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Home My WebLink AboutIncorporation Study Report June 1985 h FISHERS ISLAND CIVIC ASSOCIATION INCORPOfu\TION STUDY 1st REPORT - ~~Y 31, 1985 In October of 1983 the Civic Association appointed a ten man committee to look into the feasibility and appropriateness of forming a local Village government for the Island. The committee was not asked for a recommendation but rather to investigate and report on the necessary qualifications, the fornlation procedures and the advantages as well as disadvantages of this form of government. While we were not directly asked to, the con~ittee felt an evaluation of the economic impact was also required and included that in its study. The committee members are listed on attachment #1. ~~AT IS A VILLAGE To be sure we are all familiar with the effect a new Village of Fishers Island would have on our present government organization we have prepared attachment 112. Fishers Island is presently a Hamlet in the Town of Southold that in turn is within the County of Suffolk. Today on our Island we have 4 districts, that are a form of governTIlent, with taxing powers. They are the Ferry District, Garbage District, Fire District and School District. Encll OIle has a board of elected representatives from Fishers Island. Some of these positions receive a small compensation, but most do not. It is interesting to note that the total. tax dollars admin- istered by these combined districts totals $1,343,000 in 1984/85. If we were incorporated the Hamlet would become a Village, still within the Town of Southold and Suffolk County. All districts except the School would be dissolved. Their responsibilities would then Corne under the Village administration and be included in their budget. Both subjects will be covered later. Village government, from its formation to its detail operation, is covered by two parts of New York State Law. The first is the General Law of the State which spells out the organization of the Village and then refers to the more specific Village Law. (copy available in F.I. Library) VILLAGE LAH Village law covers every aspect of forming an incorporated village including requirements, procedures, appeals and start up procedures. It then goes on to cover all aspects of operation, employee requirements, taxation & authority. It even Covers how to dissolve a Village. VILLAGE GOVERNMENT A Village government organization by law must have 6 elected officials; Mayor Trustees (4) Police Justice . F.I. CIVIC ASSOC. Hay 31, 1985 Page 2 The mayor and trustees must appoint a Village Clerk and a Village Treasurer. These appointed positions may be - and generally are, the same person. The jobs can be part time and are compensated by a salary negotiated by the Village Board. Additional appointments include various boards ie; Planning Board and Zoning board of appeals. At the discretion of the mayor and trustees the village may either provide the following positions and services or contract out the responsibility. -Building Inspector -Assessor -Law Enforcement -Refuse Collection -Road Maintenance -Ferry operation -Airport operation -Registrat of vital statistics Some of these positions may be assigned to Trustees or the Village Clerk. Repeating - all of the above items are covered fully in Village Law. VILLAGE RESPONSIBILITY Once a village has been established the responsihility of the clayor and Trustees are clearly defined. They are responsible for the safety and well being of the Village. Some of their responsibilities that are important to our Island are: -Zoning and Planning -Law Enforcement -Public Works - road, drainage -Refuse collection -Ferry operation -Airport operation -Zoning and Planning -Parking At the discretion of the Hayor and the Trustees other activities may be added; some examples: -Parks & Recreation -Harbor regulation and mooring control -Hosquito control -Housing authority -Hunicipal Utilities In light of todays interest on the Zoning of the Parade Grounds and Navy property it should be made clear that al Incorporated Village is responsible for