Village of Hermon Dissolution Study Public Informational Meeting. May 14, 2015

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1 Village of Hermon Dissolution Study Public Informational Meeting May 14, 2015

2 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

3 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

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5 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:

6 Census Population Data Hermon Village and Town Population, Village Town Total Population Estimate for the Village of Hermon is 415 Source: US Census Bureau 6

7 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

8 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 The Village of Hermon is one of the smallest Villages in the County Gouverneur 3,949 Canton 6,314 Potsdam 9,428 Massena 10,936 8

9 2013 Tax Information This study focuses on these 4 tax items that make up 40% for Village and 22% for TOV of total Real Property Taxes Current Tax Rates per $1,000 AV for a Village and TOV Taxpayer (2014) Village TOV TOV = Town Outside County (1) $8.95 $8.95 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 Source: St. Lawrence County Real Property Office Notes to the chart: (1) includes County tax of $8.372 and County Chargebacks of $ (2) Hermon-Dekalb School District 2013 rate 9

10 Real Property Information Taxable Assessed Values 2014 Assessed Value % of Total Village $8,814,372 10% TOV $75,200,090 90% Total $84,014, % The Village contains only 10% of the total taxable real property in the Town & Village combined Source: St. Lawrence County Real Property

11 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 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 The biggest Village and Town expenditures are highway/dpw and general fund 11

12 Tax Levies 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, % $643, % 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

13 Fund Balances Fund Balances As of 5/31/14 (Village); As of 12/31/12 (Town) Fund/Purpose Balance General $258,643 Village Water $81,056 Sewer $79,371 Total $419,070 Town General $330,093 Total $749,162 Comparison to Edwards 5/31/10 1) Village Total = $81,138 2) Town Total $409,047 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

14 Debt Levels Outstanding Debt As of 5/31/14 (Village); As of 12/31/12 (Town) Fund/Purpose Balance General $0 Village Water $0 Sewer $133,400 Total $133,400 Town 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

15 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 parttime employees The Town already provides most services for Village residents (plowing, court services, assessor, code enforcement, dog control, etc.) 15

16 Elected Officials & Employee Staffing Village Town Total Mayor/Supervisor Trustees/Council Members Clerk/Treasurer 1 PT 1 PT 2 PT Highway/DPW 1 PT (DPW employee also does water) 5 5 FT, 1 PT Sewer 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

17 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

18 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

19 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

20 Post Dissolution Tax Levy Actual Tax Levy (FYE 2014 from Open Books NY) Annual Citizens Empowerment Tax Credit (CETC) Savings Village Town Total $80,950 $578,934 $659,884 ($98,983) Estimated Annual Savings (non- CETC ($7,402) Tax Levy if Village Dissolves $553,499 Comparison to Edwards: $84,908 for annual Aid to Municipality 20

21 Projected Tax Rates Post Dissolution (no lighting district) Tax Former Village Town Outside Village County $10.03 $10.03 Townwide $6.59 $6.59 Fire Included in Townwide Village - - Total $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

22 Projected Tax Rates Post Dissolution (with lighting district) Tax Former Village Town Outside Village County $10.03 $10.03 Townwide $6.46 $6.46 Fire Included in Townwide Village $ Total $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

23 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

24 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

25 Day 1 Board-Initiated Dissolution Proposed Dissolution Plan Adopted Within 35 to 90 Days Within 5 Days Within 180 Days Hearing Held Proposed Plan Amended Final Plan Approved Referendum Date Set Process Ends Special District Dissolved Within 60 to 90 Days Referendum Held Referendum Passes Referendum Fails Town/Village Dissolved Four Year Waiting Period

26 Day 1 Voter-Initiated Dissolution Petition Filed Within 10 Days Signatures Verified Petition Rejected Within 30 Days Within 60 to 90 days Within 30 Days, Board Must Meet Within 180 Days Within 35 to 90 Days Within 60 Days After 45 Days Within 45 Days Within 30Days Within 60 to 90 Days Referendum Date Set Referendum Passes Referendum Held Appeal Possible 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

27 Questions Thank you for attending! For more information go to the Hermon Dissolution Study Webpage at ermon-dissolution-study 27