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/

Conservative Party 2011 endorsements

They endorsed Pagones for Supervisor, Malvarosa and Garnot.

Fishkill Independence Party endorsements for 2011

The party has endorsed the following candidates.

Robert LaColla for Supervisor

Mara Farrell for Councilwoman

Kurt Buck for Councilman

Gerald Vergilis for Town Justice

Harold Epstein for Town Justice

Glen Scofield for Highway Superindendant

Allison MacAvery for County Legislator

James Miccio for County Legislator

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June 4th 2011 Fishkill Town Board Meeting

http://www.fishkill-ny.gov/pdfs/TownBoardAgendas/2011Agendas/06-04-2011%20TB%20Agenda.pdf

Of interest is a proposed law for "Financial Disclosure." The law appears to be a act of retaliation for a town board member who is challenging the Supervisor for her job.

$40,000 rec facility sign an extravagance SDN 6/1/2011

Last weeks paper covered Fishkill's new Senior Center $40,000 electronic sign. As quoted by Supervisor Pagones. The sign will be paid for by the Parklands Trust Fund. Last year at Novembers Budget Meeting. I asked the Comptroller how much money was left in the fund. The Comptroller responded that there was between 18-24 months left in the fund. Also quoted by Pagones, the fund is replenished by developer fees. Since we all know that development is nearly at a standstill. Is it wise for Pagones to spend $40,000 on a sign? Should we not use that money to pay off the center first? Or how about fixing the leaking roof on the $3.6 million facility? What happens when the money dries up after this years Election Day? Does the debt come out of the General Fund or does Pagones continue to borrow money. Like she did to balance this years budget by borrowing $1.8 million to avoid a 45% tax increase.

While employees and citizens continue to suffer through record tax increases and givebacks in the last 3 years. Pagones continues to spend money like a sailor on leave with a unlimited credit card. You would think that Pagones who has us in record debt would be more frugal with what little resources we have. But alas, there is also a leaking roof at Town Hall. Look at it as you drive by on Rt.52. Multiple shingles have been missing for over a year. When will Pagones act? When the plywood and frame are so rotted out that the cost will be $40,000 instead of a couple of hundred bucks for simple maintenance?

Finally, I would like to say thank you to President Obama. Who amended a Presidential disaster declaration to allow Fishkill to recover $40,000 during the storms. (We all know we need the money) I would also like to commend the President for directing the operation that eliminated bin Laden.

Ozzy Albra
Fishkill