its own future. The new Haster Plan of Southold Town does not include any Incorporated Village and would not apply to Fishers Island if it were Incorporated. The Zoning and Planning would all be done here on the Island by our own residents. .. F.I. CIVIC ASSOC. May 31, 1985 Page 3 MUNICIPAL UTILITIES As pointed out earlier the Village has the opportunity to operate its own municipal utility-electric' and/or water. There are certain advantages to municipal operations and I will touch on two associated with electric generation and distribution. Today our Fishers Island Electric Co. is privately owned by two stock- holders. The Fishers Island Utility Company owns 51% and FIDCO own 49%. The Electric Company purchases power from the municipal electric facility owned by the City of Groton. The power is carried to the Island by a submarine cable under Fishers Island Sound. Standby generating facilities are on the Island that I am told could provide the required power for the 9 months in the "off season" but only partial power in the peak Summer months. The Electric Co. is managed by the Utility Company and has a board of directors of Island residents. One advantage of municipal electric is the reduction in expenses associated with the reduction in taxes paid by the company. In 1984 the Electric Company paid over $60,000 in taxes with an even higher total expected in 1985 and the future. Secondly and most attractive is the pOSSibility of obtaining low cost Hydroelectric power from the Power Authority of New York State. PASNY PASNY was created in 1957 to operate a Federally sponsored generating facility at Niagra Falls, New York. This facility was based on a treaty with Canada that shared the cost of the project and generating capacity between the two countries. In the license grantedto PASNY they were directed to provide the power on a preferential basis to municipal electric companies. At present they provide power to 47 Villages and 4' Co-op' s throughout the state, including three on _. . Long Island - Greenport, Freeport, and Rockville Centre. PASNY is also required by the Federal Charter to provide power to neighboring states and they provide a small percentage of their total power to municipal electric facilities in Ohio, Pennsylvania, Massachusetts and Connecticut, including Groton, Conn as of August of 1985. The cost of power delivered to these various locations is based on the generating cost of less than l~ per Kilowatt hour plus a delivery charge (wheeling charge) paid to the various companies that must carry the power over their lines to the final user. In the case of Rockville Centre their total cost delivered is 1.8~ per KWH. This compares to a 7~ per KmJ that F.I. Electric paid Groton in 1984. (see attachment #3) PASNY power is a controversal subject. Various governmental organizations are forming "paper" Municipal electric Distribution Agencies (MDA's) which are being challenged by the State Municipal Electric Utilities. The Governor and Legislature have attempted to modify PASNY rules, to no avail. However based on discussion we have had with both representatives of PASNY and the Municipal Electric Utility Association we are advised that if the Island were a village and owned its own distribution and generating faCility, we would qualify for preferential Power. I. CIVIC ASSOC. May 31, 1985 Page 4 At the 1984 stockholders meeting of the Fishers Island Utility Company a review of the above information and economics was presented. When asked their feeling regarding the sale of their stock for municipal bonds a resolution was passed stating that they'were "not opposed" to the concept. (attachment 114) TAXES - The town taxes paid in Southold by dollars of valuation. (attachment #5) to $439,622 in Town taxes. a hamlet in 1984/85 are $69.32 per 100 In the case of Fishers Island that comes The Village of Greenport also pays Town taxes to Southold but at a lower rate of $26.60 per $1000 per valuation. This rate would apply to any new Village. Based on our valuation if we were a village in 1985 our Town taxes would be $168,691 or $271,060 less our current taxes. (attachment #6 & #7) As pointed out earlier, the various districts of the Island have taxing powers and the current tax levy is shown on attachment #5. Suffolk County also gets its share with $258,374 going to Riverhead this year. If we were a village the district taxes, excluding the School District would be absorbed into the Village. Additional costs of operating a village government would be expected. To get an idea of these expenses we contacted the mayor or village clerks of Suffolk County villages. Attachment 118 shows these findings. VILLAGE TAXES Discussion with these village administrations gave a better view of their costs. Improved police protection was a major cost factor. Village police depart- ments are outrageously expensive. The State requirements for manpower and equip- ment along with the wages and benefits of these positions have a staggering effect on any village budget. Most small villages avoid these costs by contracting out police protection to Towns, other villages or private agencies. Each of the villages contacted had certain expenses affecting their budget that may not affect another. One for example had an extensive beach program that the residents wanted maintained. These expenses became part of the tax rate. Similarly some villages have chosen not to assume responsibility for refuse pick-up, preferring private contractors to pick up the garbage and deliver it to the town dump. This savings was passed to the village tax rate. Using the budgets of other small villages and making decisions that could or could not be approved by the residents we have attempted to develop an ongoing budget for Fishers Island (attachment #9). Please understand this is not a recommendations, but only an attempt to give an order of magnitude. It does not include start up cost of establishing a village or a capital budget that would be bonded. Using this example budget we show on attachment II10a comparison between todays taxes and taxes under a village operation. F.I. CIVIC ASSOC. May 31, 1985 Pa ge 5 Requirements for Incorporation The requirements for Incorporation of a Village are spelled out in Village Law. They are basically two. Area and population. Area A proposed village must not contain more than 5 square miles; or must be conterminous with the entire boundaries of a school, fire or special district. We meet this qualification. Population A proposed village must have a population of at least 500 persons who are Itregular "'inhabitants" of the proposed area. "Regular inhabitant~1I are defined as persons who are registered to vote on Fishers Island or at least are not registered to vote any place else. It also includes the children of any parent meeting the above qualification. The population qualification is not achieved today in our judgement. We have 231 registered voters based on the last available information. While no attempt has been made to determine how many non registered family memebers are associated with the 231 we assume it would not bring us to the 500 requirement. In 1984 the Trust for Public Land was commissioned by the Civic Association to study our Island and make recommendations regarding the planning for the future. In their study they estimated the current population of the Island to be: _Year round residents 323 Seasonal residents 1535 Other statistics available from the Utility Company provide a similar view. It is apparent that the Island has a population far exceeding that necessary for incorporation but most do not qualify for the necessary "regular Inhabitants" because their voter registration address is not on the island. To reach the magic 500 level it to have a voter registration drive registered parent in its calculation fulfill the requirement. would be necessary and we believe possible Because the law includes children of a we believe a registration of 375 - 400 would Should We Incorporate? Our committee as I pointed out earlier was not asked for its recommendation. However we do have some observations and several suggestions. F.I. CIVIC ASSOC. May 31, 1985 Page 