Town of Charlton

Saratoga County

Town Board Agenda Meeting

 

September 29, 2008

 

The Agenda meeting of the Town Board of Charlton, Saratoga County, New York was held at the Charlton Town Hall and called to order by Supervisor Grattidge at 7.30 pm.

 

Present:  Councilman Gardner, Councilman Salisbury, Councilman Verola, Supervisor Grattidge, Town Clerk Brenda Mills, Town Attorney Bob VanVranken

 

Absent:  Councilman Lippiello

 

Supervisor Grattidge announced that this meeting is to set the Agenda for the Regular Meeting of the Town Board on Tuesday, October 14, 2008.

 

APPROVAL OF ABSTRACT

 

A motion was made by Councilman Verola and seconded by Councilman Gardner to accept General Fund Claims No. 1651-1702 in the amount of $77,881.61 as set forth in the Abstract No.118.

 

Roll call vote:  Councilman Gardner: Aye,  Councilman Salisbury: Aye, Councilman Verola: Aye, Supervisor Grattidge: Aye     Approved

 

Note: An adjustment was made to Abstract #117, Voucher #1618 was increased by $.01 to match the invoice, and voucher #1648 to Lenz Hardware was changed.  The original amount of the invoice was $40,660.00 and the new revised invoice amount is $38,759.50.   The new abstract total is $500,413.41.  

 

COMMUNICATIONS

 

Supervisor Grattidge clarified the request for 2 internal transfers to Diesel Fuel.   One invoice was received late, so a second transfer was done.  Both transfers went into the same account.

 

A group of students from the Economics Class at Burnt Hills-Ballston Lake High School were present at the meeting, and stated that they are required to do a project for charity.  They have chosen The Giving Tree as their charity, and would like to hold a Walk-a-Thon in the Town of Charlton as their project.  Discussion ensued with the Board, and they were approved to hold the Walk-A-Thon on Sunday October 26, 2008 at 1pm.  The route will be Maple Avenue and Packer Road, and return to Maple Avenue.  Supervisor Grattidge stated that the Highway Department can put signs on the roads, allowing only local traffic.  He also stated that the Constables can be present to assist with traffic.

 

An e-mail was received by Spa Christian School asking if we could put a link on our website to their school.  The Town Board agreed that if we have other local school links on our website, this would be allowed.

 

The Town Clerk has scheduled a Consultant and Grant Writer to be in Town Hall on October 20 & 21^st to begin the Electronic Needs Assessment review of the Town.   She will need to meet with Department Heads to discuss their electronic needs.  A memo has gone out to each department to request that they schedule an appointment through the Town Clerk.  Supervisor Grattidge also stated that the State Grant that we received for the Needs Assessment as reduced by 6%, and the Consultant has agreed to accept the lower amount.

 

Voter Registration for Charlton Residents will be at Town Hall on Tuesday 10/7/08 4-8pm, and also Saturday Oct 11^th from 2-9pm.

 

County Clerk, Kathy Marchione has announced that she has the enhanced Drivers Licenses now available.  Information regarding the program is available in the Town Clerk’s Office.

 

Supervisor Grattidge stated that he received the annual report of the CDTA.  IThe report will be available in the Town Clerk’s office.

 

The Governor’s Office announced the Local Government Efficiency Grant program will be conducting training sessions, one being October 10, 2008 at the University of Albany.

 

The County awarded their County Farmland and Open Space.  The Charlton Farm that had applied did not receive the award.

 

The Saratoga County Council on Autism has published a brochure, which is available in the Clerk’s office.

 

Supervisor Grattidge stated that we received our State aid – Aim payment of $35, 508 this year, last years amount was approximately $34,000.

 

The monthly Sales Tax Revenue is again up this month.  Year to date we are up approximately 14% over last year. This month we received $99,021 compared to $87,189 last year.  The mortgage tax for August was $10,173.50.

 

Supervisor Grattidge stated that the Town received a summons on September 16, 2008 regarding Joseph Phillips, the plaintiff.  He was involved in an accident on upper Sweetman Road, and is taking action against the Town.  We have also received a letter from our Insurance Agent and their Attorney, who have already answered the claim.  This is an ongoing matter.

 

The Planning Board Attorney sent a letter to Attorney Van Vranken concerning the Special Exemption Permit for MPH Properties.  The letter confirmed that the approval process is complete and no further municipal action is contemplated or required relative to the grant of the Special Exemption Permit and the final Site Plan approval.

