Government Reorganization

Village Dissolution Study, Plan and Alternatives

Sean M. Maguire, AICP Northern NY Regional Representative NYS Department of State

Overview
Government Reorganization & Citizen Empowerment Act Dissolution Study, Plan and Alternatives

Overview Components

Related Studies and Outcomes Next Steps

Government Reorganization: Village Dissolution Study, Plan and Alternatives

GOVERNMENT REORGANIZATION & CITIZEN EMPOWERMENT ACT

Government Reorganization & Citizen Empowerment Act

Effective March 21, 2010 Amended State Statutes

Added General Municipal Law Article 17-A Amended Municipal Home Rule Law Amended Town Law Amended Village Law Amended Local Finance Law

General Municipal Law Article 17-A

Replaces sections of Town and Village Law regarding consolidation and dissolution. Village Dissolution

Board Initiated Voter Initiated

Allows board flexibility to set dates to vote and implement. Sets a lower threshold for voter-initiated dissolution.

Board-Initiated Dissolution

Board develops a plan to present to voters.

May involve an initial study of options. May involve a study committee.

Recommended Approach:
Form a Study Committee Develop Study of Existing Conditions and Costs Develop Dissolution Plan Develop Alternatives Plan Present Dissolution Plan to Voters

Board-Initiated Dissolution
Day 1 Within 35 to 90 Days Within 5 Days Within 180 Days Proposed Dissolution Plan Adopted Hearing Held Proposed Plan Amended Final Plan Approved Referendum Date Set Within 60 to 90 Days Referendum Passes Referendum Held Referendum Fails Process Ends Special District Dissolved

Town/Village Dissolved

Four Year Waiting Period

Voter-Initiated Dissolution

Petition Presented to Village Clerk.

Lesser of 10% of Voters in the Village or 5,000 signatures, or 20% of voters where there are 500 or fewer registered voters.

Village Votes on Dissolution. If Voters Approve Referendum, a Plan is Developed. Plan Subject to Permissive Referendum.

Voter-Initiated Dissolution
Day 1 Within 10 Days Within 30 Days Within 60 to 90 days Within 30 Days, Board Must Meet Within 180 Days Within 35 to 90 Days Within 60 Days After 45 Days Within 45 Days Within 30Days Within 60 to 90 Days Passes: Dissolution Occurs Petition Filed Signatures Verified Referendum Date Set Petition Rejected Appeal Possible

Referendum Held Referendum Passes Proposed Plan Approved Hearing Held Proposed Plan Amended Dissolution Occurs Petitions Filed for Permissive Referendum Fails: No Dissolution Final Plan Approved Referendum Fails Four Year Waiting Period

Outcomes

If Dissolution Referendum and Plan Passes:

Village is dissolved per plan

If Dissolution Referendum Fails:

Dissolution will not take effect. Dissolution process may not ne initiated for the same purpose for four (4) years from the date of the referendum.

If Dissolution Plan Permissive Referendum Fails:

Dissolution will not take effect.

Government Reorganization: Village Dissolution Study, Plan and Alternatives

DISSOLUTION STUDY, PLAN AND ALTERNATIVES

Recommended Dissolution Study

Department of State recommends a dissolution study prior to presenting a plan to voters. The recommended study includes

Dissolution Study (foundation)

Fiscal impact analysis

Dissolution Plan (option) Alternatives to Dissolution (option)

Recommended Approach

Dissolution Study
Examination of current operations and costs. Develops cost estimates based on budget. Provides a set of options to consider in developing a dissolution plan.

Dissolution Plan
Best options from the study, final estimated cost and service impact to consider.

Alternatives to Dissolution
Strategy to improve position, reduce costs and improve services if village is not dissolved.

