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Monday, September 15, 2008

While You Were Sleeping...Part 1

$ 5,576,800 ... according to the Notice of Sale that's the total dollars of Bond Anticipation Notes (BAN) the Town of New Hartford was trying to sell in August 2008.

According to the "Official Statement" , some of the money from the almost $5.6 million bond anticipation notes will be used to renew BANs that are now due; BANs such as to purchase Highway Plows, Acquisition of Trucks, GEIS, Stormwater Improvement 1st Series, Part-Town Zoning Study and to Purchase a Grade-All. Even though the majority of voters said "NO" to the purchase of the Grad-All in March 2007, the Town Board shortly thereafter turned right around and issued Bond Anticipation Notes so they could buy it anyway. Total needed to renew these BANs is $1,471,800.

The rest of the BANs are for new purposes such as Stormwater Improvement 2nd series, Recreation Center Improvements, purchase Pick-up Truck, AND Business Park Roads. Total new Bond Anticipation Notes is $4,105,000 for a grand total of old and new BANs of $5,576,800.

According to the Bid Confirmation Summary Sheet, $2,676,800 of BANs were sold on August 28, 2008 with an Effective Net Interest Rate of 2.090257%...total interest owed at maturity...$40,152.

It would appear that the $2.9 million to build the roads in the New Hartford Business Parks were not sold. The $2.9 million BAN was approved by the Town Board in April 2008 to build roads in a private development and yet every taxpayer in Oneida County, every New Hartford School District taxpayer and every Town of New Hartford taxpayer is being asked to fund this development. Part of that money has already been bid out and the work has been completed.

The first occupant of this park will be The Hartford Insurance Company who was supposedly given a Payment-In-Lieu-Of Taxes by Oneida County Industrial Development Agency. The funny thing is that there doesn't appear to be a resolution passed by the Oneida County Legislators at this point so we're not quite sure how there could be a $3,000,000 exemption on the books, but trust us there is. If you haven't viewed The Hartford Job Guaranty Agreement yet, you should. According to their agreement, The Hartford doesn't even have to maintain their current employment level through years 1- 5 of the PILOT and they only have to guaranty 500 employees in years 6-10.

Concerned Citizens saw a few things in the "Official Statement" that seemed like "official bs", so over the next few days we decided we would write about them.

To start with, one part of the Official Statement says:
The Notes are general obligations of the Town, and will contain a pledge of its faith and credit for the payment of the principal of an interest on the Notes as required by the Constitution and laws of the State...All the taxable real property within the Town if subject to the levy of ad valorum taxes to pay the Notes and interest thereon, without limitation as to rate or amount.
That means that tax dollars are intended to be used to pay back the interest and principal of these notes including the notes for building the roads in a private development...remember Larry Adler's (Letter of Credit Guy) non-existent Letter of Credit? Actually the "Official BS" isn't contained in the document; the document tells it like it is...the "Official BS" is spoken by the "officials" when they say it won't cost taxpayers a dime.

How much of our tax dollars will be needed to bring Phase I of the New Hartford Business Park to fruition? According to Dan Gilligan, Superintendent of New Hartford Central School, they simply don't know yet because the numbers keep changing.

Has anyone read the Town of Cicero Report of Examination by the NYS Comptroller's office? Might be worth the read so you can see for yourself just how bad it can get without "da plan". However, if you don't want to read through that whole document, here is the short version.

Wake up New Hartford Taxpayers!

Stay tuned...Part 2 tomorrow.

5 comments:

Anonymous said...

I thought the town residents voted down the purchase of the Gradall. Are you telling us now that the town went ahead anyway and took out a loan to purchase this piece of highway equipment?

Isn't this against the wishes of the town residents, if not altogether illegal?

Where is the Office of State Comptroller and NYS Attorney General in all of this?

swimmy said...

Correct me if I'm wrong, but aren't BANs supposed to be put to referendum, just like BONDs?

newhartfordpeople said...

This is NH, anonymous and swimmy. The elected leaders of the town do as they please.

Greens and Beans said...

Excellent post with an equally appropriate link.

The May 2005 “Missteps by Cicero Town Board on Cicero Commons Cost Taxpayers $246,929, Hurt Town Bond Rating” is frighteningly reminiscent of what is happening with the New Hartford Business Park fiasco today. The deliberate disregard for the letter of the law is nothing less than an out of control pompousness of its civic leadership.

Anonymous is equally correct. The People need the protection of our State elected Officials. We need to call for an all-out investigation by the State Comptroller and State Attorney General’s Office regarding these suspicious dealings involving the collusion of questionable public and private bedfellow.

New Hartford, N.Y. Online said...

Thank you greens and beans.

When the town has their public meeting regarding the New Hartford Business Park and 840 intersection, we urge all taxpayers to attend...not just Town of New Hartford residents. There is strength in numbers!