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NEW ISSUE - SERIAL BONDS
Acquisition of Tractor-Mower
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In the oninion afHawkins De/afield & Wood LLP, BondCounsello the Town under existin~ s/(ltutes and court deci~i ns Qf')d ~suming
continuing compliance with certain tax certifications described herein] (j) interest on the Bonds is exc1uded'~m ~ross income or federal income
tax purp9ses pursuant /0 Section 103 afthe Internal Revenue Code of 986, as amended (the "Code "), andTi( interest on the antis is not treated
as a preJprence item in calculating the alternative minimum tax imposed on indiVidua~ and corporafions un er the Code; sue interest however
is inc/uaed in the aqjusted current earnings of certain corporations for purposes 0 calculatmg the alternative minimum tax imJ!,osed on such
corporations. In ad'dition, in the op,inion bf Bond Counsel to the Town, under exisrj7)g statutfls, interest on the Bonds is exemptjrom personal
income toxes of New York State ana its pontieal subaivisions, incluaing The City oJ ffew York. See "Tox Matters" herein.
The Bonds will NOT be designated by the Town as "qualified tax-exempt obligations" pursuant to the provision of Section 265 ofthe
Code.
$14,650,000
TOWN OF SOUTHOLD
SUFFOLK COUNTY, NEW YORK
(the "Town")
Dated: April IS, 2007
PUBLIC IMPROVEMENT SERIAL BONDS - 2007
[BOOK-ENTRY-ONL Y BONDS)
Principal Dne: April IS, 2008-2030, inclnsive
Interest Due: October 15, 2007 and semi-annually thereafter
BOND MATURITY SCHEDULE
Amount Maturity Rate Yield Amount Maturity Rate Yield Amount Maturity Rate Yield
$700,000 2008 4.00% 3.42% $625,000 2016 4.25% 3.82% $ 725,000 2024 4.25% 4.23%
725,000 2009 4-'/. 3.45 675,000 2017 4.25 3.87 725,000 2025 4.25 4.25
575,000 2010 4-'/. 3.50 675,000 2018 4.25 3.95 550,000 2026 4.25 4.26
575,000 2011 4.25 3.52 675,000 2019 4.25 4.00 550,000 2027 4.25 4.28
600,000 2012 4.25 3.57 675,000 2020 4.25 4.05 550,000 2028 4.25 4.29
625,000 2013 4.25 3.62 675,000 2021 4.25 4.10 550,000 2029 4.25 4.30
625,000 2014 4.25 3.70 . 675,000 2022 4.25 4.15 550,000 2030 4.25 4.31
625,000 2015 4.25 3.77 725,000 2023 4.25 4.20
.The payment of the principal of and interest on the Bonds when due will be insured by a [mancial guaranty insurance
policy to be issued by Ambac Assurance Corporation simultaneously with the delivery of the Bonds.
Ambac
Security and Sources of Pqyment: The Bonds will constitute general obligations of the Town and will contain a pledge of
its faith and credit for the punctual payment of the principal of and interest on the Bonds, and all the taxable real property Within
the Town will be subject to the levy oT ad valorem taxes, without limitation as to rate or amount, for such purpose.
Prior Redemption: The Bonds maturing on April 15, 2018 and thereafter are subject to redemption, at the option of the
TownAprior to matunty in whole or in part, on any date on or after April 15, 2017 in accordance with the terms described herein.
See "vptional Redemption" under liThe Bonds," herein.
Form and Denomination: The Bonds will be issued as registered bond~, and, when issued, will be registered in the name
of Cede & Co. as nominee of The Depository Trust Company ("DTC") New I ork, New York, which will act as the Securities
Depository for the Bonds. Individual purchases of the Bonds may be made only in book-entry form in denominations of$5,000 or
intellf,al multiples thereof. Bondholders will not receive certificates representing their ownership interest in the Bonds purchased.
See Book-Entry-Only System" under "The Bonds," herein.
Payment: Payment of the principal of and interest on the Bonds to the Beneficial Owners of the Bonds will be made by DTC
Participants and IndlTect Participants in accordance with standing instructions and custom'!!)' practices, as is now the case with
muniCipal securities held for the accounts of customers in bearer form or registered in "street name." Payment will be the
responsibility of the DTC Participant or Indirect Participant and not of DTC or the Town, sul1iect to any statutory and regulatory
requirements as may be in effectTrom time to time. See "Book-Entry-Only System" under "The Bonds," herein.
Hawkins Delafield & W Qod LLP has nQt participated in the preparation of thi~ Official Statement, nQr verified
the accuracy, completeness or fairness of the intormation contained Herein, and, accordingly, expresses no opmion with
respect thereto.
The Bonds are offered sulject to the final approving oRinion of Hawkins Delafield & Wood LLP, New York, New York, Bond
Counsel, and certain other conditions. It is eX]Jected that aelivery of the Bonds In book-entry form will be made through the
facilities ofDTC on or about April 19,2007 in New York, New York
This revised cover, dated April I 0,2007, supplements the Official Statement of the Town dated March 27, 2007, relating
to the obligations described therein !Ill9 herein including certain information omittlid from such qfficial Stateptent in accord!lllge
with Secuntiesand Exchal)g~ CommiSSIOn Rule l5c2-l2lthe "Rule"), and shall constItute the Town s final OffiCial Statement wlthm
the meanin,g of the Rule. other than as set forth on this revised cover page, the table.of contents the.section entitled "Bond Rl!til)g"
and the addition of"Appendix.c - The Bond Insurer", there have been no other reVlSlons to the OffiCIal Statement. For adescnptlon
of the Town's agreement to provide continuing diSClOsure as described in the Rule, see "Disclosure Undertaking" herein.
ROOSEVELT & CROSS, INC. AND ASSOCIATES
TOWN OF SOUTHOLD
SUFFOLK COUNTY, NEW YORK
,Town Hall
53095 Main Road
Southold, NY 11971
Telephone: (631) 765-4333
Fax: (631) 765-1366
TOWN BOARD
Scott A. Russell, Supervisor
William P. Edwards
Louisa P. Evans
Albert J. Krupski, Jr.
Daniel C. Ross
Thomas H. Wickham
Elizabeth A. Neville, Town Clerk
Peter W. Harris, Superintendent of Highways
John A. Cushman 11, Town Comptroller
Patricia A. Finnegan, Esq., Town Attorney
George Sullivan, Receiver of Taxes
. . .
BOND COUNSEL
Hawkins Delafield & Wood LLP
New York, New York
. . .
FINANCIAL ADVISOR
MUN1STAT SERVICES, INC.
Municipal Finance Advisory Service
12 Roosevelt Avenue
Port Jefferson Station, N.Y. 11776
(631) 331-8888
E-mail: info@munistat.com
Website: http://www.munistat.com
No dealer, broker, salesman or other person has been authorized by the Town to give any infonnation orto make
any representations, other than those contained in this Official Statement and if given or made, such other infonnation
or representations must not be relied upon as having been authorized by the Town. This Official Statement does not
constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person in
any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The infonnation set forth
herein has been obtained by the Town from sources which are believed to be reliable but it is not gJ}aranteed as to
accuracy or completeness. The infonnation and expressions of opinion herein are subject to change WIthout notice and
neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any
implication that there has been no change in the affaIrs of the Town since the date hereof.
TABLE OF CONTENTS
Page
THE BONDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. I
DescriptionoftheBonds .................................................................. 1
Optional Redemption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. I
Book-entry-only System .................................................................. I
~~~~~................................................................3
Security and Source of Payment ............................................................ 3
RemedIes Upon Default ................................................................... 3
THE TOWN ............................................................................... 4
General Infonnation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4
Govermnent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4
Employees . . . . . . . . . . . _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5
ECONOMIC AND DEMOGRAPHIC INFORMATION. . . . . . . . . . . . . . . . . . . _ . . . . . . . . . . . . . . . . . . . . . .. 5
Population Characteristics ................................................................. 5
Median Income of Families . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5
Unemployment Rate Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6
Selected Listing of Larger Employers .......................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6
INDEBTEDNESS OF THE TOWN ............................................................ 6
Constitutional Requirements ............................................................... 6
Statutory Procedure ...................................................................... 7
Computation of Debt Limit and Calculation of Net Debt Contracting Margin ......................... 8
Trena of Town Indebtedness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8
Details of,Short-Tenn Indebtedness O,!tstanding ............................................... 9
Debt ServIce Requrrements - Outstandmg Bonds ............................................... 9
Calculation of Estimated Overlapping ana Underlying Indebtedness ................................ 9
Authorized But Unissued Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 10
Capital Program........................................................................ 10
Landfill Closure and Postclosure Care Costs .................................................. 10
FINANCES OF THE TOWN ................................................................ II
Financial Statements and Accounting Procedures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 11
Fund Structure and Accounts ......................................................... 11
Basis of Accounting ................................................................ II
Investment Policy ...................................................................... II
~~~~ti~c5;~r~~~~~S : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : :: :~
Revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . - . . . . . . . . . - . . .. 12
~;;,~~ ~?J'erty :.axe~. : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : :: :~
~~g~i~~iW;~:e~s . : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : :: :~
ContributIOns to the Retirement Systems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 13
Other Post Employment Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 14
REAL PROPERTY TAX INFORMATION .................................................... 14
Real Property Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 14
Tax Levy ~a Collection Record . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 15
Tax CollectIOn Procedure ................................................................ 15
Tax Rates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 15
Large Taxable Properties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 15
LITIGATION............................................................................. 16
BONDHOLDER RISKS AND MARKET FACTORS AFFECTING FINANCINGS
OF THE STATE AND MUNICIPALITIES OF THE STATE...................................... 16
i
TABLE OF CONTENTS
(Continued)
Page
TAX MATTERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 17
Opinion of Bond Counsel................................................................ 17
CertainOnlloingFederal Tax Requirements and Covenants ...................................... 17
Certain Co ateral Federal Tax Consequences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . '" 17
Original Issue Discount.................................................................. 17
Bond Premium ......................................................................... 18
r:~f.1fti:thh~lding.:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: :~
DOCUMENTS ACCOMPANYING DELIVERY OF THE BONDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 18
Absence of Litigation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 18
Legal Matters.......................................................................... 19
Closing Certificates ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 19
DISCWSURE UNDERTAKING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 19
BOND RATING ........................................................................... 20
FINANCIAL ADVISOR .................................................................... 20
ADDITIONAL INFORMATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 20
APPENDIX A:
APPENDIX B;
APPENDIX C:
Financial Information
Audited Financial Statements For the Fiscal Year Ended December 31, 2005
Insurance on the Bonds
11
OFFICIAL STATEMENT
$14,650,000
TOWN OF SOUTHOLD
SUFFOLK COUNTY, NEW YORK
PUBLIC IMPROVEMENT SERIAL BONDS - 2007
[BOOK-ENTRY-ONLY BONDS]
This Official Statement presents certain information relatin~ to the Town of Southold, in the County of
Suffolk, in the State of New York (the "Town," "County" and "State,' respectively) in connection with the safe of
$14,650,000 Public Improvement Serial Bonds - 2007 (the "Bonds").
All quotations from and summaries and explanations of provisions of the Constitution and laws of the State
and acts and proceedings of the Town contained herein do not purport to be complete and are qualified in their
entirety by reference to the official compilations thereof and all references to the Bonds and the proceedings of the
Town relating thereto are qualified in their entirety by reference to the definitive form of the Bonds and such
proceedings.
THE BONDS
Description of the Bonds
The Bonds will be dated April 15, 2007 and will mature on April 15, in each of the years 2008 to 2030,
inclusive, in the principal amounts as set forth on the cover page hereof.
The Bonds will be issued in fully registered form and when issued will be registered in the name of Cede &
Co. as nominee of The Depository Trust Company ("DTC"), New York, New York. DTC will act as Securities
Depository for the Bonds. Individual purchases of the 'Bonds may be made in book-entry form only, in denominations
of $5,000 or integral multiples thereof. Purchasers will not receive certificates representing their interest in the
Bonds.
Interest on the Bonds will be payable October IS, 2007, and semi-annually thereafter on April 15 and October
15, in each year until maturity. Principal and interest will be paid by the Town to DTC, which will in turn remit such
principal and interest to its Participants, for subsequent dIstribution to the Beneficial Owners of the Bonds, as
described herein. The Bonds may be transferred in tlie manner described on the Bonds and as referenced in certain
proceedings of the Town referred to therein.
The Record Date of the Bonds will be the last business day of the month preceding each interest payment
date.
Optional Redemption
The Bonds maturing on or before April 15, 2017 will not be subject to redemption prior to maturity. The
Bonds maturing on or after April 15, 2018 will be subjectto redemption prior to maturity, at the option of the Town,
on April 15, 2017 and thereafter on any date, in whole or in part, and if In part, in any order of their maturity and in
any amount within a maturity (selected by lot within a maturity), at par, plus accrued interest to the date of
redemptIon.
The Bonds shall be redeemable prior to maturity upon the giving of notice which identifies the Bonds to be
redeemed, by mailing such notice to the registered holders thereof at their respective addresses as shown upon the
registration books of the Fiscal Agent at least 30 days prior to the date set for any such redemption. If notice of
redemption shall have been given as aforesaid, the Bonds so called for redemption shall become due and payable at
the applicable redemption price on the redemption date designated in such notice, and interest on such Bonds shall
cease to accrue from and after such redemption date.
Book-entry-only System
DTC will act as securities depository for the Bonds (the "Bonds"). The Bonds will be issued as fully-
registered Bonds registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be
requested by an authorized representative of DTC. One fully-registered Bond certificate will be issued for each
maturity of the Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC.
1
DTC, the world's largest depository, is a limited-purpose trust company organized under the New York
Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal
Reserve System, a "clearing corporation" within the meaning of the New York Umform Commercial Code, and a
"clearing agency" registered pursuant to the provisions of Section 17 A ofthe Securities Exchange Act of 1934. DTC
holds and provIdes asset servicing for over 2 million issues of U.S. and non-U.S. equi!r issues, corporate and
municipal aebt issues, and money market instruments from over 85 countries that DTC s participants ("Direct
Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct PartiCipants of sales
and other securittes transactions in deposited securities, through electronic computerized book-entry transfers and
pledges between Direct Participants accounts. This eliminates the need for physical movement of securities
certificates. Direct Participants include both U.S. and non-U.s. securities brokers and dealers, banks, trust companies,
clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust
& Clearing Corporation ("DTCC"). DTCC, in turn, is owned by a number of Direct Participants of DTC and
Members of the National Securities Clearing Corporation, Government Securities Clearing Corporation, MBS
Clearing Corporation, and Emerging Markets Clearing Corporation, (NSCC, GSCC, MBSCC, and EMCC, also
subsidiaries ofDTCC), as well as by the New York Stock Exchange, Inc., the American Stock Exchange LLC, and
the National Associatton of Securities Dealers, Inc. Access to the DTC system is also available to others such as both
U.S. and non-U.s. securities brokers and dealers, banks, trust companies, and clearinil corporations that clearthrou~
or maintain a custodial relationship with a Direct Participant, either directly or indlfectIY ("Indirect Participants' ).
DTC has Standard & Poor's highest rating: AAA. The DTC Rules applicable to its Participants are on file with the
Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will
receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond
("Beneficial Owner")is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will
not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive
written confirmations providing details ofthe transaction, as well as periodic statements of their holdings, from the
Direct or Indirect Participantthrough which the Beneficial Owner entered into the transaction. Transfers of ownership
interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting
on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests
in Bonds, except in the event that use of the book-entry system for the Bonds is discontinued.
To facilitate subseguent transfers, all Bonds deposited by Direct Participants with DTC are registered in the
name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized
representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such
other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial
Owners ofthe Bonds; DTC's records reflect only the identity ofthe Direct Participants to whose accounts such Bonds
are credited, which mayor may not be the Beneficial Owners. The Direct and Indirect Participants will remain
responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect PartiCIpants, and by Direct Participants and Indirect Participants to BenefiCial Owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements as may be in effect from ttme to time.
Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed,
DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be
redeemed.
Payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an
authorized representative ofDTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of
funds and corresponding detail information from the Town, on the payable date in accordance with their respective
holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing
instructions and customarr, practices, as is the case with bonds held for the accounts of customers in bearer form or
registered in "street name, , and will be the responsibility of such Participant and not ofDTC nor its nominee, or the
Town, subject to any statutory or regulatory requirements as may be in effect from time to time. Payments to Cede
& Co. (or such other nominee as may be requested by an authonzed representative ofDTC) is the responsibility of
the Town, disbursement of such payments to Direct Participants will be the responsibiliry ofDTC, and aisbursement
of such payments to the BenefiCial Owners will be the responsibility of Direct and indirect Participants.
DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving
reasonable notice to the Town. Under such circumstances, in the event that a successor depository is not obtained,
Bond certificates are required to be printed and delivered.
The Town may decide to discontinue use of the sxstem of book-entry transfers through DTC (or a successor
securities depository). In that event, Bond certificates Will be printed and delivered.
The information in this section concerning DTC and DTC's book-en!!y system has been obtained from
sources that the Town believes to be reliable, but the Town takes no responsibihty for the accuracy thereof.
2
THE TOWN WILL NOT HA VB ANY RESPONSIBILITY OR OBLIGATION TO PARTICIPANTS, TO
INDIRECT PARTICIPANTS OR TO ANY BENEFICIAL OWNER WITH RESPECT TO (I) THE ACCURACY
OF ANY RECORDS MAINTAINED BY DTC, ANY PARTICIPANT, OR ANY INDIRECT PARTICIPANT; (II)
THEPA YMENTS BY DTC OR ANY PARTICIPANT OR INDIRECT PARTICIPANT OF ANY AMOUNT WItH
RESPECT TO THE PRINCIPAL OF, OR PREMIUM, IF ANY, OR INTEREST ON THE BONDS; (III) ANY
NOTICE WHICH IS PERMITTED OR REQUIRED TO BE GIVEN TO BONDHOLDERS; (IV) THE SELECTION
BY DTC OR ANY PARTICIPANT OR INDIRECT PARTICIPANT OF ANY PERSON TO kECEIVE PAYMENT
IN THE EVENT OF A PARTIAL REDEMPTION OF THE BONDS; OR (V) ANY CONSENT GIVEN OR OTHER
ACTION TAKEN BY DTC AS BONDOWNER.
Source: The Depository Trust Company
Authorization and Purpose
The Bonds are being issued pursuant to the Constitution and statutes of the State of New York, including
among others, the Town Law and the Local Finance Law, and various bond resolutions duly adopted by the Town
Board on their respective dates, authorizing the issuance of serial bonds for various capital projects ofllie Town.
Such projects, and their respective amounts of Bonds to be issued for each, are as follows:
Date of
Voter
Aooroval
Date
Authorized
08-26-03
08-28-0 I
08-23-99
09-01-98
03-13-01 &
11-19-02
09-07-04
11-16-04
02-27-07
02-27-07
Amount to
Puroose
be Issued
11-04-03
11-06-01
II -02-99
11-03-98
N.A.
N.A.
N.A.
N.A.
N.A.
Open Space Preservation
Open Space Preservation
Open Space Preservation
Open Space Preservation
$ 4,000,000
2,000,000
2,000,000
1,987,900
1,200,000
315,000
3,000,000
95,000
52.100
Solid Waste Management District - Land Acquisition ....
Payment of Settled Claim ..........................
Solid Waste Management District - Transfer Station .....
Acquisition of Excavator ...........................
Acquisition of Tractor-Mower . . . . . . . . . . . . . . . . . . . . . . .
Total ................................. $14.650.000
A portion of the proceeds of the Bonds, together with available funds in the amount of$I,895,000, will be
used to redeem outstanding bond anticipation notes in the amount of $6,4 I 0,000; the balance of the proceeds of the
Bonds will provide original funds for the above referenced projects. .
For further information regarding bond authorizations of the Town for capital purposes and other matters
relating thereto see "Indebtedness of the Town".
Security and Sonrce of Payment
Each Bond when duly issued and paid for will constitute a contract between the Town and the holder thereof.
The Bonds will be general obligations of the Town and will contain a pledge ofthe faith and credit of the
Town for the payment of the principal thereof and the interest thereon. For the payment of such principal and
interest, the Town has the power and statutory authorization to levy ad valorem taxes on all taxable real property in
the Town without limitation as to rate or amount.
Under the Constitution of the State, the Town is re~ired to pledge its faith and credit for the payment of the
principal of and interest on the Bonds, and the State is speCifically precluded from restricting the power of the Town
to levy taxes on real estate therefor.
Remedies Upon Default
Under current law, provision is made for contract creditors (including the Bondholders) of the Town to
enforce payments upon such contracts, if necessary, through court action, although the present statute limits interest
on the amount adjudged due to creditors to nine per centum per annum from the date due to the date of payment. As
a general rule, property and funds of a municipal corporation serving the public welfare and interest have not been
judicially subjected to execution or attachment to satisfy a judgment, although judicial mandates to officials to
appropriate and pay judgments out of current funds or the proceeds of a tax levy have been issued.
3
Remedies for enforcement of payment are not expressly included in the Town's contract with holders of its
bonds and notes, although any pennanent repeal by statute or constitUtional amendment of a Bondholder's remedial
right to judicial enforcement of the..contract should, in theopinion.of Bond Counsel, be held unconstitutional.
The State has consented that any municipality in the State may file a petition with any United States district
court or court of bankruptcy under anyl?rovision of the laws of the United States, now or hereafter in effect for the
composition or adjustment of municipal mdebtedness. Subject to such consent, under the United States Constitution,
Congress has jurisdiction over such matters and has enacted amendments to the existing federal bankruptcy statute,
generally to the effect and with the purpose of affording municipal corporations, under certain circumstances, with
easier access to judicially approved adjustment of debts, mcludingjudicial control over identifiable and unidentifiable
creditors.
In recent times, certain events and legislation affecting remedies on default have resulted in litigation. While
courts of final jurisdiction have upheld and sustained the rights of bondholders, such courts might hold that future
events including financial crises as they may occur in the State and in municipalities of the State require the exercise
by the State of Its emergency police powers to assure the continuation of essential services.
No principal or interest payments on Town indebtedness are past due. The Town has never defaulted in the
payment of the pnncipal of and interest on any indebtedness.
THE TOWN
There follows in this Statement a brief description of the Town, together with certain infonnation concerning
its economy and governmental organization, its indebtedness, current major revenue sources and expenditures and
general and specIfic funds.
General Information
The Town, with a land area of 54.5 square miles, is located in eastern Suffolk County on the north fork of
Long Island. Settlementtook place in 1640. The Village of Green port is located wholly within the Town. The Town
also mcludes the area of Fishers Island which is located approximately twelve miles east of the mainland. Fishers
Island is accessible only by water or air with ferry service operating between the Island and New London,
Connecticut.
; The Town is primarily amral resort area with substantial shopping facilities available atGreenport, at various
shopping centers within the Town; and at Riverhead justto the west,;.Some commercial:senlicesare available within
the Town in the hamlets of Southold, Cutchogue and Mattituck. . .
Agriculture has been a major industry in the Town since its origins. In recent years, farm crops are gradually
evolving from basic production to nursery crops including shrubs, sod, potted plants and other ornamentals. A
substantIal portion orthese products are shipped by ferry across Long Island Sound for distribution throughout New
England. A number of vineyards have been established and wine-making is an important industry. Fishing and fish
processing are now growing industries due to improved transportation facilities. The Town is also a major summer
resort area, utilizing bays, mlets and Long Island and Block Island Sounds.
The main highways in the Town are New York State Route 25 and North Road. Rail transportation is
provided by the Long Island Rail Road with stations at Mattituck, Southold and Greenport. Ferry service is also
available between Onent Point, east of Green port, and New London, Connecticut as well as from Greenport to Shelter
Island.
Electric service is provided by the Long Island Power Authority. gas service is provided by Keyspan Energy
Corporation. Fire protection is the responsibility of volunteer fire and fire protection districts. The Town provides
its own police protection. In the Village of Green port, electric service and fire protection are provided by the Village.
Government
Six independently governed school districts are located wholly or rartially within the Town, which rely on
their own taxing powers granted by the State to raise revenues. The schoo districts use the Town's assessment roll
as their basis for taxation of property located within the Town.
Subjectto the provisions of the State Constitution, the Town operates pursuantto the Town Law, the General
Municipal Law, the Local Finance Law, other laws generally applicaJjle to the Town, and any special laws generally
applicable to the Town. Under such la,,:s, there is no authority for the Town to ~ave a ~harter, but pursuant to ~he
Towil Law and other laws generally apphcableto home rule, the Town may from tIme to time adopt local laws which
do not conflict with existing laws as enacted by the State.
4
The legislative J'ower of the Town is vested in the Town Board which consists oftive members, elected for
a term off our years, and the Supervisor, who is the chief executive ofTIcer of the Town, elected for a term of two
years; effective with the term commencing January I, 2008, the term of office of the Supervisor will be four years.
Such terms are staggered such that two or three councilmen are elected every two years. All the Town Board
members are elected at large and there is no limitation to the number ofterms each may serve.
Employees
The Town provides services through approximately217 full-time and 59 part-time employees, some of whom
are represented by organized labor.
The following table presents the number of employees' represented by organized labor, name of union and
contract expiration dates.
Name of Union
Civil Service Employees Assoc. .......................
Police Benevolent Assoc. .. . . . . . . . . . . . . . . . . . . . . . . . . .
Approximate
Membership
163
48
Date Contract
Exoires
12-31-07
12-31-09
ECONOMIC AND DEMOGRAPffiC INFORMATION
Population Characteristics
The Town has had a population trend, as compared to the County and the State, as indicated below:
Year
Town of
Southold
Suffolk
County
New York
State
1970
1980
1990
2000
2005
16,804
19,172
19,836
20,599
23,344
1,127,030
1,284,231
1,321,977
1,419,369
1,483,396
18,241,391
17,557,288
17,990,455
18,976,457
19,254,630
Source: U.S. Bureau of the Census, Long Island Power Authority.
Median Income of Families
Town
County
State
1980
$21,013
24,194
20,180
1990
$43,082
53,247
39,741
2000
$61,108
72,112
51,691
Source:
U.S. Department of Commerce, Bureau of the Census.
Per Caoita Monev Income
1980 1990 2000
Town
County
State
$8,258
7,576
7,496
$19,037
18,481
16,501
$ 27,619
26,577
23,389
Source:
U.S. Department of Commerce, Bureau of the Census.
5
Unemployment Rate Statistics
Unemployment statistics are not available for the Town as such. The smallest area for which such statistics
are available (which includes the Town) is the County of Suffolk. The information set forth below with respect to
such County is included for information purposes only. It should not be implied from the inclusion of such data in
this Statement that the Town is necessarily representative of the County or vice versa.
Annual Averages:
2002
2003
2004
2005
2006
Source: Department of Labor, State of New York
Suffolk
County
New York
State
4.3%
4.3
4.5
4.2
3.9
5.9%
6.2
5.9
5.0
4.5
Selected Listing of Larger Employers
Name
East<:rn Long Island Hospital. . . . . . . . . . . . . . . . . . . . . . .
Mattttuck-Cutchogue UFSD .......................
Plum Island ADC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Town of South old ...............................
Southold UFSD .................................
San Simeon by the Sound .........................
Peconic Landmg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GreenportUFSD ................................
~
Hospital
Public School
U.S. Govt. Facility
Local Government
Public School
Nursing Home
Life Care Community
Public School
Approx. No.
of Emolovees
376
330
290
276
194
165
160
137
INDEBTEDNESS OF THE TOWN
Constitutional Requirements
The New York State Constitution limits the power of the Town (and othermunicil?alities and school districts
of the State) to issue obligations and to contract indebtedness. Such constitutionallimitattons include the following,
in summary form, as generally applicable to the Town and the Bonds:
Purpose and Pledge. The Town shall not give or loan any money or property to or in aid of any individual,
or private corporation or pnvate undertaking or give or loan its creditto or in aId of any of the foregoing or any public
corporation.
The Town may contract indebtedness only for a Town purpose and shall pledge its faith and credit for the
payment of principal of and interest thereon.
Payment and Maturity. Except for certain short-term indebtedness contracted in anticipation of taxes or
to be paid within three fiscal year periods, indebtedness shall be paid in annual installments commencing no later than
two years after the date sucli indebtedness shall have been contracted and ending no later than the expiration of the
period of probable usefulness of the object or purpose determined by statute; no installment may be more than fifty
per centum in excess of the smallest pnor installment, unless the Town has authorized the issuance of indebtedness
having substantially level or declining annual debt service. The Town is required to provide an annual appropriation
for the payment of interest due during the year on its indebtedness and for the amounts required in such year for
payment of principal on its serial bonds, bond anticipation notes and capital notes.
Debt Limit. The Town has the power to contract indebtedness for any Town purpose so long as the principal
amount thereof shall not exceed seven 'per centum of the average full valuation of taxable real estate of the Town and
subject to certain enumerated exclUSIOns and deductions such as water and certain sewer facilities and cash or
appropriations for current debt service. The Constitutional method for determining full valuation consists of dividing
the total assessed valuation of taxable real estate for a specified assessment roll by the final equalization ratio
establisbed for such assessment roll by the State Board of Real Property Services (the "State Board'? The State
Legislature is required to prescribe the manner by which such ratio shan be determmed. Average ful valuatior:' is
determined by taking the sum of the full valuations of such last completed assessment roll and the four precedmg
assessment rolls and- dividing such sum by five.