6 Observations Our Island residents are deeply and genuinely dedicated to preserving the Island, its environent and character. Change is feared and avoided. We protect our community by both personal involvement and generous contribution to community projects. Witness the Island Health Project and Island People's Project that raise thousands of dollars each year to provide protection and recreation for our residents. Witness also the recently commissioned Trust for Public Land study financed by donations intended for the acquisition of professional recom- mendations for long range planning for the Island. While the Island can do much to control its destiny, under today's government we are still subject to the planning and zoning decision made in Southald To~n. We elect one representative to the Town Board consisting of 6 members. Our remoteness from the Town officials is apparent. Although we pay $439,000 a year in Town taxes we can not take for granted that our tax contribution can purchase the same interest and concern we each have for our community. The advantage of self determination and home rule are extremely attractive. The opportunity to extend services and possibly add facilities restricted to Island residents could be vaulable. Many believe that a local government of Island people would be more respon6ive and certainly more accessible. The potential for reduced electric rates of over $250,000 would be a bonus to all. On the other hand although 3 of our districts with 10 elected representatives would be dissolved, some feel we do not have the people-power to staff a village government. Others fear that more elections will bring more politics and cliques. Some fear any shift in "contraIl! and others say I1Why change"? Both the pro's and con's have merit and must be considered. Based on our budget we could save over $100,000 in taxes with a Village Government. The opportunity to incorporate can only be achieved by increased voter registration. We believe that given a serious cause the residents of the Island can stimulate the necessary number of new registered voters to qualify. Suggestions The committee has several suggestions for the Civic Association. 1) Continue to look closely at the possibility of incorporation. Invite officials from small villages in Suffolk County to give you their experiences with local government Seek out a more professional estimate of taxes. The Suffolk County Village Officials Association and the New York Conference of ~Iayors as well as several current and former Village Officials have offered to provide assistance. 2) Work closely with the TOIm of Southold to,make them aware of our concerns. Our Island pays 8.3% of the total Town budget. Do we get a fair share of their expenditures? The Town Police budget is over $1,400,000. How much is spent to protect our Island? We pay d full share of the Towns landfill operation in Cutchogue yet we have to pay an additional tax to maintain the Island disposal without any help for the Town. , F.I. CIVIC ASSOC. May 31, 1985 Page 7 3) Municipal electric may be possible without incorporation. The Town is conducting a study to establish a municipal electric district in the Town --, except for Fishers Island. We should insist that the Town also study a separate district for the Island. Based on the comments of even the Town Officials we have a better chance of obtaining PASNY power than any Hamlet in Southold. Conclusion The preservation of the character of the Island is a prime motivation of our residents. Better control of its future may be necessary if responsive government is not achieved at the Town level. Tax reductions and substantial reduction in electric rates appear possible with local government. "Regular Inhabitants'~ can be achieved by a voter registration drive! The opportunity to Incorporate is available to the Island - if there is a dV~ control our own destiny. ~ We wish to thank all the people that have helped us prepare this report. We hope that it is helpful to the Civic Association and to the Island residents. c.L~ '#0 FISHERS ISLAND CIVIC