1988-01-21 SP TOWN BOARD MEETING
SPECIAL 4:30 P.M.
JANUARY 21, 1988
TOWN4ROARD MEMBERS
STEPHEN BORGOS-SUPERVISOR
GEORGE KUROSAKA -COUNCILMAN
RONALD MONTESI- COUNCILMAN
I BETTY MONAHAN - COUNCILMAN
ABSENT
y MARILYN POTENZA - COUNCILMAN
L PRESS- GLENS FALLS POST, W WSC
PLEDGE OF ALLEGIANCE LED BY DARLEEN DOUGHER TOWN CLERK
Supervisor Borgos-Todays meeting is a special meeting for the specific purpose of introducing,
seconding, and hopefully passing a special resolution that will have the effect of correcting
what seems to have been an error of substantial magnitude in the Queensbury Sewer Tax Dist.
Our attorney has prepared this after a great deal of study and review with our engineers, with
accountants that specialize in governmental matters and has informed me that it is his opinion
that what we are about to do is satisfactory and meets all the requirement of the law. The
impact of what is in front of us is to reduce the Quaker Road Sewer Tax in terms of dollars,
by 44.7% of the amount that was originally billed. It is important for everyone to know that
work, was actually begun in the Quaker Road Sewer Project in 1985 it has been going on for
three full years, engineering and actual construction. We are at the point that within the next
few weeks we are going to be putting on line the force main and hooking up our first customer,
which will be CR Bard. During all that time no bills were sent to anyone within that district,
obviously some people are surprised with the fact that there is any bill, some people are saying
how come I am being billed, because there isn't any sewer, we are not hooked up. That is the
process the fact is when the sewer is in and I have been guaranteed by our engineers not later
than a year from this summer all portions of the Quaker Road Sewer Dist. should be completed.
Many people will be hooked up late in the spring, summer of this year and the fall many people
will be on line. This is the first bill, we are able to make the adjustment today on the basis
t...f of unanticipated revenue and that in the form of earned interest from the proceeds of the
sale of the bonds that were floated to establish this district. A great deal of that money has
already been spent, but a great deal has been in interest bearing accounts and continues to
be there. One of the problems in arriving at the number we have come up with even for today,
and today is my best estimate as Budget Officer is that we are involved with a relatively new
thing that is based on 1986 Internal Revenue Code that is Arbitrage Rules and Regs. that relates
to how much a municipality is able to earn in what they call excess interest. The formula
conflicts as I talk to different people,opinions conflict, I received a document yesterday that r
goes to a number of governmental agencies indicating the many many problems this is causing
across the United States, indicating specifically what the problems are indicating that in many
cases it actually is contrary. The federal provisions are contrary to State Laws in many states
and a number of suggested revisions are involved. We are probably one of the first people
to really be caught in the middle of this. The bottom line is based on what was earned last
year plus what we anticipate earning this year in interest and taking a conservative approach
we feel comfortable recommending to this Board that we reduce the tax levy portion by $419,000.
which relates to that 44.7% reduction on the sewer tax portion of the tax roll for those people
in the Quaker Road Sewer Dist.
RESOLUTION REVISING TAX LEVY FOR QUAKER ROAD SEWER DISTRICT
RESOLUTION NO. 40, Introduced by Ronald Montesi who moved for its adoption, seconded
by George Kurosaka
WHEREAS, the Town Board of the Town of Queensbury has heretofore adopted its annual budget
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for 1988 in accordance with Section 109 of the Town Law, and
WHEREAS, such budget set forth the estimated expenditures and estimated revenues for the
Quaker Road Sewer District and established the sum of $937,117.00 as the amount of monies
necessary to be raised from real property taxes from the 686 properties within such special
district, and
WHEREAS, following the adoption of the annual budget and the establishment of the amount
of taxes to be levied from the Quaker Road Sewer District an error has been discovered in
the computation of the total sums to be raised from the property tax, and
WHEREAS, such error appears to have been the omission of an exact amount of anticipated
revenues to be received by the Quaker Road Sewer District which revenues included the income
realized from the investment of the proceeds of the serial bonds issued for such special district,
and
WHEREAS, such omission was caused by the confusion raised by the complexities of the Tay,
Reform Act of 1986 and specifically those provisions regarding the arbitrage rebate requirements
of such Act which resulted in the delay and uncertainty in determining and computing that
portion of the interest on the district serial bond proceeds available to be applied to the payment
of debt service on such bonds, and
WHEREAS, the fiscal officer has determined that after the deduction of estimated revenues {
from estimated expenditures within the Quaker Road Sewer District the sum of $518,117.00
remains to be raised form the property taxes within that special district,and
WHEREAS, the revised tax levy will result in a revised tax rate per thousand for property
within the Quaker Road Sewer District and therefore the sewer district assessment paid by
such special district property owners will be reduced by 44.7 percent, and
WHEREAS, the Real Property Tax Law provides the procedure for correcting errors caused
by mistakes in the arithmetic computation of taxes, and
WHEREAS, §556-b of the Real Property Tax Law details the method for correcting identical
errors which are substantial-in number, and
WHEREAS, the warrant for the collection of real property taxes has not yet expired.
NOW, THEREFORE, BE IT
RESOLVED, that the Supervisor is hereby authorized to file an application with County Director
of Real Property Tax Services, on behalf of all owners of real property affected by the error
setting forth the specifics of the problem and requesting that the tax levy to be raised from
the Quaker Road Sewer District be revised from $937,117 to 518,117.00, and
BE IT FURTHER RESOLVED, that all affected owners of real property, within such district
shall be notified of the revisions to the tax levy and the consequential reduction in real property `
taxes, and it is
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FURTHER RESOLVED, that all affected owners of real property shall be notified of the amount
of taxes owed and, for those property owners who have paid their taxes, the procedure for
a refund of the overpayment of taxes, and be it
FURTHER RESOLVED, that upon appropriate notification by the Warren County Board of
Supervisors, the tax roll on properties within the Quaker Road Sewer District shall be corrected
and measures implemented for the payment of the corrected tax and the refund of over payments.
I
Duly adopted by the following vote:
Ayes: Mr. Kurosaka, Mr. Montesi, Mrs. Monahan, Mr. Borgos
Noes: None
Absent: Mrs. Potenza
SUPERVISOR BORGOS-Between now and next Monday we will have the procedures ironed
out—regarding refunds and billing...
ON MOTION THE MEETING WAS ADJOURNED.
RESPECTFULLY,
t
DARLEEN M. DOUGHER
TOWN CLERK