Loading...
HomeMy WebLinkAboutPeconic County Financial Feasibility StudyPECONIC COUNTY FINANCIAL FEASIBILITY STUDY ■ August 1995 Prepared for: East -End Economic and Environmental Institute, Inc. The State of New York Town of East Hampton Town of Riverhead Town of Shelter Island Town of Southampton and the Town of Southold East -End Economic and Environmental Institute, Inc. Supervisor Tony Bullock Town of East Hampton Supervisor Huson Sherman Town of Shelter Island Deputy Supervisor Jim Stark Town of Riverhead Assemblyman Fred W. Thiele, Jr. New York State, 2nd District Supervisor Tom Wickham Town of Southold Acting Supervisor Richard Blowes Town of Southampton Mayor Paul Rickenbach Village of East Hampton Tom Twomey Twomey, Latham, Shea & Kelley Chair Larry Cantwell Village of East Hampton Carol Gristina Gristina Vineyards Edward Merz Suffolk County National Bank Joseph Gergela. Long Island Farm Bureau Kevin McDonald Group for the South Fork William Sanok Cornell Cooperative Extension Thomas Tobin Bridgehampton National Bank Feasibility Consultant Public Financial Management, Inc. Legal Consultants Beveridge & Diamond, P.C. Hawkins, Delafield & Wood TABLE OF CONTENTS PECONIC COUNTY Financial Feasibility Study Page Foreword..................................................................................................................... i Acknowledgments....................................................................................................... v Chanter 1 Introduction........................................................................................... 1 2 Summary and Conclusion..................................................................... 9 3 Revenue................................................................................................... 23 4 Internal Support Departments 4.1 Board of Supervisors and Administrative Departments .............. 35 5 Citizen Service Departments 5.1 Economic Assistance................................................................... 47 5.2 Public Safety Coordinator's Office .............................................. 57 5.3 Sheriffs Department.......,............................................................. 65 5.4 Probation Department................................................................... 73 5.5 Fire, Rescue & Emergency Services ............................................ 81 5.6 Health Department....................................................................... 87 5.7 Judicial Departments................................................................... 97 5.8 Parks and Cultural Affairs........................................................... 105 5.9 Planning and Regional Services .................................................. 111 5.10 Public Works............................................................................... 117 6 County Community College................................................................. 127 7 Separating From Suffolk County 7.1 General Issues Regarding; Secession ............................................ 133 7.2 Asset and Liability Allocation..................................................... 147 7.3 Implementing a Peconic County Divestiture ............................... 155 8 Future Investment in Peconic County 8.1 Capital Improvement Plan and Start -Up Costs ............................ 167 8.2 Insurance Costs............................................................................ 175 8.3 Debt Summary ............................................................................. 177 APPENDIX I. The Case for a Weighted Board of Supervisors for Peconic County APPENDIX II. Debt: Bond Sizings Detail APPENDIX III. Summary of Suffolk County Balance Sheet PECONI:C COUNTY Financial Feasibility Study Summary of Report Tables INTRODUCTION TABLE OF CONTENTS Page Table 1-1 Calculation of the East End's Tax Contribution........................................................................... 5 SUMMARY & CONCLUSION Table 2-1 Peconic County Projected Staffing Requirements........................................................................ 11 Table 2-2 Calculation of East End Subsidy (FY 1993)................................................................................. 13 Table 2-3 Peconic County First Year Operating Budget.............................................................................. 14 Table 2-4 Peconic County Departmental Expenses...................................................................................... 15 Table 2-5 1996-2000 Peconic County Budget Summary and Forecasts ......................... I............................. 16 Table 2-6 Historical and Forecasted Property Tax........................................................................................ 18 Table 2-7 Total Expenditures for Peconic County and Comparable Counties ............................................. 20 REVENUE Table 3-1 East End Allocation of Taxable Sales.......................................................................................... 26 Table 3-2 Peconic County Sales Tax Derived for 1993................................................................................ 27 Table 3-3 Historical and Projected Sales Tax Revenues............................................................................... 28 Table 3-4 Computation of Constitutional Taxing Power............................................................................... 29 Table 3-5 Taxable Full Valuation of Peconic County................................................................................... 30 Table 3-6 Historical and Forecasted Property Tax........................................................................................ 31 Table 3-7 Peconic County Revenue Estimates by Source............................................................................. 33 BOARD OF SUPERVISORS AND ADMINISTRATIVE DEPARTMENTS Table 4.1-1 Comparison of Net Expenditures (FY 1993)............................................................................. 39 Table4.1-2 Staffing Analysis....................................................................................................................... 40 Table 4.1-3 Calculation of Space Requirements........................................................................................... 42 Table 4.1-4 Summary of Salary and Non -Salary Expenditures..................................................................... 43 Table 4.1-5 Comparison of Operating Budgets............................................................................................. 45 ECONOMIC ASSISTANCE Table 5.1-1 Comparison of Net Expenditures (FY 1993)............................................................................. 49 Table 5.1-2 Family and Children's Services - Caseloads.............................................................................. 51 Table 5.1-3 Public Assistance and Medicaid Expected Caseload................................................................. 52 Table5.1-4 Staffing Analysis......................................................................................................................... 53 Table 5.1-5 Calculation of Space Requirements........................................................................................... 54 Table 5.1-6 Summary of Salary and Non -Salary Expenditures..................................................................... 55 Table 5.1-7 Comparison of Operating Budgets............................................................................................. 56 PUBLIC SAFETY COORDINATOR'S OFFICE Table 5.2-1 Comparison of Net Expenditures (FY 1993)............................................................................. 58 Table5.2-2 Staffing Analysis......................................................................................................................... 60 Table 5.2-3 Calculation of Space Requirements............................................................................................ 61 Table 5.2-4 Summary of Salary and Non -Salary Expenditures..................................................................... 62 Table 5.2-5 Comparison of Operating Budgets............................................................................................. 63 SHERIFF'S DEPARTMENT Table 5.3-1 Comparison of Net Expenditures (FY 1993)............................................................................. 67 Table5.3-2 Staffing Analysis........................................................................................................................ 68 Table 5.3-3 Calculation of Space Requirements........................................................................................... 69 Table 5.3-4 Summary of Salary and Non -Salary Expenditures..................................................................... 70 Table 5.3-5 Comparison of Operating Budgets............................................................................................. 71 PROBATION DEPARTMENT Table 5.4-1 Comparison of Net Expenditures (FY 1993)............................................................................. 75 Table5.4-2 Staffing Analysis........................................................................................................................ 76 Table 5.4-3 Calculation of Space Requirements........................................................................................... 77 Table 5.4-4 Summary of Salary and Non -Salary Expenditures..................................................................... 78 Table 5.4-5 Comparison of Operating Budgets............................................................................................. 79 FIRE, RESCUE & EMERGENCY SERVICES Table 5.5-1 Comparison of Net Expenditures (FY 1993)............................................................................. 82 Table5.5-2 Staffing Analysis........................................................................................................................ 83 Table 5.5-3 Calculation of Space Requirements........................................................................................... 84 Table 5.5-4 Summary of Salary and Non -Salary Expenditures..................................................................... 85 Table 5.5-5 Comparison of Operating Budgets............................................................................................. 86 HEALTH DEPARTMENT Table 5.6-1 Comparison of Net Expenditures (FY 1993)............................................................................. 89 Table5.6-2 Staffing Analysis......................................................................................................................... 91 Table 5.6-3 Calculation of Space Requirements............................................................................................ 93 Table 5.6-4 Summary of Salary and Non -Salary Expenditures..................................................................... 94 Table 5.6-5 Comparison of Operating Budgets.............................................................................................. 95 JUDICIAL DEPARTMENTS Table 5.7-1 Comparison of Net Expenditures (FY 1993)............................................................................. 98 Table5.7-2 Staffing Analysis........................................................................................................................100 Table 5.7-3 Calculation of Space Requirements...........................................................................................101 Table 5.7-4 Summary of Salary and Non -Salary Expenditures.....................................................................102 Table 5.7-5 Comparison of Operating Budgets.............................................................................................103 PARKS AND CULTURAL AFFAIRS Table 5.8-1 Comparison of Net Expenditures (FY 1993).............................................................................106 Table5.8-2 Staffing Analysis........................................................................................................................107 Table 5.8-3 Calculation of Space Requirements...........................................................................................108 Table 5.8-4 Summary of Salary and Non -Salary Expenditures.....................................................................109 Table 5.8-5 Comparison of Operating Budgets.............................................................................................110 PLANNING AND REGIONAL SERVICES Table 5.9-1 Comparison of Net Expenditures (FY 19,93).............................................................................112 Table5.9-2 Staffing Analysis........................................................................................................................114 Table 5.9-3 Calculation of Space Requirements...........................................................................................114 Table 5.9-4 Summary of Salary and Non -Salary Expenditures.....................................................................116 Table 5.9-5 Comparison of Operating Budgets.............................................................................................116 PUBLIC WORKS Table 5.10-1 Comparison of Net Expenditures (FY 1993)...........................................................................118 Table 5.10-2 Payments From County to Town Departments........................................................................121 Table 5.10-3 Staffing Analysis......................................................................................................................122 Table 5.10-4 Calculation of Space Requirements..........................................................................................123 Table 5.10-5 Summary of Salary and Non -Salary Expenditures...................................................................124 Table 5.10-6 Comparison of Operating Budgets...........................................................................................125 COUNTY COMMUNITY COLLEGE Table 6-1 Comparison of Net Expenditures (FY 1993)................................................................................128 Table6-2 Staffing Analysis...........................................................................................................................130 Table 6-3 Comparison of Operating Budgets................................................................................................132 GENERAL ISSUES REGARDING SECESSION Table 7.1-1 Peconic County Constitutional Debt Limit................................................................................135 Table 7.1-2 New Suffolk County Constitutional Debt Limit.........................................................................136 Table 7.1-3 Constitutional Taxing Limits.....................................................................................................137 IMPLEMENTING A PECONIC COUNTY DIVESTITURE Table 7.4-1 Peconic County Working Capital Worksheet....................................................:.......................157 Table 7.4-2 Peconic County Office Space Requirements..............................................................................159 Table 7.4-3 Allocated Suffolk County General Obligation Debt Service .....................................................162 Table 7.4-4 Allocated Suffolk County Drinking Water Debt Service ...........................................................162 Table 7.4-5 Debt Service to Repay General Obligation Bonds.....................................................................163 Table 7.4-6 Debt Service to Repay Drinking Water Obligation...................................................................163 CAPITAL IMPROVEMENT PLAN AND START-UP COSTS Table 8.1-1 Summary of Start -Up Costs.......................................................................................................174 DEBT SUMMARY Table 8.2-1 Future Debt Outstanding...........................................................................................................178 FOREWORD The Towns of East Hampton, Riverhead, Shelter Island, Southampton and Southold (the "East End") and the towns in western Suffolk County have developed into different entities. Through the years, the two areas of Suffolk County have become philosophically divided in terms of land use issues, sources of commerce., tourism, second -home ownership, population growth, land and resource conservation, and other elements. The East End is a rural community known for its open spaces, farms, beaches and waterways, a substantial number of second or vacation homes, tourism, fishing and other small businesses. Western Suffolk County is suburban in character. It is home to large scale residential and commercial developments, regional shopping malls, industrial parks and suburban conveniences. Nowhere is the difference between the two communities more apparent than in County population data: the East End comprises only 8% of the population of Suffolk County but over 38% of the land area; also, the five western towns have nearly 7 times the population density of the East End -- 2,153 people per square mile versus 308 per square mile on the East End. Fundamental socio-economic and quality of life issues are manifested in fundamental differences in the scope and philosophy of county government between the citizens of the East End and the western towns. Suffolk County itself has developed separate government structures to attempt to deal with these separate; communities. Government services that are typical for urban/suburban counties such as county police (Police District), county court system (District Court), and county sewer service (Sewer Districts) have been formed to provide services to an urban/suburban community that makes up the western part of the County, while needed services are provided locally by the Towns in the East End, which is typical for a more rural type community. Thus, there may be no way that one county government can represent and be efficiently responsive to the needs of the people in the East End and the western towns. This point was recently underscored by Donald Blydenburgh, Presiding Officer of the Suffolk County Legislature, when he said "The interests of the East End are substantially different from the West End". The citizens of the East End are interested in creating a county government that will be more responsive and more representative of their interests. To that end, the East End Economic and Environmental Institute has commissioned this study which is being funded by the State of New York and the five East End Towns to determine the financial feasibility of establishing an independent Peconic County comprised of the five East End Towns. While the primary focus of this study is financial feasibility, certain policy decisions and political considerations associated with the creation of an independent Peconic County are taken into account. In certain instances, such as the form of government of the new County, these political decisions have a direct impact on the costs of the new County. In others, such Peconic County Financial Feasibility Report Page i FOREWORD as the discussion of the constitutional and legal requirements of tax and debt limits, the results have less direct effect on the fiscal condition of the County, but provide a framework for continued efforts to form Peconic County. Three Components of the Analysis This study of Peconic County is built on three key analyses: First, a Peconic County operating budget was developed, using information from Suffolk County and input from East End citizens and policy makers. Second, the ongoing capital needs of the new Count were determined and addressed, both in terms of needs for East End investment. and the costs associated with the debt necessary to fund capital assets and improvements. Third, methods of allocating existing Suffolk County assets and liabilities were examined and one method, referred to as the "Divestiture Method," is recommended because it provides an equitable, efficient, and easy to understand allocation method that would ensure that both Peconic County and Suffolk County would be viable self-sustaining entities. The allocation of assets and liabilities was integrated into both the capital budgeting process and the analysis of the operating departments in order to ensure that Peconic County has the resources to meet its service needs and support the financial operations of a county. These three key analyses were then incorporated into an analytical model. This model is an essential element in determining the financial feasibility of Peconic County as it permits an overall examination of the impact of changes in the service level, capital improvements and asset and liability allocation between Peconic and Suffolk County on the citizens of the County. Each operating departmental budget is driven by databases of staffing levels, salaries, and non -personnel costs. The operating budget part of the model takes into account outside revenue sources, derived benefits to the East End towns, and the variations in service mix. Proposed changes in service mix for each department affect both departmental expenditures and potential revenue sources. These changes, in turn, have an effect on the costs of services to each citizen of the new County. The model provides a tool by which changes in service mix can be measured in relation to property tax rates needed to support those services. The Model The analytical model also incorporates the debt service that will be generated by bond issuance necessary to fund the proposed capital improvement program, a portion of the start- up costs, as well as debt issued to repurchase certain Suffolk County obligations. Debt service schedules are generated based on the inclusion of distinct capital projects and allocated to each fiscal year of the County's budget. The cost of each subsequent years' Peconic County Financial Feasibility Report Page ii FOREWORD capital improvement program was then overlaid onto the model in order to determine the revenues needed from Peconic County. The asset and liability allocation also resulted in additional debt service and other ongoing costs to Peconic County. As the operating department asset needs were determined and the various liability allocation scenarios were explored, the costs associated with those scenarios were integrated into the model as well as into the capital improvement program. For example, if certain assets necessary for the operation of Peconic County were not included in the East End share of the asset allocation, those assets would need to be purchased, most probably with debt. That debt would then add to the costs of operating the County. And under the recommended "Divestiture Method" of allocating assets/liabilities, a portion of Suffolk County's existing long-term general obligation debt will also be purchased by Peconic County. The model provides the resources to integrate different scenarios into the ongoing costs of Peconic County and observe the impact on property tax levels. This Report The scope of this report does not include an independent assessment of Suffolk County's financial position following the proposed secession of Peconic County. It is assumed here that Suffolk County must remain a viable and financially self -sustainable entity. In general, the recommended decisions regarding the formation of Peconic County are likely to have a neutral or positive effect on the citizens of Suffolk County following the establishment of Peconic County. It is the intention of this study to provide focus for the citizens of the East End towns to continue their discussions regarding the formation of Peconic County. This report is based on a number of policy decisions from citizens and elected officials. It must be remembered, however, that this report provides a structure for Peconic County, not the structure for Peconic County. Different assumptions and policy decisions will result in different costs and different service mixes. The Peconic County presented in this report is certainly not the only financially feasible Peconic County, and additional exploration of the structure of the County is not only encouraged but necessary to ensure that Peconic County, when formed, best meets the needs of its citizens while not harming those of Suffolk County. Peconic County Financial Feasibility Report Page iii ACKNOWLEDGMENTS This study could not have achieved its level of comprehensiveness and insight without the generous and valuable contributions of elected officials, professional staff from state, governments, other quasi -governmental entities, and, most county and municipal importantly, from those more than 100 individual citizens who worked as members of the Technical Advisory Committee and the nine Citizen Advisory Committees who often went far beyond their daily commitments in order to facilitate our work. At the risk of omitting some names, we acknowledge the following individuals who made major inputs and thank all for their public spirit and support. We credit them for the caliber of their contributions, and absolve them from any errors and controversy that may arise. New York State and Regional Agencies New York State Police: Colonel Edward Vanderwall, Major Anthony J. DiResta, Captain Walter Heesch New York State Department of Municipal Research and Statistics: Joseph Hilton, Director Long Island Regional Planning Board: Dr. Lee Koppelman, Executive Director, Dr. Pearl Kamer, Economist, Roy Fedelman, Principal Planner Suffolk County Offices Suffolk County Community College: Dr. Elizabeth Blake, Provost, William Welsh, Director of Business Affairs, Eastern Campus, Dr. Craig Harris Suffolk County Comptroller's Office: The Honorable Joseph Caputo; Joseph Poerio, James Poitras, Werner Kuprat, Joan Sikorski, Nancy Hynes, Lillian Cerbone, Joan Goldrick, Nancy Jill, Jean Milano Suffolk County District Attorney: Mark Cohen, T. Michael Conlon Suffolk County Executive's Office: Division of Budget, Louis M. Soleo, Budget Director; Edward Boughal, Deputy Budget Director; Loren Houghton, Allen Kovesdy, C. Reid Vail, Carl A. Petersen, Margaret B. Bermel, Carmine Chiusano Suffolk County Fire, Rescue and Emergency Services: Alfred Jardin, Commissioner, Frederick L. Daniels, Jim Johnson Suffolk County Health Services Department: Paul O'Brien, Deputy Commissioner, Oliver Schepers, Read Smith Suffolk County Legislature Budget Review Office: Frederick Pollert, Director, James Spero, Deputy Director, Robert Lipp, Senior Economist, Joanne Doering Suffolk County Legislature: Elizabeth Buniski, Alice Hoffman and Matt Solomon Suffolk County Police: Peter Cosgrove, Commissioner Suffolk County Probation Department: Vincent Iaria, Director Suffolk County Department of Public Works: Stephen Hayduk, Commissioner, Charles Bartha, Deputy Commissioner, Gerald Cronin, Robert Shinnick Peconic County Financial Feasibility Report Page v ACKNOWLEDGMENTS Real Property Tax Service Agency: Charles Crump Suffolk County Sheriff. Chief Daniel Weber, Chief Carl G. Falkenbach, Lieutenant Eileen Kelly, Lieutenant Charles Ewald Suffolk County Social Services Department: John Wagner, Kenneth Weiss Steering Committee New York State, Fred W. Thiele, Jr., Assemblyman, 2nd District Town of Southampton, Richard Blowes, Acting Supervisor Town of Southold, Tom Wickham, Supervisor Town of East Hampton, Tony Bullock, Supervisor Town of Shelter Island, Huson Sherman, Supervisor Town of Riverhead, Jim Stark, Deputy Supervisor Village of East Hampton, Paul F. Rickenbach, Jr., Mayor; Larry Cantwell, Administrator Long Island Farm Bureau, Joseph Gergela Gristina Vineyards, Carol Gristina Technical Advisory Committee Richard Blowes, Clifford Case, John Cushman, James Daly, John Daly, Linda Dieterich, Ken Drange, Bill Dudine, Jeanne Farnan, Brenda Filmanski, Samuel Friedman, Craig Furrer, Harriet Gilliam, Liz Granitz, Stephen Grossman, George Guldo, Richard Haefeli, Mike Haran, Joseph Janoski, John Jilnicki, Cathy Lester, Francis Mason, Randolph Mayer, Kathy McGinnis, Charlie Murrin, James Needham, James Normile, Linda Riley, Helen Rosenblum, Hal Ross, Vincent Scerbinski, Huson Sherman, and Tom Wickham Citizens Advisory Committees Economic Assistance: James Daly, Chairman; Richard Braunskill, Nancy Capozzola, Donald Eremin, Anne Harms, Charles McGuinness, Lili Ann Motta, John Ofrias, and Bessie Swann Education: Ken Drange, Chairman; Tim Bishop, Richard Gambino, Mary Killoran, Harry Marmion, John Ofrias, Helen Winship, and Joan Zaleski General Government: Jean Hazelton, Chairperson; Lou Boschetti, Edward Enser, Dennis Finnerty, Samuel Friedman, Bud Gannon, David Gilchrist, Ed Gorman, Elizabeth Haderer, Sharon Kast, Charles McGuinness, Bonnie O'Brien, Desiree Passantino and Bob