6
There is no constitutional limitation on the amount that may be raised by the Town by tax on real estate in
any fiscal year to pay interest and principal on all indebtedness.
General. The Town is further subject to constitutional limitation by the general constitutionally imposed
duty of the State Legislature to restrict the power of taxation, assessment, borrowing money, contracting indebtedness
and loaning the credit of the Town so as to prevent abuses in taxation and assessments and 10 contracting
indebtedness; however, as has been noted under "Security and Source of Payment" the State Legislature is prohibited
by a specific constitutional provision from restricting the power of the Town to levy taxes on real estate for the
payment of interest on or prmcipal of indebtedness theretofore contracted.
Statutory Procedure
In general, the State Legislature has authorized the power and procedure for the Town to borrow and incur
indebtedness by the enactment of the Local Finance Law sullject, of course, to the constitutional provisions set forth
above. The power to spend money, however, generally derives from other law, including the Town Law and General
Municipal Law of the State.
Pursuant to the Local Finance Law, the Town authorizes the incurrence of indebtedness, including bonds and
bond anticipation notes issued in anticipation of such bonds, by the adoption of a resolution, approved by at least two-
thirds of the members of the Town Board, the finance board of the Town. Certain of such resolutions may be subject
to permissive referendum, or may be submitted to the Town voters at the discretion of the Town Board; 10 this latter
scenario, only a three-fifths vote of the Town Board is required.
The Local Finance Law also provides a twenty-day statute of limitations after publication of a bond
resolution, which in effect, estops thereafter legal challenges to the validity of obligations authorized by such bond
resolution except for alleged constitutional violations. The Town has complied with such procedure with respect to
the Bonds.
Each bond resolution usually authorizes the construction, acquisition or installation of the object or purpose
to be financed, sets forth the plan of financing and specifies the maximum maturity of the bonds subject to the legal
(Constitution, Local Finance Law and case law) restrictions relating to the period of probable usefulness with respect
thereto.
Each bond resolution also authorizes the issuance of bond anticipation notes prior to the sale of serial bonds.
Statutory law in New York permits notes to be renewed each year, provided annual principal reductions are made
and provided that such renewals generally do not extend five years beyond the original date of borrowing . However,
notes issued in anticipation of the sale of serial bonds for assessable Improvements are not subject to such five year
limit and may be renewed subject to annual principal reductions for the entire period of probable usefulness of the
purpose for which such notes were originally Issued. (See "Payment and Maturity" under "Constitutional
Requirements," and "Details of Short-Term Indebtedness Outstanding.")
In general, the Local Finance Law contains similar provisions providing the Town with power to issue
general obhgation revenue and tax anticipation notes and general obligatIOn budget and capital notes.
The following tables set forth the computation of debt limit and the calculation of total net indebtedness
of the Town in accordance with the constitutional requirements hereinabove described.
The following pages set forth certain details with respect to the indebtedness of the Town.
7
Computation of Debt Limit and Calculation of Net Debt Contracting Margin
(As of March 27, 2007)
F iscal Year
Ending
December 31:
Assessed
Valuation
State
Equalization
Rate
1.71%
1.49
1.25
1.13
1.04
2003
2004
2005
2006
2007
$ 98,928,528
101,872,561
104,228,885
105,502,965
106,950,027
Total Five Year Full Valuation. . .. .. . .. . .. . . . . . .. . . . . .... . ... .. ... .. .. .. . .. .. .
Average Five Year Full Valuation .............................................
Debt Limit -7% of Average Full Valuation ......................................
Inclusions:
OU~~~~~~~i:~s .. ............. .... ..... ....... .... ..................
Otber .. . . . .. . .. . .. .. . .. . .. . .. . .. .. . . .. .. .. . .. . . .. . .. .. .. . .. . . .. .
Sub-Total
...........................................................
Bond Anticipation Notes ....................................................
Total Inclusions ........................................................
Exclusions:
Cash on rIl!Dd for Debt (Grant Proceeds) .....................................
AppropnatlOns .........................................................
Total Exclusions ........................................................
Total Net Indebtedness Before Issuing the Bonds .................................
The Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: BANs to be paid from bond proceeds ......................................
Net Effect ofIssuing Bonds .............................................:....
Total Net Indebtedness After Issuing the Bonds ..................................
Net Debt Contracting Margin After Issuing the Bonds .............................
Percent of Debt Limit Exhausted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Full
Valuation
$ 5,785,294,035
6,837,084,630
8,338,310,800
9,336,545,575
10.283.656.442
$40,580,891,482
8,116,178,296
568,132,480
$10,775,000
-0-
10.775.000
8.244.000
19.019.000
1,504,689
1.003.3 II
$ 2.508.000
15.511.000
14,650,000
4.515.000
10.135.000
25.646.000
$542.486.480
4.51%
Trend of Town Indebtedness
The following table represents the outstanding indebtedness of the Town at the end of the last five preceding
fiscal years.
Fiscal Year Ending December 31:
2002 2003 2004 2005 2006
Debt Outstanding End of Year: $7,615,000 $6,950,000 $6,515,000 $12,299,098 $ 11,349,098
Bonds ..................
Bond Anticipation Notes ... 11.020.709 14.768.302 12.625.600 11.720.000 8.244.000
Total Outstanding Debt ........ $18.635.709 $21.718.302 $19.140.600 $24.019.098 $19.593.098
8
_._-,~""-"-,,,,,.-_.,"_......
,__...~w____
Details of Short-Term Indebtedness Outstanding
Bond Anticioation Notes.
Maturity
Puroose
Amount
04-20-07
06-08-07
08-24-07
09-07-07
Various Purposes ..........................................
Fishers Island Fel'!)' District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fishers Island Refuse and Garbage District . . . . . . . . . . . . . . . .
Various Purposes ..........................................
Total
................................................
$6,619,000'
1,625,000
560,000
1.110.000
$ 8.244.000
a. To be funded from the proceeds of the Bonds and from available funds of the Town.
Debt Service Requirements - Outstanding Bonds
Fiscal Year
Endin~
Decem er31: Princioal Interest Total
2007 . . . . . . . . . . . . . . . . . . . . . . . $ 979,098 $376,468 $1,355,566
2008 ....................... 995,000 345,309 1,340,309
2009 ....................... 1,025,000 312,348 1,337,348
2010 ....................... 1,000,000 277,957 1,277,957
2011 ....................... 1,025,000 242,982 1,267,982
2012 ....................... 940,000 209,413 1,149,413
2013 ....................... 800,000 180,382 980,382
2014 ....................... 815,000 153,083 968,083
2015 ....................... 810,000 124,535 934,535
2016 ....................... 735,000 98,164 833,164
2017 ....................... 745,000 72,318 817,318
2018 ....................... 760,000 45,712 805,712
2019 ....................... 320,000 26,020 346,020
2020 ....................... 200,000 15,600 215,600
2021 . . . . . . . . . . . . . . . . . . . . . . . 200.000 8.000 208.000
Totals ................... $11.349.098 $2.488.291 $13.837.389
a. Does not included refunded bonds.
Calculation of Estimated Overlapping and Underlying Indebtedness
Alfclicable Ap~licable
Overlapping Date of Percenta~e otal et
Unitsa Reoort Aoolicali e Indebtedness Indebtedness
County of Suffolk ..................... 12-11-06 3.71% $36,425,459 $30,380,486
Village of Greenport ................... 03-10-06 100.00 13,583,997 12,564,797
School Districts:
Fishers Island ............. 06-30-06 100.00 455,000 455,000
Greenport ................. 06-30-06 100.00 270,000 270,000
Mattituck-Cutchogue ....... 06-30-06 98.49 29,113,644 25,328,870
New Suffolk Common ...... 06-30-06 100.00 - -
Oyster Ponds .............. 06-30-06 100.00 150,000 150,000
Southold ................. 06-30-06 100.00 10,795,000 10,795,000
Fire Districts:
Cutchogue . .. .. . .. .. .. . .. . . 12-31-05 100.00
East Marion ............... 12-31-03 100.00 410,683 410,683
Fishers Island .............. 12-31-05 100.00
Mattituck ................. 12-31-05 100.00
Orient .................... 12-31-05 100.00 25,000 25,000
Southold . . . . . . . . . . . . . . . . . . 12-31-05 100.00 1.600.000 1.600.000
$ 97.693.283 $ 86.204.151
a. Does not include refunded bonds.
Sources: Annual Financial Reports on file with the Office of the State Comptroller, or more recently published Official
Statements.
9
Authorized But Unissued Items
The following Bonds are authorized but unissued:
Date
Authorized
Puroose
09-0]-98
08-23-99
08-28-0 ]
02-25-03
08-26-03
08-]6-05
] ]-2]-06
02-27-07
02-27-07
02-27-07
02-27-07
Acquisition of Rights in Land-Open Space Preservation. . . . . . . . . . . . . . .
Acquisition ofRigbts in Land-Open Space Preservation ..............
Acquisition of Rights in Land-Open Space Preservation ..............
Mattituck In]et Shore Erosion Study ..............................
Acquisition of Rights in Land-Open Space Preservation. . . . . . . . . . . . . . .
Construction of New Town Anima] Shelter. . . . . . . . . . . . . . . . . . . . . . . . .
Improvements to Peconic Recreation Center . . . . . . . . . . . . . . . . . . . . . . . .
Acquisition of Air Vacuum Drain Cleaner .........................
Acquisition of Rights in Land-Open Space Preservation. . . . . . . . . . . . . . .
Acquisition of Excavator .......................................
Acquisition of Tractor-Mower .. . .... ... .. .,. ... . . . .. .. . . . . . . . . ..
Total
a. To be funded in whole or in part from the proceeds of the Bonds.
Amount
$ 2,000,000'
2,000,000'
2,000,000'
82,750
4,000,000'
2,600,000
200,000
278,000
22,500,000
] 00,00'
60.000'
$35.820.750
Capital Program
The Town annually adopts a Capital Budget. Projects may be funded by State !llld Federa] aid, rese!"es,
proceeds of obligations, property taxes or a combination thereof. A summary of the Capita] Budget for 2007 IS set
forth below:
Deoartment
General Town ....................................
Highway Dept. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SoTid Waste District ...............................
Wastewater Disposal District .......................
Total.......................................... .
Sources
Appropriations ...................................
Grants . . . . .. . .. . .. .. . .. . . .. .. .. . . .. . . .. . .. . . .
Town Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total
2007
$3,327,428
788,000
465,000
$ 4.580.428
$ 313,26]
684,]67
3.583.000
$ 4.580.428
Landfill Closure and Postclosure Care Costs
The Town owns a landfill on a site in the unincorporated area of Cutchogue, commonly known as the
Cutchogue Landfill. The Town ceased accepting waste at its Cutchogue Landfill as of October 8, ]993. Placement
of the final cover, referred to as car.ping, on the ]andfill was completed in November 2003. In addition to placement
of the final cover on the landfil, state and federal regulations presently require the Town to perform certain
maintenance and monitoring functions at the site for up to thirty years. The Town has and will continue to comply
with said requirements. The ongoing post closure costs are estimated to be between $20,000 and $25,000 per year
from 2007 through 2009. The Town paid $23,920 for such costs in 2006 and will continue to pay these costs in the
future.
Actual costs associated with the capping totaled $7,68],720. Financing for closure activities has been
provided in part through a grant from the New York State Department of Environmental Conservation in the amount
of$2,000,000. The balance was provided through a State subsidized loan received in July, 2004 from the New York
State Environmental Facilities Corporation. Costs associated with postc1osure care will be covered by charges to
future users of the collection facility and site and future tax revenue.
]0
__h,~",,~_,,~'_~_""_"4
FINANCES OF THE TOWN
Financial Statements and Accounting Procedures
The Town maintains its financial records in accordance with the Uniform System of Accounts for Towns
prescribed by the State Comptroller. The financial records ofthe Town are audited by Independent accountants. The
last such audit made availa61e for public inspection covers the fiscal year ended Decem6er 31,2005. In addition,
the financial affairs of the Town are subject to periodic compliance review by the Office of the State Comptroller
to ascertain whether the Town has complied with the requirements of various State and Federal statutes.
In June, 1999, the Governmental Accounting Standards Board ("GASB") issued Statement 34, "Basic
Financial Statements and Management's Discussions and Analysis for State and Local Governments". This
Statement established new financIal reporting requirements for state and local governments throughout the United
States. It will required new information and restructuring of much of the information that governments have
presented in the past. Comparability with reports issued in all prior years will be affected. GASB required the Town
to implement thIS standard for the fiscal year ending December 31, 2003 and the Town has complied with such
requirements.
Fund Structure and Accounts
The Town utilizes fund accounting to record and report its various service activities. A fund represents both
a legal and an accounting entity which segregates the transactions of specific programs in accordance with special
regulations, restrictions or limItations.
There are three basic fund types: (1) governmental funds that are used to account for basic services and
capital projects; (2) proprietary funds that account for operations of a commercial nature; and, (3) fiduciary funds
that account for assets held in a trustee capacity. Account groups, which do not represent funds, are used to record
fixed assets and long-term obligations that are not accounted for in a specific fund.
The Town presently maintains the following governmental funds: General Fund, Highway Fund and Special
Districts Funds, ana the Capital Projects Fund. Fiduciary funds consist of a Trust and Agency Fund. There are no
proprietary funds. Account groups are maintained for fixed assets and long-term debt.
Basis of Accounting
The Town's ,governmental funds are accounted for on a modified accrual basis of accounting. Under the
modified accrual baSIS, revenues are recognized when they become susceptible to accrual- that is, when they become
"measurable" and "available" to finance expenditures to the current period. Revenues are susceptible to accrual
include real property taxes, intergovernmental revenues (State and Federal aid) and operating transfers.
Expenditures are generally recognized under the modified accrual basis of accounting, that is when the
related fund liability is incurred. An exception to this general rule is unmatured interest on general long-term debt
which is recognized when due.
Investment Policy
Pursuant to State law, including Sections 10 and II of the General Municipal Law (the "GML"), the Town
is generally permitted to deposit moneys in banks or trust companies located and authorized to do business in the
State. All such deposits, including special time deposit accounts and certificates of deposit, in excess of the amount
insured under the Federal Deposit1nsurance Act, are required to be secured in accordance with the provisions of and
subject to the limitations of Section 10 of the GML.
The Town may also temporarily invest moneys in: (I) obligations of the United States of America; (2)
obligations guaranteed by agencies of the United States of America where the payment of principal and interest are
guaranteed 6y the United States of America; (3) obligations of the State of New York; (4) with the approval of the
New York State Comptroller, in tax anticipation notes or revenue anticipation notes issued by any municipality,
school district, or district corporation, other than those notes issued by the Town, itself; (5) certificates of
participation issued in connection with installment purchase agreements entered into by political subdivisions of the
State pursuantto Section I 09-b(1 0) of the GML; (6) obligations of a New York public benefit corporation which are
made lawful investments for municipalities pursuant to the enabling statute of such public benefit corporation; or (7)
in the case of moneys held in certaIn reserve funds established by the Town pursuant to law, in obligations of the
Town.
All of the foregoing i~vestments are required to be. payable or redeemable at the option of the owner wi.thin
such times as the proceeds WIll be needed to meet expendItures for purposes for whIch the moneys were pr~vlded
and, in the case of obligations purc~a~ed with the proceeds of bonds or notes, shall b~ payable?r re~ee~able In any
event, atthe option of the owner, WIthIn two years of the date of purchase. Unless regIstered or InSCribed In the name
11
of the Town, such instniments and investments must be purchased through, delivered to and held in custody ofa bank
or trust company in the State pursuant to a written custodial agreement as provided by Section 10 of the GML.
The Town Board has adopted an investment policy and such policy conforms with applicable laws of the
State governing the deposit and investment of public moneys. All deposits and investments of the Town are made
in accordance with such policy.
Budgetary Procedures
The head of each administrative unit of the Town is reguired to file detailed estimates of revenues (other than
real property taxes) and expenditures for the next fiscal year With the budget officer (Supervisor) on or before August
15th. Estimates for each fire district situated within the Town must also be filed with the budget officer by this date.
After reviewing these estimates, the budget officer prepares a tentative budget which includes his recommendations.
A budget message explaining the main features of the budget is also prepared at this time. The tentative budget is
filed With the Town Clerk not later than the 30th of September. Subsequently, the Town Clerk presents the tentative
budget to the Town Board at the regular or special hearing which must be held on or before October 5th. The Town
Board reviews the tentative budget and makes such changes as it deems necessary and that are not inconsistent with
the provisions of the law. Following this review process, the tentative budget and such modifications, if any, as
approved by the Board become the preliminary budget. A public hearing, notice of which must be duly published
in the Town's official newspaper, on the preliminary budget is generally required to be held on the Thursday
immediately following the general election. At such hearing, any person may express his opinion concerning the
preliminary budget; however, there is no requirement or proVIsion iliat the prehminary budget or any portion thereof
be voted on by members of the public. After the public hearing, the Town Board may furtlier change and revise the
preliminary budget. The Town Board, by resolutIon, adopts the preliminary budget as submitted or amended no later
than November 20th, at which time, the preliminary budget becomes the annual budget of the Town for the ensuing
fiscal year. Budgetary control during the year is the responsibility of the Supervisor who is assisted in this area by
the Town Comptroller. However, any changes or modifications to the annual budget including the transfer of
appropriations among line items must be approved by resolution of the Town Board.
Budget Summaries for the 2006 and 2007 fiscal years may be found in Appendix A.
Financial Operations
The Supervisor functions as the chief fiscal officer as provided in Section 2 of the LocaJ Finance Law; in this
role, the Supervisor is responsible, for the Town's accounting and fmancial reporting activities. In addition, the
Supervisor IS also the Town's budget' officer and must thereforeprepare,theannualtentathte:budget for submission
to ,the Town Board. Pursuant to Section 30 of the Local Finance Law, the, Supervi1;or has >been authorized to issue
, or renew certain specific types of notes . As required by law; the Supervisor must' execute an authorizing certificate
which than becomes a matter of public record.
The Town Board, as a whole, serves as the finance board of the Town and is responsible for authorizing, by
resolution, all material financial transactions such as operating and capital budgets and bonded debt.
Town finances are operated primarily through the General and Special Revenue Funds. The General Fund
receives most ofits revenue from real property tax ana State aid. Current operating expenditures are I?aid from these
funds subject to available appropriatIOns. The Town also has refuse, sewer and wastewater distrIcts, which are
accounted for within separate funds. The primary sources of income for these districts comes from special
assessments levied against district properties at the same time real estate taxes are levied. Capital projects and
equipment purchases are accounted for ID special capital projects funds. The Town observes a calendar year (January
1 through December 31) for operating and reporting purposes.
Revenues
The Town receives most of its revenues from a real property tax on all non-exempt property situated within
the Town and from State Aid. A summary of such revenues for the five most recently completed fiscal years may
be found in Appendix A.
Real Property Taxes
See "Real Property Tax Information", herein.
State Aid
The Town is dependent upon financial assistance from the State which comes primarily in the form of a state
appropriation for State Aid to municipalities for operating purposes. There is no assurance, however, that the State
appropriation for State Aid to municipalities will continue, either pursuant to existing formulas or in any form
wliatsoever and, in any event, if appropriated and apportioned to the Town, payment can be made only if such monies
are available therefore. The State IS not constitutionally obliged to maintain or continue such aid. See Appendix A.
12
--~"""".'_".,~."<,-.",,~~"""
Expenditures
The major categories of expenditure for the Town are General Government Support, Public Safety,
Transportation, EconomIc Assistance and Opportunity Home and Community Services, Culture and Recreation,
Employee Benefits and Debt Service. A summary or'the expenditures for the five most recently completed fiscal
years may be found in Appendix A.
Pension Systems
Substantially, all employees of the Town are members of the New York State and Local Employees'
Retirement System ("ERS") or the New York State and Local Police and Fire Retirement System ("PFRS"). (Both
Systems are referred to together hereinafter as the "Retirement Systems" where appropriate.) The Retirement
Systems are cost-sharing multiple public employer retirement systems. The obligation of employers and employees
to contribute and the benefits to employees are governed by !he New York State Retirement System and Social
Security Law (the "Retirement System Law"). The Retirement Systems offer a wide range of plans and benefits
which are related to years of service and final average salary vesting of retirement benefits, death and disability
benefits and optional methods of benefit pa.Y.Jl1ents. All benefits generally vest after five years of credited service.
The Retirement System Law generally provIdes that all participating employers in each retIrement system are jointly
and severally liable for any unfunded investJDents. Such amounts are collected through annual billings to all
participating employers. Generally, all employees; except certain part-time employees, participate in the Retirement
Systems. The Retirement Systems are non-contrioutory with respect to memoers hired prior to July 27, 1976. All
employees who became members on or after July 27, 1976 must contribute 3% of their gross annual salary towards
the cost of their retirement program. Chapter 86 of the Laws of 2000 eliminated the 3% for Tier 3 and Tier 4
members with 10 years of service credit.
Due to unfavorable capital market returns over recent years and negative returns in each of the past three
years, the State Comptroller lias sent notice to every school district and municipality in New York State that he
believes that the retirement contributions will continue to increase in subsequent years.
With regard to the Retirement Systems, a pension reform bill was signed by the Governor into Law as
Chapter 49 of the Laws of2003. Chapter 49 changed the cycle of billing to match budget cycles of the Town. Under
the previous method, the Town was unsure of how much it would have to pay to the system until after its budget was
implemented. Under the new system the contribution for a given fiscal year will be based on the value of the pension
fund on the prior April I instead of the following April I so that the Town will be able to more accurately Include
the cost oftlie contrIbution into its budget. Chapter 49 requires the Town to make a minimum contribution of 4.5%
of payrol.1 every year, including years in which the investJDent performance of the fund would make a lower
contribution possible.
On July 20, 2004 the New York State Legislature passed a bill amending the Gener~1 Municipal La~, Local
Finance Law and the Retirement and Social Secunty Law. On July 30, 2.004, the Governor signed the .new retIrement
system legislation into Law as Chapter 260 of the Laws of2004. The bIll gIves ~e employer the optIOn to. move the
ual payment date for contributions from December 15th to February I~, effectIve Decem,?er 1.5, 2004. It Increases,
fn fi to ten ears the maximum amortization period of the portIOn of employer contrIbutIOns that exceeds 7%
rtm ~vfl for thl2004-2005 fiscal year of the Retirement System (April I ~ Ml!fch ~ I). It also allow~ employers.to
!' P~\~nds to finance their 2005-2006 and 2006-2007 fiscal year contrIbutIOns In excess ~f 9.5 Yo anq 10.5 Yo,
lSSU . I. This amortization may be made with the Retirement System or.tJ1e Town could Issue a maximum of
%s?y~~~~Xeral obligation bonds t1ie interest on which would be set at prevaIlIng bond market rates on the date of
sale and would be taxable for federal Income tax purposes.
For the payment due December 15,2007, it is estimated that the contribution will be approximately 11.5%
of payroll.
The Town aid its retirement obligation in full on December 15, 2006.an1 has ~ncluded its total o,?lig~tion
for the 2006 fiscal fear in its current budget. The Town does not plan to amortize Its retirement system obligatIOns.
While the Town is aware of the potential negative impact on it~ budget '!lid will ~ke tJ1e appropriate ste~s
to budget accordingly for the inc!ea~e, there .can be no as~urll!1ce that Its finanCIal posItion WIll not be negative y
impacted as a result of the potential Increase In such contrIbutIOns.
Contributions to the Retirement Systems
Amount
of
Contribution
Fiscal Year
Ending
December 31:
2002 ..................................
2003 ..................................
2004 .......................................
2005 .......................................
2006 ......................................
2007 (Budget) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 164,287
684,617
1,670, I 02
2,085,137
1,837,992
1,827,000
13
Other Post Employment Benefits
It should also be noted that the Town provides post-retirement healthcare benefits to various categories of
former employees. These costs may be expected to rise substantially in the future. There is now an accounting rule
that will reqUire governmental entities, such as the Town, to account for post-retirement healthcare benefits as it
accounts for vested pension benefits. GASB Statement No. 45 (nGASB 45n) of the Governmental Accounting
Standards Board (nGASB n), described below, requires such accounting. Although GASB 45 encourages earlier
adoption, implementation is required by the following dates, based on the size of government measured by annual
revenue:
Greater than $100 million
Between $10 million and $100 million
Less than $10 million
Effective for Fiscal Year Ending After:
December 15,2006
December 15, 2007
December 15,2008
Annual Revenue
School Districts and Boards of Cooperative Education Services, unlike other municipal units of government
in the State, have been prohibited from reducing retiree health benefits or increasing health care contributions
received or paid by retirees below the level of benefits or contributions afforded to or re'luired from active employees
since the implementation of Chapter 729 of the Laws of 1994. This protection from umlateral reduction of benefits
has been extended annually and continued through May 15, 2006 pursuant to Chapter 16 of the Laws of 2006.
Legislative attempts to provide similar protection to retirees of other local units of government in the State have not
succeeded as oftliis date. Nevertheless, many such retirees of all varieties of municipal units in the State do presently
receive such benefits.
GASB 45 and OPEB. OPEB refers to nother Rost-employment benefits,n meaning other than pension
benefits, disability benefits and OPEB consist primarily of health care benefits, and may include other benefits such
as disability benefits and life insurance. Until now, these benefits have generally been administered on a pay-as-you-
go basis and have not been reported as a liability on governmental financial statements.
GASB 45 will require municipalities and school districts to account for OPEB liabilities much like they
already account for pension liabilities, generally adopting the actuarial methodologies used for pensions, with
adjustments for the dIfferent characteristtcs of OPEB and the fact that most municipahties and school districts have
not set a~ide anY.fi!nd~ against this liab.i1ity. Unlike GASB 27, which c~ver~ accounting for pensions, GASB 45 does
not reqUire mUOlclpahtles or school dIstricts to report a net OPEB obhgatton at the start.
Under 9A~B 45, based 01.1 a<:tuarial valuati,:m, an annual required contribution (nARcn) will be determined
for each mUOlclpahry or school distriCt. The ARC IS the sum of (a) the normal cost for the year (the present value
offuture benefits bemg earned by current employees) plus (b) amo.rtization oftp.eunfunded accrued liability (benefits
already earned by curre1.1tand. former employee~ but no~yet proVIded for), usmg an amortization period of not more
th~n 30 years. .If a mUOlclpahty or school district contributes an amount less than the ARC a net OPEB obligation
WIll result, which is required to be recorded as a liability on its financial statements. '
GASB 4~ 40es. not require th!lt tp.e unfunded li!lbility actually be amortized nor that it be advance funded,
only that the mUnICipalIty or s<:nool dls~rIct acc?unt for Its .unfunded accrued liability and compliance in meeting its
ARC. The Town expects to be 10 complIance With the reqUirements ofGASB 45 by or before the applicable effective
date.
. Actuarial valuation will be required every 2 years for OPEB plans with more than 200 members every 3
years If there are less than 200 members. '
REAL PROPERTY TAX INFORMATION
Real Property Taxes
The Town derives a significant portion of its annual revenue through a direct real property tax.
The following table presents the total tax levy, by purpose, with adjustments and collection performance for
each of the last five fiscal years.
14
Tax Levy and Collection Record
Fiscal Year Endin~ December 31:
2004 200 2006
2003
Total Tax Levy. . . . . . . . . . . . . . . .
Amount Collected .............
Returned to County
Amount ....................
Percentage ..................
Uncollected at End of Year
of Levy ...................
$74,603,829
72,211,402
2,392.427
3.20%
$79,909,681
77,595,985
2,313,696
2.90%
None
a. As of February 6, 2007
None
$89,495,573
83,356,976
2,138,597
2.39%
$89,934,663
86,628,595
3,106,068
3.45%
----,~--,-~-,,',~._.-,_. "~_..,,-'-~---~.
2007
$97,216,091
54,175,000"
43,041,091"
44.27%"
NA
Tax Collection Procedure
Property taxes for the Town are collected by the Town tax receiver. Such taxes are due and payable in equal
installments on December I and May 10, but may oe paid without penalty by January 10 and May 31, respectively.
The penalty added to delinquent taxes is one-twelfth the rate of interest determined by the State Commissioner of
Taxation and Finance. The rate is determined each year by July 15 based on the one-year constant maturity yield
index for United States Treasury securities for the quarter-year ending on the immediately preceding June 30. The
rate is effective for a twelve month period commencing August I each year and in no event will be less than ten per
centum per annum.
None
None
The Town receives its full levy before the end of its fiscal year. Uncollected amounts are not segregated by
the Town tax receiver, and any deficiency in tax collection is the County's liability.
Tax Rates
(Per $100 Assessed Valuation)
Fiscal Year Endin~ December 31:
2003 2004 005 2006 2007
General - Townwide ................
General- Outside Village ............
Highway . . . . . . . . . . . . . . . . . . . . . .
$133.38
3.10
36.59
$136.65
4.53
31.12
$140.37
4.90
40.68
$139.73
5.43
38.37
Large Taxable Propeljies
2007 Assessment Roll
Name
Peconic Landing at Southold .......................
LILCO, LIPA, Marketspan, Keyspan .................
