was a post on the Gadfly.   Many feel exactly the same way.

The Ethics Board was designed to enforce the rules of conduct that employees of East Greenbush must follow.

With  Keith Langley appointing Ed Gilbert to the chairman post, he basically rendered it useless and it has become pretty much a joke.

Your thoughts on the Ethics Board are important.   It is said Langley is obsessed with reading the blogs , so  if your  thoughts are kept to the point and they are relevant,  we'll post them !

With tomorrow being the day the siting Board announces the plan for the Casino site, this will take a back seat temporarily, but it is important none the less .

HAPPY 12/13/14

Its a pleasure to post something not political.   We hope all  enjoy a blessed and peaceful Holiday Season !

CoNSERNS-U Charity Event