Petrie Health: Jo Ann Z. Engelhardt, Chairperson; Gary De Lalio; Joanna Ferraro -Levy; Dr. John J. Ferry, Jr.; Linda Fleming, Eileen Goldman, Dr. John Kelly, Sean McCabe, Rose McGarvey, Diane Mercieca, Kenneth Moffa, Henry Pfeifer, Dr. Alfred Scherzer, Diane Smith and Ray Zitani Home and Community Services: Ralph Bishop, Chairman; Lester Demler, Arthur Fechtmann, Dennis Finnerty, Susan Griffin, Wayne L. Grothe, John Hensel, Linda Levy, Winslow Peters, Desiree Passantino, Robert Phillips, Bessie Swann, Charles Townsend, Amy Wippert and Mardooni Vahradian Peconic County Financial Feasibility Report Page A ACKNOWLEDGMENTS Public Safety: Kathleen Hooker, Chairperson; Lee Abbott, Matt Bonora, Cliff Coleman, Terry Flanagan, Rinnie Hintze, Sean McCabe, Charlie Murrin, Frank Palmer, Ron Strain, and Charles Tyler, Jr. Recreation & Culture: Bob DeLuca, Recreation Chairperson; Susan B. Griffin, Culture Chairperson; Joan Bishop, Tim Bishop, Richard Braunskill, Joan Colao, Tim Corwin, Linda Dieterich, Fran & Bill Dudine, Richard Gambino, Barbara Gubbins, Katherine Harrington, Linda Levy, Lili Ann Motta, Bob & Valerie Ott, Frank Palmer, Desiree Passantino, David Peck, Arline Richter, Jim Riordan, John B. Rusch, Dr. Alfred L. Scherzer, and Rosalie Tutino Revenue: Brenda Filmanski, Chairperson; Elizabeth Granitz, Wesley Lowd, Francis Mason, Noreen Michelson, Joseph Nye, Winslow Peters, and Hal Ross Transportation: Hank DeCillia, Chairman; Clifford Clark, Lester Davis, Steve Hilles, Robert Krucklin, Jerry Moore, Frank Palmer, Winslow Peters, Hal Ross, and Rosalie Tutino We also express our appreciation to the members of the New York State Legislature and the Governor for their support and leadership in enabling this work to be undertaken. Other Agencies and Individuals Thomas Conoscenti, Thomas Conoscenti and Associates Bethany St. Dennis, New York State Association of Counties Thomas W. Matteo and Elizabeth Mortensen, Staten Island Charter Commission Dr. Mark Mazur, Council of Economic Advisors, Office of the President Professor Richard Netzer, New York University David Van Nordick, State University of New York Written Source Material County of Suffolk Budgets, 1993-1995 County of Suffolk, Comprehensive Annual Financial Report, December 31, 1993 County of Suffolk Risk Management Budget Forecasts 1994 through 1995, San Francisco, CA: Antistics, 1994 Demographics USA County Edition 1994: Market Statistics. Financing Government on Long Island and Working Papers; Volumes 1 and 2: New York State Temporary Commission for Tax Relief on Long Island, December 1992. Peconic County Study: Office of County Legislator Fred W. Thiele, Jr. Population Survey 1994, Current Population Estimates for Nassau And Suffolk Counties, Hicksville, NY: Long Island Lighting Company, July 1994. Report of Certain Matters with Respect to Indebtedness in the Context of an Independent City of Staten Island, New York, NY: Orrick, Herrington & Sutcliffe. Special Report on Municipal Affairs: H. Carl McCally, Office of the State Comptroller, 1992. Peconic County Financial Feasibility Report Page vii ACKNOWLEDGMENTS Staten Island: A Study to Asses the Probable Service Needs for a Separate City and Methods of Service Delivery: Towers Perrin, October 1993. State of New York Charter Commission in for Staten Island Briefing Paper, Civil Service Issues, June 1992 Status Quo Fiscal Study: An Analysis of New York City Expenditures and Revenues on Staten Island, New York University: Berne, Netzer & Stiefel, July 1992. Valuation: Measuring and Managing the Value of Companies: Copeland, Koller & Murrin; McKinsey & Company, Inc., Second Edition, 1994. Peconic County Financial Feasibility Report Page viii INTRODUCTION INTRODUCTION In this Introduction, a brief outline of the methodology of the study is provided. As part of this methodology, the major categories of the study are summarized and many of the assumptions that were made are provided. Detailed discussion of each of the sections of the report are found in the individual chapters. The study's approach to determining the financial impact of establishing a separate Peconic County was divided into five major steps. The first step was to determine the appropriate level of services that Peconic County will offer its citizens and then quantify the cost of those services. The second step was to analyze Suffolk County's revenues, both in aggregate and by department, with particular attention to the contribution by the East End towns to the Suffolk County's General Fund. These first two steps combined to formulate the base of the proposed county's operating budget. Then, Suffolk County's assets and liabilities were divided in order to analyze the portions of each that Peconic County would assume. The fourth step was to develop a capital improvement plan for the proposed county, including projected costs that will need to be funded in Peconic County's first three fiscal years. Finally, the amount of debt that Peconic County will need to issue as a result of the asset/liability allocation and the capital improvement plan was determined. All of these factors were included in a pro forma operating budget for Peconic County's first fiscal year. These financial results were projected over five years, presenting the budget's impact on taxpayers of the East End. This study assumes that Peconic County will be created on January 1, 1996; to simplify comparisons, all numbers in the departmental chapters are in 1993 dollars (1993 is the latest year that Suffolk County's audited financial statements are available). In the forecasts which are provided in Chapter 2: "Summary and Conclusion", each department's projected expenditure has been adjusted upward by the Consumer Price Index (an assumed increase of 3% per year) to accurately reflect the impact of inflation on tax rates. Operating Expenditures The study began with a thorough analysis of the 1993 Suffolk County Comprehensive Annual Financial Statements and the 1995 Recommended Budget for Suffolk County which include 1993 appropriations, fund transfers and other financial information. Extensive interviews were conducted with Suffolk County officials, with the majority of time spent with department staff members to gather information about how each department is currently structured, what services are provided, and what percentage of those services benefit the East End residents. These interviews with Suffolk County department officials provided the foundation for our analysis of the level of services being provided by Suffolk County to the East End. Peconic County Financial Feasibility Report Page 1 INTRODUCTION A Technical Advisory Committee and Citizen Advisory Committee (which included nine subcommittees) were formed by the Steering Committee to offer valuable feedback and assistance throughout the study. While information was being collected, the Citizens Advisory Committees met, each established to focus on one of the following functions: Economic Assistance, Education, General Government, Health, Home and Community Services, Public Safety, Recreation & Culture, Revenue, and Transportation. Based upon information they received regarding Suffolk County service delivery and costs, as well as the general experiences of the committee members, each committee helped define the most critical service issues, from the citizens' perspectives, and provided input on the appropriate structure, mission and responsibilities of each Peconic County operating department. The Technical Advisory Committee developed the rationale for the choice of the weighted Board of Supervisors as the form of government, reviewed asset/liability allocation options and provided advice on the implementation of joint - use service provisions with separate governments, labor contracts and labor relations requirements. The study assumes that Peconic County (in the absence of any provisions to the contrary in the State legislation enacted to create the County) has the right to establish the initial terms and conditions of employment for all its employees, including employees who may have been "transferred" from Suffolk County. Based on this assumption, the Technical Advisory Committee provided appropriate wage and benefit rates to use in projecting labor costs in the new County. Specifically, the Technical Advisory Committee compared existing Suffolk County salaries to the salaries of East End town employees with comparable job responsibilities from which average salaries, excluding employee benefits, were estimated for four general levels of employees: Administrative ($25,000), Line ($35,000), Supervisory ($50,000), and Department Head ($70,000). However, a few departments have unique wage rates, such as the Health Department, to adjust, for example, for the higher cost of medical personnel. The cost of providing employee benefits is not included in each departmental chapter. Instead, employee benefits for all departments are combined in the aggregate Peconic County operating budget, with the benefit cost estimated to be 33% of total Peconic County salary expenditures excluding Community College benefits, which are assumed to remain the same and are included in the departmental section of the joint Community College. The conservative estimate of the 33% was based on a detailed study of employee benefits based upon records of the Village of East Hampton and proposed Peconic's personnel needs. Insurance costs are also estimated on a County wide basis and as such are not included in each department's expenses. For additional information regarding Peconic County insurance, see Chapter 8.2: Insurance Costs. Based on data collected and input received from the Citizen and Technical Advisory Committees, the desired methods of service delivery for Peconic County were determined for each expenditure line item. Decisions about whether services would be provided directly by the County or through contracts with outside governments or agencies were based on the availability of quality alternatives and, ultimately, which option was most cost-effective. In Peconic County Financial Feasibility Report Page 2 INTRODUCTION all of the cases where the East End Towns are providing services, the cost of these services is reflected in the Peconic County budget to repay the Towns for each of these services. To quantify the costs of providing services directly through Peconic County's operating departments, staffing levels were estimated based on the projected service delivery requirements of each function. East End wage rates were used to calculate salary expenditures for each operating department. To project the total cost of each line item expenditure, an assumption was made that non -salary expenditures per employee in Suffolk County would remain the same in Peconic County. As a final review, staffing levels and operating expenses were compared to other comparably sized counties within the State to confirm the reasonableness of the assumptions. Included in each department chapter is a detailed explanation of the derivation of the proposed Peconic County budget for that function. Revenues Peconic County will have six primary sources of revenue: . Property taxes Federal Aid . Sales Taxes . Departmental Income . State Aid . Interest Income State and Federal Aid and Departmental Income revenue has been derived based on the expected service mix of Peconic County. Sales tax revenue is based upon the East End's contribution to Suffolk County's sales tax receipts projected forward at a conservative rate of 3.5% per year. Property taxes are derived, in any year, as the balancing item or the residual after deducting from the total of all other sources of revenue from the total expenditures required for that year. A detailed description of each revenue source and its derivation is included herein. Please see Chapter 3: Revenue for a discussion of the major county revenues and also the "First Fiscal Year Budget" sections of Chapter 5: Citizen Service Departments for additional information regarding estimated Peconic County Departmental Income, and State and Federal Aid. Assets and Liabilities In order to determine the most appropriate allocation method of Suffolk's County's assets and liabilities, an examination of many possible allocation methods was performed, including those methods based on: • historical precedents; • accounting standards; and • corporate financial models. Peconic County Financial Feasibility Report Page 3 INTRODUCTION A recommended approach to allocating assets and liabilities was chosen based upon the criteria listed below: • probability of producing an equitable and an agreed upon division; • probability of producing an efficient (or justifiable) division; • probability of method being easily understood by the citizenry; and • probability of the method being implemented. On the basis of these criteria a recommended approach was established which is referred to in this report as the "Divestiture Method". The Divestiture Method is a method that permits both sides to realize and utilize their resources for the benefit of the citizens of both Communities. Among the most important elements of this method are: 1. Both Peconic and Suffolk County must have the resources (i.e. tax base, long-term assets, etc.) to be fully self -sustainable entities in the short and long-term, and 2. An East End tax contribution to Suffolk County has been calculated. The tax contribution is the amount of property tax and sales tax receipts that Suffolk County receives from the East End and is used to estimate the East End's tax support of Suffolk County Government. This contribution, which is calculated below at 14.39%, is used to determine its allocation to Peconic of most categories of Suffolk County's assets and liabilities. Please see Chapter 7: Separating from Suffolk County for a full description of methods of allocation considered, the Divestiture Method, and implementation of the separation from Suffolk County on the basis of the Divestiture Method. Tax Contribution Table 1-1 on the following page provides the calculation of tax contribution of the five East End towns to Suffolk County in 1993. Peconic County Financial Feasibility Report Page 4 INTRODUCTION Table 1-1 Calculation of the East End's Tax Contribution Suffolk County 1993 Property Tax Receipts Total Property Tax Received (1) $431,022,707 Less: Property Tax Received for Police District (203,671,812) Less: Property Tax Received for District Court (4,852,320) Less: Property Tax Received for Sewer Districts (42,503,403) Net Property Tax Received by County General Fund (A) $179,995,172 Suffolk County 1993 Non Property Tax Receipts Off -Track Pari-Mutuel Tax $4,177,350 Sales Tax Receipts 540,376,619 Total Non -Property Tax Receipts (B) $544,553,969 Suffolk County Total General Tax Receipts (C) = (A) + (B) (2) 724,549,141 East End 1993 Property Tax Contribution (3) [23.39% of County Net Property Tax] 39,265,509 East End 1993 Non Property Tax Contribution (4) [11.93% of (C)] 64,967,200 East End Total General Tax Receipts (D) $104,232,709 East End Contribution (D) / (C) 14.39% (1) Total Property Tax Received by Suffolk County includes (a) real property taxes, (b) the gain from foreclosure sales, (c) payments in lieu of taxes, and (d) interest and penalties associated with late payments of taxes. (2) Includes Taxes Appropriated for General Fund, Deficit Bond Fund, Water Protection Reserve Fund. (3) Equals (A) less payments in lieu of taxes (PILOT) in the amount of $12,100,297 multiplied by the ratio of the County Tax - General and Cont munity College tax warrants of the East End towns to the total County Tax - General and Community College tax warrants of Suffolk County for the 1993 tax year. I.e., 23.39% of $167,894,875. In determining the tax contribution, property tax items (b) and (d) described in Footnote 1 were pro rated based on the East End towns / Western towns ratio tax payments for 1993. PILOT were not allocated to the East End towns because in 1993 all PILOT were generated in the Western towns. (4) Includes sales taxes and pari-mutuel taxes. East End sales taxes are estimated by multiplying the percentage of 1992 sales taxes generated in the East End towns as estimated by the U.S. Census Bureau by the actual 1993 Suffolk County sales tax receipts ($540,376,619). See Chapter 3: Revenues. "Sales Tax." East End pari-mutuel tax revenue is estimated by multiplying the East End sales tax percentage by actual 1993 Suffolk County pari-mutuel tax receipts ($4,177,350). Peconic County Financial Feasibility Report Page 5 INTRODUCTION This 14.39% was also applied to the tax -supported expenditures of each department in order to determine the East End support provided to each department. This figure is derived by subtracting all departmental income, state aid and federal aid from total expenditures to determine the dollar amount of services provided that were supported by taxes. By comparing this figure with the value of the services received, any estimated subsidies from East to West or West to East for each Suffolk County department were identified. The new County's demand for office space was estimated by multiplying the proposed number of County staff by government standard space requirements. The following are the standard space assumptions applied in the calculation of Peconic County's demand for office space: Administrative, Line and Supervisory staff require an average of 144, 216 and 280 gross square feet, respectively; every 15 staff require 205 gross square feet of filing and photocopying space; space requirements for conference rooms range from 192 to 576 gross square feet depending on desired capacity; and breakrooms require 384 gross square feet. Capital Program The proposed capital program for Peconic County is based on Suffolk County's adopted 1995-1997 capital program and includes those projects which pertain to the East End. Projects in the adopted plan which benefit only the East End are assumed to be funded entirely by Peconic County; in other words, 100% of the costs projected by Suffolk County for these projects are included in Peconic County's Capital Program. Costs of projects which would benefit both Suffolk County and Peconic County are allocated according to the geographic distribution of the benefits from each capital investment. These allocations are based on information from the Budget Review Office of the Suffolk County Legislature, particularly its Review of the 1995-1997 Capital Program and 1995 Capital Budget, as well as information received by Suffolk County departments. Additional projects have been added based upon input from the Citizen and Steering Committees and non -project specific estimates for future capital improvements of $12 million per year were used for 1999 and 2000. Please refer to Chapter 8: Capital Improvement Plan and Start -Up Costs for a detailed description of the capital program projects by Peconic operating department and their associated costs. Start -Up Costs In its first few years of operation, Peconic County will incur costs associated with temporary operating adjustments, training, consulting services, supplies, equipment and other purchases which are not included in the Capital Program or in the individual departments' budget projections; rather, they are included in the Operating Budget summary as an aggregate figure for the entire county. Start-up costs are assumed to be 4%, 2% and 0.5%, respectively, of total departmental operating expenditures for the County's first three fiscal years, respectively. Peconic County Financial Feasibility Report Page 6 INTRODUCTION It is assumed that half of these start-up costs will be capital costs and, therefore, can be capitalized and funded with tax-exempt bond proceeds. The balance of these costs will need to be paid out of current revenues. Examples of these costs are: • Legal fees • Employee testing and training • Consulting fees • Printing of County stationery • Equipment and vehicle purchases • Re -configuring office space • Asset and liability audit • Signage Please see Table 8.1-1 for additional information regarding Peconic start-up costs. Debt Peconic County's projected debt service costs are based on three types of obligations: 1.) new money bonds to be issued to finance new capital improvements projects and a portion of the start-up costs; 2.) refunding bonds to repay Suffolk County for a portion of its existing general obligation debt allocable to Peconic County; and 3.) refunding bonds to repay Suffolk County for a portion of its existing Suffolk County drinking water protection bonds allocable to Peconic County. All proposed bonds for Peconic County have been structured with current interest rates and a level debt repayment schedule. The annual debt service costs of these financings are included in the Operating Budget summary. It is assumed that the County will issue new money bonds each year to finance its annual capital program. The total annual costs of capital projects described above in "Capital Program" for each of the County's first three fiscal years is calculated and assumed to be the project requirements for each new money bond sizing. In 1999, the County's fourth fiscal year, it is assumed that an additional $24 million of capital projects (for 1999 and 2000) would be financed through a long-term bond issue. As noted above, Peconic County is expected to repay its obligations associated with previously issued Suffolk County debt. Peconic's share of all existing Suffolk County general purpose debt and drinking water protection bonds is assumed to be 14.39%, the same share of tax revenues that it contributed to Suffolk County in 1993. Please see Table 8.2-1 for a summary of total Peconic County debt outstanding. Detailed schedules of Peconic County bond calculations can be found in Appendix II. Peconic County Financial Feasibility Report Page 7 SUMMARY CONCLUSION SUMMARY & CONCLUSION What is "feasible"? The question of whether Peconic County is "feasible" can only be a part of what this study sets out to determine. Virtually any governmental entity is financially feasible if the citizens are willing to bear any amount of taxation. Instead of answering just one question, "Is Peconic County feasible?", this study is instead designed to answer four more specific questions: 1. What services do the citizens of the East End want? 2. What is a proper allocation to Peconic County of Suffolk's resources and obligations following the proposed secession? 3. What is the proper level of capital investment for Peconic County? 4. What will the services, obligations and capital improvement cost the citizens of Peconic County? The first question was answered by initially identifying the services that the East End currently receives from Suffolk County. Once that service mix was defined, citizens and elected officials were consulted in order to make the policy decisions regarding what changes in that service mix were appropriate for Peconic County. Once the desired services were identified, the costs of providing those services was estimated and then available revenue sources to pay for these services were :identified. The second question was answered by first examining Suffolk County's assets and liabilities and then analyzing potential allocation methods. Once a proper allocation method was devised, the dollar value of resources and obligations were assigned based upon the assets and liabilities to be received. The third question was answered by first examining the capital improvements Suffolk was planning to implement that would benefit the East End. Once these capital improvements were identified, citizens and policy makers were consulted to estimate the proper level and timing of these improvements, plus additional improvements primarily pertaining to the acquisition of open space and farm land. The question of what services, obligations and capital improvements cost the citizens of Peconic County is answered by determining the taxes needed to support the new County. Conclusion The governmental services and capital investment needs of the East End citizens have been incorporated into a proposed Peconic County operating budget. The appropriate Peconic County Financial Feasibility Report Page 9 SUMMARY & CONCLUSION resources and obligations of Suffolk County have been allocated to Peconic County and the cost of the services, obligations and investment have been estimated. The result is that Peconic County can be a financially viable entity. Given the assumptions provided herein, Peconic County can be a self -sustainable entity: • Peconic County is projected to have the resources to be well under the State Constitutional limits on taxing authorization and debt issuance. • Peconic County is projected to have the resources to access the tax-exempt credit markets and borrow money at a competitive interest rate. - In order to access the capital markets, Peconic County is expected to have the economic base, the financial flexibility, debt factors and administrative management to convince lenders of Peconic's ability to pay them back. • The Divestiture Method of allocation will provide an equitable and efficient allocation of assets and liabilities between Suffolk County and Peconic. • The Divestiture Method can be implemented without litigation or fundamental disagreements; and furthermore, it can be easily explained to and understood by the citizens of Suffolk and Peconic Counties. • Peconic County's property tax is estimated to be significantly less than the current East End property tax paid to Suffolk County. What will be different in Peconic County? Based upon the preferences of contributing citizens and policy makers in the East End, the Peconic County government will be proportionately smaller in size than Suffolk County. Utilizing a weighted Board of Supervisors instead of a County Legislature, Peconic County's decision makers will be closer to the Town and Village governments, and the Towns will also take responsibility for a variety of services (such as road maintenance) that are currently provided by Suffolk County. In general, Peconic County departments will proportionately have fewer levels of employees and a leaner structure than Suffolk County. Department heads will have broad oversight authority and several public safety functions currently provided by disparate units of Suffolk County will be combined under the aegis of one coordinator. The table on the following page (Table 2-1) outlines projected Peconic County staffing requirements. Peconic County Financial Feasibility Report Page 10 SUMMARY & CONCLUSION Table 2-1 Peconic County Staffing Requirements Department Staff Board of Supervisors and Administrative Departments 72 Economic Assistance 202 Public Safety Coordinator 15 Sheriff 28 Probation 39 Fire Rescue and Emergency Services 4 Health 231 Judicial 37 Parks 63 Planning 10 Public Works 28 Community College (1) 111 Total County Staff 840 (1) Joint Community College employees; not technically Peconic County employees. Peconic County will also increase investment in areas important to the citizens of the East End. Peconic County is projected to spend significantly more in the East End than Suffolk County currently plans on projects such as Pine Barrens and environmentally sensitive land, farmland acquisition, and additional North Fork health services. The Peconic County government will have a more limited role in actively providing services than Suffolk County. Many services, such as prisons and certain ancillary detective services, will be contracted out to either Suffolk or Nassau County or to the State of New York. This will ensure that Peconic County citizens will pay only for the services that they receive and reduce the total costs of government by eliminating overstaffing and the administrative overhead costs of the County. Importantly, Peconic property taxes are expected to be significantly lower than Suffolk County property taxes. Based on the results of this study, East End residents can expect to pay approximately half the property taxes they currently pay following the formation of Peconic County. What accounts for Peconic County savings? While there will be initial costs associated with the creation of Peconic County, and long-term costs, such as the loss in economies of scale that Suffolk County realizes in Peconic County Financial Feasibility Report Page 11 SUMMARY & CONCLUSION providing similar services to a larger group of people, those costs will be more than made up for by long-term savings inherent in the operations of the proposed Peconic County. These long-term savings will take a number of forms: • Reduced services provided by the County: As described above, Peconic County will not only be smaller, but in many areas it will do less than Suffolk County. For example, unlike Suffolk County, Peconic County will not operate a nursing home. Several non -mandated economic assistance programs have been altered and combined under one administrative