Village of Greenport-Power Planf . .. .. .. . '" . ........
Fishers Island Dev. Corp. ..........................
Robins Island Holding LLC . . . . . . . . . . . . . . . . . . . . . . . . .
AlanCardinale ..................................
Damianos,Herodotus............................. .
New York Telephone .............................
Levin Family Limited Partnership. . . . . . . . . . . . . . . . . . . .
Anderson, Bradley & Francesca .....................
Norris, Susan ....................................
Laurel Links & Country Club .......................
Kimogenor Pt Co. ................................
DriftWood Cove .................................
~
Commercial
Utility
Utili
Resirential Development
Private Lands
S~opping Center
V meyard
Utility
Motel & Restaurant
Farmland & Private Lands
Various Properties
Country Club
Co-Op
Co-Op
a. Assessmenl Roll established in 2006 for levy and colleclion oflaxes during 2007 Fiscal Year.
b. Represenis approximately 5.57% of the lotallaxahle assessed valuation of the Town for 2007.
15
$151.02
3.99
39.63
Assessed
Valuation
$ 1,707,704
1,558,702
585,000
362,000
330,500
285,500
234,000
233,985
148,950
113,800
111,800
96,300
94,600
90.000
$5.952.841 b
LITIGATION
The Town of Southold is subjectto a number oflawsuits in the ordinary conduct of its affairs. For the most
part, l!f1Y pptential adverse decisions in such suits, either individually or in the aggregate, are not likely to have a
matenal adverse effect on the Town.
There are certain matters worthy of special mention:
Stanton. at al. v. Town of Southold - This is an action in inverse condemnation and nuisanceb fo!1Y-lwo
property owners, allegmg property damage in the form of erosion caused by a Town-owned jetty. The Town is
engageiI in studies to determme the issues surrounding the alleged erosion, its causes, and possible solutions.
Although this case was first filed in 1997, discovery has not been completed. The issues in this case are complex
and win require extensive expert testimony. The nature and extent of damages, if any, are unknown at this point.
Insurance coverage may be available for potentialliabili!y for alleged compensatory damages. The Town has denied
any wrongdoing and intends vigorously to defend any fUrther prosecution of this action.
uad Ente rises et al. v. Town of Southold - This action arises from the Town Board of the Town of
Southol sa ege re s to approve a c ange 0 zone application filed by.plaintiffs, which soug!Jt substantially to
increase the zomng density of a parcel ofland owned by a aeveloper plaintiff. Plaintiffs assert claims under the Fair
Housing Act, Americans with Disabilities Act, State and Town Law, alleging housillg discrimination a~ainst senior).
handicapped and disabled residents who are also named as "Jane Doe" plamtiffs. Plaintiffs seek declaratory relier
gr:anting their desired zoning, as well as compensatory and punitive damages of$5 million eachl respectively, for each
of the six federal causes of action. Insurance coverage may be available for potentia liability for alleged
c9mpensatory damages. Fact apd expert discovery is proceeding. The Town has demed all wrongdoing and intends
vigorously to contest these claims.
Notices of Claim - Four noteworthy Notices of Claim have been filed against the Town relating to police
matters. three ot the matters relate back to events in 2003 or 2004/ none of which have yet rip.ened into.litigation.
In the first claim, claimant Jason Weber, alleged that he sufferea physical injury, emotional injury, and loss of
eamings by virtue of the alIeged excessive force used by Town police officers in tlieir arrest of claimant. Claimant
has sUDsequently been convicted of driving while intoxicated, an underlying crime leading to the arrest at issue.
Claimant demanded $20 million, but has not served the Town with any lawsuit. In the second claim, the same
claimant demanded $2 million as a result of a traffic stop whereby claimant was ticketed for driving with a susp.ended
license. In that instance, claimant alleged emotional injuries and loss of employment due to allezea false
imprisonment, and violation of his civil riiilits. Claimant has not served the Town with any lawsuit relatmg to this
matter. In the third claim, claimant Mark B"raziller demanded $5 million for alleged p'hysical and emotional mjuries
and civil rights violations arising out of a traffic stop. Claimant has not served the Town with any lawsuit relating
to this matter. Insurance coverage may be available m these matters for p'otentialliability for alleged compensatory
damages. The Town denies any wrongdoing in these matters, and intends vigorously to contest these claims in the
event that lawsuits are instituted arising out of these allegations. The statute of limitations for state law claims has
run on each of these matters; the Federal statute of limitations has run on the first and third claims; and as of yet the
Town has not been served with notice of any filed lawsuit.
In the fourth Notice of Claim, Kenneth MacAlpin demands $5 million in damages for p.hysical ,emotional
and civil rights iniuries related to an allllged incident, lielieved to be an arrest by Town police officers "on or about
February 21, 2007 and prior arrests." The Town is not aware of any details of this purported claim, and intends
vigorously to contest it Doth prior to and after the institution of a lawsuit, if any is ever med and served.
BONDHOLDER RISKS AND MARKET FACTORS AFFECTING FINANCINGS
OF THE STATE AND MUNICIPALITIES OF THE STATE
There are certain potential risks associated with an investment in the Bonds and investors should be
thoroughly familiar with thiS Official Statement, including its appendices, in order to make an informed investment
decision. Investors should consider, in particular, the following factors:
The Town's credit rating could be affected by circumstances beyond the Town's control. Economic
conditions such as the rate of unemployment and inflation, termination of commercial operations by cOlJlorate
taxpayers and emp'loyers, as well as natural catastrophes, could adversely affect the assessed valuation of Town
property and its aliility to maintain fund balances and other statistical indices commensurate with its current credit
rating. Accordingly, a decline in the Town's credit rating could adversely affect the market value of the Bonds.
In addition, if and when a holder of any of the Bonds should elect to sell a Bond prior to its maturity, there
can be no assurance that a market shall have been established, maintained and be in existence for the purchase and
sale of any Bonds. The price or principal value of the Bonds is dependent on the prevailing level of mterest rates.
If interest rates should increase, the price of a bond or note may declIne causing the bond or noteholder to potentially
incur a capital loss if such bond or note is sold prior to its maturity.
The financial condition of the Town as well as the market for the Bonds could be affected by a variety of
factors, some of which are beyond the Town's control. There can be no assurance that adverse events in the State,
including, for example, the seeking by. a municipality of remedies pursuant to the Federal Bankruytcy Act or
otherwise, will not occur which might afiect the market price of and the market for the Bonds. If a signiffcant default
or other financial crisis should occur in the affairs of the State or any of its agencies or political subdivisions thereby
further impairing the acceptability of obligations issued by borrowers withm the State, both the ability of the Town
16
to arrange for additional borrowings and the market for and market value of outstanding debt obligations, including
the Bonos, could be adversely affected.
Future amendments to applicable statutes affecting the treatment of interest paid on municipal bonds,
including the Bonds, for income taxation purposes could have an adverse effect on the market value of the Bonds (see
"Tax Matters" herein).
TAX MATTERS
Opinion of Bond Counsel
In the opinion of Hawkins Delafield & Wood LLP, Bond Counsel to the Town, under existin.& statutes and
court decisions and assuming continuinK compliance with certain tax covenants descrioed herein, (i) mterest on the
Bonds is excluded from gross income lor Federal income tax purposes Jlursuant to Section 103 of the Internal
Revenue Code of 1986, as amended (the "Code"), and (ii) interest on the Bonds is not treated as a preference item
in calculating the alternative minimum tax imposed on mdividuals and corporations under the Code; such interest,
however, is mcluded in the adjusted current earnings of certain corporations for purposes of calculating the
alternative minimum tax imposeo on such corporations. In rendering its opinion, Bond Counsel has relied on certain
representations, certifications of fact, and statements of reasonable expectations made by the Town in connection
With the Bonds, and Bond Counsel has assumed compliance by the Town with certain ongoing covenants to comply
with applicable requirements of the Code to assure tfie exclUSIOn of interest on the Bonds from gross income under
Section 103 ofthe Code.
In addition.;)n the opinion of Bond Counsel to the Town, under existing statutes, interest on the Bonds is
exempt from New r ork Stafe and New York City personal income taxes.
Bond Counsel expresses no opinion regarding any other Federal or state tax consequences with respect to
the Bonds. Bond Counsel renders its opinion under existing statutes and court decisions as of the issue date, and
assumes no obligation to update its opinion after the issue date to reflect any future action, fact or circumstance, or
change in law or interprefation, or otherwise. Bond Counsel expresses no opinion on the effect of any actIOn
hereafter taken or not taken in reliance upon an opinion of other counsel on the exclusion from gross income for
Federal income tax purposes of interest on the Bonds, or under state and local tax law.
Certain Ongoing Federal Tax Requirements and Covenants
The Code establishes certain ongoing requirements that must be met subsequent to the issuance and delivery
of the Bonds in order that interest on the 130nds be and remain excluded from gross mcome under Section 103 of the
Code. These requirements include, but are not limited to, requirements relating to use and expenditure of gross
proceeds of the Bonds, yield and other restrictions on invesfments of gross proceeds, and the arbitrage rebate
requirement that certain excess earnings on grossJlroceeds be rebated to the Feoeral government. Noncompliance
with such requirements may cause interest on the Bonds to become included in gross income for Federal income tax
IJurposes retroactive to their issue date, irrespective of the date on which such noncompliance occurs or is discovered.
The Town has covenanted to comply with certain applicable requirements of the Code to assure the exclusion of
interest on the Bonds from gross income under SectIon 103 of the Code.
Certain Collateral Federal Tax Consequences
The following is a brief discussion of certain collateral Federal income tax matters with respect to the Bonds.
H does not purport to address all aspects of Federal taxation that may be relevant to a particular owner of a Bond.
Prospective investors, particularly those who may be subject to speCIal rule~ are advised to consult their own tax
advisors regarding the Federal tax consequences of owning and disposing or the Bonds.
ProsIJective owners of the Bonds should be aware that the ownership of such obligations may result in
collateral Federal income tax consequences to various categories of persons, such as cO!'Porations (including S
cO!'Porations and foreign corporations), financial institutions, property and casualty and life insurance compames
indIvidual recipients of Social Security and railroad retirement benefits, individuals otherwise eligible for the earned
income tax credit, and taxpayers deemed to have incurred or continued mdebtedness to purchase or carry obligations
the interest on which is excluded from gross income for Federal income tax p'urposes. Interest on the Bonds may be
taken into account in determining the tax liability of foreign corporations subject to the branch profits tax imposed
by Section 884 of the Code.
Original Issue Discount
"Original issue discount" ("OlD") is the excess of the sum of all amounts payable at the stated maturity of
a Bond (excluding certain "gualified stated interest" that is unconditionally payable at least annually at prescribed
rates) over the issue price oCthat maturity. In general, the "issue price" of a maturity means the first price at which
a substantial amoun of the Bonds of that maturity was sold (excludinE sales to bond houses, brokers, or similar
persons acting in the capacity as underwriters, placement agents, or wholesalers). In general, the issue pnce for each
maturity of Bonds is expected to be the initIal public ottering price set fortIi on !he cover page of the Official
Statement. Bond Counsel further is of the opinion that, for any Bonds having OlD (a "DiscounfBond"), OlD that
17
has accrued and is properly allocable to the owners of the Discount Bonds under Section 1288 of the Code is
excludable from gross Income for Federal income tax purposes to the same extent as other interest on the Bonds.
In general, under Section 1288 of the Code, OID on a Discount Bond accrues under a constant yield method,
based on periodic compounding of interest over prescribed accrual periods using a comJlounding rate determined by
reference to the yield on that DIscount Bond. All owner's adjusted basis in a Discount Bond is increased by accrueo
OlD for purposes of determining gain or loss on sale, exchange, or other disposition of such Bond. Accrued OlD may
be taken into account as an increase in the amount of tax-exempt income received or deemed to have been receiveo
for purposes of ~etermining various other tax consequences of owning a Discount Bond even though there will not
be a corresponding cash payment.
Owners of Discount Bonds should consult their own tax advisors with respect to the treatment of original
issue discount for Federal income tax purposes; including various special rules relating thereto, and the state and local
tax consequences of acquiring, holding, and aisposing of Discount Bonds.
Bond Premium
In general, if an owner acquires a Bond for a purchase price (excluding accrued interest) or otherwise at a
tax basis tliat reflects a Jlremium over the sum of all amounts payable on the Bond after the acquisition date
(excluding certain "qualified stated interest" that is unconditionally payable at least annually at prescribed rates), that
premium constitutes "bond premium" on that Bond (a "Premium Bond"). In general, under Section 171 of the Code;
an owner of a Premium Bond must amortize the bond premium over the remaining term of the Premium Bond, baseo
on the owner's yield over the remaining term of the Premium Bond determined based on constant yield principles
(in certain cases involving a Premium Bond callable prior to its stated maturity date, the amortization period and Yield
may be required to be determined on the basis of an earlier call date that results in the lowest yield on such bond).
An owner of a Premium Bond must amortize the bond premium by offsettin.8 the qualified stated interest allocable
to each interest accrual period under the owner's regular method of accounting against the bond premium allocable
to that period. In the case of a tax-exempt Premium Bond, ifthe bond premium allocable to an accrual period exceeds
the qualified slated interest allocable to that accrual period, the excess is a nondeductible loss. Under certain
circumstancesj the owner of a Premium Bond may realize a taxable gain upon disposition of the Premium Bond even
though it is so d or redeemed for an amount less than or equal to tlie owner's onginal acquisition cost. Owners of
any Premium Bonds should consult their own tax advisors regarding the treatment of bond premium for Federal
income tax pJ1!Poses, including various special rules relating thereto, and state and local tax consequences, in
connection willi the acquisition, ownership, amortization of bond premIUm on, sale, exchange, or other disposition
of Premium Bonds.
Backup Withholding
Under the Code, interest on tax-exempt obligations paid after March 31, 2007, including interest on the Bonds, is
subject to "backup withholding" if the recipient ofthe interest does not complete a Form W-9 Request for Taxpayer
Identification Number and Certification, or otherwise provide to the payor (i.e., the financial institution paying the
interest on behalf of the Town a taxpayer identification number). "Backup WIthholding" means that die payor is
required to deduct and withhold a tax from the interest payment, calculated in the manner set forth in the Cooe.
In general, it is expected that owners purchasing the Bonds through a brokerage account will have executed
a Form W-9 in connection with the establishinent of such account so that no backup withholding will occur. The
backup withholding requirement does not affect the excludability of the interest on die Bonds from gross income for
federal income tax purposes. Any amounts withheld pursuant to backup withholding would be allowed as a refund
or a credit against tlie owner's federal income tax once the required information is furnished to the Internal Revenue
Service.
Legislation
Legislation affecting municipal bonds is regularly under consideration by the United States Congress. There
can be no assurance that legislation enacted or proposed after the date of issuance of the Bonds will not have an
adverse effect on the tax-exempt status or market pnce of the Bonds.
DOCUMENTS ACCOMPANYING DELIVERY OF THE BONDS
Absence of Litigation
Upon delivery of the Bonds the Town shall furnish a certificate of the Town Attorney, dated the date of
delivery 01 the Bonds, to the effect that there is no controversy or litigation of any nature pendmg or threatened to
restrain or enjoin the issuanc~ sale, execution or delivery of the Bonos, or in any way contesting or affecting the
validity of the Bonds or any or the proceedings taken willi respect to the Issuance and sate thereof or the application
of moneys to the paYl1)ent of the Bonds, and fUrther stating that there is no controversy or litigation of any nature now
pending or threatened by or against the Town wherein an adverse judgment or ruling couldl1ave a material adverse
Impact on the financial conditIOn ofthe Town or adversely affect the power of the Town to levy collect and enforce
the collection of taxes or other revenues for the payment ofthe Bonds, which has not been disclosed in this Official
Statement.
18
Legal Matters
Legal matters incident to the authorization issuance and sale of the Bonds will be subject to the final
aI1proving opinion of Hawkins Delafield & Wood LLp, Bond Counsel. Such opinion will be available at the time
01 delivery of the Bonds and will be to the effect that the Bonds are valid and legally binding general obligations of
the Town for which the Town has validly pledged its faith and credit and, unless paid from other sources all the
taxable real property within the Town is subject to the levy of ad valorem real estate taxes to pay the Bonds and
interest thereon witliout limitation of rate or amount. Said opinion shall also contain further statements to the effect
that (a) the enforceability of rights orremedies with respectto such Bonds may be limited by bankrul2tcy, insolvency,
or other laws affecting creditors' rights or remedies heretofore or hereafter enacted, and (b) said law firm has not been
requested to examine or review and has not examined or reviewed the accuracy or sufficiency of the Official
Statement, or any additional proceedingsj reports, correspondence, fmancial statements or other documents,
containing financial or other information re ative to the Town which have been or may be furnished or disclosed to
purchas~rs ofthe Bonds, and expresses no opinion with respectto such financial or other information, or the accuracy
or suffiCiency thereof.
Closing Certificates
Upon the delivery~ofthe Bonds, the Purchaser will be furnished with the following items: (i) a Certificate
of the Supervisor to the ef1ect that as of the date of this Official Statement and at all times subsequent thereto, up to
and including the time of delivery of the Bonds, this Official Statement did not and does not contain any untrue
statement of a material fact or omIt to state a material fact necessary to make the statements herein, in the light of
the circumstances under which they were made, not misleading, and further stating that there has been no aaverse
material change in the financial condition of the Town since the date of this Official Statement up to and including
the time of delivery of the Bonds, and having attached thereto a copy of this Official Statement; (ii) a Certificate
signed Ily the Supervisor evidencing payment tor the Bonds; (iii) a Signature Certificate evidencingtlie due execution
ofthe Bonds, including statements iliat (a) no litigation of any nature is pending or threatened, restraining or
enjoining the Issuance and delivery of the Ilonds or the levy and collection of taxes to pay the principal of and interest
thereon, nor in any manner guestlOning the proceedings and authority under which tlie Bonds were authorized or
affecting the validity of the Bonds thereunder, (b) neitl:ierthe corporate existence or boundaries ofthe Town nor the
title of any of the officers thereof to their respective offices is being contested, and (c) no authority or proceedings
for the issuance of the Bonds have been repealed, revoked or rescinded; and (iv) an Arbitrage and1Jse of Proceeds
Certificate executed by the Supervisor, as oescribed under "Tax Matters".
DISCLOSURE UNDERTAKING
This Official Statement is in a form "deemed final" by the Town for the pUT))oses of Securities and Exchange
Commission Rule l5c2-l2. At the time of the delivery ofthe Bonds, the Town will provide an executed copy of ItS
"Undertaking to Provide Continuing Disclosure" (the "Undertaking"). Said Undertaking will constitute a written
agreement or contract of the Town for the benefit of holders of and owners of beneficiarinterests in the Bonds, to
provide, or cause to be provided:
(I) during any' succeeding fiscal year of the Town in which the Bonds are outstanding to (a) each nationally
recognizeo municipal securities information repository ("NRMSIR") and (b) the New V ork State Information
Depository, if created, ("SID"), (i) certain annual financial information, in a form generally consistent with
the information contamed or cross-referenced in this Official Statement under the~headings: "The Town"j
"Economic and DemograJilhic Information","lndebtedness of the Town", "Finances oftfie Town", "Rea
Property Tax informatIOn, and "Litigation"; and in Appendix A, on or pTlor to the I 80th day following the
eno of each fiscal year, including (ii) the audited financial statement, if any, for the preceeding fiscal year
ofthe Town, unless such audited financial statement, if any, shall not then be available in which case the
unaudited financial statement shall be provided and an audited financial statement shall be delivered to each
NRMSIR and to the SID within 30 days after it becomes available and in no event later than 360 days after
the end of each fiscal year;
(2) to (a) each NRMSIR, or to the Municipal Securities Rulemaking Board ("MSRB "), and to (b) the SID, timely
notice of the occurrence of any of the following events with respect to the Bonds, if material:
(i) principal and interest pay'!"ent delinquencies: (ii) non-payment related defaults; (iii) unscheduled draws
on debt service reserves reflecting financial difficulties; (iv) unscheduled draws on credit enhancements
reflecting financial difficulties; (v) substitution of credit or liquidity providers, or their failure to perform;
(vi) adverse tax opinions or events affecting the tax-exempt status oftlie Bonds; (vii) modifications to rig1lts
of Bondholders; (viii) bond calls; (ix) defeasances; (x) release, substitution, or sale of property secuTlng
repayment of the Bonds; and (xi) rating changes.
The Town may provide notice of the occurrence of certain other events, in addition to those listed above, if
it determines th.at any such othe.r event is material with respect to .the Bonds; but the Town doe~ not undertake to
commit to proVide any such nohce of the occurrence of any mateTlal event except those events listed above; and
(3) to (a) each NRMSIR or to the MSRB, and to (b) the SID, in a timely manner, notice of a failure to provide
the annual financial Information by the date specified.
19
The Town's Undertaking shall remain in full force and effect until such time as the principal of redemption
premiums, if any, and interest on the Bonds shall have been paid in full. The sole and exclusive rem~y for breach
or default under the Undertakinz is an action to compel specIfic performance of the undertakings of the Town, and
no person or entity, including a nolder of the Bonds, snail be entitled to recover monetary damages thereunder under
any circumstances. Any failure by the Town to comply with the Undertaking will not constitute a default with respect
to the Bonds.
The Town reserves the right to amend or modifY the Undertaking under certain circumstances set forth
therein provided that any such amendment or modification will be done in a manner consistent with Rule 15c2-12
as then m effect.
The Town is in compliance with all previous undertakings made pursuant to Rule 15c2-12.
BOND RATING
Moody's Investors Service, Inc., will assign their municipal bond rating of "Aaa" respectively, to this issue
of Bonds with the understanding that up'on delivery of the Bonds, a policy insurin,g the payment when due of the
principal of and interest on the !fonds will be issued by Ambac Assurance CorporatIOn. Such rating reflect only the
views of such rating agency and any desired explanatIon of the sigJ!ificance of such rating should 6e obtained from
such rating agency. Generally, a ratmg agency oases its ratings on the information and materials furnished it and on
investigatIOn, studies and assumptions by the rating agency. There is no assurance that a particular ratinz will apply
for any given period of time or that it will not be lowered or withdrawn entirely if, in tfie judgment oIthe agency
originally establishing the rating, circumstances so warrant. The underwriter lias undertaken no responsibility to
bring to the attention of the holders of the Bonds any proposed revision or withdrawal. Any downward revision or
witharawal of such rating, or either of them, could have an adverse effect on the market pnce of the Bonds. Such
rating should not be taken as a recommendation to buy or hold the Bonds.
FINANCIAL ADVISOR
Munistat Services, Inc. has assisted the Town as financial advisor in certain matters with respect to the sale
and issuance of the Bonds.
ADDITIONAL INFORMATION
Additional information may be obtained upon request from the office of the Town Comptroller, Town of
Southold, Town Hall, P.O.B. 1179, Southold, New York I 1971, telephone number 631/765-4333, or from the office
of Munistat Services, Inc., 12 Roosevelt Avenue, Port Jefferson :itation, New York 11776, telephone number
631/331-8888 and website: http://www.munistat.com.
Any statements in this Official Statement involving matters of opinion or estimates, whether or not expressly
so stated, are intended as such and not as representations of fact. No representation is made that any of such
statements will be realized. This Official Statement is not to be construed as a contract or agreement between the
Town and the original purchasers or holders of any of the Bonds.
This Official Statement is submitted only in connection with the sale of the Bonds by the Town and may not
be reproduced or used in whole or in part for any other purpose.
TOWN OF SOUTHOLD, NEW YORK
By: s/s
SCOTT A. RUSSELL
Town Supervisor and Chief Fiscal Officer
March 27, 2007
20
APPENDIX A
FINANCIAL INFORMATION
...~<..,...""..~-~...._--""""....,,,,~~...~."._,---.~,--~.~.,,---
Balance Sheet
General Fund
Fiscal Year Ending December 31 :
2003 2004 2005
ASSETS
Cash and Investments $ 8,436,782 $ 10,081,581 $ 9,292,437
Cash - Restricted 0 0 0
Taxes Receivable 0 0 0
Accounts Receivable 1,168 85,426 24,533
Due From Other Funds 15,107 320,243 176,390
Due From Trust Funds 342,253 73 68
State and Federal Aid Receivables 13,195 56,357 81,849
Due From Other Governments 112,471 1,537,312 1,867,136
Supply Inventory 1,296 1,487 1,204
Prepaid Expenses 69,865 526,857 498,344
Deposit 10,000 2,219 0
Total Assets $ 9,002,137 $ 12,611,555 $ 11,941,961
LIABILITIES AND FUND EQUITY
Accounts Payable $ 792,860 $ 1,052,240 $ 627,049
Due to Other Funds 426,211 1,625,700 1,888,241
Due to Other Governments 0 388,944 393,570
Due to Trust Funds 595 4,248 7,044
Due to Compnent Units 0 0 0
Deferred Revenues 2,463,059 2,900,729 3,018,595
Total Liabilities 3,682,725 5,971,861 5,934,499
Fund Balances - Reserved:
Insurance claims 1,033,085 1,234,066 1,105,879
Encumbrances 71,342 4,009
Supply Inventory 1,296 1,487 1,204
Prepaid Expenses 69,865 526,857 498,344
Fund Balances - Unreserved:
Designated - Ensuing Year's Budget 2,008,000 1,978,987 2,657,200
Undesignated 2,207,166 2,826,955 1,740,826
Total Fund Equity 5,319,412 6,639,694 6,007,462
Total Liabilities and Fund Equity $ 9,002,137 $ 12,611,555 $ 11,941,961
Sources: Audited Financial Reports of the Town
Table itself NOT audited.
A-I
Statement of Revenues, Expenditures and Changes in Fund Balance
General Fund Town Wide
Fiscal Year Ending December 31 :
Wl 2!m 2lliU 2004 ~
Revenues:
Real Property Taxes $ 10,965,967 $ 12,237,940 $ 13,247,572 $ 13,962,268 $ 14,608,674
Other Real Property Tax Items 55,069 85,244 51,311 65,720 68,807
Non-Property Tax Items 508,130 401,035 401,035 415,071 415,071
Departmental Income 312,033 431,743 315,289 344,217 345,956
Intergovernmental Charges 261,646 214,738 202,917 296,050 252,558
Use of Money & Property 448,483 246,707 201,702 254,142 489,796
Licenses & Permits 198,949 210,863 188,480 214,461 249,] 78
Fines & Forfeitures 97,609 102,032 107,084 107,315 140,192
Sate of Property & Compo for Loss 76,4 71 135,345 56,893 405,077 93,290
Miscellaneous Local Sources 109,026 115,619 133,346 128,027 432,269
State Aid 1,465,312 1,698,069 2,225,40 I 2,974,027 2,637,870
Federal Aid 239,649 132,527 146,574 160,337 174,348
14,738,344 16,011,862 17,277,604 19,326,7]2 19,908,009
Expenditures:
General Government Support 3,170,906 3,561,142 3,751,469 4,395,571 4,641,568
Public Safety 5,755,775 5,806,827 6,033,207 6,254,365 7,177,145
Poblic Health 33,288 33,288 32,988 33,288 33,288
Transportation 335,583 34],671 398,358 40 I ,866 446,877
Economic Assistance & Opportunity 802,249 730,553 833,501 931,566 901,139
Culture & Recreation 356,570 350,121 317,769 304,071 354,768
Home & Community Services 501,790 315,764 228,578 341,764 3]5,273
Employee Benefits 2,742,583 3,616,745 2,617,783 4,868, I 16 5,857,963
Debt Service Principal & Interest 1,402,074 1,550,447 1,007,318 2,104,202 1,560,055
Total Expenditures 15,100,818 16,306,558 15,220,971_ 19,634,809 21,288,076
Excess (Deficiency) of Revenues Over
Expenditures (362,474) (294,696) _~6,633 ~08,097) (],380,067)
Operating Transfers In 1,650,724 1,780,257 1,392,850 2,932,574 2,642,859
Operating Transfers Out ~~,732) (1,02-'.:~ (1,910,781) (1,304,195) (1,895,023)
Total Other Financing Sources (Uses) 577,992 758,326 (517,931) 1,628,379 747,836
Excess (Deficiency) of Revenues and Other
Sources Over Expenditures and Other Uses 215,518 463,630 1,538,702 1,320,282 (632,23] )
~~
Fund Balance Beginning of Year 3,101,561 3,317,080 3,780,710 5,319,412 6,639,694
-~-~
Fund Balance End of Year $ 3,317,079 $ 3,780,710 $ 5,319,412 $ 6,639,694 $ 6,007,463
Sources: Audited Financial Reports of the Town
Table itself NOT audited.
