Public Meeting Fifth level August 24, 2020 Village of Spencer - - PowerPoint PPT Presentation

Village of Spencer Dissolution Study August 24, 2020

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Village of Spencer Dissolution Study Public Meeting

Village of Spencer Dissolution Study August 24, 2020

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Laberge Group Benjamin H. Syden, A.I.C.P., Vice President Kathleen Rooney, Local Government Specialist Public Signals, LLC John W. Rodat, President Introductions

Village of Spencer Dissolution Study August 24, 2020

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• Meeting Decorum
• How did we get here?
• The Dissolution Study Process
• What is the Interim Report?
• Does it make “sense” or “cents”?
• How will Village Governance change?
• Will my services change?
• Citizen Empowerment Tax Credit
• Potential Post Dissolution Fiscal Impacts
• Next Steps
• Public Comments

Overview of Presentation

Village of Spencer Dissolution Study August 24, 2020

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• Please sign up to speak.
• Speakers will be selected in order from the sign-in sheet.
• Comments will be received at the end of the presentation.
• Each person will have 3 minutes to speak.

Meeting Decorum

Village of Spencer Dissolution Study August 24, 2020

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• Voter-Initiated Reorganization
• “The ... Government Reorganization and Citizen Empowerment

Act … provides a process for citizens to petition for a public vote on dissolving or consolidating local governments. The dissolution or consolidation process may also be initiated by a local governing board.”

• The first step shall be a petition. Said petition must be signed

by at least 20% of the number of electors.

• In Spencer Dissolution has been a citizen-initiated process.

How Did We Get Here? Initiation of Process

Village of Spencer Dissolution Study August 24, 2020

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• Voter-Initiated Reorganization
• January 2, 2020, the electorate of the Village of Spencer submitted a

petition for Dissolution to the Village Clerk.

• The petition contained 104 valid signatures out of 114.
• January 11, 2020, Village Clerk reviewed and certified the petition.
• The Village Board of Trustees passed a resolution calling for a

Referendum on the proposed Dissolution.

• No further action is required of the Village Board until after the

referendum

• The Village has chosen to provide information prior to the

referendum.

How Did We Get Here? Steps Toward Dissolution

Village of Spencer Dissolution Study August 24, 2020

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Village of Spencer Dissolution Study August 24, 2020

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• Before the Referendum
• A public kick-off meeting was held February 3, 2020.
• Village and Town officials and staff have been interviewed.
• Public Information Meetings held on August 24, 2020 (today).
• Interim Report and pamphlet available online.
• Information is available at labergegroup.com/Spencer/ which

has a link on the Village Website.

Overview of the Dissolution Study Process

Village of Spencer Dissolution Study August 24, 2020

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• After the Referendum
• If vote is “NO,” Dissolution will not take effect.
• Dissolution process may not be initiated again for 4 years from

the date of the Referendum.

• Village may focus on shared services to reduce costs and

improve quality.

• If vote is “YES,” Board has 180 days to develop and approve the

Dissolution Plan, 90 more days to hold hearings, and within 60 days to finalize the plan.

• The Final Dissolution Plan is Subject to Permissive Referendum.

Overview of the Dissolution Study Process

Village of Spencer Dissolution Study August 24, 2020

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• The Interim Dissolution Study is intended to better educate and

inform the public of the dissolution process and potential outcomes.

• The report will summarize existing services and identify the pros and

cons associated with dissolution.

• A potential fiscal impact to both Village and Town residents will be

developed.

• Information will be shared through public meetings, pamphlets, and

the Interim Dissolution Study. Note: Only the Town Board can make the decisions regarding services, service delivery, and taxing.

What is an Interim Study?

Village of Spencer Dissolution Study August 24, 2020

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• The Interim Dissolution Study includes:
• Summary of Existing Government Services and Functions
• Review of Municipal Services
• Potential Post-dissolution Conditions
• Listing of Local Laws and Land Use Regulations
• Potential Fiscal Impact: Tax Impact of Dissolution

– Without Citizen Empowerment Tax Credit (CETC) – With 70% Citizen Empowerment Tax Credit (CETC) – With 100% Citizen Empowerment Tax Credit (CETC)

Interim Dissolution Study

Village of Spencer Dissolution Study August 24, 2020

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• An incentive provided by New York State when two local

governments consolidate.

• The credit is worth 15% of the combined property tax levy at

the time of local governmental consolidation.

• 70% must be used towards the reduction of the tax levy.
• 30% may be used for further tax reduction or capital

improvement projects.