arm, reducing overhead costs. • Reduced costs of salaries and benefits: Peconic County's labor rates will be comparable to those of the East End towns and villages. These rates, less affected by prevailing wages in New York City, will be lower than those paid by Suffolk County. Costs of employee benefits, many of which are tied to wage rates, will also be lower. • Contracting out of services: Peconic County will save substantial dollars by contracting out with private providers and/or other governments for certain services, such as transportation functions, road maintenance, and public safety, and personnel training. • Reduced insurance and indemniLy costs: By reducing the activities of the County and eliminating certain services completely, Peconic County will have proportionally lower insurance costs than Suffolk County. Peconic County is able to reduce its relative insurance costs because its citizens will no longer have to pay a share of insurance cost for Police District, Sewer District, Fire District, some of which have the highest insurance rates of any type of public employees. • Elimination of any East to West subsidy: This analysis indicates that there is a substantial subsidization of the costs of general government services in the western towns by the citizens in the East End. Following the creation of Peconic County, East End property taxes will be reduced by only paying for services provided to the East End. The calculation of the 1993 subsidy by East End residents is provided in Table 2-2, on the following page. Peconic County Financial Feasibility Report Page 12 SUMMARY & CONCLUSION Table 2-2 Calculation of East End Subsidy (FY 1993) Total East End Net Tax Contribution (1) $74,281,519 Suffolk County's Net Cost to Provide East End Services (2) $53,880,807 East End Subsidy $20,400,712 (1) Property and sales taxes contributed by the East End used to pay a portion of Suffolk County's operating expenses. (2) Aggregate operating cost of East End services less any Departmental Income and Federal and State Aid. • Restructuring of Debt Payments: Although technically not savings, Peconic County is proposing to restructure its negotiated Suffolk County debt payment obligations in order to better spread the cost of the acquired assets to the benefiting Peconic citizenry. The table on the following page (Table 2-3) summarizes Peconic County's operating budget for the proposed first year of operation - fiscal year ending December 31, 1996. Peconic County Financial Feasibility Report Page 13 SUMMARY & CONCLUSION Table 2-3 Projected First Year Operating Budget Fiscal Year 1996 (in millions, 1993 dollars) Revenues Property Taxes $14.33 Sales Taxes 64.47 State Aid 21.02 Federal Aid 17.42 Departmental Income 12.42 Interest Income 0.78 Total Revenues $130.44 Expenditures Operating Expenses Administration Board of Supervisors and Administrative Departments $4.14 Other Operating Departments Community College 8.32 Economic Assistance 37.07 Fire, Rescue & Emergency Services 0.26 Health 26.30 Judicial Departments 2.61 Parks, Recreation and Culture 3.10 Planning and Regional Services 1.67 Probation 1.87 Public Safety Commissioner's Office 2.13 Public Works 8.58 Sheriff 6.83 Employee Benefits 8.38 Insurance Expenses 1.87 Other Operating Departments $113.12 Other Expenses Start -Up Costs (operating portion only) $2.26 Contingent Expenses 1.00 Deposits to County Reserves 1.50 Subtotal: Other Expenses $4.76 Debt Service Payment to Suffolk County for Existing Public Improvement Bonds $5.61 Payment to Suffolk County for Existing Drinking Water Bonds 2.75 Future Capital Improvement Projects 1.46 Start Up Costs (capital portion only) 0.83 Share of Cohalan Court Complex Lease Payments 1.91 Subtotal: Debt Service $12.56 Total Expenditures $130.44 Peconic County Financial Feasibility Report Page 14 SUMMARY & CONCLUSION Table 2-3 shows that in 1996, Peconic County's first year of operation, it will need to pay (in 1993 dollars) $113.12 million in operating expenses, $12.56 in debt service, $4.76 million in other expenses, for a total of $130.44 million. In order to pay for these costs, Peconic County is estimated to need revenues of the same $130.44 million: property taxes ($14.33 million), sales taxes ($64.47 million), state and federal aid ($38.44 million), departmental income ($12.42) and interest income ($0.78 million). Each of these items of revenue, except property taxes, were estimated separately. Property taxes are computed after subtracting all of the other revenue items from the $130.44 million of total expenditures. For more detail on these sources of revenue, see Chapter 3: Revenue. A summary of operating expenses, department by department, is shown on Table 2-4. Table 2-4 1996 Peconic County Departmental Expenses (1993 dollars) Salarips Board of Supervisors and Administrative Departments $2,550,000 Community College 5,670,603 Economic Assistance 6,845,000 Fire, Rescue & Emergency Services 165,000 Health 8,354,000 Judicial Departments 1,350,000 Parks, Recreation and Culture 1,890,000 Planning and Regional Services 355,000 Probation 1,350,000 Public Safety Commissioner's Office 525,000 Public Works 1,030,000 Sheriff 965,000 Total Total Operating Non -Salaries Expenses (1) $1.593,850 $4,143,850 2,644,486 8,315,089 30,223, 041 37,068, 041 92,458 257,458 17,947,490 26,301,490 1,256,848 2,606,848 1,213,867 3,103,867 1,312,425 1,667,425 515,009 1,865,009 1,609,204 2,134,204 7,552,757 8,582,757 5,865,087 6,830,087 $31,049,603 $71,826,521 $102,876,124 (1) Excludes employee benefits except for the Community College. Please see Chapter 4: Internal Support Departments, Chapter 5: Citizen Service Departments, and Chapter 6: County Community College for detailed description of Peconic County operating costs. Table 2-5 shows the Peconic County operating budget for the first five (5) years of the County's existence (1996-2000) plus figures for 1993, the base year for the estimates in this report. Peconic County Financial Feasibility Report Page 15 Table 2-5 1996-2000 Peconic County Budget Summary and Forecasts 1�1 fC' n 0 z n r hal 0 z FY 1996 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 In 1993 dollars Revenues Property Taxes $78,798.273 $12.604,639 $11,842,517 $11.198,912 $12,168,599 $11,631,541 Sales Taxes (1) 0 72,176,671 74,702,855 77,317.455 80,023,566 82,824,390 State Aid 21,022.349 22.971,688 23.660,839 24,370.664 25,101,784 25,854,837 Federal Aid 17,416,471 19.031,448 19,602,392 20,190,463 20.796,177 21.420,063 Departmental Income 12.417,330 13,568,752 13.975,614 14,395,089 14.826.941 15,271.750 Interest Income 783,745 783,745 909,706 1,076,946 1,286.703 1,540,253 Total Revenues $130A38.168 $141,136,943 $144,694,122: $148 549 528 $154.203.770 $158.542,835 Expenditures Operating Expenses Board of Supervisors and Administrative Departments $4.143,850 $4,528,097 $4,663,940 $4,803,858 $4,947,974 $5.096.413 Community College 8,315.089 9.086.122 9.358,706 9,639,467 9,928,651 10,226,511 Economic Assistance 37,068,041 40.505,249 41.720,406 42,972,018 44.261,179 45,589.014 Fire, Rescue 8 Emergency Services 257,458 281,331 289,771 298,464 307.418 316,641 Health 26,301.490 28,740,349 29,602,559 30,490,636 31,405.355 32,347,516 Judicial Departments 2,606,848 2.848,573 2.934,030 3,022.051 3.112.713 3,206,094 Parks, Recreation and Culture 3,103,867 3,391,979 3,493,429 3,598,232 3,706,179 3,817,364 Planning and Regional Services 1,667,425 1,822.040 1,876,702 1,933,003 1,990.993 2,050,722 Probation 1,865.009 2.037,946 2.099,084 2,162.057 2,226,919 2,293,726 Public Safety Commissioner's Office 2,134,204 2,332,103 2,402.066 2,474.128 2,548.352 2,624,802 Public Works 8,582,757 9,378,610 9,659,968 9,949,767 10,248,260 10,555,708 Sheriff 6,830,087 7.463,420 7.687.323 7,917.942 6.155.481 8.400,145 Employee Benefits 8,375,070 9.151.665 9,426,215 9,709,002 10,000,272 10,300,280 Insurance Expenses 1,865,757 2 038 763 2.099,926 2.162.924 2 227 811 2.294,646 Subtotal: Operating Expenses $113,116,951 $123,605,947 $127,314,125 $131,133,549 $135,067,555 $139.119,582 Other Expenses Start -Up Costs (operating portion only) $2.262,339 $2,472.119 $1,273,141 $327,834 Contingent Expenses 1,000,000 1,000,000 1.000,000 1,000,000 $1,000,000 $1,000,000 Deposits to County Reserves 1.500,000 1,500,000 1 500 000 1,500,000 1 500000 1,500,000 Subtotal: Other Expenses $4,762.339 $4.972.119 $3,773,141 $2,827.834 $2,500,000 $2,500,000 Debt Service (2) Payment to Suffolk County for Existing Public Improvement Bonds $5,611.600 $5,611.600 $5,610,700 $5,609,400 $5,611,500 $5,611,400 Payment to Suffolk County for Existing Drinking Water Bonds 2.748,188 2.748,188 2,746,460 2,745.965 2,747,715 2,750,980 Future Capital Improvement Projects 1,462.950 1.462,950 2.509,850 3.494,800 5.537.300 5,537,300 Start Up Costs (capital portion only) 825,550 825,550 829,100 826,900 827,600 825,900 Share of Cohalan Court Complex Lease Payments 1,910590 1 910 590 1 910 746 1,911,081 1 912 100 2,197.673 Subtotal: Debt Service $12,558,878 1 $12,558,878 1 $13,606,856 $14,588,146 $16,636,215 1 $16,923,253 Total Expenditures $130 38168 1 $141,136,943 1 $144,694,122 $146 549 528 1 $154,203,770 1 $158,542,835 Beginning Fund Balance (3) 2.597.953 4,097,953 5,597,953 7.097,953 8,597,953 Ending Fund Balance 4,097,953 5,597.953 7,097,953 8,597.953 10,097.953 to: All revenues except sales taxes and interest income and all expenditures are assumed to increase at an annual rate of 3.0%<. Sales tax receipts are assumed to increase at an annual rate of 3.5%. Interest income is based on the County's cash balances and an estimated interest rate of 5.0%. (1) The base year for sales taxes is 1994 during which $67,377,965 of sales tax revenue was generated in the East End towns. 1996 figures assume two years of 3.5% increases (2) All debt service obligations would be fixed as bonds are issued: inflation adjustments have therefore not been applied to debt service payments (3) Initial Fund Balance is allocated from Suffolk County. Ending Fund Balance includes Deposits to County Reserves 1�1 fC' n 0 z n r hal 0 z SUMMARY & CONCLUSION Conclusion on Property Taxes Table 2-6 shows that the citizens of the East End towns paid Suffolk $26.4 million in property taxes in 1993, or $13.8 million more than what they would have paid Peconic County in its first year of operation, assumed to be 1996. (This is true even if Peconic County had received no revenues from foreclosures, interest on late taxes, or payments in lieu of taxes.) In other words, assuming that Peconic County's entire property tax requirements were met by the tax levy rather than by the tax levy plus other tax items, the Peconic County tax bill would still have been about $12.5 million less -- a reduction of 53%. Note that these savings are after providing for start-up costs, contingencies, debt service to repay Suffolk County for Peconic's share of Suffolk's long-term debt, debt service to pay for substantial new capital improvements and land acquisitions, and an increase in County reserves, and are based on conservative estimates of revenue from sales taxes. The comparison year of 1993 was somewhat unusual because it included a $5.3 million payment on the Suffolk County Deficit Bond Fund. If the comparison were made with the East End's average property tax contribution in the four (4) year period between 1992-1995, then the savings would be even greater --approximately $17.3 million or 58% ($29.9 million as compared with a proposed first year property tax levy for Peconic County of $12.6 million). Another way of looking at the estimated tax reduction caused by the creation of Peconic County is to look at the actual dollar impact on the taxpayer. The Suffolk County Executive's 1995 Recommended Budget states that the property tax cost to the average taxpayer of the East End was $310.04 in 1994. Consequently, if the savings achieved by the creation of Peconic County would, as noted above, be approximately 50%, the reduction in the property tax is estimated to be approximately $155 per year per East End taxpayer. Peconic County Financial Feasibility Report Page 17 SUMMARY & CONCLUSION Table 2-6 Historical and Forecasted Property Tax East End Payments/ Year Peconic Requirements 1992 $31,529,396.00 (1) 1993 26,424,008.45 (1)(2) 1994 31,712,879.00 (1) 1995 30,105,909.00 (1) 1996 12,604,639.03 (3)(4) 1997 11,842,516.88 (3) 1998 11,198, 911.59 (3) 1999 12,168,598.67 (3) 2000 11,631,541.46 (3) (1) Based on East End towns actual County Tax -General and Suffolk County Community College warrant items. These figures do not include revenue received for foreclosures, interest on late payments, or payments in lieu of taxes. (2) Does not include pro -rata payment to Suffolk County Deficit Bond Fund ($5,261,633) that has been excluded from tax levy for comparison purposes. (3) Based on forecasted Peconic County budgets. (4) Represents projected first year of Peconic County operations and includes start-up costs. It is significant to note that the estimated level of property taxes after the first year of operation remains relatively constant through 2000. (See Table 2-5) This is because the annual increases in debt service for new capital projects are offset by start-up costs which decline rapidly after 1996, and annual contingency expenses, deposits to county reserves, debt service on the Suffolk County debt repayment and the Cohalan Court Complex lease payment which remain flat. There is also an estimated 3.5% annual increase in the sales tax revenue, but an estimated increase (in line with the assumed increase in "cost -of -living") of 3% per year in operating expenses and in other sources of revenue. Peconic and Comparable Counties Table 2-7 on page 20 shows that Peconic's total expenditures, at $125.7 million, are well in excess of the $93.6 million average for five (5) comparable sized New York counties. Although higher, after taking into account some situational differences, the summary indicates that Peconic's cost of providing county service is reasonable. Among the most important factors accounting for this difference are: Peconic County Financial Feasibility Report Page 18 SUMMARY & CONCLUSION 1. Peconic's debt burden is about $9 million greater than the five (5) -county average due to Suffolk County's substantial capital acquisition program funded primarily by bonded indebtedness and Peconic's estimated requirement to repay Suffolk for Peconic's share of the debt. 2. Wage rates in Peconic County are higher than the comparable counties. 3. While expenditures per capita ($1,179) are 40% greater than the 5 county average ($845), Peconic's expenditures per dwelling unit are $1,640 or 18% less than the average ($1,988). This is because 37% of the dwelling units in Peconic are second homes, compared to 9% in the 5 comparable counties. 4. In terms of Peconic's number of employee positions per 1,000 population, Peconic has 7.88 or 22% less than the average (10.08), but using the standard of per 1,000 dwelling units, the number of positions in Peconic County is 10.96 or 55% less than the comparable county average of 24.15. Peconic County Financial Feasibility Report Page 19 SUMMARY & CONCLUSION Table 2-7 Peconic County and Comparable Counties Operating Information (1993) 106,593 141,895 121,771 110,943 95,101 83,941 110,730 Expenses 76,618 (5) 62,682 48,548 50,519 38,947 31,898 5 -County Median Household Income (4) Peconic (1) Chautauqua Oswego Jefferson Ontario Putnam Average General Support (2) $16.99 $10.62 $16.37 $16.48 $10.62 $9.78 $12.77 Education 8.32 7.13 6.40 11.77 2.48 4.13 6.38 Public Safety 11.09 9.78 7.81 7.34 10.12 8.46 8.70 Health (3) 26.30 6.97 12.95 10.55 8.62 5.89 9.00 Transportation/Public Works 8.58 11.34 13.63 10.46 5.34 1.10 8.37 Economic Assistance and Opportunity (3) 37.07 67.18 42.79 47.15 29.68 16.33 40.63 Culture and Recreation 3.10 0.72 2.46 0.37 0.56 0.85 0.99 Home and Community Services 1.67 0.88 5.36 6.43 2.43 1.12 3.24 Debt Service 12.56 2.50 4.51 1.85 4.20 4.41 3.49 Total Comparable Expenditures $125.68 $117.11 $112.29 $112.40 $74.04 $52.06 $93.58 County positions 840 1,606 1,295 935 1,387 458 1,136 Demographic and Other Information (1990) Population (year-round) (4) 106,593 141,895 121,771 110,943 95,101 83,941 110,730 Number of Dwelling Units (4) 76,618 (5) 62,682 48,548 50,519 38,947 31,898 46,519 Median Household Income (4) $36,094 $24,183 $29,083 $25.929 $33,133 $53,634 $33,192 Area in Square Miles 347 1,062 953 1,272 644 232 833 County expenditures per capita $1,179 $825 $922 $1,013 $779 $620 $845 County expenditures per dwelling unit $1,640 $1,868 $2,313 $2,225 $1,901 $1,632 $1,988 County positions per 1,000 population 7.88 11.32 10.63 8.43 14.58 5.46 10.08 County positions per 1,000 dwelling units 10.96 25.62 26.67 18.51 35.61 14.36 24.15 (1) For comparison purposes, Peconic County expenses do not include start-up or contigent erpenses or transfers to reserves. (2) Peconic County General Support includes all employee benefits except for Community College, insurance costs and Judicial Departments operating expenses. (3) Certain expenditure items may be characterized under either Hearth or Economic Assistance in these canities and are not classified consistently. Therefore, It may be appropriate to consider the sum of these these cost categories when comparing Health and/or Economic Assistance expenditures across counties. (4) Source: 1990 U.S. Census Bureau data (5) A substantial potion of the housing stock in Peconic County consists of second hones. Thirty-seven percent of dwelling units in Peconic County are second hones, compared to nine percent as the average of the comparable counties. The population in second hones is not included in the papulation figures. Peconic County Financial Feasibility Report Page 20 SUMMARY & CONCLUSION Suffolk County Although the scope of this study does not directly address the financial impact of the creation of Peconic County on Suffolk County, a secession provides an opportunity for Suffolk County to restructure, redefine, and reorganize the services it provides to its citizens. A secession would permit Suffolk County to focus its efforts on the 90% of its existing population that has similar service demands (the West End). Furthermore, using the methodology outlined in this report, Suffolk County residents would not be losing net resources that are currently available. Assets such as parks and open space land would continue to be available to Suffolk County residents and the change in government would not affect the use of these resources by West Enders. In the end, the creation of Peconic County allows Peconic and Suffolk Counties to concentrate on the type of government that will be more representative and responsive to the needs of these two very different areas. The current Suffolk County service delivery structure, which essentially regionalizes the governance of two constituencies with disparate economies, service demands, and capital needs is more, not less, costly because of the inefficiencies of trying to please two populations that have different demands. The end result following the formation of Peconic County should be more efficient, less costly service to the Suffolk County taxpayer. Peconic County This report reflects a vision of what an independent Peconic County can be. It is by no means the only vision of a sustainable and financially feasible County. It provides a framework for continued progress toward the formation of Peconic County and raises issues that need to be revisited in order for an orderly secession to be achieved. It is believed that the underlying assumptions provide a reasonable basis for these estimates. However, any forecast is subject to uncertainties. Inevitably, some assumptions will not be realized, and unanticipated events and circumstances may occur. Therefore, there are likely to be differences between the forecast and actual results and those differences may be material. Peconic County Financial Feasibility Report Page 21 REVENUE REVENUE Revenue Peconic County will have six primary sources of revenue: • Property taxes • Federal Aid • Sales Tax • Departmental Income • State Aid • Interest Income The charts below outline Peconic County's proposed revenue mix and compare the distribution of revenues to Suffolk County's. Peconic County Financial Feasibility Report Page 23 REVENUE Suffolk County Revenues by Source (1993) Interest Income Property Taxes Federal Aid 1.47% 8.81 11.25% $17.45 $104.50 Real Property Tax Items $133.38 3.18% $37.75 State Aid 17.57%-- $208.34 Dept Income - --_ -- -- -- - — Sales Taxes 0 $139.84 Pari-Mutuel Taxes 45.57% 0.35% $540.38 $4.18 The Peconic County revenues listed above are based on the level of service, debt service costs, investment in new capital projects and other estimated costs of Peconic County that are provided in this report. These revenues are also based upon certain assumptions. See Chapter 1: Introduction. Sales Taxes Sales tax revenues will form an essential part of the Peconic County revenue base. Sales taxes are intended to be used to keep property taxes as low as possible and represent the primary method for getting support for services from the many visitors to the East End. While they receive services such as public safety, highway maintenance and other services, visitors do not pay for these services through a resident property tax. Collection Pursuant to State law, the State has responsibility to collect all sales taxes. Sales taxes are to be levied on all taxable retail sales within the County. The State collects both the State and County portions, retains the State portion and returns on a monthly basis the County portion to the County less a small administrative fee. Peconic County Financial Feasibility Report Page 24 REVENUE Tax Rate The current sales tax rate in Suffolk County is 8.50%. Of this figure, 4.00% is retained by the state for State purposes, 0.25% is remitted to the Metropolitan Transit Authority (MTA) for MTA purposes, and 4.25% is for Suffolk County purposes. The Suffolk County rate is broken out into several components: • 3% is allocated in to Suffolk County's General Fund; • 0.25% of the revenues are deposited into Suffolk's Drinking Water Protection Reserve Fund. • 1 % additional tax is split: . 0.125% for public safety purposes (including a portion that goes to Town governments); an amount sufficient to bring the sewer stabilization fund to $12,500,000 annually; . remainder goes to the Suffolk County general fund. Peconic County is projected to have more of its sales tax flow into the general purpose portion of its government (General Fund). Specifically, a substantial portion of Suffolk's additional 1% sales tax has gone to the County Police and Sewer District's which will not be funded in Peconic County. The sales tax rate in Peconic County is projected to be 8.50%, with 4% continuing to go to the State, 0.25% going to the MTA, and 4.25% being the effective rate for Peconic County purposes, equal to that of Suffolk County; sales tax revenues are expected to be the largest single revenue source for the County (as they are for Suffolk). Forecast In order to estimate Peconic County's future sales tax revenues, a U.S. Census Bureau 1992 Economic Census database was utilized. The database provides total dollars of taxable sales by communities of 2,500 people and above. According to the U.S. Census, in 1992 Suffolk County generated $10.795 billion in total taxable sales, with $9.507 billion generated in the Western towns and $1.287 billion, or 11.93%, in the East End towns. Based on these sales estimates and Suffolk County's net tax rate of 4.25%, total County sales tax revenues would have been $458,791,240. Of this figure, $404 million would have been generated by the Western Towns and $55 million generated by the East End towns. Thus, East End sales tax revenues are estimated to have been $54,735,405, or 11.93% of total Suffolk County sales tax revenues in 1992. Peconic County Financial Feasibility Report Page 25 REVENUE Table 3-1 U.S. Census Taxable Retail Sales Sutlolk Uounty (1992) East End Allocation of Taxable Sales East End Towns (1): East Hampton town $224,585,000 Riverhead town 351,523,000 Southampton town 562,210,000 Southold town 147,904,000 Subtotal $1,286,222,000 West End (1): Amityville $123,853,000 Babylon 1,362,143,000 Bellport 25,508,000 Brightwaters 2,416,000 Brookhaven 1,953,152,000 Huntington 1,531,356,000 Islandia 65,693,000 Islip 2,037,425,000 Lake Grove 200,413,000 Lindenhurst 147,548,000 Northport 94,860,000 Patchogue 368,075,000 Port Jefferson 141,855,000 Smithtown 1,440,572,000 Subtotal $9,494,869,000 Total Sales Taxes Identified by Location $10,781,091,000 Balance of County (Includes Shelter Island) (1): $13,997,000 Grand Total $10,795,088,000 East End % 11.93% Western % 88.07% 1993 Estimated Taxable Sales $12,714,743,976 1993 Estimated East End Taxable Sales Based Upon U.S. Census % $1,516,913,588 (1) Sales taxes originating from unidentified locations are noted as *Balance of County.' Such revenues are generated in West End and East End towns, including all Shelter Island sales taxes. Peconic County Financial Feasibility Report Page 26 REVENUE Using this ratio of 11.93% and based on actual Suffolk County sales tax receipts of $540,376,619 in 1993, we estimate that an independent Peconic County would have generated $64,468,827 in sales tax revenues in 1993, our base year for financial projections of Peconic County. (See table 3-2 below). Table 3-2 Peconic County Sales Tax Derived for 1993 (Base Year) 1993 Suffolk County ' Total Sales Taxes Collected $540,376,619 Western Towns Portion @ 88.07% $475,907,792 East End (Peconic) Portion @ 11.93% $64,468,827 To test the U.S. Census data based estimate, actual Suffolk County sales tax receipts were compared to the estimate. Based upon audited annual financial statements, Suffolk County received $474,542,546 in sales tax receipts from the state for the year ended December 31, 1992. This analysis indicated that the Census database captured 96.68% of the actual sales tax revenue in 1992. This suggests sufficient accuracy to allow the East End 11.93% to be used to determine its share of Suffolk's historical sales tax receipts. Peconic County's sales tax revenues are conservatively estimated to increase at a rate of 3.5% per year in formulating future budget projections. Actual sales tax receipts for Suffolk County have increased at rates between 3% to 4.5% in recent years, although Suffolk County's sales taxes have increased at a rate of 11.3% for the first quarter of 1995. Peconic County's sales taxes are currently growing at a higher percentage rate than Suffolk County's. Peconic County Financial Feasibility Report Page 27 REVENUE Year 1992 1993 1994 1995 1996 1997 1998 1999 2000 Table 3-3 Historical and Projected Sales Tax Revenues Suffolk County (1) 481,887,211 540,376,619 564,760,958 582,243,164 (3) East End Towns 57,490,836 (2) 64,468,827 (2) 67,377,965 (2) 72,176,671 (4) 74,702,855 (4) 77,317,455 (4) 80,023,566 (4) 82,824,390 (4) Annual Increase 17.80% (3.0%)- 14.06% (4.4%)- 4.36% 3.10%(3) 3.50% 3.50% 3.50% 3.50% 3.50% (1) Source: Suffolk County Legislature, Budget Review Office. Actual receipts 1992-1994. (2) Based on 11.93% ratio of sales derived from U.S. Census Bureau data. (3) Adopted Budget amount for 1995. (4) Projected sales tax revenues based on 3.5% annual growth rate from 1994 estimated receipts. Normalized increase after accounting for increase in the sales tax rate from 3.25% to 3.750/6 in September 1991 and 3.75% to 4.25% in September 1992. Real Property Taxes For the purpose of this analysis, comparisons were made only with the Suffolk County General Fund. A substantial portion of Suffolk County property taxes generated from the Western Towns goes to the Police District Fund, the Sewer District Funds, and the District Court Fund. Since the East End Towns receive no benefit from these Funds and do not pay special levies associated with them, they are not included in the revenues that flow as part of the revenue mix. Tax Limit In accordance with Section 10 of Article VIII of the State Constitution, the amount which may be levied in a county by taxes on real property in any fiscal year for county purposes, in addition to providing for interest on the principal of all indebtedness, may not exceed an amount equal to 1.5 of the five year average full valuation of taxable real property of the county, less certain described deductions. The dollar amount which could legally have been raised in 1995 by Peconic County (if it existed), was $331,717,806. This limit is not a Peconic County Financial Feasibility Report Page 28 REVENUE substantial concern because, as Table 3-4 shows, the estimated property tax for Peconic County would be only $12.60 million, or only 3.80% of the tax limit. Table 3-4 Computation of Constitutional Taxing Power (Peconic County) East End Towns Year Taxable Full Valuation 1990 $19,784,254,016 1991 22,218,473,156 1992 23,905,389,225 1993 23,963,885,207 1994 20,700,600,306 Total Five -Year Valuation Average Five -Year Valuation Tax Limit (1.5%) Estimated Tax Levy (1996) Percentage of Taxing Mazgin Exhausted Collection $110,572,601,910 $22,114,520,382 $331,717,806 $12,604,639 3.80% Under the Suffolk County Tax Act, taxes levied for school district, town, and Suffolk County purposes are collected by the appropriate town receiver of taxes in two installments. In January, each town distributes to the school districts within such town, as the first installment, one-half (1/2) of the total taxes levied for school district purposes, and retains the remainder for town tax purposes. In June, each town pays to the school districts within such town the balance of the amount of school district taxes levied for school district purposes. After making payment to the school districts, each town retains the amount necessary to satisfy its tax levy and returns to the Suffolk County any remaining moneys as a payment, in part, for taxes levied for County purposes. At the same time, each receiver Peconic County Financial Feasibility Report Page 29 REVENUE returns to the Suffolk County the tax roll indicating the amount of uncollected taxes for school districts, town and County purposes. It is the Suffolk County's responsibility to collect such unpaid taxes. A Peconic County charter or New York State Legislation could change the County's real property tax collection structure, however, for purposes of this report, no change from the Suffolk County structure is assumed. The assessed values of real property within the East End towns as of FY 1994 have been utilized as the basis for the derivation of the property tax burden. Table 3-5 shows the full taxable value for Peconic County based on 1994 assessments and equalization rates. Table 3-5 Taxable Full Valuation of Peconic County Equalization Taxable Full Towns Assessed Value Rates Valuation East Hampton $144,071,335 2.72% $5,296,740,257 Riverhead 597,952,323 31.66% 1,888,668,108 Shelter Island 27,949,768 3.89% 718,503,033 Southampton 399,073,837 4.17% 9,570,115,995 Southold 89,698,727 2.78% 3,226,572,914 Peconic County $1,258,745,990 $20,700,600,308 Source: Suffolk County Clerk, Actual Rates for 1994 Forecast As noted earlier, the property tax revenue forecast is derived by determining the net amount of revenue needed to meet Peconic's estimated expenses --that is, by adding up all of the estimated expenditures and subtracting from that total sum the total of all other estimated revenues; as such, it is the remainder or the balancing item. Property tax rates will be different for Peconic County than for Suffolk County. The proportional difference represents the different proportion that sales taxes will comprise of the total revenue stream as well as the change in the level and type of services provided by the two counties. As discussed above, and as illustrated in Table 3-6, the historical property tax actually paid by the East End towns (i.e. not including the East End's share of foreclosures, interest and penalties on late taxes, and payments in lieu of taxes) is compared with the total property tax requirement for Peconic County. This illustrates that even if Peconic County received no benefit from foreclosures, interest and penalties or payments in lieu of taxes, the East End property taxes would still drop in relation to actual payments in Peconic County Financial Feasibility Report Page 30 REVENUE 1993 and remain relatively constant from the first year of assumed operation in 1996 through 2000. Table 3-6 Historical and Forecasted Property Tax East End Payments/ Year Peconic Requirements 1992 $31,529,396.00 (1) 1993 26,424,008.45 (1)(2) 1994 31,712,879.00 (1) 1995 30,105, 909.00 (1) 1996 12,604,639.03 (3)(4) 1997 11,842,516.88 (3) 1998 11,198,911.59 (3) 1999 12,168,598.67 (3) 2000 11,631,541.46 (3) (1) Based on East End towns actual County Tax -General and Suffolk County Community College warrant items. These figures do not include revenue received for foreclosures, interest on late payments, or payments in lieu of taxes. (2) Does not include pro -rata payment to Suffolk County Deficit Bond Fund ($5,261,633) that has been excluded from tax levy for comparison purposes. (3) Based on forecasted Peconic County budgets. (4) Represents projected first year of Peconic County operations and includes start-up costs. Payment In Lieu of Taxes (PILOT) Peconic County is not assumed to collect payments in lieu of taxes. Suffolk County currently collects payments in lieu of taxes from the Long Island Lighting Company, various Sewer Authorities, and other entities. In 1993, Suffolk County collected $12,100,297 in PILOT payouts. Off -Tract Pari-Mutuel Tax Peconic County is not assumed to collect Pari-Mutuel taxes. Suffolk County currently collects these taxes, and in 1993 collected $4,177,350. Peconic County Financial Feasibility Report Page 31 REVENUE State and Federal Aid Virtually every department in the proposed Peconic County government will receive some level of aid from the State and federal government. This assistance takes different forms, ranging from reimbursements to formula grants to matching funds. The breakdown of assistance to each respective department will be unique to that department, and each department section includes a detailed discussion of the derivation of the various levels of aid. Table 2-3 shows the estimated total amount of State and federal aid for 1993, the assumed base year of operation of Peconic County. These figures are $21.0 million and $17.4 million, respectively. The 1996-2000 estimated figures for State and federal aid are based on an annual increase of 3%, which is in turn based on an estimated 3% increase in the cost of living for each of these years, as estimated by the Long Island Regional Planning Board. If state and/or federal aid should be cut substantially, it is likely that related Peconic County expenditures would be reduced or that New York county governments would be granted additional locally generated revenue sources. However, even if revenue increases were not sufficient to cover these cuts, the effect on Peconic County would be generally the same as that of Suffolk County or other comparable New York counties. Departmental Income Virtually all departments within the proposed Peconic County government will generate some income through user fees, co -payments, fines or other payments. Just as the service mix and expenditure estimates for each department are unique to that department, so are the estimates of departmental income. The revenue estimates for each department are consistent with the allocation of expenditures, service mix, and existing revenue sources, as well as decisions to initiate new fees or alter fee structures. These estimates are outlined more fully in each Departmental section, see Chapter 6: Citizen Service Departments. Forecast Departmental income from all departments for the base year 1993 is $12.42 million. Departmental income is forecasted to grow at the same 3% per year. Interest Income Peconic County will invest funds not required for immediate expenditure in accordance with an investment policy in conformity with the laws of the State. Investment income will be generated by prudent investment of idle County funds. Peconic County Financial Feasibility Report Page 32 REVENUE Interest income for the base year 1993 will be $0.78 million, based on both Suffolk County's historical returns and estimates of Peconic County's funds available for investment. The 1996-2000 estimated figures for interest: income are based on the investment of the County's Fund Balance and any idle funds at an annual rate of %, and may be understated. Table 3-7 provides estimated Peconic County revenues for the base year 1993 as well as projections for the first five years of operations. Property Taxes (1) Sales Taxes (2) State Aid (3) Federal Aid (3) Departmental Income (3) Interest Income (4) Total Table 3-7 Peconic County Revenue Estimates by Source First Five Years of Operation Base Year 1993 First Year Budget 1996 1997 1998 1999 2000 $14,329,446 $12,604,639 $11,842,517 $11,198,912 $12,168,599 $11,631,541 64,468,827 72,176,671 74,702,855 77,317,455 80,023,566 82,824,390 21,022,349 22,971,688 23,660,839 24,370,664 25,101,784 25,854,837 17,416,471 19,031,448 19,602,392 20,190,463 20,796,177 21,420,063 12,417,330 13,568,752 13,975,814 14,395,089 14,826,941 15,271,750 783,745 783,745 909,706 1,076,946 1,286,703 1,540,253 $130,438,168 $141,136,943 h $144,694,122 1 $148,549,528 1 $154,203,770 i $158,542,835 (1) Estimated to be the net amount of revenue to fund proposed Peconic County expenses. (2) Forecasted to increase at an annual rate of 3.5% based upon the East End's share of Suffolk County's actual 1994 receipts (3) Forecasted to increase at an annual rate of 3% from 1993. (4) Forecasted to increase based upon Peconic County's cash balances assuming an annual interest rate of 5%. Peconic County Financial Feasibility Report Page 33 INTERNAL SUPPORT DEPARTMENTS Peconic County Financial Feasibility Study 0 0 0 0 0 BOARD OF SUPERVISORS AND ADMINISTRATIVE DEPARTMENTS Law (County Attorney) Finance and Taxation Peconic County Citizens Board of Supervisors County Administrator Civil Service Budget and Management Finance I County Clerk Purchasing Elections Audit and Control BOARD OF SUPERVISORS AND ADMINISTRATIVE DEPARTMENTS Mission The Board of Supervisors, County Administrator and other Administrative Departments (Law, Finance, Civil Service, County Clerk and Board of Elections) are categorized together as the administrative, or internal support departments of Peconic County. These departments, boards and divisions will be responsible for both setting policy as well as providing management, direction and internal support to the operational units of County government to enhance their delivery of public services to the citizens of the County. Description of Form of Government Based largely on research performed by the Technical Advisory Committee, the form of government for Peconic County is anticipated to be a weighted Board of Supervisors. The Board will be comprised of seven Supervisors, including the five East End Town Supervisors and two Supervisors elected at -large. One of the at -large representatives will be elected to serve as the Chairperson of the Board of Supervisors, a full-time job; the other will be a part-time Vice Chairperson. The Chairperson's and Vice Chairperson's focus will be on county -wide issues. The Town Supervisors will work part time on County business, but will leverage their knowledge and experience as East End leaders to address the daily and long-range issues facing Peconic County. There are substantive advantages to such a Board rather than a legislature based on districts of equal population, as currently exists in Suffolk County. Among the most important of these practical considerations are the small rural nature of Peconic County, the need for Shelter Island to have a voice and vote, the 330 -year history of using Town Supervisors as Suffolk County Supervisors and the subsequent establishment of the East End Supervisors and Mayors Association to continue handling East End issues. Please refer to Appendix I, "The Case for a Weighted Board of Supervisors For Peconic County," for a complete discussion of the recommended structure of the proposed Board of Supervisors. It should be noted that this is not the only form of government possible for Peconic County. In fact, some members of the Citizen Advisory Committee have recommended other forms be considered in this study. One of these recommendations is a form of government based on a small four person County Legislature and a County Executive. However, it terms of the objective of the study -- to determine if Peconic County is financially feasible -- the ultimate structure of the County government is not material as long as there is no material cost different associated with implementing and operating a certain government structure. Given the consistency of the vision of the East End citizen's with respect to their desired role of County government, no government structure that has Peconic County Financial Feasibility Report Page 35 BOARD OF SUPERVISORS AND ADMINISTRATIVE DEPARTMENTS seriously been considered by the East End citizens and policy makers materially change the results of this study. In any event, the future form for government for Peconic County will likely be based upon the establishment of a Peconic County Charter. The Charter, once established, will specify government structure, including job descriptions and legal and reporting requirements. In terms of this report, a weighted Board of Supervisors was used in order to provide an estimate of the revenue and expenses Peconic County would like have to meet. Authority and Responsibility Board of Supervisors The Board of Supervisors of Peconic County will be responsible for enacting all local legislation, exercising legislative authority to meet the requirements of the electorate and setting overall County policy. The Board of Supervisors will essentially serve the function currently provided in Suffolk County by the County Legislature and a portion of the duties of the County Executive, in a smaller and simpler government structure. The Chairperson of the Board of Supervisors would be elected at large by the entire County. The Chairperson would serve as the County's Chief Executive Officer and would preside over meetings of the Board. The Vice Chairperson would be elected at large by the four largest towns, excluding Shelter Island, and would assist the Chairperson in all facets of the operations of the Board of Supervisors. County Administrator The County Administrator, to be appointed by the Board of Supervisors, will be responsible for managing the day-to-day operations of Peconic County. As chief administrative officer of the County, the Administrator will act as the County's administrative head and will recommend department and office heads, with each appointment subject to the approval of the Board of Supervisors. The Administrator will inform department heads of their responsibilities and update them on policy developments, or any other instruction which is necessary. The Administrator will also serve as budget officer of the County, responsible for the preparation of an annual operating and capital budget. The Administrator may also submit legislation to the Board of Supervisors for review and approval. Department of Law (County Attorney) The Department of Law, headed by the County Attorney, will be responsible for all the legal business of the County and its agencies. The Department will be responsible for litigating all civil actions and proceedings brought by or against the County, the Board of Supervisors or any officer whose compensation is paid for from County funds for an official act. Areas of law which the Department will handle include contracts, environmental Peconic County Financial Feasibility Report Page 36 BOARD OF SUPERVISORS AND ADMINISTRATIVE DEPARTMENTS litigation, family litigation, discrimination, municipal services, real estate and general litigation. Department of Finance The Department of Finance will be responsible for the management and accounting of the financial operations of Peconic County. The various functions the Department will serve include: • Finance and Taxation - collection of all taxes, fees and other revenue payable to Peconic County; maintaining all tax assessment records and auditing all tax accounts; disposing of all tax delinquent properties through tax sales; management and oversight of all County bond issues; management and investment of County funds; • Budget and Management - monitoring operating cash flows of County, departments and preparing unaudited financial statements; assisting the County Administrator in the preparation of the annual operating and capital budgets; • Audit and Control - review and audits of all accounts kept by the various administrative units of County government; compiling and issuing the County's audited financial statements for each fiscal year; and • Purchasing - verifying and processing the County's payroll, purchase orders, contracts and other financial obligations; obtaining quality, cost-effective goods, services and construction in a timely manner. The Director of Finance will be recommended by the County Administrator, subject to the approval of the Board of Supervisors. In Suffolk County, the Treasurer and Comptroller which performs essentially the same functions as Peconic's Director of Finance, are elected, rather than appointed positions. County Clerk The County Clerk, an elected official, will maintain an official depository for public records including deeds, mortgages, court judgments, certificates of incorporation and other papers. Most of the work to be performed by the County Clerk will be associated with real property transactions, criminal and civil court activity, filing of new business and liens, judgments and foreclosures, publishing legal notices, taking stenographic minutes of the proceedings of the electoral body, etc. The County Clerk will also serve as the official micrographics center for the County. It should be noted that the County Clerk will assume the required administrative and record-keeping responsibilities currently performed by the Clerk of the County Legislature in Suffolk County. Peconic County Financial Feasibility Report Page 37 BOARD OF SUPERVISORS AND ADMINISTRATIVE DEPARTMENTS Civil Service The Civil Service Department will manage the human resources function of Peconic County government, by working in partnership with the various proposed county departments to attract, develop and retain a well qualified work force. The Department will be responsible for employee recruitment, examination, classification, compensation, payroll and training, as well as participating in labor-management relations and benefits administration. Board of Elections The Board of Elections will be responsible for the administration and supervision of all primary and general elections in Suffolk County. Its duties will include appointing and instructing election inspectors, registering and enrolling voters, producing legal notices related to legislation and elections, processing and reviewing petitions and objections, creating or altering election districts and maintaining and certifying the County's voting machines. Mandated Services No services to be provided by the Board of Supervisors and Administrative Departments are mandated by any other government. Differences in Type and Level of Services Between Suffolk and Peconic Counties The Board of Supervisors and Administrative Departments will provide essentially the same services in Peconic County that the Suffolk County Legislature, Executive Department and other general government departments provide in Suffolk County. Neither the type nor level of services will change substantially; however, the size and the structure of each department will change dramatically, reflecting Peconic County's much smaller constituency and citizens' philosophy of their government's role. The following table (Table 4.1-1) highlights the financial impact that the formation of Peconic County would have on operations of the Board of Supervisors and Administrative Departments. The figures in this chart represent the costs of services supported by County taxes and are derived by subtracting any departmental fees, state or federal assistance from the total costs of services. The first column represents Suffolk County's 1993 net expense for these offices; the second column represents the East End's tax contribution to the total amount Suffolk County has spent for general government services; the third column represents Suffolk County's net cost of services provided to the East End in 1993 by these departments; and the fourth column represents a projection of the net expense of Peconic County's Board of Supervisors and Administrative Departments. For a more detailed explanation of the following figures see Table 4.1-5. Peconic County Financial Feasibility Report Page 38 BOARD OF SUPERVISORS AND ADMINISTRATIVE DEPARTMENTS Table 4.1-1 Comparison of Net Expenditures (FY 1993 dollars) Suffolk County East End Suffolk's Cost of Services Proposed Peconic 1993 Actual Tax Contribution Provided to East End County Budget $17,542,864 $2,524,418 $1,422,459 $1,982,774 As the above numbers indicate, in 1993 the East End citizens contributed $2.52 million to the Legislature, Executive Department, Department of Law, Department of Finance and other general governmental departments of Suffolk County. Comparable offices in Peconic County will require approximately $1.98 million and will offer East End citizens control over the level and quality of services provided. Organization and Staffing There are currently 852 Suffolk County employees within departments or divisions which would be replaced by Peconic County's Administrative Departments. In Peconic County, 73 employees would be necessary to serve these functions. The staffing requirements of each of the general government areas as they currently exist in Suffolk County and as they are anticipated in Peconic County Administrative Departments are shown in Table 4.1-2 on the following page. Peconic County Financial Feasibility Report Page 39 BOARD OF SUPERVISORS AND ADMINISTRATIVE DEPARTMENTS Table 4.1-2 Staffing Analysis Board of Supervisors and Administrative Departments Department / Division Suffolk 1993 Actual Proposed Peconic Staffing Average Cost per Position Total Cost Legislature/Board of Supervisors (BOS)' 72 8 Administrative Staff 23 3 $25,000 $75,000 Line Staff 30 3 35,000 105,000 Supervisory Staff 19 0 50,000 0 Director 2 70,000 140,000 Legislature/BOS: Office of the Clerk 20 0 Administrative Staff 14 0 25,000 0 Line Staff 5 0 35,000 0 Supervisory Staff 1 0 50,000 0 Legislature/BOS: Budget Review Office 17 0 Administrative Staff 3 0 25,000 0 Line Staff 13 0 35,000 0 Supervisory Staff 1 0 50,000 0 Executive: County Executive/Administrator 49 4 Administrative Staff 29 1 25,000 25,000 Line Staff 17 2 35,000 70,000 Supervisory Staff 2 0 50,000 0 County Administrator 1 1 70,000 70,000 Law: County Attorney 86 12 Administrative Staff 30 4 25,000 100,000 Line Staff 50 6 35,000 210,000 Supervisory Staff 6 1 50,000 50,000 County Attorney 1 1 70,000 70,000 Law: Real Estate Division 47 0 Administrative Staff 23 0 25,000 0 Line Staff 23 0 35,000 0 Supervisory Staff 1 0 50,000 0 Law: Environmental Enforcement 3 0 Administrative Staff 1 0 25,000 0 Line Staff 1 0 35,000 0 Supervisory Staff 1 0 50,000 0 Public Administrator 6 0 Administrative Staff 3 0 25,000 0 Line Staff 2 0 35,000 0 Supervisory Staff 1 0 50,000 0 Executive: Telecommunications 12 3 Administrative Staff 8 1 25,000 25,000 Line Staff 4 2 35,000 70,000 Supervisory Staff 0 0 50,000 0 Executive: Other" 10 0 Administrative Staff 5 0 25,000 0 Line Staff 5 0 35,000 0 Supervisory Staff 0 0 50,000 0 'Includes interims "Includes Stop DWI, Community Traffic Safety Program and Labor Relations (continued on following page) Peconic County Financial Feasibility Report Page 40 W BOARD OF SUPERVISORS AND ADMINISTRATIVE DEPARTMENTS Staffing Analysis (cont.) Board of Supervisors and Administrative Departments Department / Division Suffolk 1993 Actual Proposed Peconic Staffing Average Cost per Position Total Cost Finance: Finance and Taxation 60 7 Administrative Staff 44 3 $25,000 $75,000 Line Staff 13 3 35,000 105,000 Supervisory Staff 2 0 50,000 0 Director of Finance 1 1 70,000 70,000 Finance: Real Property Tax Service Agency 42 0 Administrative Staff 25 0 25,000 0 Line Staff 16 0 35,000 0 Supervisory Staff 1 0 50,000 0 Finance: Budget and Management 28 5 Administrative Staff 8 2 25,000 50,000 Line Staff 18 2 35,000 70,000 Supervisory Staff 2 1 50,000 50,000 Finance: Purchasing 17 3 Administrative Staff 7 1 25,000 25,000 Line Staff 10 2 35,000 70,000 Supervisory Staff 0 0 50,000 0 Finance: Audit and Control 84 5 Administrative Staff 44 2 25,000 50,000 Line Staff 36 2 35,000 70,000 Supervisory Staff 4 1 50,000 50,000 County Clerk 72 5 Administrative Staff 62 2 25,000 50,000 Line Staff 9 2 35,000 70,000 Supervisory Staff 0 0 50,000 0 County Clerk 1 1 70,000 70,000 County Clerk: Micrographics and Archives 16 3 Administrative Staff 15 2 25,000 50,000 Line Staff 1 1 35,000 35,000 Supervisory Staff 0 0 50,000 0 County Clerk: Courts Related Expenses 29 3 Administrative Staff 27 2 25,000 50,000 Line Staff 2 1 35,000 35,000 Supervisory Staff 0 0 50,000 0 Civil Service/Human Resources 62 5 Administrative Staff 38 2 25,000 50,000 Line Staff 23 2 35,000 70,000 Supervisory Staff 1 1 50,000 50,000 General Services 5 0 Administrative Staff 2 0 25,000 0 Line Staff 2 0 35,000 0 Supervisory Staff 1 0 50,000 0 Board of Elections 114 9 Administrative Staff 82 2 25,000 50,000 Line Staff 30 5 35,000 175,000 Supervisory Staff 2 2 50,000 100,000 Total Staff 851 72 $2,550,000 Peconic County Financial Feasibility Report Page 41 BOARD OF SUPERVISORS AND ADMINISTRATIVE DEPARTMENTS Space Needs Using governmental standards to estimate demand for office space, the Board of Supervisors anG _administrative Departments will need an approximate total of 19,000 gross square feet of office space as shown below. Table 4.1-3 Conference Rooms 120 sq. ft. (2) N/A 1,080 sq. ft. 1.60 X 1,728 sq. ft. Break Rooms 240 sq. ft. (3) N/A 1,080 sq. ft. 1.60 X 1,728 sq. ft. 72 11,849 sq. ft. 18,959 sq. ft. (1) Represents space needed for every 15 employees (2) Represents space needed for an eight person conference room (3) Represents space needed for every 16 employees Operating Budget The Board of Supervisors and Administrative Departments will have a total staff of 72, initial expenditures of $4.14 million, revenues of $2.16 million and a resulting departmental net expense of $1.98 million. Expenditures The expenditures for each of the divisions described below consist primarily of salaries but also include non -salary expenditures such as outside legal counsel, supplies, equipment, information systems, fleet vehicles and self-insurance. With specific respect to the Board of Supervisors, it is not anticipated that the Town Supervisors serving as at -large members of the Board would be paid salaries by the County. The non -salary expenses of the Board of Supervisors, however, would be paid by the County. The major non -salary expenditures include telecommunications equipment, computer systems for the tax assessment database, micrographics equipment and voting machines. The 1996 proposed Peconic County figure for each expense is determined by estimating salaries for staff members and then multiplying non -salary expenditures by the ratio of Peconic County to Suffolk County staff. Peconic County Financial Feasibility Report Page 42 Calculation of Space Requirements Board of Supervisors and Administrative Departments Net Space Needed Total Employees Net Space Net / Gross Gross Space Type of Staff/Shared Space per Employee by Type Needed Factor Needed Administrative Staff 90 sq. ft. 27 2,430 sq. ft. 1.60 X 3,888 sq. ft. Line Personnel 135 sq. ft. 33 4,455 sq. ft. 1.60 X 7,128 sq. ft. Supervisory Staff 175 sq. ft. 6 1,050 sq. ft. 1.60 X 1,680 sq. ft. Director 190 sq. ft. 6 1,140 sq. ft. 1.60 X 1,824 sq. ft. Common Space 128 sq. ft. (1) N/A 614 sq. ft. 1.60 X 983 sq. ft. Conference Rooms 120 sq. ft. (2) N/A 1,080 sq. ft. 1.60 X 1,728 sq. ft. Break Rooms 240 sq. ft. (3) N/A 1,080 sq. ft. 1.60 X 1,728 sq. ft. 72 11,849 sq. ft. 18,959 sq. ft. (1) Represents space needed for every 15 employees (2) Represents space needed for an eight person conference room (3) Represents space needed for every 16 employees Operating Budget The Board of Supervisors and Administrative Departments will have a total staff of 72, initial expenditures of $4.14 million, revenues of $2.16 million and a resulting departmental net expense of $1.98 million. Expenditures The expenditures for each of the divisions described below consist primarily of salaries but also include non -salary expenditures such as outside legal counsel, supplies, equipment, information systems, fleet vehicles and self-insurance. With specific respect to the Board of Supervisors, it is not anticipated that the Town Supervisors serving as at -large members of the Board would be paid salaries by the County. The non -salary expenses of the Board of Supervisors, however, would be paid by the County. The major non -salary expenditures include telecommunications equipment, computer systems for the tax assessment database, micrographics equipment and voting machines. The 1996 proposed Peconic County figure for each expense is determined by estimating salaries for staff members and then multiplying non -salary expenditures by the ratio of Peconic County to Suffolk County staff. Peconic County Financial Feasibility Report Page 42 BOARD OF SUPERVISORS AND ADMINISTRATIVE DEPARTMENTS Employee benefits for all departments are combined in the aggregate Peconic County operating budget and shown as a