A-2
Statement of Revenues, Expenditures and Fund Balance
Highway Fund
Fiscal Year Ended December 31 :
2001 2002 2003 2004 2005
Revenues:
Real Property Taxes $ 3,165,059 $ 3,428,570 $ 3,513,902 $ 3,520,332 $ 3,805,032
Other Real Property Tax [terns 6,028 11,885 6,428 3,679 9,046
Non-Property Tax items 396 3,098 0 0
Intergovernmental Charges 116,821 0 15,573 0 0
Use of Money & Property 79,827 34,626 18,520 23,884 77,817
Licenses & Permits 5,887 10,351 8,23[ 4,937 1[,[26
Sale of Property & Camp. for Loss 9,593 0 4,033 2,960 2,796
Miscellaneous Local Sources 1,416 25,937 0 16 155,054
Interfund Revenues 8,517 4,852 0 0 0
State Aid 223,305 0 458,686 228,337 [88,147
Federal Aid 0 0 67,699 0 0
3,616,849 3,519,319 4,093,072 3,784,[45 4,249,018
Expenditures:
Transportation 3,076,012 2,550,776 2,733,518 2,638,[21 2,913,768
Employee Benefits 281,070 340, [ 72 976,406 4[5,102 500,343
Debt Service 97,594 88,544 15,128 22,219 178,371
Total Expenditures 3,454,676 2,979,492 3,725,052 3,075,442 3,592,482
Excess (Deficiency) of Revenues Over
Expenditures 162,173 539,827 368,020 708,703 656,536
Residual Equity Transfer
Operating Transfers In 0 0 0 0 0
Operating Transfers Out (380,965) (433,271) (60,000) (690,390) (520,085)
Total Other Financing Sources (Uses) (380,965) (433,271) (60,000) (690,390) (520,085)
Excess (Deficiency) of Revenues and Other
Sources Over Expenditures and Other Uses (218,792) 106,556 308,020 18,313 136,451
Fund Balance Beginning of Year 706,300 487,508 594,064 902,084 920,397
~--~
Fund Balance End of Year $ 487,508 $ 594,064 $ 902,084 $ 920,397 $ ~,056,848
Sources: Audited Financial Reports of the Town
Table itself NOT audited.
A-3
.'........,,",_..,.... .,__v,...~w.~._
.__~"..~..,"...""_~vv~~...".~___
Statement of Revenues, Expenditures and Changes in Fund Balance
Non-Major Governmental Funds (I)
Fiscal Year Ending December 31 :
2Qlll 2QQ2 2Qm 2QQ1 2005
Revenues:
Real Property Taxes $ 1,584,261 $ 1,465,060 $ 2,197,525 $ 2,506,945 $ 2,381,335
Other Real Property Tax Items 1,037 1,495 874 3,105 2,516
Non-Property Tax Items 97,680 110,225 117,449 336,139 213,786
Departmental Income 2,125,493 2,931,896 2,339,227 2,517,584 2,504,880
Intergovernmental Charges 18,444 1,400 1,614 1,013 1,013
Use of Money & Property 88,750 35,650 18,147 21,365 64,092
Licenses & Permits 139,615 139,295 139,620 199,849 165,965
Fines and Forfeitures 0 0 49,000 0 0
Sale of Property & Compo for Loss 76,928 29,772 44,450 76,069 109,137
Miscellaneous Local Sources 13,462 11 ,423 230 5,025 153,591
Interfund Revenues 2,274 0 0 0 0
State Aid 102,353 72,935 161,393 72,651 75,374
Federal Aid 210,644 119,380 111,299 166,368 224,136
4,460,941 4,918,531 5,180,828 5,906,113 5,895,825
Expenditures:
General Government Support 42,052 42,783 134,969 92,514 99,895
Public Safety 786,251 875,307 749,904 739,198 807,474
Public Health 5,924 6,161 6,408 6,664 6,864
Home & Community Services 0 0 3,230,201 3,225,586 3,102,639
Culture and Reccreation 2,872,654 2,973,763 0 0 0
Employee Benefits 188,543 226,380 874,049 371,038 444,858
Debt Service 314,869 624,315 117,562 88,803 671,720
Total Expenditures 4,210,293 4,748,709 5,113,093 4,523,803 5,133,450
Excess (Deficiency) of Revenues Over
Expenditures 250,648 169,822 67,735 1,382,310 762,375
-~-_.
Operating Transfers In 0 0 0 0 0
Operating Transfers Out (491,624) (375,055) (483,500) (1,081,441) (504,720)
Total Other Financing Sources (Uses) (491,624) Q75,055) (483,5091 (1,081,441) (504,720)
Excess (Deficiency) of Revenues and Other
Sources Over Expenditures and Other Uses _____l.?.49,976) (205,233) _~~ (415,765) 300,869 257,655
Fund Balance Beginning of Year 1,707,548 -----'.,.466,572 1,261,339 845,574 1,146,444
Fund Balance End of Year $ 1,466,572 $ 1,261,339 $ 845,574 $ 1,146,443 $ 1,404,099
(I) Includes the following funds: General Fund Part Town, Special Grant Fund, East-West Fire Protection Fund, Southold Wastewater
District, Fishers Island Sewer District and Solid Waste Management District.
Sources: Audited Financial Reports of the Town
Table itself NOT audited.
A-4
BUDGET SUMMARY
Fiscal Year Ending December 31, 2006
Appropriations Less; Less;
and Provisions Estimated Unexpended Amount to be
Fund for Other 1 Jses Revenues ~ Raised bv Tax
General $ 22,209,199 $ 4,679,263 $ 2,657,200 $ 14,872,736
General-Outside Village 1,795,416 958,174 344,246 492,996
Highway-Townwide 0 100 16,000 (16,100)
Highway-Outside Village 4,769,679 318,332 339,900 4,111,447
Community Development 159,000 159,000 0 0
Risk Retention Fund 1,055,000 1,055,000 0 0
Community Preservation Fund 4,606,000 4,606,000 0 0
Employees Health Plan 2,411,400 ~36,400 375,000 0
Total-Town $ 37,005,694 $ 13,812,269 $ 3,732,346 $ 19,461,079
East-West Fire Protection District 464,393 2,000 4,350 458,043
Fishers Island Ferry District 2,389,000 1,989,000 0 400,000
Solid Waste Management District 4,031,733 2,096,200 168,000 1,767,533
Southold Wastewater District 111,790 14,000 75,000 22,790
Fishers Island Sewer District 20,000 17,700 2,300 0
F.I. Refuse & Garbage District 563,500 0 0 563,500
Orient Mosquito District 76,285 0 0 76,285
Subtotal-Special Districts $ 7,656,70 I $ 4,118,900 $ 249,650 $ 3,288,151
Orient-East Marion Park District 27,655 37 0 27,618
Southold Park District 315,000 0 0 315,000
Cute hogue-New Suffolk Park Dist. 141,000 0 0 141,000
Mattituck Park District 504,910 18,800 60,000 426,110
Subtotal~Park Districts $ 988,565 $ 18,837 $ 60,000 $ 909,728
Fishers Island Fire District 343,300 3,300 0 340,000
Orient Fire District 356,540 2,000 0 354,540
East Marion Fire District 427,342 8,640 0 418,702
Southold Fire District 1,358,392 21,000 0 1,337,392
Cutchogue Fire District 1,413,000 1,400 0 1,411,600
Mattituck Fire District 1,818,135 0 0 1,818,135
--
Subtotal.Fire Districts $ 5,716,709 $ 36,340 $ 0 $ 5,680,369
Total-All Districts 14,361,975 4,174,077 309,650 9,878,248
Grand Total $ 51.367,669 $ 17,986,346 $ 4,041.996 $ 29.339,327_
Source: Annual Budget of the Town.
A-5
BUDGET SUMMARY
Fiscal Year Ending December 31, 2007
Appropriations Less: Less:
and Provisions Estimated Unexpended Amount to be
Fund for Other Uses Revenues ~ Raised bv Tax
General $ 22,951,102 $ 4,810,191 $ 1,935,000 $ 16,205,911
General-Outside Village 1,869,139 1,002,600 459,000 407,539
Highway. Townwide 0 600 16,900 (17,500)
Highway-Outside Village 4,938,330 406,635 486,500 4,045,195
Community Development 136,000 136,000 0 0
Risk Retention Fund 1,015,000 1,015,000 0 0
Community Preservation Fund 10,697,328 5,350,000 5,347,328 0
Employees Health Plan 2,662,000 2,412,000 250,000 0
Total-Town $ 44,268,899 $ 15,133,026 $ 8,494,728 $ 20,641,145
East. West Fire Protection District 509,828 4,600 6,228 499,000
Fishers Island Ferry District 3,038,000 2,448,000 0 590,000
Solid Waste Management District 4,058,562 2,151,500 0 1,907,062
Southold Wastewater District 128,316 10,020 100,000 18,296
Fishers Island Sewer District 20,000 17,700 2,300 0
F. I. Refuse & Garbage District 512,300 0 0 512,300
Orient Mosquito District 82,235 0 0 82,235
Subtotal-Special Districts $ 8,349,241 $ 4,631,820 $ 108,528 $ 3,608,893
Orient-East Marion Park District 30,695 0 0 30,695
Southald Park District 315,000 0 0 315,000
Cutchogue.New Suffolk Park Dist. 145,000 0 0 145,000
Mattituck Park District 540,027 22,500 50,000 467,527
Subtotal-Park Districts $ 1,030,722 $ 22,500 $ 50,000 $ 958,222
Fishers Island Fire District 357,300 3,300 0 354,000
Orient Fire District 401,040 2,000 0 399,040
East Marion Fire District 490,600 12,200 0 478,400
Southold Fire District 1,512,875 33,540 0 1,479,335
Cutchogue Fire District 1,412,500 1,400 0 1,411,100
Manituck Fire District 1,857,967 0 0 1,857,967
Subtotal-Fire Districts $ 6,032,282 $ 52,440 $ 0 $ 5,979,842
Total-All Districts 15,412,245 4,706,760 158,528 10,546,957
Grand Total $ 59,68 I,] 44 $ 19,839,786 $ 8,653,256 $ 31,]88.102
Source: Annual Budget of the Town.
A-6
TOWN OF SOUTHOLD
APPENDIX B
AUDITED FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED DECEMBER 31,2005
I FINANCIAL SECTION I
Independent Auditors' Report..... .............. .............. ..... ....... ..... .............. .............. ..... ......... ....................... . 1-2
REQUIRED SUPPLEMENTARY INFORMATION
Management's Discussion and Analysis.................. ............... ........................... ........ .............. 3-11
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Assets........ ..... ............... .............. ................... ....... ...... ....... .......... .... .... ...... .......... ...... 12
Statement of Activities ............................................................................................................................ 13
Fund Rnancial Statements
Governmental Fund Rnancial Statements
Balance Sheet and Reconciliation of the Governmental Funds Balance Sheet to
The Statement of Net Assets..................... ........................... ............................ ............. 14-15
Statement of Revenues, ExpendibJres, and Changes in Fund Balances and
Reconciliation of the Governmental Funds Statement of Revenues, Expendijures,
And Changes in Fund Balances to the Statement of Activities................................... ............ 16-17
Fiduciary Fund Rnancial Statements
Statement of Rduciary Net Assets................................. ......... ............... .................................. 18
Notes to Financial Statements .................................................................................................................. 19-33
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MANGEMENT DISCUSSION AND ANALYSIS
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
General Fund ... ........................... ......................... ............... ............ ......... ............ ...... 34
Highway Fund..................... ......... ............... ......... ...... ............ ...... .................. ....... ...... 35
I OTHER SUPPLEMENTARY INFORMATION
COMBINING FUND STATEMENTS:
Non-major Governmental Funds
Combining Balance Sheet................................. ..................... ......... ..................... ......... 36
Combining Statement of Revenues, Expendijures, and Changes in Fund Balances................... 37
DISCRETELY PRESENTED COMPONENT UNITS
Discretely Presented Component Units:
Combining Statement of Net Assets ...................................................................................................... 38
Combining Statement of Activities.......................................................................................................... 39
,-. -,-.---,-.-----.
OTHER REPORTS
Schedule of Expenditures of Federal Awards.................................................... ...................... ............... 40
Notes to Schedule of Expenditures of Federal Awards.......................................................................... 41
Report on Compliance and on Internal Control Over
Financial Reporting Based on an Audit of Financial
Statements Performed in Accordance with Government
Auditing Standards............................................................................................................................ 42
Report on Compliance with Requirements Applicable
To Each Major Program and Internal Control oVer
Compliance in Accordance with OMB Circular A-133 ...................................................................... 43-44
Schedule of Findings and Questioned Costs.................................................................................... 45-46
CERTIFIED PUBLIC ACCOUNTANTS. BUSINESS ADVISORS AND CONSULTANTS
25 Suffolk Court, Houppauge. New l'Ork 11788
631.434.9500 . Fax 631.434.9518
www.avz.com
INDEPENDENT AUDITORS' REPORT
Honorable Supervisor and Town Board
Town of Southold
. Southold, New York
We have audited the accompanying financial statements of the governmental activities, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information of
the Town of Southold, New York, as of December 31, 2005, and for the year then ended, which
collectively comprise the Town's basic financial statements as listed in the table of contents. These
financial statements are the responsibility of the Town's management. Our responsibility Is to express an
opinion on these financial statements based on our audij.
Except as discussed in the following paragraph, we conducted our audit in accordance with auditing
standards generally accepted in the United States of America and the standards applicable to financial
audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States. The financial statements of the component units presented discretely in these financial
statements with the exception of one, the Fishers Island Ferry District, were not audited in aocordance
with Government Auditing Standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
The financial statements supporting the financial activities of the Town of Southold's discretely presented
component units with the exception of one, the Fishers Island Ferry District, were not audited as of the
report date. nor were we able to satisfy ourselves as to those financial activities by other auditing
procedures. Those financial activities represent approximately 34% of the net assets of the discretely
presented component units. The financial statements of the Fishers Island Ferry District were audited by
other auditors whose report thereon have been fumished to us and In our opinion, insofar as It relates to
the amounts included for that one component unit, is based solely on the reports of the other auditors.
In our opinion, except for the effects of such adjustments if any as might have been determined to be
necessary had the unaudited component units financial statements been audited and based on our audit
and the reports of other auditors. the financial statements referred to above present fairly, in all material
respects, the financial position of the Town of Southold, New York, as of December 31,2005, and the
results of its operations for the year then ended in conformity with aocounting principles generally
accepted in the United States of America.
The Management's Discussion and Analysis and the budgetary information are not a required part of the
basic financial statements but are supplementary information required by aocounting principles generally
accepted in the United States of America. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation of the
supplementary information. However, we did not audit the information and express no opinion on it.
-1 -
ALBRECHT. VIooIANO. ZURECK is. CoMPwIY. P.C.
U1C-.El&t1 IfMDC8I!NMIIICR...._GfM.
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the Town of Southold, New York's basic financial statements. The combining and
individual fund financial statements are presented for purposes of additional analysis and are not a
required part of the basic financial statements. The combining and individual fund financial statements
has been subjected to the auditing procedures applied in the audit of the basic financial statements of the
Town of Southold, New York, and, in our opinion, is fairly presented in all material respects in relation to
the basic financial statements taken as a whole.
In accordance with Government AUditing Standards, we have also Issued a report dated June 8, 2006 on
our consideration of the Town of Southold, New York internal control over financial reporting and our
tests of its compliance with certain provisions of laws, regulations, contracts and grants.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial
statements, taken as a whole. The accompanying schedule of expenditures of federal awards is
presented for purposes of additional analysis as required by U.S. Office Management and Budget
Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required
part of the general purpose financial statements of the Town of Southold, New York. Such information
has been subjected to the auditing procedures applied in the audit of the general purpose financial
statements and, in our opinion, is fairly stated, in all material respects, in relation to the general purpose
financial statements taken as a whole.
~ Y.ff;'~' ? 1._1' t-r-1- f? c.
Hauppauge, New York
June 8, 2006
-2-
REQUIRED SUPPLEMENTARY INFORMATION
Management's Discussion and Analysis
TOWN OF SOUTHOLD
MANAGEMENTS DISCUSSION AND ANALYSIS
December 31, 2005
The following is a discussion and analysis of the Town of Southold's financial performance, providing an overview
of the Town's financial activities for the year ended December 31,2005. Use this section in conjunction wnh the
Town's basic financial statements.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Assets and the
Statement of Activities provide information about the activities of the Town as a whole and present a longer-
term view of the Town's finances. For govemmental activities, these statements tell how these services were
financed in the short term as well as what remains for future spending. Fund financial statements also report
the Town's operations in more detail than the government-wide statements by providing Information about the
Town's most significant funds. The remaining statements provide financial Information about activities for
which the Town acts solely as a trustee agent for the benefit of those outside of the government.
ReportinQ the Town as a Whole
The Staiement of Net Assets and the Statement of Activities
One of the most important questions asked about the Town's finances is, "Is the Town as a whole better off or
worse off as a result of the year's activities?" The Statement of Net Assets and the Statement of Activities
report information about the Town as a whole and about its activities in a way that helps answer this question.
These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the
accounting used by most private-sector companies. The Statement of Activities is significantly different than a
typical Statement of Revenues, Expenses, and Changes in Fund Balance. You will notice that expenses are
listed in the first column wnh revenues from that particular program reported to the right. The result is a net
(expense )/revenue. The reason for this kind of format is to highlight the relative financial burden of each of the
functions on the Town's taxpayers. It also idenlifies how much each function draws from the general revenues
or if it Is self-financing through fees and grants. All of the current year's revenues and expenses are taken into
account regardless of when cash Is received or paid.
These two statements report the Town's net assets and their respective changes. You can think of the Town's
net assets-the difference between assets and lIabilitie&-as one way to measure the Town's financial health,
or financial position. Over time, increases or decreases in the Town's net assets are one indicator of whether
its financial health Is improving or deteriorating. You will need to consider other non-financial factors, however,
such as changes in the Town's property tax base and the condition of the Town's buildings, roads, drainage
and other assets to assess the overall health of the Town.
In the Statement of Net Assets and the Statement of Activities, we divide the Town into two kinds of activnies:
. Governmental activities - The Town's basic services are reported here, Including: general government
support; public safety; public health; transportation; economic assistance and opportunity; culture and
recreation and home and community services. Property taxes, sales taxes, franchise fees, fines, and
stale and federal grants finance these activities. The Town also charges fees to customers to help it
cover the cost of certain services it provides.
. Component units - The Town includes 7 separate legal entities In Its report (one ferry district, one
sanitation district, one mosquito district and four park districts). Although legally separate, these
"component units" are Important because the Town is financially accountable for them. Complete
financial statements of the individual component units can be obtained from their respective
administrative offices (Note A).
TOWN OF SOUTHOLD
MANAGEMENTS DISCUSSION AND ANALYSIS
December 31, 2005
ReDortina the Town's Most Slanlficant Funds
Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds-not the Town as a
whole. Some funds are required to be established by State law and by bond covenants. However, the Town
establishes many other funds to help it control and manage sources of funding and spending related to specific
activities.
The Town's basic services are reported in governmental funds, which focus on how money flows Into and out
of those funds and the balances left at year-end that are available for spending. These funds are reported
using an accounting method called modified accrual accounting, which measures cash and all other financial
assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term
view of the Town's general government operations and the basic services it provides. Governmental fund
information helps you determine whether there are more or fewer financial resources that can be spent in the
near future to finance the Town's programs. We describe the relationship (or differences) between
governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and
governmental funds in a reconciliation that follows these fund financial statements.
The Town as Trustee
Reoortina the Town's Fiduciarv ResDOnsibilities
All of the Town's fiduciary activities are reported In a separate Statement of Fiduciary Net Assets. We exciude
these activities from the Town's other financial statements because the Town cannot use these assets to
finance its operations. The Town Is responsible for ensuring that the assets reported In these funds are used
for their intended purposes.
FINANCiAl ANALYSIS OF THE TOWN AS A WHOLE
Our analysis below focuses on the net assets and changes in net assets of the Town's governmental activities.
Condensed Statement of Net Assets
Governmental Activities
as of December 31,2005 and 2004
Assets
Current and other assets
Capital assets
Total assets
Liabilities
other liabilities
Long-term liabilities
T otalliabilities
Net assets
Invested in capital assets,
net of related debt
Unrestricted
Total net assets
2005 2004
$ 26,265,665 $ 25,448,645
90,294,079 81,374,480
116,559,744 106,823,125
16,289,370 14,665,546
14,916,051 15,732,844
31,205,421 30,398,390
81,044,981
4,309,342
$ 85,354,323 $
71,352,951
5,071,784
76,424,735
-4-
TOWN OF SOUTHOLD
MANAGEMENTS DISCUSSION AND ANALYSIS
December 31, 2005
FINANCIAL ANALYSIS OF THE TOWN AS A WHOLE (continued)
Total assets in the Towns as of December 31,2005 were $116.5 million, an Increase of $9.7 million. Total
liabilities as of December 31, 2005 were $31 million, an increase of approximately $1 million. This results in a
net asset balance of $85.3 million, an increase of $8.9 million. Of the Town's net asset balance $81 million
were invested in capital assets, net of related debt; while $4.3 million was unrestricted.
Changes in Net Assets
Governmental Activities
for the years ended December 31, 2005 and 2004
2005 2004
Program Revenues
Charges for services $ 10,723,686 $ 9,556,554
Operating grants and contributions 859,484 790,169
Capital grants and contributions 3,502,247 915,998
Total Program Revenues 15,085,417 11 ,262,721
General Revenues
Real property taxes 20,795,041 19,989,545
Other real property tax items 80,369 72,504
Non-property tax items 628,857 751,210
Interest earnings 766,413 284,223
State aid - unrestricted 2,527,110 2,867,169
Other 709,352 228,738
Total General Revenues 25,507,142 24,173,389
Total Revenues 40,592,559 35,436,110
Program Expenses
General government support 6,621,408 7,274,110
Public safety 11,342,991 9,899,209
Public health 43,559 42,551
Transportation 6,627,876 6,297,105
Economic assistance and opportunity 1 ,208,467 1,225,690
Culture and recreation 356,167 447,119
Home and community services 4,961,051 2,052,178
Interest on debt 501,452 460,838
Total Expenses 31,662,971 27,698,800
Increase in Net Assets $ 8,929,588 $ 7,737,310
-5-
--~.".""'~ .-..-.....-...............
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANAL VSIS
December 31, 2005
FINANCIAL ANAL VSIS OF THE TOWN AS A WHOLE (continued)
Net Cost of Services
Governmental Activities
for the year ended December 31, 2005
General govemment support
Public safety
Public heatth
Transportation
Economic assistance and opportunity
Culture and recreation
Home and community services
Interest on debt
$
Total Cost
of Services
6,621,408
11,342,991
43,559
6,627,876
1,208,467
356,167
4,961,051
501,452
31,662,971
$
Net Cost
of Services
6,265,526
10,588,154
33,574
6,426,952
833,388
168,136
(8,239,628)
501,452
16,577,554
$
$
The cost of all govemmental actMties this year was $31.6 million. The net cost of these services, however,
after subsidized by program revenues including charges for services and program grants, was $16.5 million.
The Town's change in net assets after general revenues of $25.5 million was an increase of $8.9 million.
Net Cost of Services
Governmental Activities
for the year ended December 31, 2005
General government support
Public safety
Public heatth
Transportalion
Economic assistance and opportunity
Culture and recreation
Home and community services
Interest on debt
-6-
Total Cost
of Services
$ 6,621,408
11,342,991
43,559
6,627,876
1,208,467
356,167
4,961,051
501,452
$ 31,662,971
Program
Revenues
$ 355,882
754,837
9,985
200,924
375,079
188,031
13,200,679
$ 15,085,417
TOWN OF SOUTHOLD
MANAGEMENrS DISCUSSION AND ANALYSIS
December 31,2005
FINANCIAL ANALYSIS OF THE TOWN AS A WHOLE (continued)
$14,000,000
Expense. and Program Revenue.
Governmental Actlvltle.
$12,000,000
. Expenses
. Program Revenues
$10,000,000
$1,000,000
$8,000,000
$4.OOO,IlOO
$2,000,000
So
_and
.............
--
.......on
-
PublIc IMkf Public hBIlIlb Tf8naportBt1on Econamk:
-...
and
--
CulIunt and
.....-.
-
_m...
........
Revenue by Source
Governmental ActivlUes
For the year ended December 31, 2005
~
-....
..............
9%
"""""""
_and
...........
2'llo
$20,795,041
2,527,110
10,723,686
2,184,991
859,484
3,502,247
$ 40,592,559
0lI10r
...-
...........
""
Real property taxes
Slale aid - unrestricted
Charges for services
Other general revenues
Operating grants and conbibutions
Capital grants and conbibuUons
SIaIe aid -
TOWN OF SOUTHOLD
MANAGEMENTS DISCUSSION AND ANAlYSIS
December 31, 2005
FINANCIAL ANALYSIS OF THE TOWN AS A WHOLE (continued)
THE TOWN'S FUNDS
The general fund balance has decreased by approximately $600,000 due primarily to actual expenditures in
excess of revenues. Although there was a decrease in fund balance, this decrease was less than amounts
budgeted.
The following schedule presents a summary of the govemmental fund - (general, special revenue, and capital
projects) revenues and expenditures for the year ended December 31,2005, and the amount of change and
percentage of total in relation to the prior year.
Increase %
2005 2004 (Decrease) Change
Kl::Vl::NUl::S
Real property taxes $ 20,795,041 $ 19,989,545 $ 805,496 3.9%
Other real property tax items 80,369 72,504 7,865 9.8%
Non-property tax items 628,857 751,210 (122,353) -19.5%
Departmental income 2,850,836 2,861,801 (10,965) -0.4%
Intergovernmental charges 7,453,845 6,342,748 1,111,097 14.9%
Use of money and property 906,664 407,338 499,326 55.1%
Licenses and pennits 426,269 419,247 7,022 1.6%
Fines and forfeitures 140,192 107,315 32,8n 23.5%
Sale of property and compensation for loss 205,223 484,106 (278,883) -135.9%
Miscellaneous local sources 1,292,371 294,522 997,849 n.2%
State aid 3,946,391 3,825,015 121,376 3.1%
Federal aid 1,909,023 326,705 1,582,318 82.9%
Total Govemmental Fund Revenues $ 40,635,081 $ 35,882,056 $ 4,753,025 11.7%
EXPENDITURES
General government support $ 4,741,463 $ 4,488,085 $ 253,378 5.3%
Public safety 7,984,619 6,993,563 991,056 12.4%
Public health 40,152 39,952 200 0.5%
Transportation 3,360,645 3,039,987 320,658 9.5%
Economic assistance and opportunity 901,139 931,566 (30,427) -3.4%
Culture and recreation 3,457,407 3,567,350 (109,943) -3.2%
Home and community services 315,273 304,071 11,202 3.6%
Employee benefits 6,803,164 5,654,256 1,148,908 16.9%
Capital 12,788,366 8,756,057 4,032,309 31.5%
Debt service principal and interest 2,439,675 2,215,224 224,451 9.2%
Total Governmental Fund Expenditures $ 42,831,903 $ 35,990,111 $ 6,841,792 16.0%
GENERAL FUND BUDGETARY HIGHLIGHTS
Over the course of the year the Town Board revises the budget as needed so that expenditures do not exceed
appropriations. In all Town funds, various transfers between appropriations were approved for this purpose.
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANAlYSIS
December31,2005
CAPITAL ASSET AND DEBT ADMINISTRATION
Caoital Assets
As of December 31, 2005 the Town had $90.3 million in net capital assets including land, buildings,
improvements, machinery and equipment, and infrastructure. The Town's component units had $8 million in
net capital assets Including land, buildings, improvements, machinery and equipment, and sewer mains.
Capital Assets at December 31,
Primary Qovemment 2005 2004
Land $ 47,772,278 $ 37,795,087
Construction in progress 1,608,081 398,912
Buildings 4.574.513 4,569,296
Improvements other than buildings 13,498,954 13,469,136
Machinery and equipment 9,522,815 8,686,593
Infrastructure 70,038,525 69,334,187
Total capital assets 147,015,166 134,253,211
less accumulated depreciation 56,721,087 52,878,731
Primary government - Total net capital assets $ 90,294,079 $ 81,374,480
Comoonent units
land $ 2,213,759 $ 2,213,759
Buildings 3,540,111 3,416,944
Improvements other than buildings 2,575,589 2,575,589
Machinery and equipment 3,200,728 3,170,695
Infrastructure 2.138,386 2,121,386
Total capital assets 13,668,573 13,498,373
less accumulated depreciation 5,639,830 5,236,652
Component units - Total net capital assets $ 8,028,743 $ 8,261,721
.Q.
._"._.....,..,_..,..,...~-,~,_._~,-~...~---_.~...~,-~_.----_.
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2005
CAPITAL ASSET AND DEBT ADMINISTRATION (continued)
Capital Assets (continued)
The capital program is a long range financing guide and not a definitive plan. Each appropriation must be
authorized by Town Board resolution before being undertaken. Each may be financed by issuance of general
obligation bonds, which, at times, are preceded by issuance of bond anticipation notes for various periods of
time depending on the probable usefulness of the purpose of expenditure. The following sets forth a summary
of the Town's capital program.
(Dollars In thousands):
Eauipment
2006
General Fund
Highway Fund
Special Districts
$
345,900
2,500
20.000
368.400
Total Equipment
$
Improvements
General Fund
Special Districts
Total Improvements
Total Program
$ 440,130
800.000
$ 1.240.130
S 1 608 530
Additional Information on the Town's capital assets can be found In Note C.3 to the financial statements.
Debt Administration
The Town of Southold's credit rating from Moody's Investors Services was upgraded to A1 from A2 in
February 2005.
