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HomeMy WebLinkAboutTB Minutes 1975-11-10 TO[Amt OF ITFAACA ADJOUPNED BOARD MEETING November 10 , 1975 At an adjourned meeting of the Town Board of the Town of Ithaca , Tompkins County , New York , held at the Town of Ithaca Offices at \ � 126 East Seneca Street , Ithaca , New York , on the lOth day of November , 1975 at 730 p . m . , there were PPXSENTo 6Ja-l-ter—J._ Schwan , Supervisor Andrew T1 . McElwee , Councilman Noel Desch , Councilman Victor Del Rosso , Councilman ALSO PRESENTS James V . Buyoucos , Town Attorney Lawrence P . Fabbroni , Town Engineer Frank Liquor 1 . Director , Tompkins County Planning Department Seymour Smidt , mayor , Village of Lansing Shirley Raffensperger , 139 Pine Tree Road Virginia Powers , 106 The Parkway Representatives of the Hedia ADJOURNED PUBLIC HEARING WATER AND SEG ER I�HPROVE£J£ENTS Supervisor Schwan called the meeting to order and declared the meeting open for consideration of the assessment roll and apportionments for water and sewer improvements for the year 1976 . The Supervisor reviewed the Bolton Point project from the financial viewpoint , noting that on February 10 , 1975 , X7 . 8 million was borrowed for the Bolton Point project at . 5 . 29 % , $ 200 , 000 having been previously borrowed at 6 . 95 % , for a total borrowing of $ 8 , 000 , 000 . The $ 7 . 8 million borrowing is a one year note renewable February 10 , 1976 at which time $ 412 , 620 will be due in interest , plus $ 13 , 00 in interest on the $ 200 , 000 borrowing , for a total of $ 425 , 620 . During the time the money has been held , it has earned $ 350 , 000 in interest on Certificates of Deposit . The Bolton Point budget included $ 100 , 000 for inter - est . Out of this $ 75 , 620 will be taken , added to the $ 350 , 000 making the total of $ 425 , 620 required for the interest payment . It is expected the $ 75 , 620 will be regained on additional inter - est from Certificates of Deposit in 1976 , so that the $ 100 , 000 budgeted for interest will be intact . Therefore , there is no concern about being able to pay the interest due on February 10 , 1976 . There pis concern with making payments due on February 10 , 1977 . The Supervisor noted that in accordance with the Local Finance Law of the State of New York , a municipality is permit - ted to borrow on Fond Anticipation Notes to finance a project . Actual bonding is not required for five years . At the second renewal of any BAN borrowing to finance a project such as Bolton -- Point , a principal payment must be made based on the bond sched ° ule adopted at the time of the first borrowing just as if bonds had been issued . On February 10 , 1977 a principal payment must be made ( $ 200 , 000 ) . At the same time an interest payment must also be made , and the amount will depend on the interest rate in effect on February 10 , 1976 ( which no one can predict ) . The interest increases by $ 80 , 000 for each to increase in the rate . L TOWTI BOARD MINUTES - . 2 - November 10 , 1975 The Supervisor said there is another factor to be con - sidered . The project has a AA rating . This rating must be up ° dated in January of 1976 , and Moody ° s Investors Service have said that if the principal and interest payments are made with borrowed funds the AA rating will be losto kloody ° s must be advised that the payment will be made from cash on hand . The question is where will the cash come from ? ' It will come first from a levy in Janu ° ary prior to when the system will go into operation on July 1 , 1976 . The 1976 plant operation budget is estimated at $ 121 , 553 . If the �?lant is in operation by July 1 , 1976 , two quarters of water revenue ( estimated at $ 260 , 000 ) for the crucial February 10 , 1977 date . It is difficult to predict water revenue with any accuracy . The levy proposed for January by the Commission is $ 265 , 000 of which the Town of Ithaca share is $ 166 , 814 . 70 ( Pro - ject I . $ 119 , 881 . 33 ; Project II , $ 46 , 933 . 37 ) . This would be raised by a levy of $ 25 . 00 a unit on 4 , 602 . 1 units or $ 115 , 052 . 50 and the balance of $ 51 ,, 726 . 20 would come out of revenue sharing funds . The remainder of the $ 265 , 000 would be raised in the Towns of Lansing and Dryden and the Village of Cayuga Heights ( Dryden , $ 6 , 487 . 87 ; Lansing-Willow Point , $ 270 . 24 ° Lansing Water District # 1 , $ 39 , 637 . 53 : Village of Cayuga Heights , $ 41 , 739 . 67 . If the system is not in operation by July 1 , 1976 the water revenue item would be reduced and the special levy in January would have to be larger . The Bolton Point budget for 1977 is estimated at $ 193 , 639 for plant operation , principal $ 200 , 000 , interest $ 430 , 000 ( 60 ) ° for a total of $ 873 , 639 . Supervisor Schwan illustrated all these figures by black - board demonstration . There was discussion about the applicability of the $ 25 . 