Fishkill's Financial Outlook Worse than Predicted

New information regarding a $3.6 million Bond Anticipation Note. Regarding the finances of the Town of Fishkill. I have inluded the bond issued by Jefferies & Company so you can review the information on your own. This is very informative.

http://emma.msrb.org/EP535803-EP417990-EP815416.pdf

The following items should concern the taxpayer.

1.The bank holding the bond for the Merritt Sewer Bond (see page 1 last paragraph) that was due April 21, 2011, opted to not renew an existing $1.9 M note (see table top of page 2)

2.The town does not have the money to cover the note.

3.Due to the town’s current bond rating, the new interest rate will be 4.75% (cover page.) This rate is substantially higher than what other neighboring towns are paying and higher than the rates of the notes being replaced.

4.The proceeds of the bond offering are to be used to repay the cash used for the Merritt bond, other bonds coming due over the next several months and for new borrowing for two water districts. (Table top of page 2)

5.The bond statement discloses that the town incurred an unaudited deficit of approximately $1.2 m in the general and highway funds. (page A-6) Although the water, sewer, lighting and ambulance districts show a surplus, the town is constitutionally bound to use the funds generated in special districts for special district purposes only.

6.The town has not delivered the Annual Update Document that was due May 1, 2011 to New York State. This has a negative impact on interest rates the town must pay.

7.More bonds will be comming due in 2012. Any idea of the up-comming interest rates on those?

8.Pagones has failed to implement GASB Statement 45 regarding health benifit requirments.

Please note, that Supervisor Pagones. Left out a $3.4 million bond that she took out in December 2010. This was to cover 2009 & 2010 OVERSPENDING and was not used for Capital Projects. Ergo, if Pagones is INCREASING the defict by over $1 million, how can she claim to be paying off the debt? It's just like paying off one credit card with another with a higher interest rate.

Moody's Shows great concern for Fishkill and 2% tax cap.

"Of particular concern are the issuers who already face significant financial pressure," said Weber, listing as examples the towns of Colonie, Fishkill, and East Greenbush, and the cities of Newburgh and Glen Cove.

http://www.wtaq.com/news/articles/2011/jul/05/ny-property-tax-cap-may-hit-cash-poor-cities-report/