Debt Umlt - The Town has the power to contract indebtedness for any Town purpose so long as the principal
amount thereof, subject to certain limited exceptions, shall not exceed seven percent of the average full
valuation of taxable real estate of the Town, and subject to certain enumerated exclusions and deductions
such as water and certain sewer facilities and cash or appropriations for current debt service.
The constitutional method for determining full valuation Is calculated by taking the assessed valuation of
taxable real estate as shown upon the latest completed assessment roll and dividing the same by the
equalization rate as determined by the State Board of Equalization and Assessment. The State Legislature is
required to prescribe the manner by which such ratio shall be determined. Average full valuation is
determined by taking the sum of the full valuation of the last completed assessment roll and the four preceding
assessment rolls and dividing such sum by five. Percentage of debt contracting power exhausted at December
31,2005 was 2.16%.
At. December 31, 2005, the Town had approximately $9.2 million in long term general obligation bonds
outstanding, of which $9 million was for general Town purposes. Also outstanding at year-end were bond
anticipation notes in the amount of $8.8 million of which $6 million was for general Town purposes.
Additional information on the Town's debt activity can be found in Note C.4 to the financial statements.
-10-
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31 , 2005
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
ProoertY Tax
The Town has adopted a budget for the 2006 fiscal year which factors In inflation and other adjustments to
revenues and expenditureS as well as prior year positive and negative fund balances. The 2006 budget
includes an overall increase in real property tax revenues from the prior year of approximately 3.9% for the
general Town governmental activities.
State Aid and Local Assistance
The Town receives financial assistance from New York State and from Suffolk County. During 2005, financial
assistance Included state aid consisting of mortgage tax of $2.5 million, consolidated highway aid of $188
thousand, and community preservation aid of approximately $1 million. Stale aid per capita was $75.3
thousand and County local govemment assistance was $211.7 thousand. Additionally, if the State should not
adopt its budget in a timely manner, municipalities and school districts In the State, Including the Town, may
be affected by a delay In the payment of state aid. The State is not constitutionally obligated to maintain or
continue state aid to the Town. The Town's 2006 budget Included similar amounts for this financial assistance.
Retirement SYStem
The New York State Employees Retirement System, having suffered some adverse effects of the weak stock
market conditions, was expected to require payments In excess of amounts the State had originally anticipated
for the year ended 2005. When establishing the 2005 budget, the Town had anticipated these excess
payments. However, due to a change in the billing cycle, the State was able to hold the contribution rates to
those the State had Originally anticipated. The Town subsequently re-approprlated the budgeted but
unexpended excess payment In the 2005 budget The State's new billing cycle will require a minimum
contribution rate of 4.5%. Employer contribution for subsequent years will be based on the Russell 3000
performance as of April 1 of the preceding two years.
In 2003 the Town of Southold adopted the New York State Early Retirement Incentive Program as authorized
by Chapter 69 of the laws of 2002. The option to retire early ran through December 31, 2002. The eligibility
. varied based on tier, age and years of service, but all options required that the employees be at least fifty (50)
years of age and being vested in the New York State Retirement System. As part of its contractual
agreements with the unions, the Town of Southold also offers fully paid health Insurance benefits (but not
welfare benefits) for the retiree and their present spouse until death of the retiree.
CONTACTING THE TOWN'S FINANCIAL MANAGEMENT
This financial report Is designed to provide our citizens, taxpayers, customers, and creditors with a general
overview of the Town's finances and to show the Town's accountability for the money it receives. If you have
questions about this report or need additional financial information, contact the Town of Southold, Office of the
Town Comptroller, Southold, New York.
BASIC FINANCIAL
STATEMENTS
TOWN OF SOUTHOLD
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
December 31,2005
Primary
Governmental Component
Activities Units
ASSETS
Current Assets:
Cash and investments $ 20,968,117 $ 1,250,827
Accounts receivable, net of allowances 236,215 3,561
Due from fiduciary funds 68
Due from other governments 2,631,939
Due from primary government 949,145
State and federal aid receivables 1,127,523 48,767
Prepaid charges 1.130.599 45,140
Inventory of material and supplies 1,204
T alai Current Assets 26,095,665 2,297.440
Non-Current Assets:
Deferred charges, net of accumulated amortization 170,000
NOn-depreciable capital assets 49,360,359 15,284,596
Depreciable capital assets, net of depreciation 40,913,720 5.918.714
T alai Non-Current Assets 90,464.079 21,203.310
Total Assets 116.559,744 23,500.750
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 1,344.864 442,802
Accrued interest payable 227,617 63,941
Bond anticipation notes payable 8,875.000 2.845,000
Due to other governments 393,570 2,271
Due to fiduciary funds 7,044
Unearned revenue 4,402,014 392,414
Other liabilities
Non-{;urrent liabilities due within one year
General obligation bonds payable 755,000 195,000
Due to Employees Retirement System 45.189
Claims and judgments payable 220,000
Estimated liability for landfill ciosure
and postclosure care costs 19,072
Total Current Liabilities 16,289.370 3,941.428
Non-Current liabilities:
General obligation bonds payable 8,494.098 2,855,000
Due to Employees Retirement System 48,804
Compensated absences 5,779,826
Estimated liabRity for landfdl closure
and postclosure care costs 593,323
Total Non-Current Liabilities 14,916.051 2.855,000
Total Liabilities 31,205,421 6.796,428
NET ASSETS
Investment in capital assets, net of related debt 81,044,981 14,093.268
Unrestricted 4,309,342 2.611,054
Total Net Assets $ 85.354.323 $ 16,704,322
See notes to the financial statements
-12-
TOWN OF SOUTHOLD
GOVERNMENT-WIDE FINANCiAL STATEMENTS
STATEMENT OF ACTIVITIES
Year ended December 31, 2005
Net Expenses (Revenues) and
Program ReWllnues Capllal Change In Net Assets
Openlllng
Charges for Grants and Grants and Prfmary Component
Function/Program Expenses Services Contributions Contributions Govemment Un"
PRIMARY GOVERNMENT
Government Actlvftles:
General goverrvnent support $ 6,621,408 $ 204.757 $ 151.125 $ 8,265,528
Public safety 11,342.991 539,891 214,946 10,588,154
Public health 43,659 9,985 33,674
Transportation 6,827,876 12,777 $ 188,147 6,426,952
Economic 8ss1stance and opportunity 1 ,208,487 174,830 200,249 833,388
Culture and recreation 356,167 188,031 168,136
Home and community services 4,961,051 9,603,400 263,179 3,314,100 (8,239,628)
Interest on debt 501,462 601,452
Total Primary Goverrvnent- $ 31,662,971 $ 10,723,688 $ 859.484 $ 3,502,241 $ 16,577,554
COMPONENT UNrrS
General government s~rt $ 80,610 $ 80,610
Public health 60,311 60,371
Transportation 2,532,192 $ 1,884,374 $ 1,983,139 (1,335,321)
Culture and recreatlon 814,501 814,501
Home and community services 495,632 47,644 ....,88
Interest on debt 102,579 102,579
Total Component Units $ 4,088,085 $ 1,932,018 $ 1.983,139 $ 170.928
GENERAL REVENUES
Real property taxes $ 20,795,041 $ 1,960,880
Other real property tax Items 80,389 588
Non-proper1y tax Items 628.857 18,449
Interest earnings 766.413 68,883
State aid 2,527,110 684
Other 709,352 40,296
Total General Reverues 25,607,142 2,089,738
Change In Net Assets 8,929,588 1,918.810
Net Auets at BegInnIng of Vear 76.424,735 14,785,512
Net Assets at End of Year $ 85,354,323 $ 16,704.322
See notes to the financial statements.
-13-
,
I
I
TOWN OF SOUTHOLD
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2005
MAJOR FUNDS Non-Major
Capital Governmental
General Highway Projects Funds Totals
ASSETS
Cash and investments $ 9,292,437 $ 1,022,924 $ 9,406,620 $ 1,246,136 $ 20,966,117
Accounts receivable, net of allowance 24,533 8,190 30,500 172,992 236,215
Due from other funds 176,390 828,984 251,100 733,039 1,989,513
Due from trust funds 88 68
Slate and federal aid receivable 81,849 43,424 1,002,250 1,127,523
Due from other governments 1,867,136 759,803 5,000 2,631,939
Supply invenlory 1,204 1,204
Prepaids 498,344 56,947 54,024 609,315
Total Assets $ 11,941,961 $ 1,960,489 $ 11 ,450,273 $ 2,211,191 $ 27,563,894
UABIUl1ES AND FUND BALANCES
LIABILITIES
Accounts payable $ 627,049 $ 72,436 $ 337,613 $ 227,184 $ 1,284,282
Retained percentages 80,580 80,580
Bond anticipation notes payable 8,875,000 8,875,000
Due 10 other funds 1,888,241 73,598 27,674 1,989,513
Due 10 trust funds 7,044 7,044
Due 10 other governments 393,570 393,570
Deferred revenue 3,018,595 831,185 552,234 4,402,014
Total Uabllllies 5,934,499 903,621 9,366,791 807,092 17,012,003
FUND BALANCE
Fund Balances - reserved:
Encumbrances 4,009 4,009
Supply inventory 1,204 1,204
Prepaids 498,344 26,686 525,030
Insurance claims 1,105,879 1,105,879
Fund Balance - unreserved: 16,000 16,000
Designated - ensuing yeafs budget 2,857,200 339,900 346,596 3,345,696
Undeslgnated 1,740,826 700,948 2,063,482 1,028,817 5,554,073
Total Fund Equity 6,007,462 1,056,846 2,083,462 1,404,099 10,551,891
Total LlabiliUes and Fund Equity $ 11,941,961 $ 1,960,469 $ 11,450,273 $ 2,211,191 $ 27,563,894
See notes to the financial statements.
TOWN OF SOUTHOlD
RECONCilIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE
STATEMENT OF NET ASSETS
December 31,2005
Total Fund Balances - Governmental Funds $ 10,551,891
Amounts reported for governmental aclivities In the
Statement of Net Assets are different because:
Capital assets less accumulated depreciation are
Induded in the Statement of Net Assets:
Capital assets - non-{jepreciable $49,380,359
Capftal assets - depreciable 97,634,807
Accumulated depreciation (56,721,087)
90,294,079
Other long-term assets are not available to pay for current-period
expendftures and, therefore, are deferred in the funds
Long-term liabilities applicable to the Town's
governmental activities are not due and payable
in the current period and accordingly are not
reported in the funds. However these liabilities
are included in the Statement of Net Assets:
General obligation bonds payable (9,249,098)
Due to Employees Retirement System (93,993)
Compensated absences (5,779,826)
Claims and judgments payable (220,000)
Estimated liability for landfill closure
and postclosure care costs (612,395)
(15,955,312)
Prepaid items included in the Statement of Net Assets 521,282
Deferred charges Included in the Statement of Net Assets 170,000
Interest payable applicable to the Town's governmental
activities are not due and payable in the current period
and accordingly are not reported in the funds. However
these liabilities are included in the Statement of Net Assets. (227,617)
Net Assets of Governmental Activities $ 85,354,323
See notes to the financial statements.
-15-
TOWN OF SOUTHOLD
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the year ended December 31, 2005
MAJOR GOVERNMENTAL FUNDS Non-Major
Capital Governmental
General Highway Projects Funds Totals
REVENUES
Real property taxes $ 14,608,674 $3,605,032 $2,381,335 $ 20,795,041
Other real property tax items 68,807 9,046 2,516 80,369
Non-property tax "ems 415,071 213,786 628,857
Departmental income 345,956 2,504,880 2,850,836
Intergovernmental charges 252,558 $ 7,200,274 1,013 7,453,845
Use of money and property 489,796 17,817 274,959 64,092 906,664
Ucenses and permits 249,178 11,126 165,965 426,269
Anes and forfelttJ"es 140,192 140,192
Sale of property and compensation lor loss 93,290 2,796 109,137 205,223
Miscellaneous local sources 432,269 155,054 551,457 153,591 1,292,371
State aid 2,637,870 188,147 1,045,000 75,374 3,946,391
Federal aid 174,348 1,510,539 224,136 1,909,023
Total Revenues 19,908,009 4,249,018 10,582,229 5,895,825 40,635,081
EXPENDITURES
ClITenl
General government support 4,641,568 99,895 4,741,463
Public safety 7,177,145 807,474 7,984,619
Public hea~h 33,288 6,864 40,152
Transportation 446,877 2,913,768 3,360,645
Economic assistance and opportun"y 901,139 901,139
Home and community services 354,768 3,102,839 3,457,407
Culture and recreallon 315,273 315,273
Employee benefits 5,857,963 500,343 444,858 6,803,164
Capital outlay 12,788,366 12,788,366
Principal and interest 1,560,055 178,371 29,529 671,720 2,439,675
Bond Issuance costs 70,075 70,075
Advanced refunding escrow 112,758 112,758
Total Expenditures 21,288,076 3,592,482 13,000,728 5,133,450 43,014,736
Excess (Deficiency) of Revenues Over
Expenditures (1,380,067) 656,536 (2,418,499) 762,375 (2,379,655)
Other Financing Sources (Uses)
Proceeds of refunding bonds 2,380,000 2,380,000
Payments to refunded bond escrow agents (2,210,000) (2,210,000)
Premium on special assessment debt 12,833 12,833
BANs redeemed from appropriations 1,065,095 1,065,095
Transfers in 2,642,859 276,969 2,919,828
Transfers out (1,895,023) (520,085) 1504,720) (2,919,828)
Total Other Anancing Sources (Uses) 747,836 1520,085) 1,524,897 (504,720) 1,247,928
Excess (Deficiency) of Revenues and Other
Sources Over Expenditures and Other Uses (632,231) 136,451 (893,602) 257,655 (1,131,727)
Fund Balance at Beginning of Year 6,639,693 920,397 2,977,084 1,146,444 11,683,618
Fund Balances at End of Year $ 6,007,462 $1,056,848 $ 2,083,482 $1,404,099 $ 10,551,891
See notes to the financial statements.
-16-
TOWN OF SOUTHOLD
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
For the year ended December 31, 2005
Net Change in Fund Balance
$
(1,131,727)
Govemmental funds report capital outlays as expenditures. However, in
the Statement of Activities the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense. The amount
by which capital outlay exceeds depreciation in the current period is:
Capital outlay
Depreciation expense
Loss on dispositions
$13,205,174
(4,082,748)
(202,828)
8,919,598
Some expenses reported In the Statement of Activities do not require
the use of current financial resources and therefore, are not reported as
expenditures in governmental funds:
Prepaid charges
Deferred charges
(53,286)
170,000
The issuance of long-term debt and increase in obligations under capital
leases provides current financial resources to governmental funds, while the
repayment of the principal of long term debt and capital leases consumes
the current financial resources of governmental funds.
Neither transaction has any effect on net assets.
Bonds issued
Repayment of bond principal
Due to Employees Retirement System
Compensated absences
Claims and judgments payable
Estimated liability for landfill closure
and postclosure care costs
Accrued interest payable
(2,380,000)
3,162,431
41,841
(117,468)
378,630
18,872
(79,303)
Change in Net Assets of Governmental Activities
$
8,929,588
See notes to the financial statements.
-17-
TOWN OF SOUTHOLD
STATEMENT OF FIDUCIARY NET ASSETS
December 31, 2005
Fishers Island
Town Ferry Distriel Totals
ASSETS
Cash and investments $ 14,898,809 $ 43,462 $14,942,271
Other receiva bles 17 40,638 40,655
Due from other funds 7,044 7,044
Total Assets $ 14,905,870 $ 84,100 $14,989,970
L1ABIUTIES
Due to other funds $ 68 $ 38,829 $ 38,897
Due to school districts 11,675,920 11,675,920
Due to component units 517,902 517,902
Due to other governments 1,664,259 1,664,259
other liabilities 8,881 8,881
Deposits held 1,038,840 45,271 1,084,111
Total Liabilities $ 14,905,870 $ 84,100 $14,989,970
See notes to the financial statements.
-18-
.... .- ,. ....-.""'---.......
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Town of Soulhold (the "Town"), which was established in 1640, is govemed by Town Law and other
general laws of the State of New York and various local laws. The Town Board is the legislative body
responsible for overall operations. The Town Board consists of the Supervisor who is elected for a term
of two years and five council members who are elected for terms of four years. The Town Board appoints
the Town Attorney, Comptroller and the Commissioner of Public Works whose terms are fIXed by Town
Law. The Town Clerk, Receiver of Taxes, Superintendent of Highways, Justices and Town Trustees are
all elected and serve for four years, respectively. The Town provides a full range of municipal services,
including public safety, transportation, home and community services, public works and road
maintenance, recreation and parks, and general and administrative services.
The financial statements of the Town of Soulhold have been prepared in conformity with accounting
principles generany accepted in the United Stales of America (GAAP) as applied to governmental units.
The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for
establishing governmental accounting and financial reporting principles.
The more significant of the governmenfs accounting policies are described below.
1. REPORTING ENTITY
The financial reporting entity consists of: (a) the primary government, which is the Town of
Southold; (b) organizations for which the primary government is financially accountable; and (c)
other organizations for which the nature and significance of their relationship with the primary
government are such that exclusion would cause the reporting entity's financial statements to be
misleading or incomplete as set forth in GASB Statement No. 14.
The decision to include a potential component unit In the Town of Southold reporting entity is based
on several criteria set forth in GASB Statement No. 14" including legal standing, dependency and
financial accountability. Based on the application of these criteria, the following is a summary of
certain entities considered in determining the Town of Southold's reporting entity.
Certain special districts of the Town of Soulhold provide sanitation, fenry, and park services to
residents and businesses within the districts. These special districts are organized under New
York State Town law and have separa1ely elected boards. Special districts cannot issue bonded
debt without the approval and the backing of the full faith and credit of the Town. Tax Ievles of the
special districts are collected by the Town Receiver of Taxes. As a result of this fiscal dependency,
the Town is financially accountable for these special districts. Accordingly, these special disbicts
have been determined to be component units of the Town and are presented discretely i1 a
separate column in the combined financial statements to emphasize that they are legally separate
from the primary government
2. BASIS OF PRESENTATION
The Town's basic financial statements include both govemment-wlde (reporting the Town as a
whole) and fund financial statements (reporting the Town's major funds).
Govemment-wlde Financial Statements
The government-wide financial statements reports Information on the Town as a whole, except
fiduciary activities, with separate columns for the primary governmental activities as well as the
discretely presented component units.
In the government-wide Statement of Net Assets, the Town's governmental activities are
presented on a consolidated basis and are reported on a full accrual, economic resource basis,
which recognizes all long-term assets and receivables as well as long-term debt and obligatiClls.
The Town's net assets are reported in three paris-investments in capital assets, net of related
debt; restricted net assets; and unrestricted net assets.
-19 -
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31 , 2005
A SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES (continued)
2. BASIS OF PRESENTATION (continued)
The government-wide Statement of Activities reports both the gross and net cost of each of the
Town's functional categories (public safety, transportation, home and community services, etc.),
which are otherwise supported by general government revenues (property, sales and use taxes.
certain intergovernmental revenues, fines, pennlts and charges, etc.). The Statement of
Activities reduces gross expenses (including depreciation). by related program revenues and
operating and capital grants, to produce the net cost of each program. Program revenues
include (a) charges for services and (b) operating and capital grants and contributions that are
directiy associated with the function. Operating grants include operating-specific and
discretionary (either operating or capital) grants while the capital grants column reflects capJtal-
specific grants. The net costs (by function) are normally covered by general revenue (property,
taxes, intergovernmental revenues, interest income, ete). As a general rule the effect of
interfund activity has been eliminated in general purpose financial statements.
This govemment-wlde focus is more on the sustainability of the Town as an entity and the
change In the Town's net assets resulting from the current year's activities.
Fund Financial Statements
The fund financial statements are similar to the financial statements presented in the previous
model. The new ernphasis is on the major funds In the fund financial statements. Non-major funds
are summarized into a single column.
The accounts of the Town are organized on the basis of funds; each of which is considered a
separate accounting entity. The operations of each fund are accounted for with a separate set of
self-balancing accounts that comprise its assets, liabilities, fund balances, revenues, and
expenditures, which are segregaJed for the purpose of canying on specific activities or attaining
certaln objectives In accordance with specIaJ regulations, restrictions or limitations. The various
funds are presented by type In the fund financial statements. Accordingly, the Town maintains the
following fund types:
Governmental Funds - Governmental funds are those through which most govemmental
functions are financed. The acquisition, use and balances of expendable financial resources and
the related liabilities are accounted for through govemmental funds. The measurement focus of
the governmental funds is upon detenninalion of financial position and changes In financial
position. Governmental funds are further classified as major and non-major funds.
The Town reports the following major govemmental funds:
General Flind - is the principal operating fund of the Town. This fund is used to account for all
financial resouroes except those required to be accounted for In other funds.
Hiahwav Funds - to maintain and operate highways.
Caoital Proiects Fund - used to account for financial resources to be used for the acquisition or
construction of major capital facilities (other than those financed by special assessment funds
and trust funds).
-20 -
~~-"'--'''''<.'_."-~'---.~'
TOWN OF SOUTH OLD
NOTES TO FINANCIAL STATEMENTS
December 31,2005
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2. BASIS OF PRESENTATION (continued)
Fund Financial Statements (continued)
Additionally, the Town reports the following non-majorfunds:
Special Revenue Funds - are used to acoount for the proceeds of speclflc revenue sources (other
than major capital projects) that are legally restricted to expendftures for specified purposes.
Special Revenue Funds indude the following:
General Fund Part Town - to provide general services outside the Village of Greenport.
Soecial Grant Fund - segregate and account for projects funded by Communfty
Development revenue.
Soecial District Funds - to provide special services to areas thai encompass less than the
whole town.
Fiduciary Funds - Fiduciary Funds are used to account for assets held by the Town in a trustee or
custodial capadty.
Agency Fund - is for money (and/or properly) received and held in the capadiy of trustee,
custodian or agent.
Discretely Presented Component Units
Certain special districts that have separately elected boards provide transportation, park, mosquito
control, and sanitation services to residents and businesses within these districts, and follow
govemment fund accounting prlnciples. These districts, which are accounted for as discretely
presented component units, are as follows:
The Fishers Island Ferry District, established in 1947
Orient Mosqufto District, established in 1916
Fishers Island Garbage and Refuse District, established In 1952
Cutchogue-New Suffolk Park District, established In 1953
Orient-East Marion Park District, established In 1969
Southold Park District, established in 1907
Mattiluck Park District, established in 1941
Complete financial statements of these component units can be obtained from their respective
administrative offices:
Orient Mosquito District
145 Platt Road
Orient, NY 11957
Culchogue-New Suffolk
Park District
P.O. Box 311
Culchogue, NY 11935
Soulhold Park District
P.O. Box 959
Southold, NY 11971
Fishers Island Ferry District
P.O. Box 1179
Southold, NY 11971
Fishers Island Garbage
& Refuse District
Fishers Island, NY 06390
Orient-East Marion
Park District
P.O. Box 12
Orient, NY 11957
Mattituck Park District
P.O. Box 1413
Mattituck, NY 11952
- 21 -
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3. BASIS OF ACCOUNTlNGIMEASUREMENT FOCUS
Measurement focus refers to what is being measured whereas the basis of accounting refers to
when revenues and expenditures are recognized in the accounts and reported in the financial
statements. BasIs of accounting relates to the timing of the measurement made, regardless of the
measurement focus appfied.
In the govemment-wide statements, governmental activities are presented using the economic
resources measurement focus and are presented using the accrual basis of accounting. Under the
accrual basis of accounting, revenues are recognized when earned and exPenses are recorded
when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets,
and liabilities resulting from exchange and exchange-like transactions are recognized when the
exchange takes place.
In the funds statements, governmental funds use a current financial resources measurement focus
and are accounted for using the modified accrual basis of accounting. Under the modified accrual
basis of accounting, revenues are recognized when susceptible to accrual (measurable and
available to finance current operations). "Measurable" means the amount of the transaction can be
detennlned and "available" means collectible within the current period or soon enough thereafter to
pay liabilities of the current period. The Town considers all revenues available if they are collected
within 60 days after the year end. Revenues susceptible to accrual Include Suffolk County local
assistance at year end on behalf of the Town, franchise fees. and charges for services,
intergovernmental revenues and operating transfers. Pennits, fees, and other similar revenues are
not suscepbble to accrual because generally they are not measurable until they are received In
cash. In those instances where expenditures are the prime factor In detenninlng eligibility for stale
and federal grants, revenues are recognized when the expenditure is Incurred. In the Capital
Projects Fund, long-term debt is recognized as revenue upon receipt of the proceeds.
Expenditures are recorded on the accrual basis except that (a) expenditures for prepaid expenses
are recognized when incurred; (b) principal and Interest on Indebtedness are recognized as
expenditures when due; (c) compensated absences, such as vacation and sick leave, which vest or
accumulate, are charged as expenditures when paid.
Encumbrance accounting, under which purchase orders, contracts and other commitments are
recorded for budgetary control purposes In. order to reserve that portion of the applicable
appropriation, is employed In the governmental funds. Appropriations for all governmental funds
except the capital projects fund lapse at year-end. However, encumbrances reserved against fund
balances are re-appropriated in the ensuing year. Encumbrances are reported as reservations of
fund balances since they do not constitute expenditures or liabilities. Expenditures for such
commitments are recorded In the period in which the liability is incurred.
4. ASSETS, LlABlLmES AND FUND EQUITY
RECEIVABLES
Receivables include amounts due from Federal, State, and other governments or entities for
services provided by the Town. Receivables are recorded and revenues recognized as earned or
as specific program expenditures are Incurred.
INVENTORY - MATERIALS AND SUPPLIES
Inventory in the general and special revenue funds Is valued at cost Inventory In these funds Is
accounted for under the consumption method.
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31,2005
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
4. ASSETS, LIABILITIES AND FUND EQUITY (continued)
CAPITAL ASSETS
Capital assets purchased or acquired with an original cost of $5,000 or more are reported at
historical cost or estimated historical cost Contributed assets are reported at fair market value
as of the date received. Additions, Improvements and other capital outiays that signlficantiy
extend the useful life of an asset are capitalized. Other costs Inalrred for repairs and
maintenance are expensed as Incurred. Depreciation on all assets is provided on the straight-
line basis over the following estimated useful lives:
Buildings
Improvements and other
Machinery and equipment
Infrastructure
10-40 years
20 years
5-10 years
20-30 years
Infrastructure assets, consisting of certain improvements other than buildings including roads,
alrbs, sidewalks, bridges, street lighting are capilalized along with other capital assets.
In the fund financial slatements. capital assets are recorded as capital outlay expenditures In the
govemmenlal fund upon acquisition.
DEFERRED REVENUElUNEARNED INCOME
Deferred revenues/unearned income are those where asset recognition criteria have been met. but
which revenue recognition criteria have not been met. Such amounts include collections in
advance, unearned Income and amounts that have been deemed to be "measurable" but not
"available" to finance current expenses pursuant to generally accepted accounting principles.
PREPAlDS
Prepaids record payments to venders that benefit future recording periods and are reported on the
consumption basis. Prepaids in the General and Special Revenue Funds represent insurance
. premiums paid for coverage that will benefit the subsequent period and for retirement benefits that
will benefit a future period.
LONG-TERM OBLIGATIONS
The liabilities for long-term obligations consisting of general obligation bonds, compensated
absences. due to employee retirement system, judgments, claims and liability for landfill closure
and post closure costs are recognized in the govemment-wide financial statements.
In the fund slalements, long-term obligations are not reported as liabilities. The debt proceeds
are reported as other financing sources and payment of principal and Interest reported as
expenditures.
5. REVENUES AND EXPENDITURES
REAL PROPERTY TAX ASSESSMENT AND COLLECTION PROCEDURES
In Suffolk County, the assessment and lien of real property for laxation Is done by the County
Department of Assessment. Real property laxes become a lien on December 1 for both school and
generallaxes. The Town's assessment rolls are used for the levy of real property 1axes by the
Town and the School Districts. as well as by the County and by Special Districts of the County and
the Town.
-23-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
A. SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES (continued)
5. REVENUES AND EXPENDITURES (continued)
REAL PROPERTY TAX ASSESSMENT AND COLLECTION PROCEDURES (continued)
The Town of Southold Receiver of Taxes collects all real property taxes for the Town, Suffolk
County, Town Special Districts and School Districts. These taxes are levied on December 1, and
are due in two Installments, 50% on December 1 and 50% on May 10, payable without penalty to
January 10 and May 31, respectively. Penalties are imposed thereafter at the rate of one-twelfth of
the rate of interest deterrrlined by the State Commissioner of Taxation and Finance, aller which
taxes are payable to the County Treasurer. The Town retains the total amount of Town, Highway
and Town Special Districts levies from the amount collected, and forwards the balance collected to
the County which assumes collection responsibility. The Town and Town's Special Districts
therefore realize annually the 100% collection of real property taxes.
School District property taxes are also levied on December 1, and are also payable In two
installments. School property taxes are due in two Installments, 50% on December 1 and 50% on
May 10 payable without penalty to January 10 and May 31, respectively. The County is also
responsible for uncollected school taxes.