NYS DOS Resources

Government Reorganization and Citizen Empowerment Act

Complete Guide Summary of the Process

The Citizens Guide to Petitioning for Local Government Consolidation or Dissolution

Government Reorganization: Village Dissolution Study, Plan and Alternatives

RELATED STUDIES AND OUTCOMES

Consolidation/Dissolution
Findings vary and are community specific Port Henry Dissolution Study

Village Taxes while Town Taxes &

Speculator Dissolution Study

Village Taxes while Town Taxes

Studies often lead to an increased level of communication between town and village.
e.g Evaluation of town taxes on village area

VILLAGE OF PORT HENRY

Port Henry: Project Summary

Village/Town Population: ~ 1,050/4,500 Village/Town Area: 1.2/65 square miles $45,000 High Priority LGE Grant (20082009) Dissolution Plan pursuant to Article 19 of Village Law Final cost $47,322.71 LGE grant $42,590.44 http://www.cgr.org/porthenry

Port Henry: Challenges

Decline of industry:
Iron ore extraction was important for about 150 years.

Loss of population:
Village population of 1,770 in 1960 to1,050 in 2000. Town population of 5,800 in 1960 to 4,500 in 2000.

Port Henry: Solution

Plan proposed:
Elimination of board, mayor, treasurer, code enforcement, and attorney. Transfer of some village employees, property to the town. Water, sewer and fire protection to become town districts in the former village. Addition of $303,600 in AIM incentive funds.

Port Henry: Solution

Cost Impacts:
Based on a home with an AV of $100,000. Impacts with and without incentives.
Area Village TOV (PHFD) Current Tax $1,676.00 $1,000.00 With AIM ($567.02) $39.12 Without AIM ($403.66) $202.49

TOV (FPD) TOV (MWFD) TOV (MFD)

$1,000.00 $1,003.00 $1,029.00

($2.86) ($2.08) ($2.08)

$160.51 $161.29 $161.29

Port Henry: Outcome

Referendum Results:
Dissolution failed by a vote of 186-146 in March 2010.

Alternatives:
No real options; key village services not provided by town (snow and refuse removal). Water system consolidation cost prohibitive.

VILLAGE OF LAKE GEORGE

Lake George: Project Summary

Town of Lake George, Warren County $45,000 High Priority LGE Grant (20082009) Dissolution Plan pursuant to Article 19 of Village Law Final cost $48,889.22 LGE grant $44,000.30 http://lakegeorge.ning.com/

Lake George: Challenges

Due diligence effort by village board Study to determine if there was a benefit to dissolution No petition circulate to trigger action Village dissolved police; use County Sheriff Shared service for fire protection with town

Lake George: Solution

Analyzed dissolution scenarios and impacts

Included a co-terminus town/village option

Greatest financial benefit to village residents was a dissolution Plan would provide for transfer of village employees to town

Excluded Mayor, Trustees, Fire Clerk, Historian, Attorney

Lake George: Outcome

At the time of the study:

31% decrease for village residents in town and village combined taxes 9% increase for town residents in town tax

TOV Median Home Value Avg. Tax Bill Was Avg. Tax Bill Becomes Net Change Percent Change $168,000

Village $168,000

$343 $375

$1,648 $1,143

Next referendum opportunity: March 2011

+$32 9%

-$504 -31%

VILLAGE OF SENECA FALLS

Seneca Falls: Project Summary

Shared building & services study determined most savings for village taxpayers would come from dissolution vs. shared service Net annual savings of $706,000 town/village Village savings of $8.11 per $1,000 AV, or $810.69 for village home assessed at $100,000 http://www.cgr.org/senecafalls

Seneca Falls: Challenges

2008 shared building/service study revealed a potential savings if village dissolved Study also found that a majority feels their Village taxes are too high Historic preservation concerns in village Village prefers to retain police protection whereas town does not want a town wide police force

Seneca Falls: Solution

All functions and services become a town responsibility Buildings and other assets to the town

If unnecessary, sold to pay village debt

Fire district with 2 companies Special districts for lighting, water and sewer Goal: Unified zoning code, maintain historic area strategies

Seneca Falls: Outcome

Final Count: 1,198 for and 1,112 against Village government will cease on 12/31/11 Tax impact on a home assessed at $100,000:
Village: $882.31 (-$810.69) Town: $718.43 (+$439.02)