00 per unit charge to West Hill and Forest Home . Supervisor Schwan said the charge is justified in the West Hill area because the pressure there is relieved by the Bolton Point system . For ° est home is on the Cornell University water system , but there is an agreement with the Forest Home Water District that Cornell University can use Forest Home mains to pine water to Pleasant Grove apartments , the golf course , and the Jessop Road complex . Mra Liguori suggested that the $ 25 . -00 levy includes some start-up costs . He asked about what the rate might be the second year . Supervisor Schwan said it is hard to nut together a budget for 1977 until more is known about the intangibles . The project is eligible for 5 % FHA loan ( 30 -year money in the form of a bond ) . It is expected that in July 1976 there will be an answer from FHA . The money will not be available all at once . It may take five years to get the full $ 5 , 000 , 000 . There is assurance , however , that some FHA money will be received - - which would reduce cost based on a 5 % interest rate * Supervisor Schwan noted that when the. project was originally discussed at public hearing a $ 20 . 00 unit cost and a 5 % interest rate were contemplated , but that the economy is different now . I1.1r . Liguori asked if West Hill would pay City of Ithaca water rates or would the rates be equal t'iroughout the Town . The Supervisor said the mown Board would have to make that decision , but that his conviction was that there ought to be a single rate in the Town of Ithaca no matter where the water comes from . 1-4r . Liguori asked if the Bolton Point rate would be more than the people are paying the City of Ithaca now . Supervisor Schwan said the Bolton Point rate Eaould be the City rate plus 15 % . Mr . Li - guori noted that by 1977 the City rate will probably have gone up . Supervisor Schwan said that was a possibility , since the City of Ithaca will be losing all theq.Bolton Point customers . Council - man McElwee said he would like to see a uniform rate across the Town . Councilman Desch said it is a matter of negotiation with the City of Ithaca with respect to U]est Hill . Supervisor Schwan noted that a bulk rate for West Hill has been requested from the City . TOGJN BOARD HINUTES - 3 - November 10 , 1975 Supervisor Schwan recommended $ 25 . 00 per unit Bolton Point water benefit charge and one cent per thousand of assessed evaluation where water is not available but where the property is part of the Town-wide benefitted area , Supervisor Schwan said the rationale for the one cent per thousand is that the Town must apportion benefit charge in proportion _ to the benefit received . ( It is a token payment . ) The Supervisor then asked whether there were any further questions . No further questions were raised . No objection was made by anyone present to the proposed assessments nor was any communication received in opposition to . the sameo The Supervisor then declared the public hearing to be closed and the Board acted as follows ° Motion by Supervisor Schwan seconded by Councilman Desch , RESOLVED , that the assessment roll and apportionments be adopted and affirmed for the sewer improvements for the year 1976 and also for the water improvements for the year 1976 , including the adoption of the water rate of the unit charge for water improve° ments in the Town of Ithaca at $ 48000 per unit ; reflecting an addition of $ 25 ° 00 per unit for the Bolton Point water improve - ment and the adoption of a charge of two cents for each thousand dollars of assessed valuation on properties for which . water is not available , in accordance with the method of ascertainment of same by the Town Board , Unanimously carried . LUCENTE LETTER OF CREDIT r1re Fabbroni reported he had a request from Mre Rocco Lucente to release his letter of credit in the amount of $ 17 , 000 which he posted for construction of sections of Pinewood Place , Sycamore Drive and Birchwood Drive North , which roads were accep- ted subject to the Town Attorney ' s approval of the deed . Mr . Fab - broni said the work has been completed to his satisfaction and the satisfaction of the Town Highway Superintendent . Motion by Supervisor Schwan ; seconded by Councilman McElwee , RESOLVED , that the Town Board of the Town of Ithaca hereby re- leases letter of credit in the amount of $ 17 , 000900 given on behalf of Rocco Lucente to guarantee completion to Town specifi - cations of Pinewood Place , Sycamore Drive , and Birchwood Drive North , pertinent sections of said roads having been completed to the satisfaction of the Town Engineer and the Town Highway Super - intendent . Unanimously carried . CALDWELL ROAD - REFUND OF STREET OPENING PEPU-1IT DEPOSIT Motion by Supervisor Schwan ; seconded by Councilman P;cElwee , RESOLVED , that this Town Board , upon the recommendation of the Town Highway Superintendent , hereby authorizes refund to Cornell University of deposit of $ 100000 for a street opening permit for Caldwell Road , said road having been restored to Town specifica - tions . Unanimously carried . ADJOURNMENT The meeting was duly adjourned . Edward Le Bergen , Town Clerk