INTERFUND TRANSACTIONS
Interfund transactions have been eliminated from the govemment-wide financial statements. In
the funds statements inlerfund transactions include:
a) Inlerfund Revenues
Interfund revenues, quasl-extemal transactions, In the general fund represent amounts
charged for services or facilities provided by the general fund. The amounts paid by the fund
receiving the benefit of the service or facilities are reflected as an expenditure of that fund.
b) Transfers
Transfers represent payments to the debt service, general fund and capital projects funds
from the other funds for their appropriate share of the debt service, general fund or capital
project costs.
COMPENSATED ABSENCES
The liability for vested or accumulated vacation or sick leave (compensated absences) is
recorded as current and noncurrent obligations In the govemment-wide statements. The current
portion of this debt is estimated based on historical trends. In the fund financial statements only
the compensated absence liability payable from expendable available financial resources is
incurred.
The amount that is expected to be liquidated with expendable available financial resources is
reported as expendllures and a rl8bility in the funds statement in the respective fund that will pay il
6. EQUITY CLASSIFICATIONS
In the govemment-wide statements, equity is classified as net assets and displayed In three
components:
a) Invested In capllal assets, net of related debt - consists of capital assets including
restricted capital assets, net of accumulated depreciation and reduced by the outstanding
balances of any bonds, noles, or other borrowings that are attributable to the acquisition,
construction, or improvement of those assets.
-24 -
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31,2005
A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
6. EQUITY CLASSIFICATIONS (continued)
b) Restricted net assets - consists of net assets with constraints placed on the use either by
(1) external groups such as credttors, grantors, contributors, or laws or regulations of other
govemments; or (2) law through constitutional provisions or enabling legislation.
c) Unrestricted net assets - all other net assets that do not meet the definition of "restricted"
or "invested in capital assets, net of related debt."
In the fund statements, governmental fund equity is classified as fund balance. Fund balance is
further classified as reserved and unreserved, with unreserved further split between designated
and undesignated. Portions of fund equity are segregated for future use and therefore not
available for future appropriation or expenditure. Amounls reserved for encumbrances, Inventory,
insurance ciaims and debt service represent portions of fund equity, which are required to be
segregated In aocordance with state law or GAAP. Designations of fund balances In govemmental
funds Indicate the utilization of these resources in the subsequent year's budget or tentative plans
for future use.
B. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
1. BUDGETARY DATA
Budgets are adopted annually on a basis consistent with generally accepted accounting
principles. Appropriations authorized for the current year are Increased by the amount of
encumbrances carried forward from the prior year.
Budgetary controls for special revenue funds are established in accordance with the applicable
grant agreement, which may cover a period other than the Town's fiscal year. Appropriate
budgetary adjustmenls have been made to reflect these grant agreemenls during the Town's
fiscal year.
The Town follows the procedures enumerated below in establishing the budgetary data reflected in
the financial statemenls:
a. No later than October 1, the Supervisor submits a tentative budget to the Town Board for
the fiscal year commencing the following fiscal year. The tentative budget includes the
proposed means of financing for all funds.
b. After public hearings are conducted to obtain taxpayer comments, no later than November
20, the Town Board adopls the budget
c. The Town Board must approve all modifications of the budget. However, the Supervisor Is
authorized to transfer certain budgeted amounls within departments.
In order to show the full legal level of budgetary compliance for the general and certain special
revenue funds, detailed IndMdual statemenls of revenues, expendttures and changes in fund
balances - budget and actual, are presented in a separate budget report.
- 25-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
B. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (continued)
2. FUND BALANCES
DESIGNATION OF FUND BALANCE
Portions of the unreserved balances at December 31, 2005 were designated for the subsequent
year's operating budgets as follows:
Fund Balance
Unreserved and
Designated
Total for Subsequent Fund Balance
Fund Balance Year's Unreserved
Fund Unreserved Budget Undesignated
Non-Major Funds:
Town Outside Village $ 845,309 $ 370,932 $ 474,377
East West Fire Protection District 15,112 4,350 10,762
Southold Wastewater District 176,657 176,657
Fishers Island Sewer District 32,546 32,546
Solid Waste Management District 334,475 334,475
Total $ 1,404,099 $ 375,282 $ 1,028,817
C. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
1. CASH AND INVESTMENTS
Cash consists of funds deposited in demand accounts, time depostt accounts and certificates of
depostt with maturities of less than three months.
The Town's investments are governed by a formal investment policy. The Town's monies must be
deposited in FDIC-insured commercial banks or trust companies located within the slate. The
Town is authorized to use demand accounts and certificates of deposit Permissible investments
indude obligations of the U.S. Treasury, U.S. Agendes and investments made by the Cooperative
Uquid Asset Security System (CLASS).
CLASS is a cooperative investment plan consisting of U.S. Treasury Obligations and repurchase
agreements relating to treasury obligations. Investments are stated at cost, which approximates
market value. CLASS was established as a cooperative investment arrangement organized under
the CLASS Municipal Cooperation Agreement made pursuant to New York General Municipal Law,
Article 3A and 5-G.
It is the Town's policy to require collateral held in the name of the Town for demand depostts,
money market depostts and certificates of depostt for all depostts not covered by federal depostt
insurance. Obligations that may be pledged as collateral are obligations of the Untted States and
its agencies and obligations of the State and its municipalities and school districts.
At December 31, 2005 the cash in banks was approximately $37,160,000 and collateral held
against cash in banks was $60,410,000 consisting of FDIC insurance and/or securities held in
the name of the Town of Southold.
-26 -
TOWN OF SOUTH OLD
NOTES TO FINANCIAL STATEMENTS
December 31,2005
C. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (continued)
2. INTERFUND RECEIVABLES AND PAYABLES
Interfund receivables and payables for the primary government at December 31, 2005 were as
follows:
General Fund - Town wide
Highway Fund
Capital Projects Fund
Part Town
East-West Rre District
Soulholcl Wastewater District
Fishers Island Sewer District
Solid Waste Management District
Amount
Receivable
$ 176,390 $
828,984
251,100
152,519
92,199
4,752
325
483.244
$ 1989513 $
Amount
Pavable
1,888,241
73,598
6,974
20.700
1 989513
Interfund receivable and payable balances for the primary government at December 31, 2005 are
expected to be paid currently.
3. CAPITAL ASSETS
Primary govemment
capital assem not being depreciated
Land
Construction in progress
Total capttal assem not being depreciated
Depreciable capttal assets
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Tolal depreciable capttaJ assem
Less accumulated depreciation
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
T olal accumulated depreciation $
T olal net depreciable capnal assets
Tolal net capttalassets
Balance
1/1/05
Additions
Deletions
Balance
12/31105
$ 37,795,087 $
398,912
38,193,999
9,977,191 $
1,362,656
11,339,847
-0- $
153,487
153,487
47,m,278
1,608,081
49,380,359
4,569,296
13,469,136
8,686,593
69,334,187
96,059,212
1,933,832
3,020,775
5,567,555
42,356,569
52,878,731
- 27-
5,217
29,818
1,125,955
704,338
1,885,328
$
134,698
521,309
714,211
2,712,530
4,082,748 $
289,733
289,733
240,392
240,392
4,574,513
13,498,954
9,522,815
70,038,525
97,834,807
2,068,530
3,542,084
6,041,374
45,069,099
56,721,087
40,913,720
$ 90,294,079
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
C. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (continued)
3. CAPITAL ASSETS (continued)
Depreciation expense was charged 10 govemmental functions as follows:
General government support
Public safety
Transportation
Economic assistance and opportunity
Culture and recreation
Home and community services
$ 231,471
179,200
2,923,649
36,230
61,206
650,992
$ 4,062,748
Balance Balance
Discretely presented component units 1/1/05 Additions Deletions 12/31/05
Capf1al assets not being depreciated
Land $ 2,213,759 $ 2,213,759 .
Construction in progress 10,592,179 $ 2,598,828 $ 16,440 13,174,567
T olal capf1al assets not being depreciated 12,805,938 2,598,628 16,440 15,388,326
Depreciable capf1al assets
Buildings 3,416,944 123,167 3,540,111
Improvements other than buildings 2,575,589 2,575,589
Machinery and equipment 3,170,695 30,033 3,200,728
Infrastructure 2,121,386 17,000 2,138,386
T olal depreciable capf1al assets 11,284,614 170,200 11,454,814
Less accumulated depreciation
Buildings 1 ,186,077 103,656 1,289,733
Improvements other than buildings 973,574 88,000 1,061;574
Machinery and equipment 2,003,454 129,203 2,132,657
Infrastructure 1,073,547 82,319 1,155,886
Total accumulated depreciation $ 5,236,652 $ 403,178 5,639,830
Total net depreciable capf1al assets 5,814,984
Tolal net capital assets $ 21,203,310
-28 -
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31,2005
C. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (continued)
4. INDEBTEDNESS
SHORT TERM DEBT
Bond Anticipation Notes (BANs) - Bond anticipation notes (BANs) are used as a temporary
means of financing capital expendftures in the capilal projects fund. Slate law requires that BANs
issued for capital purposes be converted to long-term obligations within five years after the original
issue date. The notes or renewal thereof may not extend more than two years beyond the original
date of issue unless a portion Is redeemed within two years and within each 12 month period
thereafter. Liabilities for BANs are generally accounted for in the capital projects fund. BANs are
expected to be paid from the proceeds of future bond issues after renewal of these notes. These
BANs bear interest at various rates from 2.64% to 3.06% and are due at various dates through
2006.
When BANs are not redeemed with the proceeds of bond issues, but instead paid from budgetary
appropriations, the principal amount paid is recorded as an expenditure in the operating fund and a
financing source is recorded in the capftal proJec1s fund.
These notes are summarized as follows:
DescriDtion
Various Purposes
Various Purposes
New London Wharf
Fishers Island Garbage
Total
Amount
$ 7,175,000
1,700,000
1,725,000
1.120.000
S 11.720.000
Interest
Rate
2.64%
3.05%
2.75%
3.06%
Of the $11,720,000 in bond anticipation notes, $6,875,000 relates to the primary government and
the remaining $2,845,000 relates to the component unfts.
LONG TERM DEBT
Summary of changes In long-term debt transactions for the year ended December 31, 2005 Is as
follows:
NOlH:UlTent
Balance Balance Ilabllitiesdue Nor><:UJre nt
1/1105 Increases Reductions 12/31105 within one year liabilities
Primary Government
General obligation bonds $ 10,031,529 $ 2,380,000 $ 3,162,431 $ 9,249,098 $ 755,000 $ 8,494,098
Due 10 Employe.. Retirement Sysle. 135,834 41,841 93,993 45,189 48,804
Compenssted absences 5,662,358 860,531 743,063 5,779,826 5,779,826
Claims and judgments 598,630 378,630 220,000 220,000
Estimated fiablrlty for landfill closure
and post-closure care costs 631,267 18,872 612,395 19,072 593,323
Component Units:
General obligation bonds 272,569 3,000,000 222,569 3,050,000 195,000 2,855,000
TOWN OF SOUTH OLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
C. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (continued)
4. INDEBTEDNESS (continued)
LONG TERM DEBT (continued)
General Obligation Bonds - The Town borrows money in order to acquire land or equipment or
construct buildings and Improvements. This enables the cost of these capital assets to be bome by
the present and future taxpayers receiving the benefit of the capilal assets. These long-term
liabilities, which are backed by the full faith and credit of the Town, bear interest at various rates
from 2.95% to 6.375% and have maturity dates in 2006 through 2021.
Future principal and Interest payments to maturity for both the primary govemment and the
component units are as foHows:
Year Endinll
2006
2007
2008
2009
2010
2011-2015
2016-2021
$
Princioal
950,000
979,098
995,000
1,025,000
1,000,000
4,390,000
2.960.000
$
Interest
405,624
376,466
345,307
312,347
277,956
910,394
265.814
Totals 9; 12299.098 9; 2893908
Other long-term liabilities for claims and judgments, compensated absences, retirement system
and the estimated liability for landfill closure and post closure costs are to be paid by the fund
that gave rise to the liability.
During the year ended 2005, the Town issued $2,380,000 in general obligation bonds with an
interest rate ranging from 2.50% to 3.75% to advance refund $2,210,000 of outstanding 1993 and
1995 Serial bonds with interest rates between 5.00% and 5.10%. The net proceeds of $2,392,833
include an original Issue premium of $12,833 which were used In parl to pay Insurance,
underwriting fees end administrative costs of $70,075 with the balance deposited in an lnevocable
trust with an escrow agent to provide for all future debt service payments on the various general
obligation bonds. As a result, these bonds are considered to be defeased and the liability for those
bonds has been removed from the Town.
The Towns advance refunded the various general obligation bonds in order to reduce its total debt
service payments aver the next 10 years by $100,505 and to obtain an economic gain of $66,538
(difference between the present values of the debt service payments on the old and new debt).
5. RETIREMENT SYSTEM
Plan Descriolion
The Town of Southold participates In the New York State and Local Employees' Retirement System
(ERS) and Local Police and rlreRelirement System (PFRS). This is a cost-sharing multiple-
employer retirement system. The System provides retirement benefits as well as death and
disability benefits.
Obligation of employers and employees to contribute and benefits to employees are gavemed by
the New York Stale Retirement and Social Security Law (NYSRSSL). As set forth in the
NYSRSSL, the Comptroller of the State of New York (Comptroller) serves as sole trustee and
administrative head of the System. The Comptroller shall adopt and may amend rules and
regulations for the administration and transaction of the business of the System and for the custody
and control of their funds.
A publicly avaHable aMusl report containing financial statements and required supplemental
information for the Employees' Retirement System may be obtained by writing to the New York
State Retirement System, Gavemor Smith State Building, Albany, NY 12244.
- 30-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
C. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (continued)
5. RETIREMENT SYSTEM (continued)
Fundina Policv
The System is noncontributory except for employees who joined the New York Stale and Local
Employees' Retirement System after July 27, 1976 and who have less than ten years of
membership and less than ten years of credited service with a retirement system under the
provisions of article fourteen or fifleen of the NYSRSSL, who contribute 3% of their salary. Prior to
October 1, 2000, all employees who joined the System after July 27, 1976 were required to
contribute 3% of their salary. Under the authority of the NYSRSSL, the Comptroller shall certify
annually the rates expressed as proportions of payroll of members, which shall be used In
computing the contributions required to be made by employers to the pension accumulation fund.
The Town is required to contribute at an actuarially determined rate. The actual conbibutions were
equal to the actuarially required amounts and also include additional contributions to fund various
early retirement incentives made available to the Town employees. The credits and miscellaneous
adjusbnents represent modification made by the ERS for prior year's contnbutions.
The required contributions, for the Primary government, for the current year and two preceding
years were:
2005
2004
2003
ERS
$ 1 ,068,200
$ 992,023
$ 443,861
$
$
$
PFRS
1,016,937
679,079
240.756
The Town's contribution to the system was 100% of the contributions I'ElQli'ed each year.
6. POST EMPLOYMENT BENEFITS
In addition to providing pension benefits, the Town provides health insurance coverage and survivor
benefits for retired employees and their survivors. Substantially all of the Town's employees may
become eligible for these benefits if they reach normal retirement age while working for the Town.
Health care benefits are provided through either a self-funded plan whose premiums are based on
the benefits paid during the year or are provided in accordance with New York Slate Health
Insurance Rules and Regulations (administered by the New York State Department of Civil Service)
through the New York State Empire Plan (the "Empire Plan") whose premiums are based on the
benefits paid throughout the State during the year.
The Town recognizes the cost of providing benefits by recording its share of insurance
premiums or the actual benefits paid as expenditure in the year paid. The Town's union
contracts and ordinances require that It provide its eligible enrollees with benefit coverage under
either the self-funded plan or the Empire Plan. Under the provisioos of the Empire Plan,
premiums are adjusted on a prospective basis for any losses experienced by the Empire Plan.
The Town has the option to terminate its participation In the Empire Plan at any time without
liability for Its respective share of any previously incurred loss. During the 2005 year,
$3,014,128 was paid on behalf of 88 retirees and 207 active employees and is recorded as an
expenditure In the General Fund.
7. COMPENSATED ABSENCES
Town employees are granted vacation and sick leave and eam compensatory absences in
varying amounts. In the event of termination or upon retirement, an employee is entitled to
payment for accumulated vacation and sick leave and unused compensatory absences at
various rates subject to certain maximum limitations.
.,.
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
C. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (continued)
7. COMPENSATED ABSENCES (continued)
Estimated vacation, sick leave and compensatory absences accumulated by govemmental fund
type employees have been recorded In the statements of net assets. Payment of vacation time and
sick leave is dependent upon many factors; therefore, timing of future payments Is not readily
determinable. However, management believes that sufficient resources will be made available for
the payments of vacation, sick leave and compensatory absences when such payments become
due. As of December 31, 2005, the value of the accumulated vacation time and sick leave was
$5,779,826 for the primary government.
D. COMMITMENTS AND CONTINGENCIES
Risk Management
The Town Is self-Insured for both medical Insurance and general liability Insurance. The amount of
medical claims outstanding at December 31, 2005 Is $200,131. This amount has been reserved
against fund balance In the General Fund.
In common with other municipalities, the Town receives numerous notices of claims. Prior to 2005,
coverage for bodily Injury and property damage was previously written on a primary non-self insured
retention ("SIR") basis. Insurance market conditions and availability precluded the Town from obtalning
coverage In 2005 without an SIR. As a result, In 2005 the Town self-Insured for bodily injury and
property damage up to a maximum of $50,000 per claim. The $50,000 limitation was the minimum
retention amount available to the Town. Claims In excess of $50,000 are covered by excess liability
policies providing coverage for $10,000,000 per occurrence and in the aggregate. Although the
eventual outcome of these 2005 claims cannot presently be determined, the Town's third party
administrator has estimated unsetued claims at December 31, 2005 to be $94 thousand. These
amounts have been reserved against fund balance in the General Fund. The Town is of the opinion
that the ultimate setUement of the outstanding claims will not result in a material adverse effect on the
Town's financlal position.
Since 2005, there have been no significant reductions In Insurance coverage as compared to the prior
year; in addition there were no settlements on excess of insurance coverage over the last three years.
The Town is also self-insured for unemployment benefits paid.
Landfill Closure and Post-Closure Care Costs
Stale and federal laws and regulations require the Town to place a finai cover on its landfill sites and to
perform certain maintenance and monitoring functions at the sites for thirty years after closure. The Town
ceased accepting waste at its Culchogue landfill as of October 8, 1993. The Town entered Into a
stipulation of setuement with the New Yark Slate Department of Environmental Conservation in
October of 1994 in which all charges of operational violations at the Culchogue landfill were dropped.
Under the stipulation, the Town agreed to close and place a final cover over the landfill and. to pay a
. civil penalty of $650,000 over seven years. Construction of the final cover commenced in the summer
of 2001 and was completed In the fall of 2003.
In addition to placement of the final cover on the landfill, slate and federal regulations presently require
the Town to perform certain maintenance and monitoring functions at the site for up to thirty years.
Accordingly, as of December 31, 2005 the Town has recorded a liability of $612,395 which represents the
provision to be made In future budgets for post-closure landfill costs. Actual costs may vary due to
inflation or deflation, changes In technology, or changes in regulations or applicable laws.
Actual costs associated with the placement of the final cover totaled $7,681,719. Financing for closure
activities was provided through a $2,000,000 grant from the New York Slate Department of
Environmental Conservation with the balance provided with a slate subsidized loan through the New
Yark Slate Environmental Facilities Corporation. Costs associated with post closure care will be
covered by charges to future landfill users and future tax revenue.
-32-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
D. COMMITMENTS AND CONTINGENCIES (continued)
Lease Commitments and Leased Assets
The Town leases property and equipment under operating leases. Total rental expenditures on such
leases for the fiscal year ended December 31, 2005 were approximately $205,000. Future obligations
over the primary terms of the Town's leases as of December 31, 2005 are as follows:
2006
2007
2008
2009 and thereafter
Total
$
115,977
94,997
85,184
684,824
980 982
9;
E. CONDENSED FINANCIAL STATEMENTS FOR THE DISCRETELY PRESENTED
COMPONENT UNITS
The following represents condensed financial statements for the discretely presented component units as
of and for the year ended December 31, 2005:
Condensed Statement of Net Assets:
Due from Capital Assets 01her
Current Primary Net of CUTTent Long-Term Net
District Assets Government DepreciaUon UabllRles LI_. Assets
FIShers Island Feny $ 333,136 $ 119,344 $ 15,757,994 $ 2,439,520 $ 2,700,000 $ 11,070,954
Fishers Island Refuse and Garbage 640,862 631,328 3,026,171 1,235,336 3,063,025
Qrtchogue-New Suffolk Park 125,728 28,382 124,218 28,382 249,946
SouIhold Park 21,550 63,406 648,159 65,677 667,438
OrIent-East Marion Park 4,182 5,559 432,965 16,002 426,724
_ck Park 190,451 85,771 1,204,103 141,156 155,000 1,184,169
OrIent MosquRo 32,386 15,355 9,680 15,355 42,066
S 1,348,295 $ 949,145 $ 21,203,310 $ 3,941,428 $ 2,855,000 $ 16,704,322
Condensed Sto1emenl of Activlli..:
Progl3m General Rev...., Net Assets
Property
Distrlcl Expenses Revenue Net Expense Tax other Chlnge 1/1105 12/31105
Fi,herllsland Ferry $ 2,714,365 $ 1,884,374 $ 830,011 $ 400,000 $ 2,028,871 $ (1,598,860) $ 9,474,094 $ 11,070,954
Fisherllsland Refuse & Garbage 489,606 47,644 441,982 599,400 36,698 (194,136) 2,868,889 3,063,025
Culcho!JJe-New Suffolk Park 138,633 138,633 141,000 2,850 (5,217) 244,729 249.946
Southold Park 350,088 350,088 315,000 34,090 998 668,438 887.438
OIlant-East Marion Park 29,000 29,000 24,900 62 4,038 430,762 428,724
MallituckPark 304,002 304,002 405,930 11,025 (112,953) 1,071,218 1,184,169
OrIent Mosquito 60,371 60,371 74,650 401 (14,680) 27,386 42,068
$ 4,088,085 $ 1,932,018 $ 2,154,067 $ 1,980,880 $ 2,111,997 $ (1,918,810) $ 14,785,512 $ 16,704,322
_ ":l~_
REQUIRED SUPPLEMENTARY
INFORMATION OTHER THAN
MANAGEMENT DISCUSSION AND
ANALYSIS
TOWN OF SOUTHOLD
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
Year ended December 31, 2005
Original Final Variance
Budget Budget Actual Positivel{Negative )
REVENUES
Real property taxes $14,608,674 $ 14,608,674 $ 14,608,674
Other real property tax items 66,000 66,000 68,807 2,807
Non-property tax items 401,035 401,035 415,071 14,036
Departmental income 349,900 349,900 345,956 (3,944)
Intergovernmental charges 194,160 269,823 252,558 (17,265)
Use of money and property 286,625 286,625 489,796 203,171
Licenses and permits 218,330 218,330 249,178 30,848
Fines and forfeitures 112,000 112,000 140,192 28,192
Sale of property and compensation for loss 45,350 70,025 93,290 23,265
Miscellaneous local sources 86,646 113,654 432,269 318,615
State aid 2,348,264 2,483,083 2,637.870 154,787
Federal aid 270,000 270,000 174,348 (95,652)
Total Revenues 18,986,984 19,249,149 19,908,009 658,860
EXPENDITURES
General government support 5,545,742 5,764,043 4,641,568 1,122,475
Public safety 6,889,518 7,189,570 7,177,145 12,425
Public health 33,300 33,300 33,288 12
Transportation 420.500 466,131 446,877 19,254
Economic assistance and opportunity 993,400 982,510 901,139 81,371
Culture and recreation 388,870 398,370 354,768 43,602
Home and community services 299,101 316,755 315.273 1,482
Employee benefits 5,811,949 5,868,274 5,857,963 10,311
Debt service - principal and interes1 1,773,100 1,577 , 799 1 ,560,055 17,744
T alai Expenditures 22,155,480 22,596,752 21,288,076 1,308,676
Deficiency of Revenues
Over Expenditures (3,168,496) (3,347,603) (1,380,067) 1,967,536
Other Financing Sources (Uses)
Transfers in 5,488,341 5.559,682 2.642,859 (2,916.823)
Transfers out (2,319,845) (2,212,079) (1,895,023) 317,056
Total Other Financing Sources (Uses) 3,168,496 3,347,603 747,836 (2,599,767)
Excess (Deficiency) of Revenues and Other
Sources Over Expenditures and Other Uses (632,231 ) $ (632,231)
Fund Balance at Beginning of Year 6,639,693
Fund Balance at End of Year $ 6,007,462
See notes to the financial statements.
-34-
TOWN OF SOUTHOLD
HIGHWAY FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
Year ended December 31, 2005
Original Final Variance
REVENUES Budget BUdget Actual Positivel(Negative)
Real Property Taxes $ 3,805,032 $ 3,805,032 $ 3,805,032
Other Real Property Tax Items 3,600 3,600 8,935 5,335
Non-Property Tax Items 111 111
Use of Money and Property 25,300 25,300 77,817 52,517
Licenses and Permits 5,000 5,000 11,126 6,126
Sale of Property and Compensation for Loss 1,000 1,000 2,796 1,796
Miscellaneous Local Sources 155,054 155,054
Slate Aid 223,700 223,700 188,147 (35,553)
Total Revenues 4,063,632 4,063,632 4,249,018 185,386
EXPENDITURES
Transportation 3,228,488 3,228,488 2,913,768 314,720
Employee Benefits 553,741 553,741 500,343 53,398
Debt Service - Principal and Interest 189,932 189,932 178,371 11,561
T alai Expenditures 3,972,161 3,972,161 3,592,482 379,679
Excess of Revenues
Over Expenditures 91.471 91,471 656,536 565,065
Other Financing Uses (Sources)
Operating Transfers In 494,564 494,564 (494,564)
Transfers Out (586,035) (586.035) (520,085) 65,950
Tolal Other Financing Uses (91,471) (91,471) (520,085) (428,614)
Excess of Revenues Over
Expenditures and Other Uses 136.451 $ 136,451
Fund Balance at Beginning otYear 920,396
Fund Balance at End of Year $ 1,056,847
See notes to the financial statements.