Citizen Empowerment Tax Credit

Village of Spencer Dissolution Study August 24, 2020

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Citizen Empowerment Tax Credit (CETC) Maximum CETC for Tax Reduction 100% $169,921 Minimum CETC for Tax Reduction 70% $118,945 Maximum CETC for Capital Improvements 30% $50,976

* CETC is contingent upon New York State appropriations and not an annual guarantee. ** Based on Town of Spencer and 2019/2020 Village property tax levies.

Town of Spencer CETC Eligibility

Village of Spencer Dissolution Study August 24, 2020

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• Governance: How will the proposed dissolution

impact the decision making related to Village services?

• Property Tax Impact: Will the proposed dissolution

reduce the current Village’s costs now or in the future?

Services, Effectiveness & Efficiency

Property Tax Impact Governance

Preliminary Test: Does it make “sense” or “cents”

• Services, Efficiency and Effectiveness:

Will the proposed dissolution

• Continue/discontinue various Village services?
• Improve the current delivery of Village services?
• Deliver services more efficiently?
• Allow local governments to deliver needed services

that are qualitatively improved or that each would find difficult to provide individually?

Village of Spencer Dissolution Study August 24, 2020

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Should the Village elect to dissolve:

• There will no longer be a Village government.
• There will be no Mayor or Village Board.
• The Town Board will make all decisions:

— What services will be provided — How the services will be delivered — What is the level of property taxes

How will Village Governance Change?

Village of Spencer Dissolution Study August 24, 2020

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Will My Services Change?

Village of Spencer Dissolution Study August 24, 2020

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Fire Services

NOTE: Towns, unlike Villages, are not legally allowed to have a Fire Department. Towns, however, may

• wn a fire house and fire fighting equipment and may establish Fire Protection Districts to levy taxes.

Option 1: The Town of Spencer expands its current Fire Protection District to include the area currently known as the Village and establishes a contract with Spencer Fire Company, Inc., for services Town-wide. Option 2: The Town of Spencer could expand its current Fire Protection District to include the area currently known as the Village; however, the Town could choose to contract with a different fire company(s) for the provision of services. Example: Spencer Fire Company could merge with Community Fire & Rescue and the Town could choose to contract with Community Fire & Rescue

Will My Services Change?

Village of Spencer Dissolution Study August 24, 2020

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Fire Services, cont.

Option 3: Create a Fire District to serve the area currently known as the Village of Spencer.

• The Town of Spencer could create a Fire District that serves the entire Town or Fire District that

serve the area currently known as the Village.

• The Fire District would be a separate local government with its own elected Board of

Commissioners.

• The District would have its own budget, would levy taxes and could incur debt. The Fire District

could choose to contract with one or more fire companies. Considerations

• Emergency communication interoperability and proximity of the fire companies to Spencer must be

considered.

• The Village has the right to sell all fire department assets (vehicles, equipment, and building) prior to
• dissolution. The Town and Village will need to work closely together on a solution that assures there

is a Fire House and Fire Company to serve all the residents of Village and Town outside the Village.

Will My Services Change?

Village of Spencer Dissolution Study August 24, 2020

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Central Government Functions

• There will no longer be a Village Mayor, Board of Trustees nor a Clerk/Treasurer. All decision making

and central government functions are assumed by the Town of Spencer.

Highway & DPW Services

• The Village streets would transfer to the Town.
• The Village currently purchases snow and ice control services from the Town. Essentially the service

remains the same.

• The Town would be responsible for street maintenance and paving improvement program in the

Village as well as the area outside the Village. NYS Highway funding to the Village should shift to the Town.

Parks & Recreation

• Preliminary discussions suggest that the Town would consider maintaining the park and recreational

facilities for use by the residents and visitors of the Town.

Will My Services Change?

Village of Spencer Dissolution Study August 24, 2020

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Cultural and Educational Program

• Preliminary discussions suggest that the Town would consider operating the Panther PAK

summer camp and assume the Village’s current funding for aging, veterans and historian services.

• Library services are recognized as critical to all Town of Spencer residents. Ongoing

support for the library is anticipated.

Street Lights

• The Town is considering the establishment of a Special Lighting District to continue the

provision of street lights in the Village. The special district would levy property taxes to properties in the Village only.

Will My Services Change?

Village of Spencer Dissolution Study August 24, 2020

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Refuse Collection

The Village currently has a contract with a single vendor to provide for subsidized resident pick up. The Town does not. The Town is considering the creation of a Special District for Refuse pick up for the Village residents. The Special District would tax the Village taxpayers

• nly.

Police Services

The Town does not have a police department. The Town outside the Village is covered by the New York State Police Department and the County Sheriff’s road patrol. As such, it is anticipated that the Town would eliminate the police service in the Village.