ASSOCIATION INCORPORATION STUDY COMMITTEE Members of Committee Frank Burr Bradford Burnham, Sr. J.L. Parsons III G. Carey Matthiessen John Clavin - Chairman Stephen O'Neil Serge Doyen Ray Edwards Charles Stepanek Ronald Zanghetti ASSISTANCE ACKNOWLEDGED FIDCO Assemblyman Joseph Sawicki Jr. and Staff Town of Southold-Town Board N.Y. State Conference of Mayors Inc. Villages of- -Greenport -Shoreham -Rye Brook -North Haven -Garden City '--Huntington Bay -Rockville Centre-Asharoken Senator Norman Levy and Staff Municipal Electricial Utility Association Power Authority of the State of New York Suffolk County Municipal Official ASsociation Attachment III Ferry District PRESENT SUFFOLK COUNTY TOWN OF SOUTHOLD Garbage District Fire District School District Attachment /12 FISHERS ISLAND AS A VILLAGE SUFFOLK COUNTY TOWN OF SOUTHOLD VILLAGE BOARD School District Attachment II 3 POWER AUTHORITY OF STATE OF NEW YORK NIAGARA HYDROELECTRIC GENERATION 1950 ~ Federal Government's Treaty with Canada Niagara Redevelopment Act 1957 - PASNY Contract - Provide "Preference" power to state and local government entities 1984 - New York Preferencial Customers 47 Villages 4 CD-DPS and Neighboring States - Ohio - Pennsylvania _ Vermont - Massachusetts - Connecticut 1984 Preferential Customers Rates - Delivered to Rockville Centre 1.8<;0 Customers Rates - 5<;0 Fishers Island Rates Delivered to Fishers Island 7<;0 Customer Rates - 15.6<;0 Purchase of Electricity from Groton, CT $ 277,110 At PASNY Preferencial Rate $ 74,263 Savings if we were a Municipal Electric $ 202,747 +Taxes Paid-State, Federal, Real Estate S 60,000 NET SAVINGS $ 263,000 ','''. ..---. u------.---(6;e7/o7t/---rsr.-.fIYt lAliT//:::. 5 -2- .'_ 1 :'i'i <) ::-. I. ';. ~:' Fishers Isiand Utility Co., Inc. Annual Stockholders Meeting 7/7/84 [4;f,~:'<"'--,::~.f.ta ment ~-..."... .........., . ....;., tz.':.""~. .--", " " ~:lt~~~ ~. " '. ~'}:'~',; , ~~~t::>'~),:.;~~;" ";:(i~'-;:~- _.' . ~1~fC'" ~~~}.:;.:: :kf:;r.~. \ ,~;:;\ -..~~.: . __, .,- "~_'_ _,,__ ~ '_'~___"___O'~'_ ..., ,"c," .,;j ,':.:'::.:-::.:.;: _~,:;'~, 't~:: ,':-:":',";.: ~+~;.::,:,",:,: ::;:~,:;~:. '----~.. -"'--,-.--.-." -, --c.-:---~-~:.,~~-:-:.--..{-:. :,,;\. 6,: .:,.~. . . . i . .:~'''~-;:;'} --.;.'.l...~.,.-.._......L:._~,L'7-2-:~j~:.~..,;.:r.:~.!.:"..:".:f~.'::.g.-.Jf~ft.,~.~..;,.t..'.....~~I?..'.'.r..';:.,:.:ti~:~'I "I ~', II -, '''. :.."~~...t.i~.'~._.'.._ _:"~_~'-___"_"'.'._~;.--'.-.-'~."":'_;:";_.",_~,',,~~_.,_~~_':_'_:"___.'~_"":"':':"':." .:._.':....:.:........... __:~~'-=;~.;:.::..:__.~:.":...-~,-..;'-, ....'.'-:_.'.........->.:._j._ i0.t.~r.~.~~;-;,_.~:~~;T.:,:_~;...7\.~:.;.Tlllllr- "_'-. ";...,:.,.,.y I.:,'" . _'. 0". .~.:(>: {o.'~\;.'::,._'" >,:,~__..J~." '. -...., "n_ ,'.,,,' _':' V.,. '., . .-0,,' __ ., ;" . "".' _.' l.~.i".:.......:.,~...':..~:.:.,::-...:.'...i...-,....,.;~.'...(.:....~.~.~,.. ,~j.rli1:--,Tf-~~:-:_;;_=--;-;~-~ .'~~:=~~=, ... ;'~"<'.': .' ..... ll..:-~E.-:.~-..]:"'-------- .. . The Chairman asked John Clavin to report on the possible consequences of incorporation of Fishers Island as a village and the availability of electrical power fro~ PASNY (Power Authority of the State of New York). Mr. Clavin reviewed the history of PASNY, reporting that the combination of reduced wheeling charges and higher voltages has made power from this source relatively inexpensive at present. Rockville Center, Greenport and Freeport have applied for, and receive. PASNY power. In Rockville Centre, the consumer pays 5~ per kw/hr., while the price on Fishers Island is 13~ per kw/hr. However, such power is presently available only to municipalities, not to privately owned electrical companies. Mr. Clavin, who is Chairman of the Fishers Island Incorporation Committee, felt that it was extremely important for the Committee to ~~ow the feeling of the Utility Company stockholders relative to the sale of their stock, in exchange for municipal bonds, in the event incorporation as a village and subsequent availability of PASNY power becomes a reality. (Another criterion for PASNY power is the presence of functional electrical generating in the municipality). It was proposed by Mr. E.A. Matthiessen that the Utility Company should state that it is presently not opposed to the concept. This progosal was moved by Mr. Russell . :;,;...:>.::.. ..",___ _ ,,:~~,,-:~~_d :'!....