-35-
OTHER SUPPLEMENTARY
INFORMATION
TOWN OF SOUTHOLD
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
December 31, 2005
East-West Fire Southold Fishers Solid Waste
General Fund Special Protection Wastewater Island Sewer Management
Part Town Grant Olstrict District District District Totals
ASSETS
Cash and investments $ 740,370 $ 27,767 $ 176,492 $ 30,994 $ 270,513 $1,246,136
Accounts receIvable, net of aUowance 46,769 1,289 124,934 172,992
Due from other funds 152,519 92,199 4,752 325 463,244 733,039
Due from other governments $ 5,000 5,000
State and Federal Receivables
Prepaid expenditures 28,686 27,338 54,024
Total Assets $ 966,344 $ 5,000 $ 119.966 $ 181,244 $ 32.608 $ 906,029 $2,211,191
UABlunES AND FUND EQUllY
UASILITIES
Accounts payable $ 14,395 $ 5,000 $ 12,656 $ 62 $ 195,071 $ 227,184
Due to other funds 6,974 20,700 27,674
Deferred revenue 99,_ 92,198 $ 4,587 355,783 552,234
Total liabilities 121,035 5,000 104,854 4,587 62 571,554 807,092
FUND EQUllY
Fund balance ~ reserved:
PrepakJ expenses 26,686 26,686
Fund balance - unreserved:
Designated - ensuing year's budget 344,246 4,350 348,596
Undesignatecl 474,377 10,762 176,657 32,546 334,475 1,028,817
Total Fund Equity 845,309 15,112 176,657 32,546 334,475 1,404,099
Total Liabilities and Fund Equity $ 966,344 $ 5,000 $ 119,966 $ 181,244 $ 32,808 $ 906,029 $2,211,191
-311-
TOWN OF SOUTHOLD
COMBINING STATEMENT OF REVENUES, EXPENDllURES AND CHANGES
IN FUND BALANCES - NON-MAJOR GOVERNMENTAL FUNDS
Year ended December 31. 2005
East-West Fire Southold Fishers Solid Waste
General Fund Special Protection Wastewater Island Sewer Management
Part Town Grant District DIsIrlcl District District Totals
REVENUES
Real property taxes $ 538,773 $ 413,058 $ 137,450 $ 1,614 $ 1,290,440 $ 2,381,335
Other real property tax items 1,220 290 97 2 907 2,516
Non property tax items 213,786 213,786
Departmental Income 739,283 26,231 17,423 1,721,943 2,504,880
Intergovernmental charges 1,013 1,013
Use of money and property 28,321 2,689 6,666 1,190 25,226 64,092
Licenses and pennlts 5,200 180,765 165,965
Sale of property and compensation for loss 8,556 100,581 109,137
Miscellaneous local sources 74,427 4,621 74,543 153,591
State aid 75,374 75,374
Federal aid $ 224,136 224,136
Total Revenues 1,684,940 224,136 416,037 175,066 20,229 3,375,418 5,895,825
EXPENDITURES
General government support 99,895 99,895
pubnc safety 393,192 414,282 807,474
Public health 8,864 6,864
Home and community services 563,269 224,755 1,846 29,598 2,283,171 3,102,639
Employee benefits 210,776 212 233,870 444,856
Debt service - principal and interest 5,385 2,475 663,860 671,720
Total Expenditures 1,279,381 224,755 414,282 4,533 29,598 3,180,901 5,133,450
Excess (Deficiency) of Revenues
Over Expenditures 405,559 (619) 1,755 170,532 (9,369) 194,517 762,375
Other Financing Uses:
Operating transfers out (284,969) (239,751) (504,720)
Total Other Financing Uses (264,969) (239,751) (504,720)
Excess (Deficiency) of Revenues
Over Expenditures and other Uses 140,590 (619) 1,755 170,532 (9,369) (45,234) 257,655
Fund Balance at Beginning of Year 704,719 619 13,357 6,125 41,915 379,709 1,146,444
Fund Balances at End of Year $ 845,309 $ -0- $ 15,112 $ 178,657 $ 32,546 $ 334,475 $ 1,404,099
-37-
DISCRETELY PRESENTED COMPONENT UNITS
TOWN OF SOUTHOLD
DISCRETELY PRESENTED COMPONENT UNITS
COMBINING STATEMENT OF NET ASSETS
~r31.2005
Rshers laland Cutchogue- Southold Orlent-East Mattltllck Orient
Fishers Refuse and New Suffolk Po" Marlon Park Po" Mosquito
Island Feny Garbage District PorlcDl8lrlcl olsbict District DIsb1ct Dlltrtct
DIotrfct (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Totals
ASSETS
Current Assets:
Cash and investments $ 259,882 $ 617.409 $ 125,726 $ 21,550 $ 4.162 $ 169.690 $ 32,386 $ 1,250,827
Accounts receivable, net of allowance 3.561 3,561
Due from primary govemment 119,344 631,328 28,382 .63,406 5,559 85,771 15,355 949,145
Slale and federal receivables 48.767 48.767
Prepaid charges 24.487 19,892 761 45,140
Total Current Assets 452,480 1,272.190 154,110 84.956 9.741 276,222 47,741 2,297,440
Non-Current Assets:
Non-depreclabte capital assets 11.203,523 2.442,737 101.198 588.847 432,985 515,306 15.284,596
Depreclabte capital assets, net of depreciation 4,554,471 583,434 23,020 59,312 688,797 9,680 5,918,714
Total Assets 16,210.474 4.298.361 278.326 733.115 442.726 1.460,325 57,421 23.500.750
UABIUTlES
Current UabiDttes:
Accounts paya~e and accrued llab!1lties 421,634 1.910 10,443 8,815 442.802
Accrued Interest payable 62,371 1,570 63,941
Due to other governments 2.271 2.271
Other liabHities
DefelT8d revenue 80.515 113,426 26,382 63,406 5,559 85,771 15,355 392,414
Due to other funds
Bond anticipation notes payable 1.725.000 1,120,000 2,845.000
Non-current liabilities due wtthin one year
General obligation bonds payable 150,000 45.000 195.000
Total Current Uabllltles 2.439.520 1 ,235,336 28,382 65,6n 16,002 141,156 15,355 3,941,428
Noncurrent Uabllltles:
General obligation bonds payable 2.700,000 155,000 2.855.000
Total L1abilltles 5,139,520 1.235.336 28.382 65.677 16,002 296.156 15,355 6,796,428
NET ASSETS
Investment in capital assets, net of related debt 11.182.994 1.906,171 1,004,103 14,093,268
Unrestr1cled (112.040) 1,156,854 249,946 667.438 426.724 160,066 42.066 2,611.054
Total Net Assets $ 11,070,954 $ 3.063,025 $ 249,946 $ 667,438 $ 426,724 $ 1,184,169 $ 42,066 $ 16.704.322
-38-
TOWN OF SOUTHOLD
DISCRETELY PRESENTED COMPONENT UNITS
COMBINING STATEMENT OF ACTIVITIES
Year ended December 31. 2005
Fishers Island Cutcho9ue- Southald Orient-East Mattltuck Orient
Fishers Refuse and New Suffolk Park Marion Park Park Mosquito
Island Ferry Garbage District Park OIslrlct District Distrfct District District
District (Unaudited) (Unaud~ed) (Unaudited) (Unaudited) (Unaudfted) (Unaudited) Totals
REVENUES
Program revenues $ 1,884,374 $ 47,644 $ 1,932,018
Real property taxes 400,000 599,400 $ 141,000 $ 315,000 $ 24,900 $ 405,930 $ 74,650 1,960,880
Other real property tax items 281 265 566
Miscellaneous revenue, other governments 18,449 18,449
Interest and earnings 17,420 36,698 2,850 62 11,432 401 68,863
State Aid 664 684
Federal Aid 1,983,139 1,983,139
OtI1er 6,898 34,090 (692) 40,296
Total Revenues 4,311,245 683,742 143,850 349,090 24,962 416,955 75,051 6,004,895
EXPENSES
General government support 80,610 60,610
Public health 60,371 60,371
Transportation 2,532,192 2,532,192
Culture and recreation 138,633 350,088 29,000 296,780 814,501
Home and community services 16,942 478,890 495,832
Interest 84,841 10,716 7,222 102,579
Total Expenses 2,714,385 489,606 136,633 350.088 29,000 304,002 60,371 4,086,085
Changes In Net Assets 1,596,880 194,136 5,217 (998) (4,038) 112,953 14,880 1,918,810
Net Assets at Beginning of Year 9,474,094 2,868,889 244,729 668,438 430,762 1,071,216 27,386 14,785,512
Net Assets at End of Year $11,070,954 $ 3,063,025 $ 249.946 $ 667.438 $ 426.724 $ 1,184.169 $ 42,088 $16,704,322
-39-
OTHER REPORTS
TOWN OF SOUTHOLD
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
December 31, 2005
FEDERAL GRANTOR/PASS
THROUGH GRANTORIPROGRAM TITLE
U.S. Deoartment of Health & Human Services
Passed throuah Suffolk County:
Nulrijion Services Incentive Program
U.S Deoartment of Health & Human Services
Passed throuah Suffolk Countv:
Nutrition
U..S. Deoartment of Homeland Security
Passed throuah the State of New York
Buffer Zone Protection Plan
U.S Deoartment of Aariculture
Natural Resouce Conservation Service
Farm & Ranchland Protection Program
U.S Deoartment of Housina and Urban Develooment
Passed throuah Suffolk Countv:
Community Development Block Grant
U.S Deoartment of the Interior
Ash and Wildlife Service
Passed throuah the State of New York
Deoartment of Environmental Conservation:
Coastal Wetlands Conservation Grant
-40-
FEDERAL
CFDA
NUMBER EXPENDITURES
93.053 $
93.045
97.078
10.913
14.218
15.614
21,174
103,174
50,000
510,539
224,136
1,000,000
$ 1,909,023
TOWN OF SOUTHOLD
NOTE TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
December 31, 2005
Note A - Basis of Presentation
The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Town
of Southold and is presented on the modified accrual basis of accounting. The information in this schedule is
presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments,
and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts
presented in, or used in the preparation of, the basic financial statements.
-41-
CERTIFIED PUBLIC ACCOUNTANTS. BUSINESS ADVISORS AND CONSULTANTS
25 Suffolk Court, Hauppauge, New York 11788
631.434.9500 . Fax 631.434.9518
WWlv.DVZ.com
REPORT ON INTERNAl CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
. Town Board
Town of Southold
Southold, New York
We have audited the financial statements of the governmental activities. each major fund, and the aggregate
remaining fund information of the Town of Southold, New York as of and for the year ended December 31,
2005, which collectively comprise the Town of Southold's basic financial statements, and haye issued our
report thereon dated June 8, 2006, which was qualified because the Town of Southold's discretely presented
component units with the exception of one, the Fishers Island Ferry District, were not audited as of the report
date. We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards apprlcable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States.
Internal Control Over Financial Reoortina
In planning and performing our audit, we considered the Town of Southold, New York's internal control over
financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on
the financial statements and not to provide assurance on the internal control over financial reporting. Our
consideration of the intemal control over financial reporting would not necessarily disclose all matters in the
internal conrol over financial reporting that might be material weaknesses. A material weakness Is a condition
in which the design or operation of one or more of the internal control components does not reduce to a
relatively low level the risk that misstatements in amounts that would be material in relation to the financial
statements being audited may occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. We noted no matters involving the internal control. over
financial reporting and Its operation that we consider to be material weaknesses.
Comoliance and Other Matters
As part ot obtaining reasonable assurance about whether the Town of Southold's financial statements are free
of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grants, noncompliance with which could have a direct and material effect on the determination
of financial statement amounts. However, providing an opinion on compliance with those provisions was not
an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests
disclosed no Instances of noncompfiance that are required to be reported under Government Auditing .
Standards.
This report is intended solely for the information of the Town Board, management, others within the
organization, and federal awarding agencies and pass-through entities and is not intended to be and should
not be used by anyone other than those specified parties.
n,. .L \l~:.~ 2.. J..,-r/"_'~ f?~
~J .".".,--( - '-'(-I-I
Hauppauge, New York
June 8, 2006 - 42 -
ALBRECHT, VIGGIANO, ZURECK & COMPANY, P.C.
..lllalT"'Dl8ERo,.I!KRIh.~
CERTIFIED PUBLIC ACCOUNTANTS. BUSINESS ADVISORS AND CONSULTANTS
25 Suffolk Court, Hauppauge, New York 11788
631.434.9500 . Fax 631.434.9518
WW1ov.avz. com
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO
EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Town Board
Town of Southold
. Southold, New York
Comoliance
We have audited the compliance of the Town of Southold, New York with types of compliance requirements
described In the U. S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that
are applicable to each of its major federal programs for the year ended December 31, 2005. The Town of
Southold's major federal programs are Identified in the summary of auditor's results section of the
accompanying schedule of findings and questioned costs. Compliance with the requirements of laws,
regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the
Town of Soulhold, New York's management Our responsibility Is to express an opinion on the Town of
Southold, New York's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted In the United
States of America; the standards applicable to financial audits contained in Government Auditing standards,
issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of states, Local
Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan
and perform the audit to obtain reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct and material effect on a major federal
program occurred. An audit includes examining, on a test basis, evidence about the Town of Southold, New
York's compliance with those requirements and performing such other procedures as we considered
necessary In the circumstances. We believe that our audit provides a reasonable basis for our opinion. OUr
audit does not provide a legal determination of the Town of Southold, New York's compliance with those
requirements.
In our opinion, the Town of Southold, New York complied, in all material respects, with the requirements
referred to above that are applicable to each of its major federal programs for the year ended December 31,
2005.
Internal Control Over Comoliance
The management of the Town of Soulhold is responsible for establishing and maintaining effective intemal
control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal
programs. In planning and performing our audit, we considered the Town of Southold's internal control over
compliance with requirements that could have a direct and material effect on a major federal program in order
to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and
report on the internal control over compliance in accordance with OMB Circular A-133.
Our consideration of the intemal control over compliance would not necessarily disclose all matters in the
internal control that might be a material weakness. A material weakness is a condition in which the design or
operation of one or more of the internal control components does not reduce to a relatively low level the risk of
noncompliance with applicable requirements of laws, regulations, contracts and grants that would be malerlal
in relation to a major federal program being audited may occur and not be detected within a timely period by
employees in the normal course of performing the assigned functions. We noted no matters invoMng the
internal control over compliance and its operation that we consider to be material weaknesses.
-43-
ALBRECHT, VIGGIANO. ZURECK 150 CoMf'ltlNY, P.C.
. ...... T....cPBKR~
This report is intended solely for the information of the Town Board, management, others within the
organization, and federal awarding agencies and pass-through entities and is not intended to be and should
not be used by anyone other than those specified parties.
~I \J'~I ~- ~.. J- Crr" f'.G
Hauppauge, New Yori<
June 8, 2006
-44-
TOWN OF SOUTHOLD
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year ended December 31,2005
SUMMARY OF AUDIT RESULTS
1. The auditor's report expresses a qualified opinion on the financial statements of the Town of Southold due
to the fact that six of the seven component units of the Town of Southold that were discretely presented
were not audited. The remaining component unit, the Fishers Island Ferry District, was audited by other
auditors.
2. No reportable conditions disclosed during the audit of the financial statements are reported in the
"REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED
ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS~ None of the conditions are reported as a material weakness.
3. No instances of noncompliance material to the financial statements of the Town of Southold were
disclosed during the audit.
4. No reportable conditions disclosed during the audit of the major federal award programs are reported in
the "REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM
AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-
133". No material weaknesses were noted.
5. The auditor's report on compliance for the U.S. Department of the Interior- Fish and Wildlife Service
expresses an unqualified opinion; the report on the remaining programs are unqualified.
6. No audit findings relative to the major federal award programs for the Town of Southold are reported in
this schedule.
7. The Town of Southold had two "Type A" programs for the year ended December 31, 2005.
8. The program tested as a major program includes:
CFDA Number
Name of Federal Proaram or Cluster
15.614
U.S. Department of the Interior
Fish and Wildlife Service
9. The threshold for distinguishing Types A and B programs was $500,000.
10. The Town of Southold was determined to be a low-risk auditee.
-45-
TOWN OF SOUTHOLD
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year ended December 31,2005
FINDINGS-FINANCIAL STATEMENTS AUDIT
REPORTABLE CONDITIONS -
FINDINGS AND QUESTIONED COSTS- MAJOR FEDERAL
AWARD PROGRAMS AUDIT-
Questioned Cost
-46-
None
None
$
APPENDIX C
INSURANCE ON THE BONDS
AMBAC ASSURANCE
Payment Pursuant to Financial Guaranty Insurance Policy
Ambac Assurance Corporation ("Ambac Assurance") has made a commitment to issue a financial guaranty insurance
policy (the "Financial Guaranty Insurance Policy") relating to the Bonds effective as of the date of insurance of the
Bonds. Under the terms of the Financial Guaranty insurance Policy, Ambac Assurance will pay to The Bank of New
York, in New York, New York or any successor thereto (the "Insurance Trustee"), that portion of the principal of and
interest on the Bonds which shall become Due for Payment but shall be unpaid by reason ofNonpa:r.ment by the
Obligor (as such terms are defined in the Financial Guaranty Insurance Policy). Ambac Assurance will make such
payments to the Insurance Trustee on the later of the date on which such principal and/or interest becomes Due for
Payment or within one business day following the date on which Ambac Assurance shall have received notice of
Nonpayment from the Trustee/Paying Agent. The insurance will extend for the term of the Bonds and, once issued,
cannot be canceled by Ambac Assurance.
The Financial Guaranty Insurance Policy will insure payment only on stated maturity dates and on mandatory sinking
fund installment dates, in the case of pnncipal, and on stated dates for payment, in the case of interest. If the Bonds
become subject to mandatory redemption and insufficient funds are available for redemption of all outstanding
Bonds, Ambac Assurance will remain obligated to pay principal of and interest on outstanding Bonds on the
originally scheduled interest and principal !layment dates including mandatory sinking fund redemptIon dates. In the
event of any acceleration of the principal of the Bonds, the insured payments will be made at such times and in such
amounts as would have been made had there not been an acceleration, except to the extent that Ambac Assurance
elects, in its sole discretion, to pay all or a portion of the accelerated principal and interest accrued thereon to the date
of acceleration (to the extent unpaid by the Obligor). Upon payment of all such accelerated principal and interest
accrued to the acceleration date, AmbacAssurance's obligations under the Financial Guaranty Insurance Policy shall
be fully discharged.
In the event the Trustee/Paying Agent has notice that any payment of principal of or interest on a Bond that has
become Due for Payment and that is made to a Bondholder by or on behalf of the Obligor has been deemed a
preferential transfer and theretofore recovered from its registered owner pursuant to the United States Bankruptcy
Code in accordance with a final, nonappealable order of a court of competent jurisdiction, such registered owner will
be entitled to payment from Ambac Assurance to the extent of such recovery if sufficient funds are not otherwise
available.
The Financial Guaranty Insurance Policy does not insure any risk other than Nonpayment, (as set fourth in the
Financial Guaranty Insurance Policy). Specifically, the Financial Guaranty Insurance Policy does not cover:
I. payment on acceleration, as a result of a call for redemption (other than mandatory sinking fund
redemption) or as a result of any other advancement of maturity.
2. payment of any redemption, prepayment or acceleration premium; and
3. nonpayment of principal or interest caused by the insolvency or negligence of any Trustee, Paying Agent
or Bond Registrar, if any.
Ifit becomes necessary to call upon the Financial Guaranty Insurance Policy, I'ayment of principal requires surrender
of Bonds to the Insurance Trustee together with an appropriate instrument of assignment so as to permit ownership
of such Bonds to be registered in the name of Ambac Assurance to the extent of the payment under the Financial
Guaranty Insurance Policy. Payment of interest pursuant to the Financial Guaranty Insurance Policy requires proof
of Bondholder entitlement to interest payments and an appropriate assignment of the Bondholder's right to payment
to Ambac Assurance.
Upon payment of the insurance benefits, Ambac Assurance will become the owner of the Bond, appurtenant coupon,
if any, or ri~ht to payment of principal or interest on such Bond and will be fully subrogated to the surrendering
Bondholder s rights to payment.
The insurance provided by the Financial Guaranty Insurance Policy is not covered by the property/casualty insurance
security fund specified by the insurance laws o(the State of New York.
AMBAC ASSURANCE CORPORATION
Ambac Assurance is a Wisconsin-domiciled stock insurance corporation regulated by the Office of the Commissioner
of Insurance of the State of Wisconsin, and is licensed to do business in 50 states, the District of Columbia, the
Territory of Guam, the Commonwealth of Puerto Rico and the U.S. Virgin Islands, with admitted assets of
approximately $10,015,000,000 (unaudited) and statutory capital of approximately $6,371,000,000 (unaudited) as
of December 3 I, 2006. Statutory capital consists of Ambac Assurance's policyholders' surplus and statuto~
contingency reserve. Standard & Poor's Ratings Services, a division of The McGraw-Hili Companies, Inc., Moody s
Investor Service and Fitch Ratings have each assigned a triple-A financial strength rating to Ambac Assurance.
Ambac Assurance has obtained a ruling from the Internal Revenue Service to the effect that the insuring of an
obligation by Ambac Assurance will not affect the treatment for federal income tax purposes of interest on such
obligation and that insurance proceeds representing maturing interest paid by Ambac Assurance under policy
provisions substantially identical to those contained in its Financial Guaranty Insurance Policy shall be treated for
federal income tax purposes in the same manner as if such payments were made by the Obligor of the Bonds.
Ambac Assurance makes no representation regarding the Bonds or the advisability of investing in the Bonds and
makes no representation regardmg, nor has it participated in the preparation of, the Official Statement other than the
information supplied by Ambac Assurance and presented under the heading "Appendix C".
AVAILABLE INFORMATION
..,'"
The parent company of Ambac Assurance, Ambac Financial Group, Inc. (the "Comp,any"), is subject to the
informational requirements of the Securities Exchange Act of 1934, as amended (the 'Exchange Act"), and in
accordance therewith files reports, proxy statements and other information with the Securities and Exchanlle
Commission (the "SEC"). These reports, proxy statements and other information can be read and copied atthe SEC s
public reference room at 100 F Street, N.E., Room 1580, Washington, D.C. 20549. Please call llie SEC at 1-800-
SEC-0330 for further information on the public reference room. The SEC maintains an internet site at
http://www.sec.gov that contains reports, proxy and information statements and other information regarding
companies that file electronically willi the SEC, including the Company. These reports, proxy statements and other
information can also be read at the offices of the New York Stock Exchange, Inc., at 20 Broad Street, New York, New
York 10005.
Copies of Ambac Assurance's financial statements prepared in accordance with statutory accounting standards are
available from Ambac Assurance. The address of Ambac Assurance's administrative offices and its telephone number
are One State Street Plaza, 19th Floor, New York, New York, 10004 and (212) 668-0340.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The following document filed by the Company with the SEC (File No. 1-10777) is incorporated by reference in this
Official Statement
The Company's Annual Report of Form 10-K for the fiscal year ended December 31, 2006 and filed on
March 1,2007.
All documents subsequently filed by the Company pursuant to the requirements of the Exchange Act after the date
of this Official Statement will be available for inspection in the same manner as described above in "AVAILABLE
INFORMA noN".
Ambac
Ambac Assurance Corporation
One State Street Plaza. 15th Floor
New York. New York 10004
Telephone: (212) 668-0340
Financial Guaranty Insurance Policy
Obligor:
Policy Number:
Obligations:
Premium:
Ambac Assurance Corporation (Ambac) J a Wisconsin stock insurance coq>oration, in consideration of the pa eot of the
premium and subject to the terms of this Policy. hereby agrees to pay to The Bank of New York, as trustee, or its u essor (the
"Insurance Trustee"), for the benefit of the Holders, that portion of the principal of and interest on the above-df'SCribe 0 19attons
(the "Obligations") which shall become Due for Payment but shall be unpaid by reason of Nonpayment b e Obligo
Ambac will make such payments to the Insurance Trustee within one (1) business day following
Nonpayment. Upon a Holder's presentation and surrender to the Insurance Trustee of such unpal.
uncanceled and in bearer form and free of any adverse claim, the Insurance Trustee wlll d
principal and interest which is then Due for Payment but is unpaid. Upon such disbu~
the surrendered Obligations andlor coupons and shall be fully subrogated to all of th Ho e
In cases where the Obligations aTe issued in regtstered form, the Insurance Trustee
presentation and surrender to the Insurance Trustee of the unpatd Obligation, u
with an instrument of assignment, in form sattsfactory to Ambac and nsurance
Holder's duly authorized representative, so as to permit ownership of s h ation
nominee. The Insurance Trustee shall disburse interest to a er a
Insurance Trustee of proof that the claimant is the person entitle 0 he
Insurance Trustee of an instrument of assignment, in form satlsfac 0
Holder or such Holder's duly authorized representa rrin t
interest in respect of which the insurance disburs t was de.
payment on registered Obligations to the extent 0 a y insurance disbu
In the event that a trustee or paying a bligations noti that any payment of prtncipal of or interest on an
Obligation which has become Due f ch is mad t a Holder by or on behalf of the Obligor has been deemed a
preferential transfer and theretofo r vered f m t lder nt to the United States Bankruptcy Code in accordance with
a final, nonappealable order of a u of co Juri ct on, Holder will be entitled to payment from Ambac to the extent
of such recovery if suffici nds r lW1se avatlab e.
o er than (i) the Obligor or (il) any person whose obligations constitute the
gattons who, at the time of Nonpayment, is the owner of an Obligation or of
ein, "Due for Payment", when referring to the principal of Obligations, is when
mandata emption date for the application of a required sinking fund installment has been
any earlier date on which payment is due by reason of call for redemption (other than by application
talhnents). acceleration or other advancement of maturity: and, when refen1ng to interest on the
uled date for payment of interest has been reached. As used herein, "'Nonpayment" means the failure
e ro d sufficient funds to the trustee or paying agent for payment in full of all principal of and interest
igattons ch are Due for Payment.
c celable. The premium on this Policy is not refundable for any reason, including payment of the Obligations
prior to This Policy does not insure against loss of any prepayment or other acceleration payment which at any time
may become due in respect of any Obligation, other than at the sole option of Ambac, nor against any risk other than Nonpayment.
In witness whereof, Ambac has caused this Policy to be affixed with a facsimile of Us corporate seal and to be signed by its duly
authorized officers. in facsimile to become effective as its ortgtnal seal and signatures and binding upon Ambac by virtue of the
countersignature of its duly authorized representative.
f4j /2L
President
....".......
..~~.....MC'f ~...
, ..~ ..0&;0;-..... ...',
,(....~t ""......0..
,!-~I" - \"...
,:' SEAL \0',
, ' "
I . .
\. ; .
\, - t,
. /1
" .....1Io,.C'O..,'~..... ~
,;;;-~..
~~.~
Secretary
Effective Date:
Authorized Representative
THE BANK OF NEW YORK acknowledges that 1t has agreed
to perform the duties of Insurance Trustee under this Policy.
Form No.: 2B-0012 (1101)
A-
Ambac
Ambac Assurance Corporation
One State Stet.>et Plaza,
New York, New York 10004
Telephone: (212) 668-0340
Endorsement
Policy for:
Attadled to and forming part of Policy No.:
The insurance provided by this Policy is not covered
fund specified by the insurance laws of the State N
ter, waive or extend any of the temls, conditions,provisions, agreements
other than as above stated.
, Ambac has caused this Endorsement to be affixed with a facsimile of its corporate seal and to
ized officers in facsimile to become effective as its original seal and signatures and binding
1e cotmtersignature of its duly authorized representative.
Ambac ~ Corporation
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Presidenl
Secretary
Authorized RcprCSl~ntativc
Form No.: 2B-OOQ4 (7/97)
ELIZABETH A. NEVILLE
TOWN CLERK
REGISTRAR OF VITAL STATISTICS
MARRIAGE OFFICER
RECORDS MANAGEMENT OFFICER
FREEDOM OF INFORMATION OFFICER
OFFICE OF THE TOWN CLERK
TOWN OF SOUTHOLD
March 14,2007
Town of Southold, New York
$278,000 Serial Bonds for Air Vacuum Drain Cleaner
$100,000 Serial Bonds for Excavator
$60,000 Serial Bonds for Tractor-Mower
$22,500,000 Serial Bonds for Land Preservation
(Our File Designation: 2615/ )
Robert P. Smith
Hawkins, Delafield & Wood
67 Wall Street
New York, NY 10005
Dear Mr. Smith,
Town Hall, 53095 Main Road
P.O. Box 1179
Southold, New York 11971
Fax (631) 765-6145
Telephone (631) 765-1800
southoldtown .northfork.net
Enclosed find the certified resolution, original affidavit of publication and Extract of
Minutes for each of the above referenced Serial Bonds.
Please advise if you require anything else for your files at this time.
Encs.
Very truly yours,
Lynda M Bohn
Deputy Town Clerk
.
.
EXTRACT OF MINUTES
Meeting of the Town Board of the Town of South old,
in the County of Suffolk, New York
February 27, 2007
* * *
A regular meeting of the Town Board of the Town of Southold, in the
County of Suffolk, New York, was held at the Town Hall, 53095 Main Road, Southold,
New York, at 4:30 o'clock P.M., on February 27, 2007.
There were present:
Board Members:
Hon. Scott A. Russell, Supervisor; and
Justice Louisa P. Evans
Councilman Thomas H. Wickham
Councilman Daniel C. Ross
Councilman William P. Edwards
Councilman Albert Krupski, Jr.
There were absent:
None
Also present:
Elizabeth A. Neville, Town Clerk
Patricia Finnegan, Town Attorney
*
*
*
Councilman Thomas H. Wickham offered the following resolution and moved its
adoption:
BOND RESOLUTION OF THE TOWN OF SOUTHOLD,
NEW YORK, ADOPTED FEBRUARY 27, 2007,
AUTHORIZING THE ACQUISITION OF A TRACTOR-
MOWER FOR USE BY THE TOWN HIGHWAY
DEPARTMENT AT THE ESTIMATED MAXIMUM
COST OF $60,000; APPROPRIATING SAID AMOUNT
THEREFOR AND AUTHORIZING THE ISSUANCE OF
BONDS IN THE PRINCIPAL AMOUNT OF $60,000 TO
FINANCE SUCH APPROPRIATION
THE TOWN BOARD OF THE TOWN OF SOUTHOLD, IN THE
COUNTY OF SUFFOLK, NEW YORK, HEREBY RESOLVES (by the favorable vote
of not less than two-thirds of all the members of said Town Board) AS FOLLOWS:
Section 1. The Town of Southold, in the County of Suffolk, New
York (herein called the "Town"), is hereby authorized to acquire a tractor-mower for use
by the Town Highway Department. The estimated maximum cost thereof, including
preliminary costs and costs incidental thereto and the financing thereof, is $60,000 and
.
.
said amount is hereby appropriated therefor. The plan of financing includes the issuance
of bonds of the Town in the principal amount of $60,000 to finance said appropriation,
and the levy and collection of taxes on all the taxable real property in the Town to pay the
principal of said bonds and the interest thereon as the same shall become due and
payable.
Section 2. Serial bonds of the Town in the principal amount of
$60,000 are hereby authorized to be issued pursuant to the provisions of the Local
Finance Law, constituting Chapter 33-a of the Consolidated Laws of the State of New
York (referred to herein as the "Law"), to finance said appropriation.
Section 3.
The following additional matters are hereby determined
and declared:
(a) The period of probable usefulness applicable to the purpose for
which said $60,000 serial bonds are authorized to be issued, within the limitations of
Section 11.00 a. 28. of the Law, is fifteen (15) years; however, the bonds authorized
pursuant to this resolution, and any bond anticipation notes issued in anticipation of the
sale of said bonds, shall mature no later than five (5) years from the date of original
issuance of said bonds or notes.
(b) The proceeds of the bonds herein authorized and any bond
anticipation notes issued in anticipation of said bonds may be applied to reimburse the
Town for expenditures made after the effective date of this resolution for the purpose for
which said bonds are authorized, or for expenditures made on or prior to such date if a
prior declaration of intent has been made. The foregoing statement of intent with respect
to reimbursement is made in conformity with Treasury Regulation Section 1.150-2 of the
United States Treasury Department.
(c) The proposed maturity of the bonds authorized by this resolution
will not exceed five (5) years.