 

Supervisor Grattidge stated that the Town Engineer reviewed some of the septic zoning regulations in regards to  water wealth.  He has come back with comments that have been passed on to Marv Schorr and the Environmental Conservation Committee for consideration.

 

The County Coordinator has let us know that the DEC has mandated us to follow their MS4 rules, and action will be taken against the MS4 jurisdiction if we are not in compliance.

 

The Water Supervisor has made the Town Board aware of a water main break near the water tower.  An emergency contractor was called in to do an emergency repair.  In the process, the valve that they were closing could not be closed completely. So it must be replaced next week.  The system will need to be put on bypass.  Notices have been put out to residents.  The water system may need to be shut down while the work is being done.

 

Supervisor Grattidge stated he has received new exemption reporting requirements for the Assessment Department.  The Town is required to attach an exemption report on to the tentative and preliminary budget.

Exemption reports must include all type of exemptions granted, the accumulative amount expected to be received from the receipts and the cumulative impact on all the exemptions granted.  He believes that these reports will be produced at the County and then passed on.

 

Supervisor Grattidge stated that there was a demonstration at the County of the new website, in particular the Real Property section.  There are numerous tools available to research properties on the County website.  It is the Saratoga County Assessment database which includes tax maps, photos of real property, county tax information.  Users may also compare assessments and sales prices of similar properties. 

 

Supervisor Grattidge stated that Verizon will be replacing the temporary phone line at the New Town Hall.

 

Supervisor Grattidge stated that the Town Board is currently reviewing the report from Jeanine Caruso of Fiscal Advisors.  She has outlined the goal of the Town Board which is to avoid a tax levy to finish the Town Hall.  The total projected cost of completing Phase 2 is $955,000.   She proposed a few financial options.  A copy of the report is attached.

 

The Board tabled the Parks Rules and Regulations discussion until Councilman Lippiello is present.

 

The Highway Superintendent submitted quotes for welding equipment.  The first quote is from J&R Welding for $4,010.00 for a Fabricator 251 and a Cut Master 52.  Another quote was from United Welding for $3570 for a Miller Matic 252 and a Cut Master 52.  A quote from Grainger was higher price and not discussed. 

 

A motion was made by Councilman Gardner and seconded by Councilman Salisbury that Resolution  No. 99 –A RESOLUTION AUTHORIZING THE HIGHWAY SUPERINTENDENT TO PURCHASE WELDING EQUIPMENT FROM UNITED WELDING be approved.

 

Roll call vote:  Councilman Gardner: Aye, Councilman Salisbury: Aye, Councilman Verola: Aye, Supervisor Grattidge: Aye  Approved

 

A motion was made by Councilman Verola and seconded by Councilman Gardner that Resolution No. 98 -

A RESOLUTION AUTHORIZING THE SUPERVISOR TO APPLY FOR A SHARED MUNICIPAL SERVICES INCENTIVE GRANT be approved.

 

Roll call vote:  Councilman Gardner: Aye,  Councilman Salisbury: Aye, Councilman Verola: Aye, Supervisor Grattidge: Aye  Approved

 

Supervisor Grattidge stated that the Budget Workshops will be on October 8^th at 6:30pm and October 15that 7:00pm.  He would like to have the 2009 Preliminary Budget Public Hearing on October 27^th at 7pm.

 

The October 14^th Town Board meeting will begin at 8:15pm to accommodate the ZBA Public Hearing at 7:30pm.

 

Councilman Salisbury requested the General Journal Entries for the year.  He will e-mail the Bookkeeper with his request.   

 

Councilman Verola stated that the Newsletter has been sent to the Publisher.

 

 

The meeting adjourned at 8:50pm

 

Respectfully submitted,

 

 

 

 

Brenda Mills

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PRESENTATION TO THE TO OF CHARLTON, NEW YORK

TOWN BOARD MEMBERS

Fiscal Advisors & Marketing, Inc.

September 15, 2008

 

 

Fiscal Advisors and Marketing, Inc. was hired by the Town of Charlton to study the financial aspects of Phase II of the construction of a new Town Hall. The following assumptions and financial considerations were made for the study:

 

Goal:

 

To mitigate the annual financial impact of the additional proceeds needed to complete the Town Hall project. The Town Board does not want to levy a Town tax to pay for debt service.