separate expense item. The benefit cost is estimated as 33% of all Peconic County salary expenditures. The table below indicates the anticipated composition of expenditures for the Board of Supervisors and Administrative Departments, including a breakdown of salary and non - salary costs. Table 4.1-4 Summary of Salary and Non -Salary Expenditures Board of Supervisors and Administrative Departments Total Department Expenditure Description Salaries Non -Salary (1) Expenditures Board of Supervisors $320,000 $39,750 $359,750 Administrator's Department County Administrator 165,000 77,958 242,958 Telecommunications 95,000 729,824 824,824 Subtotal Administration 260,000 807,782 1,067,782 Law Department Mandated: Unified Court System 0 3,791 3,791 Mandated: Bar Association Indigent Defendants 0 90,596 90,596 County Attorney 430,000 112,744 542,744 Subtotal Law 430,000 207,131 637,131 Department of Finance Finance and Taxation 250,000 130,137 380,137 Budget and Management 170,000 41,064 211,064 Purchasing 95,000 22,547 117,547 Audit and Control 170,000 31,362 201,362 Subtotal Finance 685,000 225,110 910,110 County Clerk County Clerk 190,000 84,919 274,919 Micrographics 85,000 23,318 108,318 Courts Related Expenses 85,000 4,839 89,839 Subtotal County Clerk 360,000 113,076 473,076 Civil Service 170,000 43,304 213,304 Board of Elections 325,000 157,697 482,697 Total Expenditures $2,550,000 $1,593,850 $4,143,850 (1) See "First Fiscal Year Budget, Expenditures' for a description of non -salary expenditures. Peconic County Financial Feasibility Report Page 43 BOARD OF SUPERVISORS AND ADMINISTRATIVE DEPARTMENTS Revenues Revenues of the Peconic County Board of Supervisors and Administrative Departments will include department income and state aid. Departmental income will include rental income, interest from certain investments, license fees, County Clerk fees, property tax agency fees, various fines, sales of property and other revenues. State aid will include $37,000 of aid for general governmental costs. The balance of the expenditures for Peconic County's Board of Supervisors and Administrative Departments will be supported through the County's General Fund. Table 4.1-5 presents: (1) operating results for Fiscal Year 1993 for the Suffolk County Legislature, Executive Department and other administrative departments, (2) the share of those expenditures benefiting the East End towns and (3) the proposed Peconic County's Fiscal Year 1996 operating budget for the Board of Supervisors and Administrative Departments. Peconic County Financial Feasibility Report Page 44 BOARD OF SUPERVISORS AND ADMINISTRATIVE DEPARTMENTS Table 4.1-5 Comparison of Operating Budgets Board of Supervisors and Administrative Departments Suffolk's Cost of Services Proposed Peconic Expenditure Description 1993 Actual* Provided to East End County Budget 274,919 Micrographics 363,865 Legislature/Board of Supervisors 108,318 Courts Related Expenses 731,032 County Legislature $3,909,962 5317,038 8,000 Board of Supervisors 0 Archives $359,750 Budget Review Office 1,345.867 109,129 0 Subtotal Legislature/Board of Supervisors 5,255,829 426,168 359,750 Executive Department 213,304 Board of Elections 5,731,667 County Executive 2,318,165 187,968 0 County Administrator $4,143,850 Revenue Description 242,958 Stop D.W.I. 289,649 23,486 0 Community Traffic Safety Program - 45,004 3,649 0 Labor Relations 457,797 37,120 0 Telecommunications 3,365,507 272,891 824,824 General Services 431,199 34,964 0 Subtotal Executive 6,907,321 560,078 1,067,782 Law Department Mandated: Unified Court System 46,757 3,791 3,791 Mandated: Bar Association Indigent Defendants 1,117,301 90,596 90,596 County Attorney 4,183,279 339,200 542,744 Real Estate Division 2,036,152 165,101 0 Real Estate 37,991 3,080 0 Human Rights 2,147 174 0 Environmental Protection 157,290 12,754 0 Public Administrator 332,544 26,964 0 Subtotal Law 7,913,461 641,661 637,131 Department of Finance Finance and Taxation 3,145,628 255,063 380,137 Expense on Property Acquisition for Taxes 55,645 4,512 0 Real Property Tax Service Agency 1,992,026 161,523 0 Taxes and Assessment on County Property 79,570 6,452 0 Budget and Management 1,665,069 135,012 211,064 Purchasing 760,602 61,673 117,547 Audit and Control 3,520,486 285,458 201,362 Subtotal Finance 11,219,026 909,692 910,110 County Clerk County Clerk 3,198,127 259,319 274,919 Micrographics 363,865 29,504 108,318 Courts Related Expenses 731,032 59,276 89,839 Historical Documents Mobile Unit 8,000 649 0 Archives 270,410 21,926 0 Subtotal County Clerk 4,571,434 370,674 473,076 Civil Service 2,596,184 210,511 213,304 Board of Elections 5,731,667 464,751 482,697 Total Expenditures $44,194,922 $3,583,535 $4,143,850 Revenue Description Departmental Income $26,191,203 $2,123,707 $2,123,707 State Aid 460,855 37,368 37,368 Federal Aid 0 0 0 Total Revenues $26,652,058 $2,161,076 $2,161,076 Net Expense $17,542,864 $1,422,459 $1,982,774 'Source: 1995 Recommended Budget, County of Suffdk. New York Peconic County Financial Feasibility Report Page 45 CITIZEN SERVICE DEPARTMENTS Peconic County Financial Feasibility Study DEPARTMENT OF ECONOMIC ASSISTANCE EC ONO1A-l\TCE%Z1100oxtf1 Mission The Peconic County Department of Economic Assistance will provide support, assistance and care, medical assistance and other social services, and improve the quality of life of the Peconic County community, implementing State and federal mandates and other programs that the citizens of the County deem necessary. The Department will focus on those programs that promote independence through financial support coupled with access to training and employment. Authority and Responsibility The Department will be responsible for administering numerous mandated federal and State assistance programs, including Public Assistance, Aid to Families with Dependent Children, Medicaid, Home Relief, and Home Energy Assistance Programs. The Department will also administer programs for senior citizens. Much of the Department's funding will be provided by the State and the federal government. Nevertheless, the County will be required to provide a substantial local contribution to meet mandated expenditures. State and federal support for medical assistance is not included in the County budget as either expenditures or revenues. All medical assistance expenditures reflected in the budget are County expenditures. Other expenditures contain both the shares funded by the County and other governments. Mandated Expenditures There are fourteen mandated areas of expenditure. They are: 1. Relations with Other Social Service Districts 2. Adoption Subsidy 3. Juvenile Delinquent Care 4. Foster Care 5. Aid to Families with Dependent Children 6. Medical Exams Special Program 7. Medical Assistance (Medicaid) 8. Medical Assistance/MMIS (Medicaid) 9. Institutional Care 10. Emergency Aid to Adults 11. Home Relief 12. Home Energy Assistance Program 13. State Training School 14. Burials Peconic County Financial Feasibility Report Page 47 ECONOMIC ASSISTANCE Together, expenditures on these mandated programs will comprise 81.17% of the Department's budget. The chart below illustrates the portions of the Department budget that are mandated and discretionary: Peconic County Department of Economic Assistance Mandated vs. Non -Mandated Expenditures (million of dollars) ■ Mandated ■ Non -Mandated Changes in Services Provided to East End Residents Most of the programs funded by this department will be mandated and this will result in little alterations from Suffolk County's service mix. The organization of the Department will be more streamlined, however, and several programs, such as the federal/New York State Heating Assistance Program and the Senior Citizens Heating Assistance Program, have been merged to eliminate administrative redundancies and costs. In addition, several economic assistance programs that were managed by the Suffolk County Executive's office will be assigned to the appropriate division of this Department. The following table (Table 5.1-1) highlights the financial impact that the formation of Peconic County will have on the Department of Economic Assistance. The figures in this table represent the costs of services supported by County taxes and are derived by subtracting any departmental fees, state or federal assistance from the total costs of services. The first column represents Suffolk County's 1993 net expense for Economic Assistance; the second represents the East End's contribution through the General Fund toward that total amount; the third represents the net expense as an estimated dollar value of services provided to the East End in 1993 from the Department; and the fourth column represents the Peconic County Financial Feasibility Report Page 48 ECONOMIC ASSISTANCE net expense of the Peconic County Department of Economic Assistance in its base year 1993 pro forma budget. Please refer to the "First Fiscal Year Budget" section and table for a more detailed explanation of the source of the following table: Suffolk County Actual $154,487,368 Table 5.1-1 Comparison of Net Expenditures (FY 1993 Dollars) East End Tax Suffolk's Cost of Services Contribution Provided to East End $22,230,732 $14,988,139 Proposed Peconic County Budget $14,489,926 As the numbers indicate, in 1993 the East End Towns contributed $22.2 million to the Suffolk County provision of Economic Assistance programs. In comparison, the pro forma Peconic County 1993 operating budget would require a contribution of $14.4 million. Economic Relationship with Other Governments East End Towns There will be no economic effect on the East End Towns from these services being taken over and funded by Peconic County and administered by this Department. State and Federal Government The State and federal governments have a substantial relationship with this Department, providing the bulk of its funding (as well as requiring, through mandates, the provision of most Department services). The County will provide roughly 18% of the entire Medicaid costs (although all of that 18% is reflected in the Peconic County budget; no State reimbursement shows up in the budget). In addition, Peconic County is responsible for funding roughly 50% of the Home Relief budget (public assistance for adults) with the other 50% provided by the State. ADC (public assistance for families with children) is supported 50% by federal funding, with the County and the State each providing 25%. These ratios are based on formulas determined by the State and federal governments, and cannot be altered by any independent action by the County. These State and federal funds are provided through formula grants and are predicated on caseloads. Peconic County Financial Feasibility Report Page 49 ECONOMIC ASSISTANCE President Clinton and the congressional leadership are both considering a variety of ways to fundamentally alter the manner in which public assistance is provided in this country. The debate ranges from the most effective way to provide assistance to the basic question of whether public assistance should be considered an entitlement. It is possible that New York could join a number of states, most recently Massachusetts, that have passed their own welfare reform laws. It is likely that judicial action will be necessary to determine the constitutionality of these measures. While these issues are still being addressed in a preliminary form by the Congress, it will be essential for Peconic County to incorporate whatever fundamental changes are made to the welfare system in New York and across the nation. Neither the proposals being considered in Albany nor Washington, D.C. are reflected in this report. Organization and Staffing The Department will have four major divisions: Welfare Management and Administration, Family and Children's Services, Public Assistance, and Jobs/Employment and Other Benefits. Please see the proposed organization chart at the beginning of this chapter. Welfare Management and Administration This division will be responsible for central overhead and administration of the Department, although each division will have some level of administrative staff. Included in its responsibilities will be budgeting and finance, compliance services, Department personnel, and relations with other branches and governments. The Suffolk County Department of Social Services has a staff of 284 people for these functions. The Peconic County caseload for social services is approximately 10% of that of the Suffolk County caseload. Using this 10% as a multiplier and making adjustments for potential losses in economies of scale as well as service efficiencies, it is estimated that the Department will have a staff of 32 people. A complete breakdown of staff by function follows the functional division descriptions. Family and Children's Services This division will be responsible for the administration of all preventive and protective service programs. Included in these services will be Foster Care/Residential Care, Child Protective Services, Child Support Enforcement, certain investigative services, and Family Preservation. The Suffolk County Department of Social Services allocates 550 people to perform this function. Based on figures received from the Suffolk County Department of Social Services, it was determined that the East End Towns are responsible for roughly 19% of the Suffolk County caseload. As a result, it is estimated that the Department will require 77. Peconic County Financial Feasibility Report Page 50 ECONOMIC ASSISTANCE Table 5.1-2 Comparison of Family and Children Services Family and Children's Services - Caseloads Public Assistance This division is responsible for the oversight and administration of the Public Assistance (including Aid to Families with Dependent Children and Home Relief), Home Care and Housing, and the Medical Assistance (Medicaid) programs. There will also be a special unit within the Client Benefits divisions dedicated to administering programs for senior citizens. The Public Assistance Division will have four primary responsibilities: • determining and monitoring the eligibility of those persons applying for assistance; • determining the monetary grant that should be paid to those eligible for assistance; • paying the benefits to the clients; and • assisting clients develop ways to support themselves and leave public assistance. Peconic County Financial Feasibility Report Page 51 Whole East End Western County Towns Towns Day Care Services Cases 906 241 665 Day Care Services Children 1488 286 1202 Day Care Services % of Cases 100.00% 26.60% 73.40% Foster Care Services Cases 355 24 331 Foster Care Services Children 683 36 647 Foster Care Services % Cases 100.00% 6.76% 93.24% Preventive Services Cases 260 23 237 Preventive Services Children 577 50 527 Preventive Services % Cases 100.00% 8.85% 91.15% Total FCS Cases 1521 288 1233 % of Total Cases 100.00% 18.93% 81.07% Public Assistance This division is responsible for the oversight and administration of the Public Assistance (including Aid to Families with Dependent Children and Home Relief), Home Care and Housing, and the Medical Assistance (Medicaid) programs. There will also be a special unit within the Client Benefits divisions dedicated to administering programs for senior citizens. The Public Assistance Division will have four primary responsibilities: • determining and monitoring the eligibility of those persons applying for assistance; • determining the monetary grant that should be paid to those eligible for assistance; • paying the benefits to the clients; and • assisting clients develop ways to support themselves and leave public assistance. Peconic County Financial Feasibility Report Page 51 ECONOMIC ASSISTANCE Using the existing Suffolk County caseload Table 5.1-3 shows the expected Public Assistance and Medicaid caseload of the Peconic County Economic Assistance Department based on the demographics of the East End Towns as well as the existing Suffolk County caseload: Table 5.1-3 Comnarison of Public Assistance and Medicaid Caseload Town Babylon Medicaid Caseload Percentage of Total Medicaid Caseload ADC Cases Percentage of ADC Caseload Home Relief Cases Percentage of Home Relief Caseload Total Public Assistance Caseload Percentage of Total Public Assistance Caseload 7,111 18.76% 2,424 18.84% 751 16.41% 3,175 18.21% Brookhaven 12,352 32.59% 4,749 36.92% 1,680 36.71% 6,429 36.86 East Hampton 463 1.22% 119 0.93% 56 1.22% 175 1.00% Huntington 3,263 8.61% 808 6.28% 329 7.19°/ 1,137 6.52% Islip 9,025 23.81% 3.257 25.32% 1.232 i6.92% 4,489 25.74% Riverhead 1,458 3.85% 673 5.23% 229 5.00% 902 5.17% Shelter Island 24 0.06% 3 0.02% 0 0.00% 3 0.02% Smithtown 2.798 7.38°/ 315 2.45% 145 3.17°/, 460 2.64% Southampton 890 2.35% 348 271% 106 232% 454 2.60% Southold 513 1.35°/6 168 1.31% 48 1.05% 216 1.24% Total 37,897 100.00% 12.864 100.00% 4,576 1 100.00°/ 17.440 100.00% Suffolk County -wide Public Assistance caseloads have fallen over the past several years. State -mandated Medicaid expenditures, however, have grown very rapidly and show little sign of slowing. The new County will need to pay careful attention to State policy on Medicaid expenditures as well as the results of the federal debate on health care reform. Jobs/Employment and Other Services A fundamental function of the Department will be to provide opportunities and training to enable people to gain employment, leave the public assistance rolls and support themselves and their families. The Department will administer several programs designed to facilitate this progression. In addition, there are several miscellaneous services, such as burials for indigent citizens, that the County will be mandated to perform. Those miscellaneous services will be administered by this division. Peconic County Financial Feasibility Report Page 52 ECONOMIC ASSISTANCE Table 5.1-4 details the Department staffing by division, staff classification, and cost: Table 5.1-4 Space Needs The Department will need offices for 202 staff people, including Department ' Administration, caseworkers, processing applicants and aid recipients, and office space for field workers when they are not out in the field. Using industry standards, we estimate that the Department will need 49,136 square feet of gross utilization space. These offices can be located at the Riverhead County Complex. Peconic County Financial Feasibility Report Page 53 Staffing Analysis Department / Division Actual Staffing Position Total Cost Department of Economic Assistance Director 1 1 $70,000 $70,000 Welfare Management and Administration 283 32 1,150,000 Administrative Staff 117 9 25,000 225,000 Line Staff 146 15 35,000 525,000 Supervisory Staff 20 8 50,000 400,000 Family and Children's Services 550 77 2,575,000 Administrative Staff 124 24 25,000 600,000 Line Staff 381 45 35,000 1,575,000 Supervisory Staff 45 8 50,000 400,000 Public Assistance 683 86 2,905,000 Administrative Staff 145 21 25,000 525,000 Line Staff 516 58 35,000 2,030,000 Supervisory Staff 22 7 50,000 350,000 Jobs/Employment and Other Benefits 46 6 215,000 Administrative Staff 7 1 25,000 25,000 Line Staff 38 4 35,000 140,000 Supervisory Staff 1 1 50,000 50,000 1,563 202 $6,845,000 Total Space Needs The Department will need offices for 202 staff people, including Department ' Administration, caseworkers, processing applicants and aid recipients, and office space for field workers when they are not out in the field. Using industry standards, we estimate that the Department will need 49,136 square feet of gross utilization space. These offices can be located at the Riverhead County Complex. Peconic County Financial Feasibility Report Page 53 ECONOMIC ASSISTANCE Table 5.1-5 Calculation of Space Requirements (1) Represents space needed for every 15 employees (2) Represents space needs for an eight person conference room; the Department is estimated to need three (3) One break room has been assigned for every 16 employees First Fiscal Year Budget For Fiscal Year 1996 the Department will have a staff of 202 people and a budget of $37,068,041 (in 1993 dollars). Expenditures A substantial portion of the expenditures for each line item of the table below represents the payment of benefits to clients. Salary expenditures make up the major portion of the rest, although each line item also includes non -salary expenses such as supplies, equipment, information systems, and vehicles. The 1996 proposed Peconic County figure for each expense is determined by estimating salaries for staff members and then multiplying non - salary expenditures by the ratio of Peconic County to Suffolk County staff. Employee benefits for all departments are combined in the aggregate Peconic County operating budget. The benefit cost is estimated as 33% of all Peconic County salary expenditures. Actual benefit costs will be determined through negotiations with Peconic County employees. Peconic County Financial Feasibility Report Page 54 Total Net Space Needed Total Employees Net Space Net / Gross Gross Space per Employee By Type Needed Factor Needed Director 190 sq. ft. 1 190 sq. ft. 1.60 X 304 Administrative Staff 90 sq. ft. 55 4,950 sq. ft. 1.60 X 7,920 Line Personnel 135 sq. ft. 122 16,470 sq. ft. 1.60 X 26,352 Supervisory Staff 175 sq. ft. 24 4,200 sq. ft. 1.60 X 6,720 Common Space 128 sq. ft. N/A 1,715 sq. ft. 1.60 X 2,744 Conference Rooms 120 sq. ft. (1) N/A 360 sq. ft. 1.60 X 576 Break Rooms 240 sq. ft. (2) 3,015 sq. ft. 1.60 X 4,824 201 30,710 sq. ft. 49,136 (1) Represents space needed for every 15 employees (2) Represents space needs for an eight person conference room; the Department is estimated to need three (3) One break room has been assigned for every 16 employees First Fiscal Year Budget For Fiscal Year 1996 the Department will have a staff of 202 people and a budget of $37,068,041 (in 1993 dollars). Expenditures A substantial portion of the expenditures for each line item of the table below represents the payment of benefits to clients. Salary expenditures make up the major portion of the rest, although each line item also includes non -salary expenses such as supplies, equipment, information systems, and vehicles. The 1996 proposed Peconic County figure for each expense is determined by estimating salaries for staff members and then multiplying non - salary expenditures by the ratio of Peconic County to Suffolk County staff. Employee benefits for all departments are combined in the aggregate Peconic County operating budget. The benefit cost is estimated as 33% of all Peconic County salary expenditures. Actual benefit costs will be determined through negotiations with Peconic County employees. Peconic County Financial Feasibility Report Page 54 ECONOMIC ASSISTANCE Table 5.1-6 Summary of Salary and Non -Salary Expenditures Department of Economic Assistance Expenditure Description Salaries Non -Salary Total Expenditures Welfare Management and Administration $1,150,000 $681,245 $1,831,245 Family and Children's Services 2,575,000 320,654 2,895,654 Public Assistance 2,905,000 26,350,758 29,255,758 Jobs/Employment and Other Benefits 215,000 2,870,384 3,085,384 Total Expenditures $6,845,000 $30,2239041 $37,068,041 Revenues Fifty-five percent (55%) of the Department's revenues will come from the State and federal governments. An additional five percent (5%) will be generated from repayments by the Department and other departmental fees. Projections for Peconic County revenues were derived by taking the ratio of Suffolk County revenues to expenditures and assuming the same ratio would apply for Peconic County. The remaining forty percent (40%) will be supported by tax revenues. The following table presents the Suffolk County Department of Social Services operating budget for Fiscal Year 1993, the estimated value of services provided to the East End Towns in that year, and the proposed Peconic County Department operating budget for FY 1996 (in 1993 dollars). Peconic County Financial Feasibility Report Page 55 ECONOMIC ASSISTANCE Table 5.1-7 Comparison of Operating Budgets Department of Economic Assistance Value of Services Proposed Peconic Expenditure Description 1993 Actual* Provided to East End County Budget Welfare Management and Administration $14,641,444 d $1,468,390 a $1,831,245 c Family and Children's Services 40,472,227 d 4,318,216 a 2,895,654 c Public Assistance 310,928,694 d 29,630,873 b 29,255,758 c Labor/Jobs/Other Services 29,166,288 d 2,925,087 a 3,085,384 c Total Expenditures 395,208,653 38,342,567 Revenue Description Department Income 21,256,523 State Aid 99,809,134 Federal Aid 119,655,628 Total Revenues 240,721,285 2,062,277 9,683,336 11,608,814 23,354,428 37,068,041 1,993,726 9,361,458 11,222,932 22,578,115 Net Expense to General Fund $154,487,368 $14,988,139 $14,489,926 *Source: 1995 Recommended Budget, County of Suffolk. New York a) Based on caseload information provided by Suffolk County Department of Social Services b) Based on caseload breakdown supplied by Suffolk County Department of Social Services c) Certain discretionary services will not be provided by Peconic County d) Includes services provided by the County Executive's office Peconic County Financial Feasibility Report Page 56 Peconic County Financial Feasibility Study 0 0 0 0 0 PUBLIC SAFETY COORDINATOR'S OFFICE PUBLIC SAFETY COORDINATOR'S OFFICE Mission The Public Safety Coordinator's Office will provide the citizens of Peconic County with a single point of contact for all public safety issues. It will establish effective and efficient communication between the public safety agencies in Peconic County and the people they serve, in order to make Peconic County a safe place in which to reside, work and travel. Authority and Responsibility General The Coordinator's Office will help coordinate the efforts of the Sheriff, Probation, and Fire, Rescue and Emergency Services (FRES) Departments, and is responsible for coordination of public safety services throughout Peconic County. The Office will support local town and village police, fire and emergency service providers through providing access to training and assistance from outside agencies for major crime investigations and emergency support; the Office will also provide staff support to the Local Emergency Planning Committee, a voluntary board required by New York State. In addition, the Office will respond to concerns and questions presented by the public, providing a critical link between the citizens of Peconic County and the agencies that work to protect them. Mandated Services None of the services provided by the Public Safety Coordinator's Office are mandated by New York State or the federal government. Changes in Service Delivery Unlike Suffolk County, which provides county -wide training and specialized detective services through its Police Department Headquarters' Division, Peconic County will not have its own police force or training facilities. Primary support to town and village police for major crime investigations will come from the Detective Investigators in the District Attorney's office. Town and village police departments will also be supported by outside agencies (like the New York State Police Bureau of Criminal Investigation and the National Guard) when major crimes or emergencies occur. In addition, rather than duplicating expensive facilities and initiatives in programs where there are significant benefits resulting from economies of scale, the Coordinator's Office will establish and monitor these more cost effective contract relationships with programs outside the county; one such opportunity for increased efficiency can be found in a shared Police Training Academy. The Coordinator's Office will also oversee joint ownership arrangements between Peconic and Suffolk counties for critical facilities like the crime laboratory used in investigations. Peconic County Financial Feasibility Report Page 57 PUBLIC SAFETY COORDINATOR'S OFFICE The elimination of a county -wide police force in the proposed Peconic County represents a significant change in the provision of public safety services to its citizens. The change in organizational structure will result in county -wide responsibility for the provision of these services being limited to supporting the local police departments that are the critical service providers to the East End towns. Additional specialized services (such as advanced detective support) will be available to local police departments from the Peconic County District Attorney's Office as well as agencies outside the county; two such outside agencies, the New York State Police and the National Guard, will provide services at no or minimal additional costs to the citizens of Peconic County. Taking advantage of existing programs and services is vital in serving the citizens of Peconic County in the most efficient and effective way possible. Additional resources may evolve in the future; one possibility, suggested by the Public Safety Citizen Advisory Group, is the development of an investigative support team made up of professionals from