Section 4. Each of the bonds authorized by this resolution and any
bond anticipation notes issued in anticipation of the sale of said bonds shall contain the
recital of validity as prescribed by Section 52.00 of the Law and said bonds and any notes
issued in anticipation of said bonds shall be general obligations of the Town, payable as
to both principal and interest by general tax upon all the taxable real property within the
Town without limitation ofrate or amount. The faith and credit of the Town are hereby
irrevocably pledged to the punctual payment of the principal of and interest on said bonds
and any notes issued in anticipation of the sale of said bonds and provision shall be made
annually in the budget of the Town by appropriation for (a) the amortization and
redemption of the bonds and any notes in anticipation thereof to mature in such year and
(b) the payment of interest to be due and payable in such year.
Section 5. Subject to the provisions of this resolution and of the Law
and pursuant to the provisions of Section 21.00 relative to the authorization of the
issuance of bonds with substantially level or declining annual debt service, Section 30.00
relative to the authorization of the issuance of bond anticipation notes and of Section
50.00 and Sections 56.00 to 60.00 of the Law, the powers and duties of the Town Board
.
.
relative to authorizing bond anticipation notes and prescribing the terms, form and
contents and as to the sale and issuance of the bonds herein authorized, and of any bond
anticipation notes issued in anticipation of said bonds, and the renewals of said bond
anticipation notes, are hereby delegated to the Supervisor, the chief fiscal officer of the
Town.
Section 6. The validity of the bonds authorized by this resolution and
of any notes issued in anticipation of the sale of said bonds may be contested only if:
(a) such obligations are authorized for an object or purpose for which
the Town is not authorized to expend money, or
(b) the provisions of law which should be complied with at the date of
the publication of such resolution are not substantially complied
with,
and an action, suit or proceeding contesting such validity is commenced within twenty
days after the date of such publication, or
(c) such obligations are authorized in violation of the provisions of the
constitution.
Section 7. This bond resolution shall take effect immediately, and the
Town Clerk is hereby authorized and directed to publish a summary of this bond
resolution, in substantially the form set forth in Exhibit A attached hereto and made a part
hereof, together with a Notice attached in substantially the form prescribed by Section
81.00 of the Law in "THE SUFFOLK TIMES," a newspaper published in Southold, New
York, having a general circulation in the Town and hereby designated the official
newspaper of said Town for such publication.
. . .
The adoption of the foregoing resolution was seconded by Justice Louisa
P. Evans and duly put to a vote on roll call, which resulted as follows:
AYES:
Justice Louisa P. Evans
Councilman Thomas H. Wickham
Councilman Daniel C. Ross
Councilman William P. Edwards
Councilman Albert Krupski, Jr.
NOES:
Hon. Scott A. Russell, Supervisor
The resolution was declared adopted.
********
Exhibit A
BOND RESOLUTION OF THE TOWN OF SOUTHOLD,
NEW YORK, ADOPTED FEBRUARY 27, 2007,
AUTHORIZING THE ACQUISITION OF A TRACTOR-
MOWER FOR USE BY THE TOWN HIGHWAY
DEPARTMENT AT THE ESTIMATED MAXIMUM
COST OF $60,000; APPROPRlAT ING SAID AMOUNT
.
.
THEREFOR AND AUTHORIZING THE ISSUANCE OF
BONDS IN THE PRINCIPAL AMOUNT OF $60,000 TO
FINANCE SUCH APPROPRIATION
The object or purpose for which the bonds are authorized is to acquire a tractor-mower
for use by the Town Highway Department.
The period of usefulness is fifteen (15) years; however, the bonds authorized pursuant to
this resolution, and any bond anticipation notes issued in anticipation of the sale of said
bonds, shall mature no later than five (5) years from the date of original issuance of said
bonds or notes.
The amount of obligations to be issued is $60,000.
A complete copy of the Bond Resolution summarized above shall be available for public
inspection during normal business hours at the office of the Town Clerk, Town Hall,
53095 Main Road, Southold, New York.
The bond resolution is dated February 27, 2007.
.
.
CERTIFICATE
I, ELIZABETH A. NEVILLE, Town Clerk of the Town of Southold, in
the County of Suffolk, State of New York, HEREBY CERTIFY that the foregoing
annexed extract from the minutes of a meeting of the Town Board of said Town of
Southold duly called and held on February 27, 2007, has been compared by me with the
original minutes as officially recorded in my office in the Minute Book of said Town
Board and is a true, complete and correct copy thereof and of the whole of said original
minutes so far as the same relate to the subject matters referred to in said extract.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
corporate seal of said Town of Southold this
27th day of February, 2007.
(SEAL)
~;rJJ-r..40 l)wi-tj
Town Clerk
r
#8264
STATE OF NEW YORK)
)SS:
COUNTY OF SUFFOLK)
'I
I
Candice Schott of Mattituck, in said county, being duly sworn,
says that he/she is Principal clerk of THE SUFFOLK TIMES, a weekly
newspaper, published at Mattituck, in the Town of Southold, County of Suffolk
and State of New York, and that the Notice of which the annexed is a printed
copy, has been regularly published in said Newspaper once each week for
1 week(s), successively, commencing on the 8th day of March. 2007.
(1J-ct ~Q <~/
Principal Clerk
Sworn to before me this
2007
q
day of
ff/CtrtL/
r)
~tlVStu(Lc~)(
CHRISTINA VOllNSKI
NOTARY PUBLIC-STATE OF NEW YORK
No.Ol-V06105050
Quollfled In Suffolk County
:'Vi1li'";ISSior: Expires February 28. 2008
LEGAL NOI1CE
l!lllDl:E
The resolution. '.'~ of which
is published herewith, has ~ adopted
on the 27th day of February, 2007, and
_,.&ke._v~ljpi~ Qftheo~lig~tions authorized
by"sudi' t. 1[ ~'i'_'bo_'
contested only if S1fCb.. obligatiolUl -were
authorized for an object or purpose for
which the TOWN OF SOUlHOLD.
,,"__;~/~(:)!~ty of Suffolk, New York.
-is not 8U~_'~_ll\Oq.eY,or
if the provisions- of law "wbi~ sbOllld
have been complied with as of the date
of publication of this Notice were not
.mWsumlWlY oomplied with. and llD.,ac-
tion, suit or proceeding contesting such
validity is commenced within twenty
days after the publication of this Notice.
or such obligations were authoripxl in
violation of the pro\'isions of the -con-
stitu,tion.
ELIZABETH A. NEVILLE
Town Qerk
BOND RESOLUTION OF THE
TOWN OF SOUTHOLD, NEW
YORK, ADOPTED FEBRUARY n
2007, AUTHORIZING THE ACQUI-
SrtJONOFA TRACrOR-MOWER
FOR USE BYTHETOWNffiGHWAY
DEPARTMENT AT THE ESTIMAT-
ED MAXIMUM COST OF $60,()()(l
APPROPRIATING SAID AMOUNT
THEREFOR AND AUTHORIZING
THE ISSUANCE OF BONDS IN THE
PRINCIPAL AMOUNT OF $60,000
TO FINANCE SUCH APPROPRIA-
TION
The object or purpose for which
the bonds _ are authorized is to acquire
a tractor-mower for use by the Town
Highway Department.
The period of usefulness is fifteen
(15) years; however, the bonds autho-
rized pursuant to this resolution, and
any bond anticipation notes issued in
anticipation of the sale of said bonds,
shall mature no later than five (5).years
from the date of original issuance of
said bonds or notes.
The amount of obligations to be is-
sued is $60.000.
A complete copy of the Bond Reso-
lution summarized above shall be avail-
able for public inspection. during normal
business hours at the office of the Town
Clerk, Town Hall, 53095 Main RO<J,d,
Southold, New York.
The bond resolution is dated February
27,2007.
BY ORDER OF THE TOWN BOARD
OFTHETOWNOFSOUTHOLD,
COUNTY OF SUFFOLK, STATE OF
NEW YORK
~ A. Ne\iIIe
__a.k
8264 IT 318
,
e
Town of Southold - Letter
e\lJ)y-,cl
Board Meeting of February 27, 2007
RESOLUTION 2007-231
ADOPTED
Item # 27
DOC 10: 2647
TIDS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 2007-231 WAS
ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON
FEBRUARY 27, 2007:
BOND RESOLUTION OF THE TOWN OF SOUTHOLD, NEW
YORK, ADOPTED FEBRUARY 27, 2007, AUTHORIZING THE
ACQUISITION OF A TRACTOR-MOWER FOR USE BY THE
TOWN HIGHWAY DEPARTMENT AT THE ESTIMATED
MAXIMUM COST OF $60,000; APPROPRIATING SAID
AMOUNT THEREFOR AND AUTHORIZING THE ISSUANCE
OF BONDS IN THE PRINCIPAL AMOUNT OF $60,000 TO
FINANCE SUCH APPROPRIATION
THE TOWN BOARD OF THE TOWN OF SOUTHOLD, IN THE COUNTY OF
SUFFOLK, NEW YORK, HEREBY RESOLVES (by the favorable vote of not less than two-
thirds of all the members of said Town Board) AS FOLLOWS:
The Town of Southold, in the County of Suffolk, New York (herein called the
"Town"), is hereby authorized to acquire a tractor-mower for use by the Town Highway
Department. The estimated maximum cost thereof, including preliminary costs and costs
incidental thereto and the financing thereof, is $60,000 and said amount is hereby appropriated
therefor. The plan of financing includes the issuance of bonds of the Town in the principal
amount of $60,000 to finance said appropriation, and the levy and collection of taxes on all the
taxable real property in the Town to pay the principal of said bonds and the interest thereon as
the same shall become due and payable.
Serial bonds of the Town in the principal amount of $60,000 are hereby
authorized to be issued pursuant to the provisions of the Local Finance Law, constituting Chapter
33-a of the Consolidated Laws of the State of New York (referred to herein as the "Law"), to
finance said appropriation.
The following additional matters are hereby determined and declared:
(a) The period of probable usefulness applicable to the purpose for which said
$60,000 serial bonds are authorized to be issued, within the limitations of Section 11.00 a. 28. of
the Law, is fifteen (15) years; however, the bonds authorized pursuant to this resolution, and any
bond anticipation notes issued in anticipation of the sale of said bonds, shall mature no later than
five (5) years from the date of original issuance of said bonds or notes.
(b) The proceeds of the bonds herein authorized and any bond anticipation
notes issued in anticipation of said bonds may be applied to reimburse the Town for expenditures
made after the effective date of this resolution for the purpose for which said bonds are
authorized, or for expenditures made on or prior to such date if a prior declaration of intent has
Generated March I, 2007
Page 35
.
Town of Southold - Letter
Board.eting of February 27, 2007
,
been made. The foregoing statement of intent with respect to reimbursement is made in
conformity with Treasury Regulation Section 1.150-2 of the United States Treasury Department.
(c) The proposed maturity of the bonds authorized by this resolution will not
exceed five (5) years.
Each of the bonds authorized by this resolution and any bond anticipation notes
issued in anticipation of the sale of said bonds shall contain the recital of validity as prescribed
by Section 52.00 of the Law and said bonds and any notes issued in anticipation of said bonds
shall be general obligations of the Town, payable as to both principal and interest by general tax
upon all the taxable real property within the Town without limitation of rate or amount. The
faith and credit of the Town are hereby irrevocably pledged to the punctual payment of the
principal of and interest on said bonds and any notes issued in anticipation of the sale of said
bonds and provision shall be made annually in the budget of the Town by appropriation for (a)
the amortization and redemption of the bonds and any notes in anticipation thereof to mature in
such year and (b) the payment of interest to be due and payable in such year.
Subject to the provisions of this resolution and of the Law and pursuant to the
provisions of Section 21.00 relative to the authorization of the issuance of bonds with
substantially level or declining annual debt service, Section 30.00 relative to the authorization of
the issuance of bond anticipation notes and of Section 50.00 and Sections 56.00 to 60.00 of the
Law, the powers and duties of the Town Board relative to authorizing bond anticipation notes
and prescribing the terms, form and contents and as to the sale and issuance of the bonds herein
authorized, and of any bond anticipation notes issued in anticipation of said bonds, and the
renewals of said bond anticipation notes, are hereby delegated to the Supervisor, the chief fiscal
officer of the Town.
The validity of the bonds authorized by this resolution and of any notes issued in
anticipation of the sale of said bonds may be contested only if:
such obligations are authorized for an object or purpose for which the Town is not
authorized to expend money, or
the provisions of law which should be complied with at the date of the publication
of such resolution are not substantially complied with,
and an action, suit or proceeding contesting such validity is commenced within twenty days after
the date of such publication, or
such obligations are authorized in violation of the provisions of the constitution.
This bond resolution shall take effect immediately, and the Town Clerk is hereby
authorized and directed to publish a summary of this bond resolution, in substantially the form
set forth in Exhibit A attached hereto and made a part hereof, together with a Notice attached in
substantially the form prescribed by Section 81.00 of the Law in "THE SUFFOLK TIMES," a
newspaper published in Southold, New York, having a general circulation in the Town and
hereby designated the official newspaper of said Town for such publication.
********
Exhibit A
Generated March I, 2007
Page 36
,
.
Town of South old - Letter
.
Board Meeting of February 27,2007
BOND RESOLUTION OF THE TOWN OF SOUTHOLD, NEW
YORK, ADOPTED FEBRUARY 27, 2007, AUTHORIZING THE
ACQUISITION OF A TRACTOR-MOWER FOR USE BY THE
TOWN HIGHWAY DEPARTMENT AT THE ESTIMATED
MAXIMUM COST OF $60,000; APPROPRIATING SAID
AMOUNT THEREFOR AND AUTHORIZING THE ISSUANCE
OF BONDS IN THE PRINCIPAL AMOUNT OF $60,000 TO
FINANCE SUCH APPROPRIATION
The object or purpose for which the bonds are authorized is to acquire a tractor-mower for use by
the Town Highway Department.
The period of usefulness is fifteen (15) years; however, the bonds authorized pursuant to this
resolution, and any bond anticipation notes issued in anticipation of the sale of said bonds, shall
mature no later than five (5) years from the date of original issuance of said bonds or notes.
The amount of obligations to be issued is $60,000.
A complete copy of the Bond Resolution summarized above shall be available for public
inspection during normal business hours at the office of the Town Clerk, Town Hall, 53095 Main
Road, Southold, New York.
The bond resolution is dated February 27, 2007.
~Q-':.{.l..
Elizabeth A. Neville
Southold Town Clerk
RESULT: ADOPTED [5 TO 1]
MOVER: Thomas H. Wickham, Councilman
SECONDER: Louisa P. Evans, Justice
AYES: Evans, Wickham, Ross, Edwards, Krupski Jr.
NAYS: Scott Russell
Generated March I, 2007
Page 37
.
.
LEGAL NOTICE
NOTICE
The resolution, a summary of which is published herewith, has been
adopted on the 27th day of February, 2007, and the validity of the obligations authorized
by such resolution may be hereafter contested only if such obligations were authorized
for an object or purpose for which the TOWN OF SOUTHOLD, in the County of
Suffolk, New York, is not authorized to expend money or if the provisions of law which
should have been complied with as of the date of publication of this Notice were not
substantially complied with, and an action, suit or proceeding contesting such validity is
commenced within twenty days after the publication of this Notice, or such obligations
were authorized in violation ofthe provisions of the constitution.
ELIZABETH A. NEVILLE
Town Clerk
BOND RESOLUTION OF THE TOWN OF SOUTHOLD,
NEW YORK, ADOPTED FEBRUARY 27, 2007,
AUTHORIZING THE ACQUISITION OF A TRACTOR-
MOWER FOR USE BY THE TOWN HIGHWAY
DEPARTMENT AT THE ESTIMATED MAXIMUM
COST OF $60,000; APPROPRIATING SAID AMOUNT
THEREFOR AND AUTHORIZING THE ISSUANCE OF
BONDS IN THE PRINCIPAL AMOUNT OF $60,000 TO
FINANCE SUCH APPROPRIATION
The object or purpose for which the bonds are authorized is to acquire a tractor-mower
for use by the Town Highway Department.
The period of usefulness is fifteen (15) years; however, the bonds authorized pursuant to
this resolution, and any bond anticipation notes issued in anticipation of the sale of said
bonds, shall mature no later than five (5) years from the date of original issuance of said
bonds or notes.
The amount of obligations to be issued is $60,000.
A complete copy of the Bond Resolution summarized above shall be available for public
inspection during normal business hours at the office of the Town Clerk, Town Hall,
53095 Main Road, Southold, New York.
The bond resolution is dated February 27, 2007.
Error! Unknown document property name.
.
.
BY ORDER OF THE TOWN BOARD OF THE TOWN OF SOUTHOLD, COUNTY
OF SUFFOLK, STATE OF NEW YORK
Elizabeth A. Neville
Southold Town Clerk
PLEASE PUBLISH ON March 8, 2007 AND FORWARD THREE (3)
AFFIDAVITS OF PUBLICATION TO ELIZABETH A. NEVILLE, TOWN
CLERK, TOWN HALL, P.O. BOX 1179, SOUTHOLD, NY 11971
Copies to the following:
The Suffolk Times Town Board Members
Comptroller Highway
Town Clerk's Bulletin Board
Town Attorney
Bond Counsel
Error! Unknown document property name.
.
.
STATE OF NEW YORK )
SS:
COUNTY OF SUFFOLK)
ELIZABETH A. NEVILLE, Town Clerk of the Town of South old, New York being
duly sworn, says that on the 1- day of Ji\c.......c..t- ,2007, she affixed a
notice of which the annexed printed notice is a true copy, in a proper and substantial
manner, in a most public place in the Town of South old, Suffolk County, New York, to
wit: Town Clerk's Bulletin Board, 53095 Main Road, Southold, New York.
ACQUISITION OF A TRACTOR-MOWER
O*~~a~~u~
lizabeth A. Ne ille
Southold Town Clerk
Sworn before me this
~ day of f't \CI..U..L ,2007.
~I~ vY\ I~
tary Public
LYNDA M. BOHN
NOTARY PUBLIC, Slale of New York
No. 01 B06020932
Qualified in Suffolk Coun!Y
Term Expires March 8, 20 11.
..
.
.
DELAFIELD & WOODLLP
(212) 820-9662
February 21, 2007
NEW YORK
WASHINGTON
NEWARK
HARTFORD
LOS ANGELES
SACRAMENTO
SAN FRANCISCO
PHONE (cI2) 620-9300
FAX (212) 514-6425
ONE CHASE MANHATTAN PLAZA
NEW YORK, NY 10005
WNW.HAWKINS.COM
Town of Southold, New York
$60,000 Serial Bonds for Tractor-Mower
(Our File Designation: 2615/ )
John Cushman
Town Comptroller
Town of South old
53095 Main Road
Southold, New York 11971
Dear John:
Pursuant to your request, 1 have prepared and enclose herewith the draft Extract of
Minutes of the regular Town Board meeting to be held on February 27th, showing adoption of
the bond resolution authorizing the above bonds and authorizing and directing the publication of
a summary of such bond resolution together with the statutory form of notice.
Please note that the bond resolution is to be adopted by at least a two-thirds
vote of the entire Town Board membership.
An extra copy of the summary of the bond resolution with the prescribed form of
the Town Clerk's statutory notice affixed in readiness for publication in the official Town
newspaper desigoated in the bond resolution is also enclosed.
As you know, publication of the summary of the bond resolution with the
prescribed form of Town Clerk's notice, commences a 20-day statute of limitations pursuant to
the provisions of Section 80.00 et seq. of the Local Finance Law.
Please obtain and forward to me a certified copy of the Extract of Minutes and an
original Affidavit of Publication with respect to the summary ofthe bond resolution.
With best regards, 1 am
Very truly yours,
Robert P. Smith
RPS/ml
Enclosures
517891.1 001098 RES
.
.
~
.
EXTRACT OF MINUTES
Meeting of the Town Board of the Town of Southold,
in the County of Suffolk, New York
February 27, 2007
*
*
*
A regular meeting of the Town Board of the Town of Southold, in the County of
Suffolk, New York, was held at the Town Hall, 53095 Main Road, Southold, New York, at
o'clock P.M., on February 27,2007.
There were present:
Hon. Scott A. Russell, Supervisor; and
Board Members:
There were absent:
Also present:
Elizabeth A. Neville, Town Clerk
Patricia Finnegan, Town Attorney
John A. Cushman, Town Comptroller
*
*
*
offered the following re~ol\1tion and moved it~
adoption:
517891.1 001098 RES
.
.
BOND RESOLUTION OF THE TOWN OF SOUTHOLD, NEW
YORK, ADOPTED FEBRUARY 27, 2007, AUTHORIZING THE
ACQUISITION OF A TRACTOR-MOWER FOR USE BY THE
TOWN HIGHWAY DEPARTMENT AT THE ESTIMATED
MAXIMUM COST OF $60,000; APPROPRIATING SAID
AMOUNT THEREFOR AND AUTHORIZING THE ISSUANCE
OF BONDS IN THE PRINCIPAL AMOUNT OF $60,000 TO
FINANCE SUCH APPROPRIATION
THE TOWN BOARD OF THE TOWN OF SOUTHOLD, IN THE COUNTY OF
SUFFOLK, NEW YORK, HEREBY RESOLVES (by the favorable vote of not less than two-
thirds of all the members of said Town Board) AS FOLLOWS;
Section I.
The Town of Southold, in the County of Suffolk, New York
(herein called the "Town"), is hereby authorized to acquire a tractor-mower for use by the Town
Highway Department. The estimated maximum cost thereof, including preliminary costs and
costs incidental thereto and the financing thereof, is $60,000 and said amount is hereby
appropriated therefor. The plan of financing includes the issuance of bonds of the Town in the
principal amount of $60,000 to finance said appropriation, and the levy and collection of taxes
on all the taxable real property in the Town to pay the principal of said bonds and the interest
thereon as the same shall become due and payable.
Section 2. Serial bonds of the Town in the principal amount of $60,000 are
hereby authorized to be issued pursuant to the provisions of the Local Finance Law, constituting
Chapter 33-a of the Consolidated Laws of the State of New York (referred to herein as the
"Law"), to finance said appropriation.
517891.1 001098 RES
. .
Section 3. The following additional matters are hereby determined and
declared:
(a) The period of probable usefulness applicable to the purpose for which said
$60,000 serial bonds are authorized to be issued, within the limitations of Section 11.00 a. 28. of
the Law, is fifteen (IS) years; however, the bonds authorized pursuant to this resolution, and any
bond anticipation notes issued in anticipation of the sale of said bonds, shall mature no later than
five (5) years from the date of original issuance of said bonds or notes.
(b) The proceeds of the bonds herein authorized and any bond anticipation
notes issued in anticipation of said bonds may be applied to reimburse the Town for expenditures
made after the effective date of this resolution for the purpose for which said bonds are
authorized, or for expenditures made on or prior to such date if a prior declaration of intent has
been made. The foregoing statement of intent with respect to reimbursement is made in
conformity with Treasury Regulation Section 1.150-2 of the United States Treasury Department.
(c) The proposed maturity of the bonds authorized by this resolution will not
exceed five (5) years.
Section 4.
Each of the bonds authorized by this resolution and any bond
anticipation notes issued in anticipation of the sale of said bonds shall contain the recital of
validity as prescribed by Section 52.00 of the Law and said bonds and any notes issued in
anticipation of said bonds shall be general obligations of the Town, payable as to both principal
and interest by general tax upon all the taxable real property within the Town without limitation
of rate or amount. The faith and credit of the Town are hereby irrevocably pledged to the
punctual payment of the principal of and interest on said bonds and any notes issued in
anticipation of the sale of said bonds and provision shall be made annually in the budget of the
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Town by appropriation for (a) the amortization and redemption of the bonds and any notes in
anticipation thereof to mature in such year and (b) the payment of interest to be due and payable
in such year.
Section 5.
Subject to the provisions of this resolution and of the Law and
pursuant to the provisions of Section 21.00 relative to the authorization of the issuance of bonds
with substantially level or declining annual debt service, Section 30.00 relative to the
authorization of the issuance of bond anticipation notes and of Section 50.00 and Sections 56.00
to 60.00 of the Law, the powers and duties of the Town Board relative to authorizing bond
anticipation notes and prescribing the terms, form and contents and as to the sale and issuance of
the bonds herein authorized, and of any bond anticipation notes issued in anticipation of said
bonds, and the renewals of said bond anticipation notes, are hereby delegated to the Supervisor,
the chief fiscal officer of the Town.
Section 6.
The validity of the bonds authorized by this resolution and of any
notes issued in anticipation of the sale of said bonds may be contested only if:
(a) such obligations are authorized for an object or purpose for which the
Town is not authorized to expend money, or
(b) the provisions of law which should be complied with at the date of the
publication of such resolution are not substantially complied with,
and an action, suit or proceeding contesting such validity is commenced within twenty days after
the date of such publication, or
(c) such obligations are authorized in violation of the provisions of the
constitution.
Section 7.
This bond resolution shall take effect immediately, and the Town
Clerk is hereby authorized and directed to publish a summary of this bond resolution, in
substantially the form set forth in Exhibit A attached hereto and made a part hereof, together
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with a Notice attached in substantially the form prescribed by Section 81.00 of the Law in "THE
SUFFOLK TIMES," a newspaper published in Southold, New York, having a general circulation
in the Town and hereby designated the official newspaper of said Town for such publication.
* * *
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The adoption of the foregoing resolution was seconded by
and duly put to a vote on roll call, which resulted as follows;
AYES:
NOES:
The resolution was declared adopted.
********
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Exhibit A
BOND RESOLUTION OF THE TOWN OF SOUTHOLD, NEW
YORK, ADOPTED FEBRUARY 27, 2007, AUTHORIZING THE
ACQUISITION OF A TRACTOR-MOWER FOR USE BY THE
TOWN HIGHWAY DEPARTMENT AT THE ESTIMATED
MAXIMUM COST OF $60,000; APPROPRIATING SAID
AMOUNT THEREFOR AND AUTHORIZING THE ISSUANCE
OF BONDS IN THE PRINCIPAL AMOUNT OF $60,000 TO
FINANCE SUCH APPROPRIATION
The object or purpose for which the bonds are authorized is to acquire a tractor-mower for use by
the Town Highway Department.
The period of usefulness is fifteen (15) years; however, the bonds authorized pursuant to this
resolution, and any bond anticipation notes issued in anticipation of the sale of said bonds, shall
mature no later than five (5) years from the date of original issuance of said bonds or notes.
The amount of obligations to be issued is $60,000.
A complete copy of the Bond Resolution summarized above shall be available for public
inspection during normal business hours at the office of the Town Clerk, Town Hall, 53095 Main
Road, Southold, New York.
The bond resolution is dated February 27,2007.
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CERTIFICATE
I, ELIZABETH A. NEVILLE, Town Clerk of the Town of Southold, in the
County of Suffolk, State of New York, HEREBY CERTIFY that the foregoing annexed extract
from the minutes of a meeting of the Town Board of said Town of Southold duly called and held
on February 27,2007, has been compared by me with the original minutes as officially recorded
in my office in the Minute Book of said Town Board and is a true, complete and correct copy
thereof and of the whole of said original minutes so far as the same relate to the subject matters
referred to in said extract.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
corporate seal of said Town of Southold this _
day of February, 2007.
(SEAL)
Town Clerk
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(NOTICE TO BE ATTACHED TO AND TO BE PUBLISHED
WITH RESOLUTION AFTER ADOPTION)
NOTICE
The resolution, a summary of which is published herewith, has been adopted on
the 27th day of February, 2007, and the validity of the obligations authorized by such resolution
may be hereafter contested only if such obligations were authorized for an object or purpose for
which the TOWN OF SOUTHOLD, in the County of Suffolk, New York, is not authorized to
expend money or if the provisions of law which should have been complied with as of the date of
publication of this Notice were not substantially complied with, and an action, suit or proceeding
contesting such validity is commenced within twenty days after the publication ofthis Notice, or
such obligations were authorized in violation of the provisions of the constitution.
ELIZABETH A. NEVILLE
Town Clerk
517891.1 001098 RES
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BOND RESOLUTION OF THE TOWN OF SOUTHOLD, NEW
YORK, ADOPTED FEBRUARY 27, 2007, AUTHORIZING THE
ACQUISITION OF A TRACTOR-MOWER FOR USE BY THE
TOWN HIGHWAY DEPARTMENT AT THE ESTIMATED
MAXIMUM COST OF $60,000; APPROPRIATING SAID
AMOUNT THEREFOR AND AUTHORIZING THE ISSUANCE
OF BONDS IN THE PRINCIPAL AMOUNT OF $60,000 TO
FINANCE SUCH APPROPRIATION
The object or purpose for which the bonds are authorized is to acquire a tractor-mower for use by
the Town Highway Department.
The period of usefulness is fifteen (15) years; however, the bonds authorized pursuant to this
resolution, and any bond anticipation notes issued in anticipation of the sale of said bonds, shall
mature no later than five (5) years from the date of original issuance of said bonds or notes.
The amount of obligations to be issued is $60,000.
A complete copy of the Bond Resolution sunnnarized above shall be available for public
inspection during normal business hours at the office of the Town Clerk, Town Hall, 53095 Main
Road, Southold, New York.
The bond resolution is dated February 27,2007.
517891.1 001098 RES