 

History:

 

The Town Board authorized a $1,255,000 Bond Resolution for the Town Hall project. The Town issued a note through the Ballston Spa National Bank in the amount of $300,000 in December, 2007 at an interest rate of 4.25%. The Town plans to issue a bond in the amount of $1,255,000 on or about October 15, 2008. The bond will be amortized over 15 years at an interest rate of 4.0% and will have an average annual debt service of $112,933. Please refer to Exhibit One for the proposed debt service schedule.

 

The Town experienced problems with the Construction Contractor, which led to the dismissal of the original Construction Contractor. This has caused significant delays and the construction costs have increased. The Town is seeking damages against the original Construction Contractor, but there will be no information on damages available for a long time. In order to complete the construction and open the new Town Hall, the Town must secure additional funding as follows:

Construction Costs:	$800,000
Architect Fees:	90,000
Owner's Representative:	40,000
Miscellaneous:	25 000
TOTAL:	$955,000

 

Financial Considerations:

 

We have reviewed the Town's financial statements and budgets and have reviewed fund balance and sales tax reports to determine if there is any additional equity available. After a review with the Town Supervisor, we have arrived at the following conclusion:

 

Total Construction Costs:	$ 955,000
Minus: Unappropriated General Fund Balance available for use:	-242,000
Minus: Building Reserve Fund:	- 35.000
TOTAL NET AMOUNT:	$ 678,000

 

 

l. The Town's General Fund balance at December 31, 2007 was $629,866, which represents 81.6% of annual General Fund Expenditures. Most municipalities have a general fund balance equal to 10-15% of total expenditures. The Town can comfortably afford to expend $242,000 of the unappropriated portion to offset the additional costs associated with the Town Hall project.

 

2. The Town has a balance in the Building Reserve Fund of $35,000. The Building Reserve Fund was created to fund the Town Hall project so it makes sense to use the balance for this purpose.

 

Financing Options:

 

2009: On January 15, 2009, Issue Bond Anticipation Notes (BANs) in the amount of $678,000. Assume Interest Rate of 3.0%. Due date of January 15, 2010.

 

Budget Impact 2009:	$          0
Budget Impact 2010:	$20,340

 

2010: On January 15, 2010, Issue Bond Anticipation Notes (BANs) in the amount of $678,000. Assume Interest Rate of 3.30%. Due date of January 15, 2011.

 

Budget Impact 2011:            $22,374

 

2011: Three Possible Financing

1.            Issue Bond Anticipation Notes (BANs) in the amount of $640,000 (Required principal paydown of $38,000 must be made). BANs would be due in 2012 (assuming 3.50% interest) $22,400.

2.            Issue Bonds in the amount of $640,000 (amortized in years

2012-2023). Please refer to Exhibit Two.

3.            Insurance proceeds are received and are used to pay off the

BANs.

 

 

Conclusion:

 

The Town's goal in this financial analysis was to mitigate the annual financial impact of the additional proceeds needed to complete the Town Hall project. The Town Board does not want to levy a Town tax to pay for debt service.

 

Based on the Financing Options presented above, and barring any large swings in revenues or expenditures, the Town could most likely cover the interest expense of the additional debt in 2010 and 2011 out of the Town budget. This is true because historically the Town has budgeted very conservatively and revenues have come in above the budget numbers and expenditures have come in below budget numbers. This has caused a significant build up of the Town's General Fund balance.

 

The more difficult decision arrives in 2012 when the debt service on the new debt issue would be approximately $69,000. This assumes that the Town does not receive Insurance Proceeds. If we assume that the Town can cover the interest component of approximately $22,000 from its current budget, then the

Town might have to levy a tax to cover the $47,000 difference. The tax impact to cover $47,000 annually, based on the Town's valuation of $311,523,485 would equal 15 cents/$ 1,000 of Assessed Valuation. For a home in the Town assessed at $160,000, the annual cost would be $24.00.

 

The Town Board must make a decision regarding the possibility of levying a Town tax to pay for debt service if the insurance proceeds do not materialize. The other alternative is to determine if the construction costs can be decreased, thereby mitigating the need to levy a Town tax.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT ONE

Fiscal Advisors and Marketing, Inc.                                                                File = charltontown.sf-Sample Issue- SINGLE PURPOSE

                                                                                                                9/9/2008 3:41 PM

FA

 

 

    EXHIBIT TWO

Fiscal Advisors and Marketing, Inc.                        File = NEWFILE.SF-Sample Issue- SINGLE PURPOSE

FA                                                                                                                           9/15/200811:09 AM