East End town and village police departments that will assist with major crime investigations as required. The following table highlights the financial impact that the formation of Peconic County would have on the cost of overseeing and coordinating public safety efforts in the new county. The figures in this table represent the costs of services supported by County taxes, derived by subtracting any departmental fees, State or federal assistance from the total costs of services. The first column represents Suffolk County's 1993 net expense for the Police Department's Headquarters' Division, which provides services to the entire county; the second column represents the East End's tax contribution to general revenues of Suffolk County toward that total amount; the third column represents the net expense as an estimated dollar value of services provided to the East End in 1993 from the Police Department; and the fourth column represents the net expense of the Peconic County Public Safety Coordinator's Office in its base year 1993 pro forma budget. Please refer to the "First Fiscal Year Budget" section of this chapter for a more detailed explanation of "Suffolk's Cost of Services Provided to East End" and the "Proposed Peconic County Budget." Table 5.2-1 Comparison of Net Expenditures (FY 1993 dollars) Suffolk County East End Tax Suffolk's Cost of Services Proposed Peconic 1993 Actual Contribution Provided to East End County Budget $39,544,027 $5,690,385 $3,345,578 $2,134,204 It is important to emphasize that these numbers compare the cost of the Suffolk County Police Department Headquarters' Division to Peconic County's Public Safety Coordinator's Office; the latter does not provide any direct services to the municipal town and village police departments. The proposed Peconic County Budget figure does include a $1.2 Peconic County Financial Feasibility Report Page 58 PUBLIC SAFETY COORDINATOR'S OFFICE million allocation to the East End Town and Village Police Departments, which matches the portion of the Suffolk County sales tax that was sent to the departments in 1,993 by Suffolk County. As the above numbers indicate, in 1993 the East End towns contributed $5.7 million dollars to the Suffolk County Police Department. In comparison, in its first fiscal year, the Peconic County Public Safety Coordinator's Office will need approximately $2.1 million from the General Fund, which is included in the proposed Peconic Operating Budget. Economic Relationships with Other Governments East End Towns East End Towns and Villages will continue to support their respective police departments. The Village and Town police officers currently receive support for training from Suffolk County and this support will be continued by Peconic County. Opportunities for increased cooperation between the various town and village agencies may also become apparent over time. East End Town and Village Police departments will receive funds from Peconic County in an amount equal to the revenues previously received from Suffolk County through the its sales tax. Suffolk County Peconic County will contract with Suffolk County (or another New York county if warranted) for the provision of training services for town and village police, fire and ambulance departments. Peconic County will also negotiate a joint ownership agreement with Suffolk County for shared use of the Medical -Legal Investigations and Forensic Sciences laboratory. New York State Town and village police departments will utilize available support from the New York State Police Bureau of Criminal Investigation (BCI) for assistance with major crime investigations. The BCI division provides similar services to many other counties in New York State and has highly skilled staff trained in the areas of specialized services in which the East End police departments may require assistance. Federal Government Town and village police, fire and emergency service agencies will utilize the National Guard's aviation and emergency relief services. Peconic County Financial Feasibility Report Page 59 PUBLIC SAFETY COORDINATOR'S OFFICE Organization and Staffing The organizational chart at the beginning of this chapter illustrates the structure of the Public Safety Coordinator's Office and its relationship with the Sheriff, Probation and FRES Departments. In addition to coordinating activities and acting as a liaison between these departments and the public, the Public Safety Office will have a Division of Police Support responsible for overseeing the provision of county -wide services to town and village police departments. The proposed Peconic County is not expected to have a separate county police force. This, combined with the plan to contract with Suffolk for training, will limit the number of staff needed for the Public Safety Coordinator's Office. Currently, the Suffolk County Police Department's Headquarters' Division has a staff of 775 people. Because of the largely autonomous and high quality service provided by the East End town and village police, fire and ambulance departments and increased use of available outside resources, Peconic County's Public Safety Coordinator's Office will be limited to coordinating public safety activities and providing support to local agencies. This is accomplished with a staff of 15. Table 5.2-2 Staffing Analysis Proposed Peconic Average Cost County Staffing per Position Total Cost Administration 8 $285,000 Administrative Staff 3 $25,000 75,000 Line Staff 4 35,000 140,000 Supervisory Staff 0 50,000 0 Coordinator 1 70,000 70,000 Division of Police Support 7 240,000 Administrative Staff 2 $25,000 50,000 Line Staff 4 35,000 140,000 Supervisory Staff 1 50,000 50,000 Total 15 $525,000 Space Needs The small size of the Peconic County Public Safety Coordinator's Office staff will require a limited amount of office space. There are several options available for office space for the Public Safety Coordinator's Office; space can be utilized in the County complex or the Court complex, both located in Riverhead. Using government space standards to estimate demand for office space, the Public Safety Coordinator's Office will need approximately 3,957 gross square feet of office space. Peconic County Financial Feasibility Report Page 60 PUBLIC SAFETY COORDINATOR'S OFFICE Table 5.2-3 Calculation of Space Requirements Conference Rooms (2) 120 sq. ft. 225 1.6 x 360 Break Rooms (3) 240 sq. ft. 225 1.6 x 360 Totals 15 2,473 3,957 (1) Represents space needed for every 15 employees (2) Represents space needs for an eight person conference room (3) One break room assigned per 16 staff First Fiscal Year Budget (in 1993 dollars) For Fiscal Year 1996, the Public Safety Coordinator's Office will have a staff of 15 people and a budget of approximately $2.1 million. Expenditures Public Safety Coordinator's Office expenditures will fall under the following three main categories: Public Safety Coordinator's Office - Includes the costs associated with responding to public inquiries, and acting as liaison for and providing support to local public safety agencies. This expense is primarily made up of personnel expenditures (approximately 75%), but also includes charges for equipment and supplies, travel, and fleet maintenance. The 1996 proposed Peconic County figure for this expense is determined by estimating salaries for staff members and then applying a multiplier to account for additional expenditures. Police Academy Training - Includes the costs associated with training for new police recruits and ongoing training for law enforcement officers from town and village police departments. This expense is entirely made up of tuition expenditures and will offset Suffolk County's costs of providing these services to East End police. The value of services provided to East End towns and the FY 1996 proposed Peconic County figure for this expense is based on the East End's proportion of Suffolk County's population. Peconic County Financial Feasibility Report Page 61 Net Space Needed Total Employees Net Space NeVGross Total Gross per Employee by Type Needed Factor Space Needed Coordinator 190 sq. ft. 1 190 1.6 x 304 Administrative Staff 90 sq. ft. 5 450 1.6 x 720 Line Personnel 135 sq. ft. 8 1,080 1.6 x 1,728 Supervisory Staff 175 sq. ft. 1 175 1.6 x 280 Common Space (1) 128 sq. ft. 128 1.6 x 205 Conference Rooms (2) 120 sq. ft. 225 1.6 x 360 Break Rooms (3) 240 sq. ft. 225 1.6 x 360 Totals 15 2,473 3,957 (1) Represents space needed for every 15 employees (2) Represents space needs for an eight person conference room (3) One break room assigned per 16 staff First Fiscal Year Budget (in 1993 dollars) For Fiscal Year 1996, the Public Safety Coordinator's Office will have a staff of 15 people and a budget of approximately $2.1 million. Expenditures Public Safety Coordinator's Office expenditures will fall under the following three main categories: Public Safety Coordinator's Office - Includes the costs associated with responding to public inquiries, and acting as liaison for and providing support to local public safety agencies. This expense is primarily made up of personnel expenditures (approximately 75%), but also includes charges for equipment and supplies, travel, and fleet maintenance. The 1996 proposed Peconic County figure for this expense is determined by estimating salaries for staff members and then applying a multiplier to account for additional expenditures. Police Academy Training - Includes the costs associated with training for new police recruits and ongoing training for law enforcement officers from town and village police departments. This expense is entirely made up of tuition expenditures and will offset Suffolk County's costs of providing these services to East End police. The value of services provided to East End towns and the FY 1996 proposed Peconic County figure for this expense is based on the East End's proportion of Suffolk County's population. Peconic County Financial Feasibility Report Page 61 PUBLIC SAFETY COORDINATOR'S OFFICE Division of Police Support - Includes the costs associated with establishing and monitoring contracts and/or joint ownership relationships between Peconic County and outside agencies that will support town and village police activities (e.g. District Attorney's Office, Suffolk County's crime and investigation laboratory, NYS Police Bureau of Criminal Investigations, National Guard, etc.). The majority of this expense is the direct transfer of $1,179,315 to the East End town and village Police Departments. In addition, this expense includes personnel expenditures and charges for equipment and supplies, travel, and fleet maintenance. The 1996 proposed Peconic County figure for this expense is determined by estimating salaries for staff members and then applying a multiplier to account for additional expenditures. The table below indicates the anticipated composition of expenditures for the Public Safety Coordinator's Office, including a breakdown of salary and non -salary costs. Table 5.2-4 Summary of Salary and Non -Salary Expenditures Public Safety Total Department Expenditure Description Salaries Non -Salary (1) Expenditures Coordinator's Office $285,000 $99,750 $384,750 Division of Police Support 240,000 1,263,315 1,503,315 Police Academy Training 0 246,139 246,139 Total Expenditures $525,000 $1,609,204 $2,134,204 (1) See "First Fiscal year Budget, Ependitures' for a description of non -salary a)penditures Employee benefits for all departments are combined in the aggregate Peconic County operating budget. The benefit cost is estimated to be 33% of all Peconic County salary expenditures. Actual benefit costs will be determined through negotiations with Peconic County employees. Revenues The State and Federal Aid revenues received by Suffolk County's Police Headquarters' Division are associated with direct provision of public safety services. Because it will not provide services directly to the public, no revenues are expected to be received by the Peconic County Public Safety Coordinator's Office. The Office's expenditures will be supported through the County's General Fund. Peconic County Financial Feasibility Report Page 62 - PUBLIC SAFETY COORDINATOR'S OFFICE The following table presents the Suffolk County Police Department's operating budget for Fiscal Year 1993, the estimated cost of services provided to the East End towns in that year, and the proposed Peconic County's operating budget for the Public Safety Coordinator's Office for Fiscal Year 1996. Table 5.2-5 Comparison of Operating Budgets Public Safety Suffolk County Suffolk's Cost of Services Expenditure Description 1993 Actual' Provided to East End Police $42,357,589 $3,435,200 a Other" 233,642 18,948 a Police Academy Training: SCCC 1,145,400 246,139 b Public Safety Coordinator NA NA Division of Police Support NA NA Total Expenditures $43,736,631 $3,700,288 Revenue Description Department Income $0 $0 State Aid 2,487,480 210,450 c Federal Aid 1,705,124 144,260 c Total Revenues $4,192,604 $354,711 Proposed Peconic County Budget $0 I 0 246,139 384,750 1,503,315 d $2,134,204 $0 0 0 $0 Net Expense $39,544,027 $3,345,578 $2,134,204 'Source: 1995 Recommended Budget, County of Suffolk, New York "Other programs include Police DARE, Emergency Medical, and LI Crack.. a)Calculated by multiplying Suffolk expenditure by the East End portion of the Suffolk County population b) Calculated by multiplying Suffolk expenditures by the proportion of services provided to East End citizens c) Calculated by multiplying Suffolk revenues by the ratio of 'SuffolKs Cost of Services Provided to East End" to Suffolws total expenditures d) Includes the actual portion of Suffolk sales tax forwarded to East End town and village Police Departments in 1993 Peconic County Financial Feasibility Report Page 63 Peconic County Financial Feasibility Study SHERIFF'S DEPARTMENT SHERIFF'S DEPARTMENT Mission The Peconic County Sheriffs Department will deliver effective and responsive law enforcement services to all citizens of Peconic County in a fair and equitable manner. The Sheriffs Department will be dedicated to serving and protecting the public, in order to make Peconic County a safe place in which to reside, work and travel. Authority and Responsibility General The Peconic County Sheriffs Department will provide effective and efficient services to its citizens with the fewest number of staff and lowest overhead expenses possible. The Sheriff, an elected official, will act as the enforcement officer of all decrees, orders and mandates of the civil courts within the County, and as such will be responsible for the accounting of revenues and funds received in the performance of this function. The Sheriff will have legal responsibility to serve as a law enforcement officer. The Sheriff will be authorized to take action during natural disasters in order to protect life and property. The Department's major responsibilities are the enforcement of all decrees, orders and mandates of the civil courts within the County and transporting prisoners to and from corrections facilities and courts. Peconic County will seek a contractual arrangement with Suffolk County for the care of East End prisoners in Suffolk County corrections facilities. Peconic County's obligations under such an agreement will be managed by the Sheriffs Department. Mandated Services The Office of the Sheriff is created by the New York State Constitution, with Section 13 of Article XIII declaring the Sheriff to be a "local constitutional officer." Therefore, although the Office of the Sheriff is organized under the authority of the State of New York, a Sheriff is classified as a local officer and not as a state officer. Custody and control of county jails is conferred upon the Sheriff by Section 500-C of the N.Y.S. Correction Law, which provides that the Sheriff shall receive and safely keep, in the county jail of his county, every person lawfully committed to his custody for safekeeping, examination or trial or as a witness, or committed or sentenced to imprisonment therein, or committed for contempt. N.Y.S. Correction Law, Article 20, Section 500-D requires that prisoners be "provided with sufficient quantity of plain but wholesome food at the expense of the county..." Peconic County Financial Feasibility Report Page 65 SHERIFF'S DEPARTMENT Under New York State law, the Sheriff is the principal civil enforcement officer of the county. As such, the Sheriff enforces all decrees, orders and mandates of the civil courts - within the county. Many of the statutory rules of the New York State courts, contained in the New York Civil Practice Law and Rules, are dependent upon the actions of the Sheriff for their enforcement. Moreover, it is the duty of the sheriff to have a sufficient number of deputies to execute the mandates of the courts within the time frames prescribed by law. The courts have ruled that the Sheriff has the primary responsibility for transporting prisoners lawfully committed to his custody by the various courts within the county. Moreover, since the Sheriff is responsible for the custody and transportation of prisoners and other detainees, this responsibility may not be transferred to a private firm. Changes in Service Delivery Due to the modest need to incarcerate individuals as compared to Suffolk County's correctional facilities' capacity, Peconic County will not operate its own correctional_ facilities. East End prisoners currently comprise 11.1% (155 out of total population of 1396) of the prisoners in Suffolk County's three corrections facilities: the County Correctional Facility in Riverhead, the Minimum Security Facility (Honor Farm) and the Alternative DWI Facility, both in Yaphank. Instead of operating its own corrections facilities, Peconic County will negotiate a joint -service agreement with Suffolk County (or another New York county if warranted) for the care of its prisoners, either paying on a per prisoner basis or some other mutually agreed upon option. This will allow the department to focus its energies on providing other services as efficiently as possible, to optimize use of existing facilities, and to minimize staffing requirements. The following table highlights the financial impact that the formation of Peconic County = would have on the Sheriffs Department. The figures in this table represent the costs of services supported by County taxes and are derived by subtracting any departmental fees, state or federal assistance from the total costs of services. The first column represents Suffolk County's 1993 net expense for the Sheriffs Department; the second column represents the East End's tax contribution to the general revenues of Suffolk County toward that total amount; the third column represents the net expense as an estimated dollar value of services provided to the East End in 1993 from the Sheriffs Department; and the fourth column represents the net expense of the Peconic County Sheriffs Department in its base year 1993 pro forma budget. Please refer to the "First Fiscal Year Budget" section of this chapter for a more detailed explanation of "Suffolk's Cost of Services Provided to East End" and the "Proposed Peconic County Budget." Peconic County Financial Feasibility Report Page 66 SHERIFF'S DEPARTMENT Table 5.3-1 Comparison of Net Expenditures (FY 1993 dollars) Suffolk County 1993 Actual East End Tax Suffolk's Cost of Services Proposed Peconic Contribution Provided to East End County Budget $53,991,215 $7,769,336 $5,720,037 $6,687,877 As the above numbers indicate, in 1993 the East End towns contributed $7.7 million dollars to the Suffolk County Sheriffs Department. In comparison, in its first fiscal year, the Peconic County Sheriffs Department will need $6.6 million from the General Fund and will offer East -end citizens control over the level and quality of services provided. Based on conservative estimates of the per prisoner charges Peconic County would be required to pay, the cost of contracting out for prisoner care is assumed to be slightly less expensive for the East End towns than what the East End currently contributes to Suffolk County for correctional services. Economic Relationships with Other Governments East End Towns There will be no increased costs to the five East End towns resulting from the establishment of a Peconic County Sheriffs Department. Suffolk County Peconic County will enter into joint -service agreements or service contracts with Suffolk County (or another New York county if warranted) for the provision of corrections services to the citizens of Peconic County, including prisoner maintenance and the operation of corrections facilities. Organization and Staffing The Public Safety Coordinator's Office will help coordinate the activities of the Sheriffs Department with the other public safety service providers in the county. Please refer to the organizational chart presenting an overview of the Peconic County Public Safety function at the beginning of this chapter. The Department will be headed by a Sheriff, an elected official, and include staffing for the following functions: Executive; Finance and Personnel; Medical Evaluation; Internal Affairs; Civil Bureau; Family Court Bureau; Orders of Protection; Pistol Permits; Claims Investigations; and Criminal Investigations. Peconic County Financial Feasibility Report Page 67 SHERIFF'S DEPARTMENT An analysis of Suffolk County's 1993 summons, warrants and complaints indicates that the East End is responsible for about 11% of the Suffolk County Sheriffs Department's work load; this, combined with Peconic County's proposed decision to contract out prisoner maintenance rather than operate its own facilities, results in the need for a much smaller Sheriffs Department than is currently maintained in Suffolk County. The Suffolk County Sheriffs Department currently has a staff of 887. The majority of this staff is involved with the administration, operation and maintenance of the Suffolk County correctional facilities (including Prisoner Maintenance, Alternative DWI Facility, District Court Detention Facility, Honor Farm and County Correctional Facility). If Peconic County contracts with Suffolk County (or another New York county if warranted), Peconic County will require only 28 staff members to conduct its business. Table 5.3-2 Line Item Expenditure Staffing Analysis Suffolk Proposed Peconic Average Cost 1993 Actual County Staffing per Position Total Cost Sheriff 172 22 $755,000 Administrative Staff 49 8 $25,000 200,000 Line Staff 105 11 35,000 385,000 Supervisory Staff 17 2 50,000 100,000 Sheriff 1 1 70,000 70,000 Prisoner Transportation 56 6 210,000 Administrative Staff 0 0 25,000 0 Line Staff 47 6 35,000 210,000 Supervisory Staff 9 0 50,000 0 Prisoner Maintenance 19 0 0 Alternative DWI Facility 17 0 0 District Court Detention Facility 32 0 0 Honor Farm 145 0 0 County Correctional Facility 446 0 0 Total 887 28 $965,000 Space Needs The considerably reduced size of the Peconic County's Sheriffs Department staff will decrease the amount of office space required. There are several options available for office space for the Sheriffs Department; space can be utilized in the County complex, the current Suffolk County Corrections Facility or the Court complex, all located in Riverhead. Using government space standards to estimate demand for office space, the Peconic County Sheriffs Department will need approximately 7,414 gross square feet of office space. Peconic County Financial Feasibility Report Page 68 SHERIFF'S DEPARTMENT Table 5.3-3 First Fiscal Year Budget (in 1993 dollars) For Fiscal Year 1996, the Department will have a staff of 28 people and initial expenditures of $6.8 million, revenues of $0.1 million and a resulting departmental net expense of $6.7 million Expenditures The expenditures for the "Sheriff' and "Prisoner Transportation" line items of the table below consist primarily of salaries but also include non -salary expenditures such as supplies, equipment, information systems, fleet vehicles and self-insurance. The 1996 proposed Peconic County figure for each expense is determined by estimating salaries for staff members and then multiplying non -salary expenditures by the ratio of Peconic County to Suffolk County staff. The "Prisoner Care Charge" line item is calculated by taking the average daily cost per prisoner in Suffolk County ($100, which includes cost of providing food, shelter, and health services) and multiplying it with the average number of East End prisoners (approximately 150); the resulting expenditure/prisoner number is then multiplied by 365 to get the annual East End prison population cost. While this number is subject to negotiation, this is the approximate dollar amount Peconic County would pay to contract out corrections services to Suffolk County. Peconic County Financial Feasibility Report Page 69 Calculation of Space Requirements Net Space Needed Total Employees Net Space Net/Gross Total Gross per Employee by Type Needed Factor Space Needed Administrative Staff 90 sq. ft. 8 720 1.6 x 1152 Line Personnel 135 sq. ft. 17 2295 1.6 x 3672 Supervisory Staff 175 sq. ft. 2 350 1.6 x 560 Sheriff 190 sq. ft. 1 190 1.6 x 304 Common Space (1) 128 sq. ft. 239 1.6 x 382 Conference Rooms (2) 120 sq. ft. 420 1.6 x 672 Break Rooms (3) 240 sq. ft. 420 1.6 x 672 Totals 28 4,634 7,414 (1) Represents space needed for every 15 employees (2) Represents space needs for an eight person conference room; the Department is estimated to need one (3) One break room assigned per 16 staff First Fiscal Year Budget (in 1993 dollars) For Fiscal Year 1996, the Department will have a staff of 28 people and initial expenditures of $6.8 million, revenues of $0.1 million and a resulting departmental net expense of $6.7 million Expenditures The expenditures for the "Sheriff' and "Prisoner Transportation" line items of the table below consist primarily of salaries but also include non -salary expenditures such as supplies, equipment, information systems, fleet vehicles and self-insurance. The 1996 proposed Peconic County figure for each expense is determined by estimating salaries for staff members and then multiplying non -salary expenditures by the ratio of Peconic County to Suffolk County staff. The "Prisoner Care Charge" line item is calculated by taking the average daily cost per prisoner in Suffolk County ($100, which includes cost of providing food, shelter, and health services) and multiplying it with the average number of East End prisoners (approximately 150); the resulting expenditure/prisoner number is then multiplied by 365 to get the annual East End prison population cost. While this number is subject to negotiation, this is the approximate dollar amount Peconic County would pay to contract out corrections services to Suffolk County. Peconic County Financial Feasibility Report Page 69 SHERIFF'S DEPARTMENT The estimate used in this report will be a "pass-through" to Suffolk county; that is, the amount that Peconic pays will equal Suffolk's cost to incarcerate East End prisoners. According to the New York State Association of Counties, the average cost per prisoner for counties in New York State is $90 per day, but the expense of contracting out prisoner maintenance for Peconic County was calculated using the more conservative figure supplied by the Suffolk County Sheriffs Department. The table below indicates the anticipated composition of expenditures; for the Sheriffs Department, including a breakdown of salary and non -salary costs. Table 5.3-4 Summary of Salary and Non -Salary Expenditures Sheriff Department Total Department Expenditure Description Salaries Non -Salary (1) Expenditures Sheriff $755,000 $369,254 $1,124,254 Prisoner Transportation 210,000 20,515 230,515 Prisoner Care Charges 0 5,475,318 5,475,318 Total Expenditures $965,000 $5,865,087 $6,830,087 (1) See 'First Fiscal year Budget. Expenditures' for a description of non -salary expenditures Employee benefits for all departments are combined in the aggregate Peconic County operating budget. The benefit cost is estimated to be 33% of all Peconic County salary expenditures. Actual benefit costs will be determined through negotiations with Peconic County employees. Revenues Revenues of the Peconic County Sheriffs Department will come from fees collected by the Sheriffs Department associated predominantly with Civil Bureau services, such as judgments, evictions, warrants, poundage for collections, etc. The balance of the Sheriffs Department's expenditures will be supported through the county's General Fund. The following table presents the Suffolk County Sheriffs Department's operating budget for Fiscal Year 1993, the estimated value of services provided to the East End towns in that year, and the proposed Peconic County's operating budget for Fiscal Year 1996. Peconic County Financial Feasibility Report Page 70 SHERIFF'S DEPARTMENT Table 5.3-5 Comparison of Operating Budgets Sheriff Department Suffolk County Suffolk's Cost of Services Expenditure Description 1993 Actual* Provided