Land Use

The Village was taking steps necessary to increase focus on land use issues in the Village. This included the establishment of a Village Planning Board. If the Village were to dissolve, land use decisions would be made at the Town level.

Will My Services Change?

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What is the potential fiscal impact?

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There are Multiple Factors Influencing the Village Property Taxpayer Impact:

• Costs savings
• Central service costs
• Village Police Services
• Cost Shifts from Village to Town-wide Tax Base
• Highway Maintenance and Capital Improvements

Code Enforcement

• Parks and Recreation
• Library, Aging and Veteran’s Services
• Facility Maintenance, Operation and Capital costs

Fiscal Impact

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Factors Influencing the Property Taxpayer Impact, cont.

• Town-wide Special Fire District costs shared Townwide
• Costs that would remain as Village taxpayer responsibility
• Street Lights Special District
• Refuse Collection Special District
• Town outside Village cost shifts to the Town-wide tax base (includes Village)
• Town outside Village general Fund
• Town outside Village Highway fund
• At this time it is not anticipated that the Village will have any debt

Fiscal Impact

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Fiscal Impact

Summary Fiscal Impact of Dissolution

Village Residents

Current Post Dissolution Current Tax Rate Tax Rate No CETC Tax Rate 70% CETC Tax Rate 100% CETC Total Rate Per $1,000

$6.82 $7.67 $6.95 $6.65

Town Outside Village Residents

Current Tax Rate Tax Rate No CETC Tax Rate 70% CETC Tax Rate 100% CETC Total Rate Per $1,000

$7.41 $6.78 $6.06 $5.76

Note: 70% of the CETC must be applied to property tax reduction; at a minimum

Assuming no application of the CETC, the projected impact is:

• Former Village residents experience a property tax increase of 12.5%.
• Town outside Village residents experience a property tax reduction of 8.6%.

Assuming application of 70% CETC, the projected impact is:

• Former Village residents experience a property tax increase of 1.9%.
• Town outside Village residents experience a property tax reduction of 18.3%.

Assuming application of 100% CETC, the projected impact is:

• Former Village residents experience a property tax reduction of 2.6%.
• Town outside Village residents experience a property tax reduction of 22.3%.

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Fiscal Impact

Projected Tax Impact of Dissolution Village Residents

Current Post Dissolution Current Tax Rate Tax Rate No CETC Percent Change Tax Rate 70% CETC Percent Change Tax Rate 100% CETC Percent Change Village Tax $3.35 $0.00 $0.00 $0.00 Town-wide General & Hwy $3.47 $6.14 5.42 $5.12 Fire Protection District $0.00 $0.64 0.64 $0.64 Special Lighting District $0.00 $0.58 $0.58 $0.58 Special Refuse District $0.00 $0.31 $0.31 $0.31 Total Rate Per $1,000 - No CETC $6.82 $7.67 12.5% Total Rate Per $1,000 - 70% CETC $6.95 1.90% Total Rate Per $1,000 - 100% CETC $6.65

• 2.6%

Town Outside Village Residents

Current Tax Rate Tax Rate No CETC Percent Change Tax Rate 70% CETC Percent Change Tax Rate 100% CETC Percent Change Town General & Hwy $3.47 $6.14 $5.42 $5.12 TOV General & Hwy $3.34 $0.00 $0.00 $0.00 Fire Protection District $0.60 $0.64 $0.64 $0.64 Total Rate Per $1,000 - No CETC $7.41 $6.78

• 8.60%

Total Rate Per $1,000 - 70% CETC

• $6.06
• 18.3%
• Total Rate Per $1,000 - 100% CETC
• $5.76
• 22.3%

Note: 70% of the CETC must be applied to property tax reduction; at a minimum

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Fiscal Impact

Village Property Tax Payer Impact of Abolishment of the Village on Village Share of Property Tax Levy Village Share of Village Share of Jurisdiction Current Levy Post Dissolution Levy Village Property Tax $ 120,328 $ - Town General Fund $ 68,821 $ 68,128 Town Highway Fund $ 56,012 $ 152,544 Town Outside Village - General $ - $ - Town Outside Village - Highway $ - $ - Fire Protection District $ - $ 22,823 Special Lighting District (Village) $

• $ 21,000

Special Refuse District (Village) $

• $ 11,000

Total Village Taxpayer Shared of Tax Levy $ 245,161 $ 275,495

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Go Vote!

• Referendum Location:

Village Hall/Fire House

• Referendum Date:

September 15, 2020

• Polling Hours:

12 pm to 9 pm

• For more information:

labergegroup.com/Spencer/ Next Steps

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PUBLIC COMMENTS

Next Steps