HomeMy WebLinkAboutCPF Debt Service Policy - 2011RESOLUTION 2011-347
ADOPTED
DOC ID: 6837
THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 2011-347 WAS
ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON
APRIL 26, 2011:
Enact a Debt Service Policy for 2011 for the Community Preservation Fund
WHEREAS it is the policy of the Town of Southold to maintain prudent reserve amounts in its
Operating Funds in order to have working capital and to fund debt service requirements, and
appropriate reserve amounts in each Operating Fund vary due to differing cash flows, revenues,
expenses, and statutory considerations within each Operating Fund, and
WHEREAS the Community Preservation Fund (CPF) Program is financed by a 2% tax on real
property transfers town-wide pursuant to New York State Town Law Section 64-e and Tax Law
Section 1449-33, and
WHEREAS the CPF Program was established by a voter-approved local law adopted in 1998,
and by subsequent voter-approved local laws, the sunset date was extended to the year 2030, and
WHEREAS to extend purchasing power beyond the CPF monthly revenue levels received since
1998, the Town of Southold authorized bonded indebtedness totaling $32.5 million for open
space and farmland preservation purposes, which includes unissued bonds totaling $10 million
approved by Resolution No. 2007-252 of February 27, 2007 (original authorization $22.5
million, $7.5 million issued in 2008, $5 million issued in 2009), and
WHEREAS the current debt service obligations projected for 2011 are $1.636 million, debt
service obligations for unissued bonds totaling $10 million are estimated to be about $.78 million
for a total annual debt service obligation estimated to be about $2.416 million, and, due to an
economic downturn and volatility in the real estate market, CPF revenues for 2011 were
budgeted to total $2.88 million, and
WHEREAS the Town Board has determined that an adequate fund balance should be
maintained in the CPF in order to meet the Town's obligations to repay the bonded indebtedness
authorized to extend the purchasing power beyond the monthly CPF revenue levels from the CPF
and to protect the General Fund Whole Town taxpayers from the volatility of CPF revenues
during the current and subsequent year, now therefore be it
RESOLVED that the Town Board of the Town of Southold hereby directs Supervisor Scott
Resolution 2011-347 Board Meeting of April 26, 2011
Russell to set aside CPF monies equal to that portion of the budget remaining in the current year
CPF appropriation for debt service to be used to pay the Town's obligations to make CPF related
bonded indebtedness payments for the remainder of the current year, and be it further
RESOLVED that the Town Board of the Town of Southold hereby directs Supervisor Scott
Russell to set aside additional CPF monies equal to the estimated debt service requirements for
CPF related bonded indebtedness, both issued and unissued, for next year, and be it further
RESOLVED that the Town Board will review and reconsider this policy on an annual basis.
Elizabeth A. Neville
Southold Town Clerk
RESULT: ADOPTED [UNANIMOUS]
MOVER: Albert Krupski Jr., Councilman
SECONDER: Vincent Orlando, Councilman
AYES: Ruland, Orlando, Talbot, Krupski Jr., Evans, Russell
Updated: 4/26/2011 10:59 AM by John Cushman Page 2