to East End Sheriff $10,940,216 $1,225,304 a Prisoner Maintenance 2,703,423 300,165 a Criminal Justice Reroute Program 152,226 16,902 a Alternative DWI Facility 854,093 186,833 a Medium Security 7,232,555 750,548 a District Court Detention Facility 2,145,448 0 b Honor Farm/Minimum Security 8,890,083 1,033,731 a County Correctional Facility 18,187,335 1,887,365 a Prisoner Transportation 4,155,564 461,399 a Prisoner Care Charges Total Expenditures $55,260,943 $5,862,246 Proposed Peconic County Budget $1,124,254 0 0 0 0 0 0 0 230,515 5,475,318 $6,830,087 Revenue Description Department Income $1,269,728 $142,210 a $142,210 State Aid 0 0 0 Federal Aid 0 0 0 Total Revenues $1,269,728 $142,210 $142,210 Net Expense $53,991,215 $5,720,037 $6,687,877 *Source: 1995 Recommended Budget, County of Suffolk, New York a) Calculated by multiplying Suffolk County expenditure by the proportion of total service provided to East End citizens b) The District Court does not serve the East End towns Peconic County Financial Feasibility Report Page 71 Peconic County Financial Feasibility Study 0 0 0 0 0 PROBATION DEPARTMENT Public Safety Office Division of Police Support Sheriff Administration Fire, Rescue & Emergency Services Civil Family I Orders Pistol Claims Criminal Bureau Bureau Protection Permits Investigation Investigation PROBATION DEPARTMENT Mission The Probation Department will be charged with performing investigations and providing supervisory services for the courts. Authority and Responsibility General The Peconic County Probation Department will facilitate treatment for and case management of adult criminals, juvenile delinquents and dysfunctional families, as well as enforcing any corresponding court order. Its services will be directed to the courts and the youths, adults and families involved in the judicial system. The Probation Department will act essentially as an arm of the courts. Screening and referral services will be provided to adults involved in domestic violence and children classified as Persons in Need of Supervision (PINS) or Juvenile Delinquents. Court ordered investigations will be prepared containing legal, social and economic information on those offenders appearing in court as an aid in disposing the case. Offenders ordered to be under probation supervision will be monitored to determine their level of compliance and identify their needs in order to make referrals to appropriate service providers. The Department's major responsibilities are highlighted below: Probation - Includes department's administration, services required for both the Family Court and Criminal Court and necessary clerical support of these activities; these expenditure include the cost of contracting with Suffolk county's DWI Alternative Facility for treatment programs as required. Deinstitutionalization of PINS Program and PINS Diversion Plan - Includes the provision of detention services for PINS, as well as comprehensive services to PINS and their families in an effort to avoid out -of -home placement. Intensive Supervision - Includes supervision of high-risk probationers. Juvenile Delinquent Care - Includes comprehensive residential placement planning service for juveniles adjudicated as juvenile delinquents or PINS. State Training School - Includes the placement of juvenile delinquents and PINS in the custody of New York State Division for Youth. Peconic County Financial Feasibility Report Page 73 PROBATION DEPARTMENT Mandated Services Section 256, paragraph 1 of New York State Executive Law mandates the establishment of county probation departments, specifying that: "Each county shall maintain or provide for a probation agency or agencies to perform probation services therein, including intake, investigations, pre -sentence reports, supervision, conciliation, social treatment and other such functions as are assigned to probation agencies pursuant to law." The position of Director of Probation is also mandated by paragraph 4 of Section 256. New York State Executive Law, Section 510A dictates that a County must provide conveniently accessible and adequate secure and non -secure detention services for juveniles. Article 410 of New York State Criminal procedure Law governs sentences of probation by the criminal courts, stating: "The probation department servicing the court that imposed the sentence of probation has the duty of supervising the defendant during the period of such legal custody." The Family Court Act mandates the existence of county probation agencies in Article 2, Section 252. Changes in Service Delivery In comparison with the current Suffolk County Probation Department, the Peconic County Probation Department will focus on providing exemplary service in those areas of probation mandated by New York State. In contrast with Suffolk County, the Peconic County Probation Department will not administer many specialized programs, such as: Adolescent Arson, Day Reporting, Pervasive Drug Testing, Adolescent Sex Offender, Adolescent Drug Treatment, Community Service Alternative Sentencing, Treatment Alternatives to Street Crime, and the Expediting Program. Staff will be streamlined and trained to serve in multiple capacities addressing these more unique problems on an "as needed" basis. While Suffolk County will maintain ownership of existing corrections facilities, Peconic County will continue to utilize the DWI Alternative Facility when necessary and will pay Suffolk County a fee based on use. The following table (Table 5.4-1) highlights the financial impact that the formation of Peconic County would have on the Probation Department. The figures in this table represent the costs of services supported by County taxes and are derived by subtracting any departmental fees, state or federal assistance from the total costs of services. The first column represents Suffolk County's 1993 net expense for the Probation Department; the second column represents the East End's tax contribution to the general revenues of Suffolk . County toward that total amount; the third column represents the estimated dollar value of services provided to the East End in 1993 from the Probation Department; and the fourth column represents the net expense of the Peconic County Probation Department in its base year 1993 pro forma budget. Please refer to the "First Fiscal Year Budget" section of this Peconic County Financial Feasibility Report Page 74 PROBATION DEPARTMENT chapter for a more detailed explanation of "Suffolk's Cost of Services Provided to East End" and the "Proposed Peconic County Budget." Table 5.4-1 Comparison of Net Expenditures (FY 1993 dollars) Suffolk County East End Tax Suffolk's Cost of Services Proposed Peconic 1993 Actual Contribution Provided to East End County Budget $13,974,475 $2,010,927 $1,678,226 $1,099,831 As the above numbers indicate, in 1993 the East End towns contributed approximately $2.0 million dollars to the Suffolk County Probation Department. In comparison, in its first fiscal year, the Peconic County Probation Department will need $1.1 million from the General Fund and will offer East End citizens control over the level and quality of services provided. Economic Relationships with Other Governments The Peconic County Probation Department will provide services without regard to the County's financial relationships with the East End municipalities, Suffolk County or the State. Organization and Staffing The Public Safety Coordinator's Office will help coordinate the activities of the Sheriffs Department with other public safety agencies in the county. Please refer to the organizational chart presenting an overview of the Peconic County Public Safety function at the beginning of this chapter. The Probation Department will be headed by a Director and include staffing for the following functions: Administration, Criminal and Family Court Intake, Investigations and Supervision, and PINS and Juvenile Delinquent programs. An analysis of Suffolk County's case load mix indicates that the East End is responsible for about 9.5% of Suffolk County Probation Department's case load. This, combined with the plan to have Peconic County offer only mandated probationary services, results in a much smaller Probation Department being required than is currently maintained in Suffolk County. Suffolk County's Probation Department currently has a staff of 372. Reflecting smaller case loads and the provision of more limited services, Peconic County's Probation Department will require only 39 people to conduct its business. Peconic County Financial Feasibility Report Page 75 Administration Administrative S Line S Supervisory S Dir Criminal Court RORAnvestigations/Supervisio Administrative S Line S Supervisory S Family Court IntakeAnvestigations/Supervision Administrative S Line S Supervisory S PINS Diversion Plan PROBATION DEPARTMENT Table 5.4-2 Staffing Analysis actor n St 2 0 25,000 Suffolk Proposed Peconic Average Cost 1 _ 1993 Actual County Staffing per Position Total Cost 50,000 24 5 14 $190,000 taff 10 2 $25,000 50,000 taff 8 2 35,000 70,000 tall 5 0 50,000 0 50,000 1 1 70,000 70,000 193 18 0 625,000 tall 7 2 25,000 50,000 taff 165 15 35,000 525,000 tall 21 1 50,000 50,000 55 6 69 2159000 taff 5 1 25,000 25,000 taff 44 4 35,000 140,000 50,000 6 1 50,000 50,000 11 2 85,000 Administrative Statf 2 0 25,000 0 Line Staff 8 1 35,000 35,000 Supervisory Staff 1 1 50,000 50,000 Deinstitutionalization of PINS Program 14 1 0 25,000 Administrative Staff 5 1 25,000 25,000 Line Staff 6 0 35,000 0 Supervisory Staff 3 0 50,000 0 Intensive Supervision Program 15 2 85,000 Administrative Staff 0 0 25,000 0 Line Staff 12 1 35,000 35,000 Supervisory Staff 3 1 50,000 50,000 Typing and File Room/Stenography 69 5 125,000 Administrative Staff 69 5 25,000 125,000 Line Staff 0 0 35,000 0 Supervisory Staff 0 0 50,000 0 Stop DWI 8 0 0 Aid to Probation 4 0 0 Day Reporting Sanction 18 0 0 DWI Alternative Facility 3 0 0 DFY Placement Reduction Program 3 0 0 Expediting Program 7 0 0 Total 424 39 $1,350,000 Peconic County Financial Feasibility Report Page 76 PROBATION DEPARTMENT Space Needs The considerably reduced size of Peconic County's Probation Department staff will decrease the amount of office space required. There are several options available for office space for the Probation Department; space can be utilized in the County complex or the Court complex, both located in Riverhead. Using government space standards to estimate demand for office space, the Peconic County Probation Department will need approximately 10,380 gross square feet of office space. Table 5.4-3 Calculation of Space Requirements Common Space (1) 128 sq. ft. 333 1.6 x 532 Conference Rooms (2) 120 sq. ft. 585 1.6 x 936 Break Rooms (3) 240 sq. ft. 585 1.6 x 936 Totals 39 6,488 10,380 (1) Represents space needed for every 15 employees (2) Represents space needs for an eight person conference room (3) One break room assigned per every 16 employees First Fiscal Year Budget (in 1993 dollars) For Fiscal Year 1996, the. Department will have a staff of 39 people and initial expenditures of $1.9 million, revenues of $0.8 million and a resulting departmental net expense of $1.1 million. Expenditures The expenditures for each line item of the table on the following page consist primarily of salaries but also include non -salary expenditures such as supplies, equipment, information systems, fleet vehicles and self-insurance. The 1996 proposed Peconic County figure for each expense is determined by estimating salaries for staff members and then multiplying Peconic County Financial Feasibility Report Page 77 Net Space Needed Total Employees Net Space Net/Gross Total Gross per Employee by Type Needed Factor Space Needed Director 190 sq. ft. 1 190 1.6 x 304 Administrative Staff 90 sq. ft. 11 990 1.6 x 1584 Line Personnel 135 sq. ft. 23 3105 1.6 x 4968 Supervisory Staff 175 sq. ft. 4 700 1.6 x 1120 Common Space (1) 128 sq. ft. 333 1.6 x 532 Conference Rooms (2) 120 sq. ft. 585 1.6 x 936 Break Rooms (3) 240 sq. ft. 585 1.6 x 936 Totals 39 6,488 10,380 (1) Represents space needed for every 15 employees (2) Represents space needs for an eight person conference room (3) One break room assigned per every 16 employees First Fiscal Year Budget (in 1993 dollars) For Fiscal Year 1996, the. Department will have a staff of 39 people and initial expenditures of $1.9 million, revenues of $0.8 million and a resulting departmental net expense of $1.1 million. Expenditures The expenditures for each line item of the table on the following page consist primarily of salaries but also include non -salary expenditures such as supplies, equipment, information systems, fleet vehicles and self-insurance. The 1996 proposed Peconic County figure for each expense is determined by estimating salaries for staff members and then multiplying Peconic County Financial Feasibility Report Page 77 PROBATION DEPARTMENT - non -salary expenditures by the ratio of Peconic County to Suffolk County staff. The only exceptions to this method are found in the "Juvenile Delinquent Care" and "State Training School" line items; the 1996 proposed Peconic County figures for these expenses are based on the "Value of Services to East End" as an estimation for the cost of services provided by outside agencies and is determined by multiplying the Suffolk County actual expenditure by the percentage of East End Family Court cases. Table 5.4-4 indicates the anticipated composition of expenditures for the Probation Department, including a breakdown of salary and non -salary costs. Table 5.4-4 Summary of Salary and Non -Salary Expenditures Probation Total Department Expenditure Description Salaries Non -Salary (1) Expenditures Probation $1,155,000 $113,271 $1,268,271 PINS - Diversion and Deinstitutionalization 110,000 83,717 $193,717 Intensive Supervision Program 85,000 3,790 $88,790 Juvenile Delinquent Care 0 108,955 $108,955 State Training School 0 205,276 $205,276 Total Expenditures $1,350,000 $515,009 $1,865,009 (1) See 'First Fiscal year Budget, Expenditures' for a description of non -salary expenditures Employee benefits for all departments are combined in the aggregate Peconic County operating budget. The benefit cost is estimated to be 33% of all Peconic County salary expenditures. Actual benefit costs will be determined through negotiations with Peconic County employees. Revenues Revenues of the Peconic County Probation Department will come from New York State Aid. The State reimburses the county for 39% of Probation and PINS personnel expenditures. Additionally, the State provides reimbursement for the Intensive Supervision program at 100%. Finally, the State also reimburses the County for the Juvenile Delinquent Care and State Training expenditures by approximately 50%. The balance of the Probation Department's expenditures will be supported through the County's General Fund. Peconic County Financial Feasibility Report Page 78 PROBATION DEPARTMENT Table 5.4-5 presents the Suffolk County Probation Department's operating budget for Fiscal Year 1993, the estimated cost of services provided to the East End towns in that year, and the proposed Peconic County's operating budget for the Probation Department for Fiscal Year 1996. Table 5.4-5 Comparison of Operating Budgets Probation Suffolk County Suffolk's Cost of Services Expenditure Description 1993 Actual' Provided to East End Probation $13,384,801 $1,547,168 a DWI Alternative Facility 105,887 9,864 b Aid to Probation 193,051 18,368 b Expediting Program 272,528 25,388 b Treatment Alternatives to Street Crime 408,941 38,908 b PINS - Diversion and Deinstitution. 1,656,593 185,735 b Intensive Supervision 603,888 56,256 b Community Service Alt. Sentencing 519,604 49,437 b Juvenile Delinquent Care 971,785 108,955 b State Training School 1,830,881 205,276 b Other Programs" 71,284 7,992 b Total Expenditures $20,019,243 $2,253,346 Revenue Description Proposed Peconic County Budget $1,268,271 0 0 0 0 193,717 88,790 0 108,955 205,276 0 $1,865,009 Department Income $0 $0 $0 State Aid 6,044,768 575,120 b 765,178 Federal Aid 0 0 0 Total Revenues $6,044,768 $575,120 $765,178 Net Expense $13,974,475 $1,678,226 $1,099,831 'Source: 1995 Recommended Budget, County of Suffolk, New York "Other Programs includes Day Reporting, Ado]. Arson, Pervasive Drug Testing, Adol. Sex Offender, Adol. Drug Treatment a) Calculated by multiplying Suffolk County expenditure by the proportion of total staff assigned to the East End b) Calculated by multiplying Suffolk County expenditure by the proportion of total service provided to East End citizens Peconic County Financial Feasibility Report Page 79 Peconic County Financial Feasibility Study 0 0 0 0 0 DEPARTMENT OF FIRE, RESCUE & EMERGENCY SERVICES FIRE, RESCUE & EMERGENCY SERVICES Mission The Department of Fire, Rescue and Emergency Services (FRES) will provide support services to the volunteer fire departments and emergency medical service agencies in the East End villages and towns. Authority and Responsibility General The Peconic County FRES will assist East End village and town volunteer fire departments and emergency medical service agencies in participating in training programs, planning activities, interpretation of laws and regulations, origin investigation, investigation and reporting of emergencies, injuries and fire causes, and inspections. The Department will also facilitate communication and cooperation between town and village volunteer fire departments and emergency medical service agencies, assisting them in achieving the most effective and efficient utilization of resources. Mandated Services None of the services provided by FRES are mandated by New York State or the federal government. Changes in Service Delivery Currently, Suffolk County's FRES provides similar services but, in addition, is responsible for providing dispatch services for the five West End towns' Emergency - 911 (E-911) service. On the East End, dispatch services for the new E-911 system will be operated by the towns, with no dispatch service (primary or back-up) provided by Suffolk County. The Peconic County FRES will collect the fees associated with E-911 and distribute them back to appropriate town and/or village authorities. Suffolk County FRES also provides training and training facilities for county volunteer fire departments and emergency medical service agencies. Peconic County will contract with Suffolk County (or another New York county, if warranted) to provide for fire and emergency medical service volunteers' participation in Suffolk County training programs. The following table highlights the financial impact that the formation of Peconic County would have on the Department of FRES. The figures in this table represent the costs of services supported by County taxes and are derived by subtracting any departmental fees, state or federal assistance from the total costs of services. The first column represents Peconic County Financial Feasibility Report Page 81 FIRE, RESCUE & EMERGENCY SERVICES Suffolk County's 1993 net expense for FRES; the second column represents the East End's tax contribution to general revenues of Suffolk County toward that total amount; the third column presents the net expense as an estimated dollar value of services provided to the East End in 1993 from FRES; and the fourth column represents the net expense of the Peconic County Department of FRES in its base year 1993 pro forma budget. Please refer to the Table 5.5-5 in this chapter for a more detailed explanation of these figures. Table 5.5-1 Comparison of Net Expenditures (FY 1993 dollars) Suffolk County East End Tax Suffolk's Cost of Services Proposed Peconic 1993 Actual Contribution Provided to East End County Budget $3,553,362 $511,329 $249,654 $257,458 As the above numbers indicate, in 1993 the East End towns contributed $0.5 million dollars to the Suffolk County Department of FRES. In comparison, in its first fiscal year, the Peconic County FRES will need approximately $0.26 million from the General Fund and will offer East End citizens control over the level and quality of services provided. Economic Relationships with Other Governments East End Towns The towns and villages will continue to support the volunteer fire departments and emergency medical service agencies as they have in the past. The village and town volunteers currently receive support for training from Suffolk County and this support will continue under Peconic County. Suffolk County Peconic County will contract with Suffolk County (or another New York county if warranted) for the provision of training services for Peconic County volunteer fire fighters and emergency medical service personnel. Organization and Staffing FRES will fall under the supervision of the Public Safety Commissioner. Please refer to the organizational chart presenting an overview of the Peconic County Public Safety function at the beginning of this chapter. FRES will be headed by a Director and will include staffing for administration (responsible for facilitating training, planning assistance, coordination of services and communication with volunteer agencies) and inspections. Peconic County Financial Feasibility Report Page 82 FIRE, RESCUE & EMERGENCY SERVICES Peconic County will support approximately 20% of the volunteer fire departments and emergency medical service agencies currently supported by Suffolk County. This, combined with the fact that responsibility for emergency call dispatch services will be taken over by the E-911 system currently provided by the East End towns, results in a significantly reduced need for staffing in the Peconic County FRES Department. While Suffolk County currently has a staff of 49 (including 34 communications dispatch employees), Peconic County's FRES will only require 4 staff members to conduct its business. Table 5.5-2 Space Needs The considerably reduced size of the Peconic County's staff will decrease the amount of office space required. There are several options available for office space for the FRES Department; space can be utilized in the County complex, the Court complex (both located in Riverhead) or rented from one of the existing fire stations. Using government space standards to estimate demand for office space, the Peconic County FRES Department will need approximately 1,127 gross square feet of office space. Peconic County Financial Feasibility Report Page 83 Staffing Analysis Suffolk Proposed Peconic Average Cost 1993 Actual County Staffing per Position Total Cost Administration 8 3 $130,000 Administrative Staff 2 1 $25,000 25,000 Line Staff 2 1 35,000 35,000 Supervisory Staff 3 0 50,000 0 Director 1 1 70,000 70,000 Inspection 1 1 35,000 Administrative Staff 0 0 25,000 0 Line Staff 1 1 35,000 35,000 Supervisory Staff 0 0 50,000 0 Communications 34 0 0 Training 2 0 0 Grounds Unit 2 0 0 Interims 2 0 0 Total 49 4 $165,000 Space Needs The considerably reduced size of the Peconic County's staff will decrease the amount of office space required. There are several options available for office space for the FRES Department; space can be utilized in the County complex, the Court complex (both located in Riverhead) or rented from one of the existing fire stations. Using government space standards to estimate demand for office space, the Peconic County FRES Department will need approximately 1,127 gross square feet of office space. Peconic County Financial Feasibility Report Page 83 FIRE, RESCUE & EMERGENCY SERVICES Table 5.5-3 Calculation of Space Requirements Common Space (1) 128 sq. ft. 34 1.6 x 55 Conference Rooms (2) 120 sq. ft. 60 1.6 x 96 Break Rooms (3) 240 sq. ft. 60 1.6 x 96 Totals 4 704 1,127 (1) Represents space needed for every 15 employees (2) Represents space needs for an eight person conference room (3) One break room assigned per every 16 employees First Fiscal Year Budget (in 1993 dollars) For Fiscal Year 1996, the Department will have a staff of 4 people and a budget of $0.26 ' million in expenditures. Expenditures Peconic County FRES Department expenditures will fall under the following two main categories: Trainin - Includes the support of training activities for members of the East End town and village volunteer fire departments and emergency medical services agencies. This expense is almost entirely made up of contract expenditures. The 1996 proposed Peconic County figure for this expense uses the "Value of Services to East End" as an estimation for the cost of the contract with Suffolk County for training services and was determined by multiplying the Suffolk County Actual expenditure by the percentage of services provided to the East End. Fire, Rescue & Emergency Service - Includes the cost of providing support to volunteer agencies in the form of planning, inspections, interpretation of laws and regulations, training access and coordination services. The majority (over 75%) of this expense is made up of Peconic County Financial Feasibility Report Page 84 Net Space Needed Total Employees Net Space Net/Gross Total Gross per Employee by Type Needed Factor Space Needed Administrative Staff 90 sq. ft. 1 90 1.6 x 144 Line Personnel 135 sq. ft. 2 270 1.6 x 432 Supervisory Staff 175 sq. ft. 0 0 1.6 x 0 Director 190 sq. ft. 1 190 1.6 x 304 Common Space (1) 128 sq. ft. 34 1.6 x 55 Conference Rooms (2) 120 sq. ft. 60 1.6 x 96 Break Rooms (3) 240 sq. ft. 60 1.6 x 96 Totals 4 704 1,127 (1) Represents space needed for every 15 employees (2) Represents space needs for an eight person conference room (3) One break room assigned per every 16 employees First Fiscal Year Budget (in 1993 dollars) For Fiscal Year 1996, the Department will have a staff of 4 people and a budget of $0.26 ' million in expenditures. Expenditures Peconic County FRES Department expenditures will fall under the following two main categories: Trainin - Includes the support of training activities for members of the East End town and village volunteer fire departments and emergency medical services agencies. This expense is almost entirely made up of contract expenditures. The 1996 proposed Peconic County figure for this expense uses the "Value of Services to East End" as an estimation for the cost of the contract with Suffolk County for training services and was determined by multiplying the Suffolk County Actual expenditure by the percentage of services provided to the East End. Fire, Rescue & Emergency Service - Includes the cost of providing support to volunteer agencies in the form of planning, inspections, interpretation of laws and regulations, training access and coordination services. The majority (over 75%) of this expense is made up of Peconic County Financial Feasibility Report Page 84 FIRE, RESCUE & EMERGENCY SERVICES personnel expenditures. The 1996 proposed Peconic County figure for this expense is determined by estimating salaries for staff members and then estimating additional costs, such as equipment, supplies, and travel. The table below indicates the anticipated composition of expenditures for the FRES department, including a breakdown of salary and non -salary costs. Table 5.5-4 Summary of Salary and Non -Salary Expenditures Fire, Rescue and Emergency Services Total Department Expenditure Description Salaries Non -Salary (1) Expenditures Training (Vocational Education and Extension) $0 $32,297 $32,297 Fire Rescue & Emergency Service 165,000 60,161 225,161 Total Expenditures $165,000 $92,458 $257,458 (1) See 'First Fiscal year Budget, Expenditures' for a description of non -salary expenditures Employee benefits for all departments are combined in the aggregate Peconic County operating budget. The benefit cost is estimated to be 33% of all Peconic County salary expenditures. Actual benefit costs will be determined through negotiations with Peconic County employees. Revenues The only revenues are expected to be received by the Peconic County Department of FRES will be those associated with E-911, which will be distributed immediately back to the appropriate two and/or village authorities. The Department's expenditures will be supported through the County's General Fund. The following table presents the Suffolk County FRES Department's operating budget for Fiscal Year 1993, the estimated cost of services provided to the East End towns in that year, and the proposed Peconic County's operating budget for the FRES Department for Fiscal Year 1996. Peconic County Financial Feasibility Report Page 85 FIRE, RESCUE & EMERGENCY SERVICES Table 5.5-5 Comparison of Operating Budgets Fire & Rescue Suffolk County Suffolk's Cost of Services Proposed Peconic Expenditure Description 1993 Actual* Provided to East End County Budget Training (Vocational Education and Extension) $849,922 $32,297 a $32,297 Fire Rescue & Emergency Service 2,703,440 217,357 a 225,161 Total Expenses $3,553,362 $249,654 $257,458 Revenue Description Department Income $0 $0 $0 State Aid 0 0 0 Federal Aid 0 0 0 Total Revenues $0 $0 $0 Net Expense $3,553,362 $249,654 $257,458 *Source: 1995 Recommended Budget, County of Suffolk, New York a) Calculated by multiplying Suffolk