Wellsville Council Finance Committee

Tuesday - February 23: Wellsville's Village Council Finance Committee held their first meeting of the year this past Tuesday. Present at the meeting was Finance Committee Chairman Tony Cataldo and Committee Member Joe Soldano. Also present was Mayor Joe Surace, Village Administrator Jim Saracco, Fiscal Officer Dale Davis, Council Members Sue Haugh & Randy Allmon, Zoning Administrator Rick Williams, WPD Chief Joe Scarabino and Bill Boyle of Giles, Gard & Johnson, the Engineering firm.

Cataldo started off the meeting asking Mr. Boyle to explain the difference between what was reported by the Village Fiscal Office as being spent in 2009 for his company's services and the amount he reported being received by his company from the Village. Boyle explained that when the request was made it was thought it was only for worked invoiced in 2009 to the Village. The difference was two invoices issued in 2008 for work done at the Sewage Treatment Plant and the Highland Avenue project. The Village was billed in November 2008 for the first invoice and in December 2008 for the second but the bills weren't paid until January & February of 2009. One invoice was for $9,064 and the other for $13,0488.50. G,G&J was paid a total of $51,877.50 in 2009 for work done for the Village. A per centage of that amount will be reimbursed from the STAG funds if ever released.

Cataldo went on to give reports on the Village General Fund. Last year the fund stood at $25,796 at the end of December. By 1/31/10 the amount available in the General Fund was $16,468. In 2009 the Village took in $267,000 and spent $296,000. Cataldo reported it would have been worse had the Village not taken in $26,000 in Inheritance money and the Franchise fee was up $12,000. The Committee will be reviewing the entire budget line by line to see where cuts can be made.

A General Fund one mill levy expires this year along with two Fire Dept. levies that bring in six mills. One of the Fire levies is already designated as a replacement levy. Fiscal Officer Davis advised the Committee will have to first determine if it will recommend if all three levies should be put on the ballot as renewals or replacements that reflect current home values. If a levy is a renewal the amount collected is based on home values at the time it was first approved at the polls. The levies will not be on the ballot until the November General Election. Davis also advised the Committee will have to make a future decision on the Flood Control levy. It currently brings in $13,000 a year. If passed as a replacement levy when it next comes up that amount would jump to $28,000 based on newly determined home values.

The Mayor remarked that there are four pumps in the uptown portion of the Flood Control system. Three of those pumps do not work. Those pumps were installed in the late 1930s when the system was first built. They have been babied all these years. Former Village employee Mark Allison has been lined up to inspect and evaluate all the pumps in the system. Allison recently retired from BWD and Surace noted he is probably the most knowledgeable one around for those pumps. He's done work on them in the past. In the event of a flood the Mayor noted that they are checking with the Army Corp of Engineers on the availability of their portable "utility pumps".

Cataldo then inquired on possible FEMA reimbursement for what was spent on snow removal this month. Davis reported that nothing has been heard yet and cautioned there is no guarantee that it will happen. A total of $49,000 in snow removal expenses has been reported to the County EMA to include in their reports to the State. Out of that total amount $29,000 was paid to Pusateri Excavating and $6,800 to Minor Supply. The balance went for fuel, food, wages and over-time wages.

Next was the discussion on the collections of back fines and unpaid Village Income Taxes. Committee Member Soldano asked what ever happened to using Capitol Recovery to track down and collect these. Davis advised that any money collected by them requires that a State fee be paid first. The agency adds a per centage on top of the amount due for their fee. The part-time Village clerk does all the preliminary leg work getting everything together and then sends the information to the agency. Soldano stated that procedure needs to be refreshed. Surace noted that the clerk has had a lot of sucess tracking down individuals but he would check with the agency and report back. It was decided last year for Council to check on the possibility of citing non payers into Village Magistrate Court and never followed up on. Cataldo said he would try to set up a meeting with the Magistrate.

Village Administrator Saracco is going to check with the forester that previously harvested lumber from mature trees on Village owned property to see if another sale can be made. The last one brought in enough money to get the Village out of Fiscal Emergency. Cataldo remarked the last time the forester checked Wellsville would have to wait until at least after the first of the year.

Davis reported that the Port Authority is still only making $2,100 payments on the $34,000 lump sum payment for a 99 year lease that was due this past August. When the least was drawn up the Port Authority was to make lump sum payments each year in August for three years. The least is for Village owned property that the big over-head crane was constructed on in the Inter Modal Park. The total amount is for $100,000. Davis said the Port arbitrarily just started making monthly payments on the final portion without any notification to the Village or authorization. Surace will check with Port officials.

Soldano next inquired about the existance of a demolition fund in the budget. Davis said that there hasn't been one since he's been the Fiscal Officer. Cataldo advised it was cut out of the budget when we were in Fiscal Emergency as a cost savings. The only thing remotely resembling a demolition fund is the escrow money paid by insurance companies for their policy holders that have had fires. That money is held until the burnt properties are either repaired or torn down. Cataldo suggested consideration be given designating collected back fines and past due income taxes into rebuilding a demolition fund.

Cataldo stated that at the next Committee meeting he would like to discuss possibly joining in with the County for their paving program. Maybe some cost savings could be realized by the Village if they could piggy back with them for paving contracts. Soldano reported that representatives from Congressman Wilson's office is going to send him any and all information that they have pertaining to paving grants. At a recent grant clinic he was told there was money out there for paving.

Wrapping up the meeting the Mayor reported it will be next month before any information will be available on this year's CDBG program. They are waiting for an opinion from the Village Solicitor on forms required by OMEGA to be filled out and returned. That's for a grant to finish up work on the Sewage Treatment Plant. There is still no word on the remaining funds from the STAG award that is still being reviewed by the US EPA. Surace advised he just asked Congressman Wilson's representative to see if his office can get an update. Davis said he thinks that Boyle is checking weekly but he feels it will be some time yet before anything is learned. He said the appeal that was approved by the Regional EPA office is forging new ground and the EPA headquarters in Washington is being very careful making sure everything is in order. Unfortunately for the Village, Wellsville is the first to win an appeal on a pay back demand by the EPA. Davis observed they are being very cautious to not set a precedent.

Cataldo asked Davis what amount of money has been spent on union contract negotiation consultant Joe Lencewicz so far this year. Davis replied an estimated $7,000 so far. Davis said he did not have an exact figures readily at hand.

It was a long, over due, fact filled meeting. Hopefully they'll hold them more often so Village residents can keep informed where their tax dollars are going.

ole nib