TOV Home Value Tax Rate per $1,000 AV Tax Rate Becomes Net Change Percent Change $100,000 $1.63

Village $100,000 $16.93

$7.18

$8.82

+$5.55 157%

-$8.11 -48%

VILLAGE OF JOHNSON CITY

Johnson City: Project Summary

In 2007 the Village Board received a petition for dissolution with approx 2,600 signatures With a population of 15,500 the Village of Johnson City is larger than 25 of New Yorks 62 cities; it is the largest village in NYS to go through the dissolution process http://www.cgr.org/johnsoncity/

Johnson City: Challenges

Providing equitable service

Village: Career Fire and Police Departments Town: Pay scale for workers in comparable positions within the public works department and clerks office was less than the village

Johnson City: Solution

Fire, water and sewer districts Use of county sheriff to replace village police Sale of village hall to pay village debt Village responsibility for joint sewer treatment to transfer to the town Transfer of many village employees to other municipalities; net reduction of 32 positions

Johnson City: Outcome

Results
November 3 2009: 2,215 for & 2,257 against
Tax Rate per $1,000 AV Tax Rate Becomes Net Change Percent Change

TOV $15.91

Village $304.14

Possible Options and Ideas:

Shared fire services agreement with Endicott Joint planning & zoning Unified zoning ordinance Joint or consolidated court operation

$15.22 -$0.69 -4.3%

$221.43 -$82.71 -27.2%

VILLAGE OF PIKE

Pike: Project Summary

Co-Applicant: Town of Pike Awarded $83,700 grant from 2006-2007 Shared Municipal Services Incentive Program Deliverables:

Dissolution Study Dissolution Plan http://www.gflrpc.org/

Pike: Challenges
Population decline due to departure of commercial and manufacturing base Difficulty finding people to serve on boards; already sharing positions with Town Village could no longer effectively provide public services and was no longer necessary

Pike: Solution
Assistance form Genesee Finger Lakes Regional Planning Council Services Inventory Report to assess postdissolution delivery of services Mayor and Board of Trustees abolished, all Village property turned over to Town Special districts for water, sidewalks and lighting Tax impact: Reduction of $0.49 per $1,000 of assessed value for Village taxpayers

Pike: Outcome
Referendum held March 18, 2008 Out of 36 votes cast, 31 voted for dissolution State law mandated dissolution at the end of the year following vote Dissolved December 31, 2009

TOV Tax Rate per $1,000 AV Tax Rate Becomes $9.21 Village $10.41

$8.72

$9.91

Net Change
Percent Change

-$0.49
-5.3%

-$0.49
-5.7%

Tax Rates in Pike (Unadjusted)

2008 Projected 2010 Estmated 2010 Projected
$11.55 $9.21 $10.14 $8.71 $10.41 $9.91

Town Tax Rate (Unadjusted)

Village Tax Rate (Unadjusted)

Tax Rates in Pike (Adjusted)

2008 Projected
$13.64 $14.02 $13.77

2010 Estmated

2010 Projected
$13.09

$12.12

$11.65

Town Tax Rate (Adjusted)

Village Tax Rate (Adjusted)

NYSDOS: Outcomes
Municipal consolidations can save up to 20 percent Household tax reductions of almost 15 percent can be achieved through shared services Level of service is often unchanged through service cooperation

Government Reorganization: Village Dissolution Study, Plan and Alternatives

NEXT STEPS

Next Steps
Receive Grant Award Form Dissolution Study Committee Release RFP and Select Consultant Kick Off Meeting Existing Conditions Report Public Meeting Plan and Alternatives Public Meeting Transmit Product to Village Board

Government Reorganization
Village Dissolution Study, Plan and Alternatives
New York State Department of State
http://www.dos.state.ny.us/LG Toll Free: (800)367-8488

Sean M. Maguire, AICP Northern NY Regional Representative NYS Department of State