~>:.!!;~ Wh~~.e.:...=- ....:-- -:-:-:-:: '. .::--- --:- =: .. --:-==_..--::..:.. ---~l~.. .--- ___._____c;, _ .=-= ;" . ' . .' '. .' ' . ' I . ... ,::.: -+.:.--.... ,; .. .. ""'. .. . j I ..-'J,~ff:~,~~___;.,::;~:.~:~:--.- .' , ,,' ' .. ,: . "'1, 1I1I ','. -,-'-"-.'.~--" .'- ..---.'....':-..;-:"----.- ...../III,II! ....i ---:-'i-:~._,.;:.,'_..__.~~~.~_" ., ," _,_, , , ' 1/' '., , _ ~ , ">. , ............."W.."..T...::.'... "'i.1 , jl' III . ,: '..1;. :':1'; , ~, . ..:'-:J. ",.:: >-.'~' ',.";". .- ":-F:.. ~....---------.,.....~..;,,_____....-"';O''V;_~.:::I;..,"''''.,... ~-.'...'_._",. ",;,' . . -. ,". .,....~..-~-- ---'.-~- ._-..~-_. ...--::".-". . '" '-,t:.'f~:;'.~. ",':,"~"3 r ~ -'~:"" .~- -~'-~~t~:: :X.,~~~,'~:::~' ,:.'", "",' . ' FISHERS ISLAND TAX REVIEW 1984/85 Tax Year Vaulation $ 6,341,557 Rate per 1,000 Valuation County 40.743. Town 69.324. Ferry 22,856. Fire 13.701. Garbage 24.417. 171. 04 School 136.10 TOTAL 307.14 Estimated Taxes Attachment II 5 258,374. 439,622. 145 ,ll5. 87,000 155,000. 1,085, lll. 955,143 2,040,254. " Attachment 1/6 TOWN OF SOUTHOLD TAX RATE COMPARISON Greenport vs. Fishers Island Greenport Fishers Island 1984/85 1984/85 Valuation 3,859.556 6,341.557 Town Tax Rate per 1000V General Town 19.928 19.928 Part Town 0 29.765 Highway I 0 12.958 Highway 2,3,4, 6.673 6.673 Total 26.601 69.324 Town Taxes 102,668 439,622 . " TOWN TAX COMPARISON Hamlet vs Hamlet Incorporated Village Differences . Incorporated Village 1984-85 Rate Taxes 69.324 $ 439,622 26.601 $ 168,691 $ 271,000 Attachment 1/ 7 > Attachment 118 VILLAGE TAXES VILLAGE POPULATION TAXES Deering Harbor 17 Shoreham 571 166,000 Ashoroken 700 381,000 * Be11etere 826 270,000 North Haven 832 118,162 Old Field 850 191,490 ** Quogue 1012 872,000 Huntington Bay 1790 435,845 Greenport 2503 998,942 Sag Harbor 2581 1,027,757 * 85% Police Cost ** 48% Police Cost Attachment 119 1 of 5 FISHERS ISLAND NEW YORK ANNUAL BUDGET General Government AlOlO.O - Board of Trustees 4,000 AlllO.O - Village Justice 5,000 A12l0.0 - Mayor's Office 2,000 A1320.0 - Auditor 700 A1325.0 - Treasurer 5,000 A1355.0 - Assessment 100 Al4l0.0 - Village Clerk's Office 20,000 A1420.0 - Law 10,000 A1440.0 - Engineer 3,000 A1450.0 - Elections 1,000 Al620.0 - Buildings 10,000 A19l0.4 - Insurance 6,000 Al920.4 - Dues 600 Total Gen. Government 77 ,400 Attachment 119 2 of 5 Public Safety A1320.0 Police 20,000 A34l0.0 Fire Fire District Budget A3620.0 Bay Constable 2,000 A35l0 Safety Inspection 3,000 Total Public Safety 25,000 Community Services A1490.l Public Works A1620.4 Building Dept A80l0.0 Zoning 1,000 A8020.0 Planning 2,000 A8090.0 Environmental Control 2,000 A5110.0 Street Maintenance ~ ___ 20,000 Snow Removal A5l42.4 A71l0.0 Parks & Beaches 1,000 A8l60.l Refuse and Garbage Garbage Dist. Budget Total Community Service 27,000 ~ Employee Benefits 9030.8 Social Security 9040.8 Workmen's Compensation 9060.8 Hosp. & Med 9010.8 Retirement 9055 Insurance Total Benefits Attachment 119 3 of 5 3,000 2,000 2,000 3,000 800 10,800 . . Attachment 119 4 of 5 Revenue Other Than Taxes 2110 Zoning Fees 500 2555 Building Permits 5,000 2590 Mooring Permits 5,000 2610 Fines 3,000 3001 State Aid 4,000 3005 Mortgage Tax 5,000 4001 Fed Rev. Sharing 5,000 1130 Utilities recpt tax 5,000 Total Other Revenue 32,500 " , INCORPORATED VILLAGE OF FISHERS ISLAND SAMPLE BUDGET ~nunary -General Government Public Safety Community Services/Public Works Employee Benefits Total Expenditures Revenue Net Tax Levy 77 ,400 25,000 27,000 10,800 140,200 32,500 107,700 Attachment 1/9 5 of 5 , . j, Current Taxes As Hamlet FISHERS ISLAND TAX COMPARISON HAMLET vs INCORPORATED VILLAGE 1984/85 $258,374 County 439,622 145,115 87,000 155,000 1,085,111 Town Village Ferry Fire Garbage Sub Total Savings Attachment 1110 Estimated Taxes As Incorporated Village $ 258,374 168,691 107,700 145,115 87,000 155.000 921.880 163,231