expenditures by the proportion of services provided to East End citizens Peconic County Financial Feasibility Report Page 86 Peconic County Financial Feasibility Study HEALTH DEPARTMENT Board of Health Services Health Administration Public Patient Environmental Alcohol and CoLHealth y Medical/Legal Emergency Health Care Health Substance Investigations Medical Abuse and Forensic Services Sciences HEALTH DEPARTMENT Mission The mission of the Peconic County Health Department is to protect and promote the general health and well-being of the residents of the county through accessible, quality health care with an emphasis on preventive health services and health education. Authority and Responsibility General The Peconic County Health Department will oversee the provision of health related services to its citizens through a broad range of programs. The county will operate from eleven health care facilities/offices throughout the East End, providing patient care, public health nursing, mental health services and alcohol and substance abuse counseling to those in need. In addition, the Health Department will work to protect and enhance the quality of the environment of the East End, an effort critical to sustaining the quality of life of Peconic County residents. The Peconic County Board of Health will have power to establish and change sanitary code regulations. For the purposes of this study, it is assumed that Peconic County will enter into a joint ownership/service agreement with Suffolk County for the shared use of the Medical -Legal Investigations and Forensic Sciences center, which could be operated jointly by Peconic and Suffolk County Health Departments. The major responsibilities of each division of the Health Department are highlighted below. Health Services Administration is responsible for the overall administration of the department (executive and administrative services, budget, operations, contract management, personnel) and public health education. Public Health oversees the reporting and control of infectious disease, the provision of home health services, the provision of services to disabled children and enforcement of public health law. Patient Care operates two community-based health centers (located in Riverhead and Greenport), the provides maternal and child health care services to needy residents and coordinates comprehensive ambulatory health care centers and other patient treatment programs. Oversight of the Education of Disabled Children programs, which are conducted through contracts with outside private and/or not-for-profit agencies, is also included as a responsibility of this division. Environmental Health administers and enforces environmental rules and regulations, monitoring and protecting the ecological integrity of marine environment, fresh waters, open Peconic County Financial Feasibility Report Page 87 HEALTH DEPARTMENT spaces and wetlands, conducting inspections of individual water supplies and sewage disposal facilities and the review of environmental impact studies and dredging projects. Alcohol and Substance Abuse oversees referral programs for alcohol and drug abusers/addicts, education programs, and the operation and coordination of methadone maintenance clinics and detoxification programs. Community Mental Health provides mental health services (including treatment of the mentally ill and mentally retarded) and the provision of mental health treatment for persons held pursuant to an order of a criminal or family court. Medical/Legal Investigations and Forensic Sciences is responsible for conducting investigations of deaths, drug testing for probationers and patients of methadone clinics and the operation of the laboratories servicing the Health, Police, District Attorney and Probation Departments. Emergency Medical Services includes the costs of administering the county's all - volunteer emergency medical system, supporting its 10 ambulance companies, training and certification programs for emergency medical technicians (including Advanced Life Support), the provision of mobile radios and advanced equipment to emergency vehicles and coordination of inter -agency provision of emergency care services for the entire county. Mandated Services The existence of a health department at the county level is not mandated by New York State. However, there are five absolute mandates for programs with which every county in New York State must comply regardless of whether or not it has a formal health department. These mandated services are: • Early Intervention Program for children with disabilities; • Preschool Program for children with disabilities; • A program to pay the cost of tuberculosis diagnosis and treatment if no third party insurer exists; • A program to pay for the cost of care, confinement and mental health services for all people declared mentally unfit to stand trial; and • The provision of health services to all incarcerated individuals. In addition to the mandates listed above, should a county choose to operate a health department, the following services must be provided. First, the county must track, survey and treat communicable diseases. Second, the county must treat, monitor and trace contacts of sexually transmitted diseases. Third, the county must conduct immunization programs and surveillance activities. Fourth, the county is responsible for monitoring public water, beaches and pools, restaurants, temporary residences and children camps. Finally, the county is responsible for the diagnosis, treatment and surveillance of tuberculosis. Peconic County Financial Feasibility Report Page 88 HEALTH DEPARTMENT Changes in Service Delivery While the Department will provide services similar to those currently provided by Suffolk County, it will operate more efficiently, benefiting from the smaller geographical area it serves and its increased ability to effectively target programs and services to the specific needs of the East End population. As stated above, the Peconic County Health Department will enter into a joint ownership/service agreement with Suffolk County for the shared use of the Medical -Legal Investigations and Forensic Sciences center. Since Suffolk County will maintain ownership and operation of existing corrections facilities, it is assumed that Peconic County will pay Suffolk for the cost of maintaining its prisoners, including health care, on a per prisoner or contract basis; Peconic County will not be responsible for the direct provision of medical services at correctional facilities. To improve citizen accessibility to Patient Care services, Peconic County will operate a full-time clinic located in Greenport. Unlike Suffolk County, Peconic County will not operate its own nursing home (counties in New York State are not required to operate a nursing home) and, therefore, will not incur any expenses in this area. Due to the high level of reimbursement for nursing home costs, no net cost to Suffolk County will result from this change. The following table highlights the financial impact that the formation of Peconic County would have on the Health Department. The figures in this table represent the costs of services supported by County taxes and are derived by subtracting any departmental fees, state or federal assistance from the total costs of services. The first column represents Suffolk County's 1993 net expense for the Health Department; the second column represents the East End's tax contribution to the general revenues of Suffolk County toward that total amount; the third column represents the net expense as an estimated dollar value of services provided to the East End in 1993 from the Health Department; and the fourth column represents the net expense of the Peconic County Health Department in its base year 1993 pro forma budget. Please refer to Table 5.6-5 in this chapter for a more detailed explanation of these figures. Table 5.6-1 Comparison of Net Expenditures (FY 1993 dollars) Suffolk County East End Tax 1993 Actual Contribution $106,984,653 $15,395,092 Suffolk's Cost of Services Proposed Peconic I Provided to East End County Budget $12,781,660 $12,186,164 Peconic County Financial Feasibility Report Page 89 HEALTH DEPARTMENT As the above numbers indicate, in 1993 the East End towns contributed $15.4 million dollars to the Suffolk County Health Department. In comparison, in its first fiscal year, the Peconic County Health Department will need $12.1 million from the General Fund and will offer East End citizens control over the level and quality of services provided. Economic Relationships with Other Governments East End Towns There will be no increased costs to the five East End towns resulting from the establishment of a Peconic County Health Department. Suffolk County Peconic County is expected to negotiate a joint service/ownership agreement with Suffolk County for shared use of the Medical -Legal Investigations and Forensic Sciences laboratory. Organization and Staffing The Health Department will be headed by a Commissioner who will oversee the following seven divisions: Public Health, Patient Care, Environmental Health, Alcohol and Substance Abuse, Community Mental Health, Medical/Legal Investigations and Forensic Sciences, and Emergency Medical Services. Please refer to the organizational chart at the beginning of this chapter. The Commissioner will also serve as chairman of the Board of Health, with the rest of the Board being appointed by the Peconic County Board of Supervisors. An analysis of Suffolk County's service provision data indicates that the East End receives approximately 12% of the total service provided; this results in the need for a substantially smaller Health Department than is currently maintained in Suffolk County. Suffolk County's Health Department currently has a staff of 1,204. If Peconic County establishes a joint service/ownership arrangement with Suffolk County for its laboratory facilities, Peconic County will require only 231 staff members to conduct its business, including the additional staff required to operate the Greenport Health Center. Peconic County Financial Feasibility Report Page 90 HEALTH DEPARTMENT Table 5.6-2 Staffing Analysis Total Staff 1204 231 8,354,000 Peconic County Financial Feasibility Report Page 91 Suffolk Proposed Peconic Average Cost 1993 Actual County Staffing per Position Total Cost Health Services Administration 74 8 $335,000 Administrative Staff 53 3 $25,000 75,000 Line Staff 15 3 35,000 105,000 Supervisory Staff 5 1 70,000 70,000 Commissioner 1 1 85,000 85,000 Public Health 282 55 1,792,000 Administrative Staff 179 38 25,000 950,000 Line Staff 93 14 43,000 602,000 Supervisory Staff 10 3 80,000 240,000 Patient Care 296 79 2,832,000 Administrative Staff 200 54 25,000 1,350,000 Line Staff 64 14 43,000 602,000 Supervisory Staff 32 11 80,000 880,000 Environmental Health 120 36 1,330,000 Administrative Staff 26 7 25,000 175,000 Line Staff 84 25 35,000 875,000 Supervisory Staff 10 4 70,000 280,000 Alcohol and Substance Abuse 174 26 890,000 Administrative Staff 102 9 25,000 225,000 Line Staff 65 15 35,000 525,000 Supervisory Staff 7 2 70,000 140,000 Community Mental Health 118 12 573,000 Administrative Staff 35 3 25,000 75,000 Line Staff 65 6 43,000 258,000 Supervisory Staff 18 3 80,000 240,000 Medical/Legal Invest. and Forensic Sciences 130 13 507,000 Administrative Staff 81 7 25,000 175,000 Line Staff 41 4 43,000 172,000 Supervisory Staff 8 2 80,000 160,000 Emergency Medical Services 10 2 95,000 Administrative Staff 3 1 25,000 25,000 Line Staff 6 0 35,000 0 Supervisory Staff 1 1 70,000 70,000 Total Staff 1204 231 8,354,000 Peconic County Financial Feasibility Report Page 91 HEALTH DEPARTMENT Space Needs The considerably reduced size of Peconic County's Health Department staff will decrease the amount of office space required. Currently, over 25% of Suffolk County's health service facilities are located on the East End, excluding those located at the County Correctional Facility in Riverhead. It is assumed that Peconic County will utilize the twelve health department facilities listed below which currently operate on the East End. PUBLIC HEALTH SERVICES NURSING OFFICES • Easthampton Office • Long Term Care Unit • Riverhead Nursing Office • Southampton Office • Southold Office HEALTH CENTERS • Riverhead Health Center • Greenport Health Center ENVIRONMENTAL PROTECTION • Eastern District Office ENVIRONMENTAL QUALITY • Office of Ecology • Wastewater Management MENTAL HEALTH SERVICES • Riverhead Mental Health Center ALCOHOL AND SUBSTANCE ABUSE SERVICES • East End Clinic The County complex in Riverhead and existing facilities are options for providing space for the operation of the Peconic County Health Department. Using government space standards to estimate demand for office space, the Peconic County Health Department will need approximately 57,170 gross square feet of office space. Because some of the Department's staff are provide direct services "off-site", the estimated office space required may be high. Peconic County Financial Feasibility Report Page 92 HEALTH DEPARTMENT Table 5.6-3 Calculation of Space Requirements Common Space (1) Net Space Needed Total Employees Net Space Net/Gross Total Gross 3,465 1.6 x per Employee by Type Needed Factor Space Needed Administrative Staff 90 sq. ft. 122 10,980 1.6 x 17,568 Line Personnel 135 sq. ft. 81 10,935 1.6 x 17,496 Supervisory Staff 175 sq. ft. 27 4,725 1.6 x 7,560 Commissioner 190 sq. ft. 1 190 1.6 x 304 Common Space (1) 128 sq. ft. 1,971 1.6 x 3,154 Conference Rooms (2) 120 sq. ft. 3,465 1.6 x 5,544 Break Rooms (3) 240 sq. ft. 3,465 1.6 x 5,544 Totals 231 35,731 57,170 (1) Represents space needed for every 15 employees (2) Represents space needs for an eight person conference room (3) One break room assigned per 16 staff First Fiscal Year Budget (in 1993 dollars) For Fiscal Year 1996, the Department will have a staff of 231 people, initial expenditures of $26.3 million, revenues of $14.1 million and a resulting departmental net expense of $12.1 million. Expenditures The expenditures for each line item of the table below consist primarily of salaries but also include non -salary expenditures such as supplies, equipment, information systems, fleet vehicles and self-insurance. The 1996 proposed Peconic County figure for each expense is determined by estimating salaries for staff members and then multiplying non -salary expenditures by the ratio of Peconic County to Suffolk County staff. The only exception to this method was in the "Education of Disabled Children" line item; the 1996 proposed Peconic County figure for this expense takes the "Value of Services to East End," which was determined by multiplying the Suffolk County actual expenditure by the percentage of services provided to the East End, and reduces it by 10% to arrive at an estimation for the cost of the contracts with outside agencies. These projected savings are derived from conservative adoption of the Education Committee's findings, which project that substantial savings can be achieved through improved administration and oversight of service contracts. Peconic County Financial Feasibility Report Page 93 HEALTH DEPARTMENT Table 5.6-4 shows the anticipated composition of expenditures for the Health Department, including a breakdown of salary and non -salary costs. Table 5.6-4 Summary of Salary and Non -Salary Expenditures Health Total Department Expenditure Description Salaries Non -Salary (1) Expenditures Health Services Administration $335,000 $32,670 $367,670 Education of Disabled Children 0 5,578,771 5,578,771 Public Health 1,792,000 994,321 2,786,321 Patient Care 2,832,000 7,025,433 9,857,433 Environmental Health 1,330,000 199,787 1,529,787 Alcohol and Substance Abuse 890,000 1,596,985 2,486,985 Community Mental Health 573,000 2,075,504 2,648,504 Medical/Legal Invest. and Forensic Sciences 507,000 160,283 667,283 Emergency Medical Services 95,000 283,736 378,736 Total Expenditures $8,354,000 $17,947,490 $26,301,490 (1) See 'First Fiscal year Budget, Expenditures' for a description of non salarya.Venditures Employee benefits for all departments are combined in the aggregate Peconic County operating budget. The benefit cost is estimated to be 33% of all Peconic County salary expenditures. Actual benefit costs will be determined through negotiations with Peconic County employees. Revenues Revenues of the Peconic County Health Department will come from three sources. Departmental income includes fees and charges for a variety of services provided; the most substantial fees collected are for public health, home nursing, environmental health, mental health and narcotics programs. State aid includes aid received for a variety of programs; the Peconic County Financial Feasibility Report Page 94 HEALTH DEPARTMENT most substantial aid is directed toward public health, community support services, narcotics and mental health programs. Federal aid includes aid received for a variety of programs; the most substantial aid is directed to public health and the WIC nutrition programs. Projections for Peconic County Health Department revenues were derived by taking the ratio of Suffolk County revenues to expenditures and applying that same ratio in Peconic County. The balance of the Health Department's expenditures will be supported through the County's General Fund. Table 5.6-5 presents the Suffolk County Health Department's operating budget for Fiscal Year 1993, the estimated cost of services provided to the East End towns in that year, and the proposed Peconic County's operating budget for the Health Department for Fiscal Year 1996. Table 5.6-5 Comparison of Operating Budgets Health Department Suffolk's Cost of Services Expenditure Description 1993 Actual* Provided to East End Health Services Administration $2,499,183 $152,450 a Education of Disabled Children 114,789,537 6,198,635 a Public Health 14,177,029 5,284,319 a Patient Care" 36,837,963 4,886,347 a Environmental Health 6,057,798 2,362,541 a Alcohol and Substance Abuse 16,191,899 2,959,266 a Community Mental Health 24,294,375 2,431,809 a MedicaULegal Invest. and Forensic Sciences 7,427,732 825,221 a Emergency Medical Services 1,752,434 455,633 a Suffolk County Nursing Home 13,353,026 2,804,135 a Total Expenditures $237,380,976 $28,360,357 Revenue Description Department Income $36,8d1,380 $4,396,731 b State Aid Education $53,744,915 6,421,007 b State Aid Heath Care 36,039,288 4,305,682 b Federal Aid 3,810,740 455,276 b Total Revenues $130,396,323 $15,578,697 Proposed Peconic Countv $367,670 5,578,771 2,786,321 9,857,433 1,529,787 2,486,985 2,648,504 667,283 378,736 0 $26,301,490 $2,116,002 5,778,907 5,698,868 521,550 $14,115,326 Net Expense $106,984,653 $12,781,660 $12,186,164 'Source: 1995 Recommended Budget, County of Suffolk, New York "Proposed Peconic County costs include the operation of as additional health clinic in Greenport. a) Calculated by multiplying Suffolk County expenditure by the proportion of total service provided to East End citizens b) Calculated by multiplying Suffolk revenues by the ratio of 'Suffolk's Cost of Services Provided to East End' to SuffoWs total expenditures Peconic County Financial Feasibility Report Page 95 Peconic County Financial Feasibility Study 0 0 0 0 0 JUDICIAL DEPARTMENTS DISTRICT ATTORNEY'S OFFICE AND LEGAL AID SOCIETY Peconic County Citizens District Attorney Legal Aid Society Town and Investigative Executive Legal Village Police Services Unit Unit Services Unit JUDICIAL DEPARTMENTS Mission The joint mission of the Office of the District Attorney and the Legal Aid Society is to ensure appropriate and just enforcement of the laws of Peconic County through the criminal court system. Together the two organizations will work towards a just resolution of each alleged case of criminal wrongdoing committed in the County. Authority and Responsibility Office of the District Attorney The District Attorney will be elected to a four-year term and will serve as the highest law enforcement official in the Peconic County government. The Office of the District Attorney will be responsible for conducting all prosecutions for crimes and offenses recognized by the courts of Peconic County. The Office will perform all of the duties within the criminal court prosecution process, including arraignments, motions, hearings, pleas, trials, sentencing and appeals. The cases that are prosecuted will be developed in conjunction with investigations conducted by several law enforcement agencies, primarily by the New York State Police and the local police forces of the East End towns and villages. The Office's duties will also include assisting local Town and Village police officers and County Sheriff officers in the field in investigations, as more fully described below. Legal Aid Society The chief function of the Legal Aid Society will be to provide legal services to indigent citizens charged in criminal and family court matters. It is anticipated that Peconic County will contract with the Legal Aid Society of Suffolk County, a non-profit corporation, to provide these legal services. Mandated Services The public defender services to be provided through the Legal Aid Society are mandated. Pursuant to U.S. Supreme Court rulings and subsequent legislation, localities are mandated to provide legal representation to criminal defendants. This obligation is delineated in Article 188 of the New York State County Law, which provides for counties/localities to develop a program for the representation of its defendants. Changes in Service Delivery The Office of the District Attorney and Legal Aid Society will provide essentially the same services in Peconic County that they provide in Suffolk County. Neither the type nor Peconic County Financial Feasibility Report Page 97 JUDICIAL DEPARTMENTS level of services will change substantially; however, the size of each department will change dramatically in accordance with the much smaller criminal caseload of Peconic County. The following table highlights the financial impact that the formation of Peconic County would have on operations of the Judicial Departments. The figures in this chart represent the costs of services supported by County taxes and are derived by subtracting any departmental fees, state or federal assistance from the total costs of services. The first column represents Suffolk County's 1993 net expense for the Office of the District Attorney and Legal Aid Society; the second column represents the East End's tax contribution toward that total Suffolk amount; the third column represents Suffolk County's net cost of services provided to the East End in 1993 from the Judicial Departments; and the fourth column represents the net expense of Peconic County's Judicial Departments during the County's first fiscal year. Please refer to Table 5.7-5 for a more detailed explanation of the following figures. Table 5.7-1 Comparison of Net Expenditures (FY 1993 dollars) Suffolk County East End Suffolk's Cost of Services Proposed Peconic 1993 Actual Tax Contribution Provided to East End County Budget $22,822,965 $3,284,225 $3,423,445 $2,606,848 As the above numbers indicate, in 1993 the East End towns contributed $3.28 million to the Office of the Suffolk County District Attorney and Legal Aid Society of Suffolk County. In comparison, these offices in Peconic County will require approximately $2.61 million (in 1993 dollars) of appropriations in the County's first fiscal year and will offer East End citizens control over the level and quality of services provided. Economic Relationship with Other Governments East End Towns No increased costs to the East End towns and villages will result from the establishment of the Department. Suffolk County During periods in which the District Attorney's Office is burdened with an unusually difficult caseload, Peconic County may attempt to contract the services of Suffolk County District Attorney personnel, as described above (see "Organization and Staffing"). Peconic County Financial Feasibility Report Page 98 JUDICIAL DEPARTMENTS Organization and Staffing The East End Bureau of the Suffolk County DA's Office prosecutes misdemeanors committed on the East End, which comprise between 15% and 20% of total Suffolk County misdemeanors. There are a total of seventeen employees in the East End Bureau including eight assistant district attorneys, four investigators and support staff. However, these personnel do not exercise full felony jurisdiction; rather, felony prosecutions are transferred to one of several bureaus of the District Attorney's office which include homicide, major crimes, narcotics, white collar crimes, rackets and family crimes. The Office of the Peconic County District Attorney will require an estimated fifteen additional personnel to prosecute the felony cases which are currently transferred out of the East End Bureau of the Suffolk County DA's Office. Precise information on felony cases originating on the East End is not available; this projection is based on somewhat anecdotal information from the Suffolk County District Attorney's Office. It is also anticipated that the Peconic County District Attorney's Office will perform a more expansive role in investigations, due to the absence of a Peconic County police department (please see "Public Safety Coordinator's Office"), requiring approximately seven detective investigators to be added to the Office. Thus, to supplement the staff currently operating through the East End Bureau, a total of twelve additional staff is estimated to be necessary to allow the Office to prosecute felony cases and assume more direct responsibility in investigations. These anticipated staffing levels of the Peconic County District Attorney's Office are intended to handle most day-to-day caseloads. It is possible that situations will arise, due to particularly difficult cases or extraordinary caseloads, which require more investigative and/or prosecutorial personnel than the District Attorney's Office has available. In these situations, the County would likely need to hire additional personnel on a temporary basis, such as private prosecutors. It is also possible that Peconic County would attempt to contract for such prosecution -related services with Suffolk County, depending on the availability of Suffolk County's staff resources, as well as its general willingness to enter into such arrangements. Hiring additional temporary staff of any type will represent additional costs to Peconic County, which have not been assumed in the financial projections herein. Staffing divisions in the Office of the District Attorney will include the Executive Unit, Investigative Services Unit and the Legal Services Unit. The Suffolk County District Attorney's Office makes distinctions between several staffing centers which would not be necessary within Peconic County due to its much smaller size. For example, the Peconic County District Attorney's Office will not include distinct staffing assignments for Auxiliary Services or Aid to Prosecution; rather, these functions will be carried out by one of the three remaining divisions of the Office. The staffing requirements of each of division as they currently exist in Suffolk County and as they are anticipated in Peconic County are shown in the Table 5.7-2. Peconic County Financial Feasibility Report Page 99 JUDICIAL DEPARTMENTS Table 5.7-2 Staffing Analysis Judicial Departments Department / Division Suffolk 1993 Actual Proposed Peconic Staffing Average Cost per Position Total Cost DA: Executive, Administrative, Grand Jury 9 7 Administrative Staff 1 4 $25,000 $100,000 Line Staff 5 2 35,000 70,000 Supervisory Staff 2 0 50,000 0 District Attorney 1 1 110,000 110,000 DA: Investigative Unit 51 16 Administrative Staff 2 2 25,000 50,000 Line Staff 47 11 35,000 385,000 Supervisory Staff 2 3 50,000 150,000 DA: Legal Services Unit 124 14 Administrative Staff 2 2 25,000 50,000 Line Staff 103 11 35,000 385,000 Supervisory Staff 19 1 50,000 50,000 DA: Auxiliary Services Unit 118 0 Administrative Staff 116 0 Line Staff 2 0 Supervisory Staff 0 0 DA: Aid to Prosecution 19 0 Administrative Staff 7 0 Line Staff 11 0 Supervisory Staff 1 0 DA: Other* 24 0 Administrative Staff 7 0 Line Staff 17 0 Supervisory Staff 0 0 Total Staff 345 37 $1,350,000 'Includes MIS, Child Abuse prosecution, interims, witness protection, witness assistance, narcotics, DWI Since the County will contract legal services for indigent defendants through the Legal Aid Society, no County employees will be assigned to provide public defense services. Space Needs Several staff members of the District Attorney's Office could be housed in offices in Southampton and Southold, which currently house the seventeen employees in the two offices of the East End Bureau of Suffolk County's District Attorney's Office. However, both of these spaces are currently occupied to capacity. Since Peconic County's District Attorney's Office would require an estimated twenty more personnel to be added in these offices, some additional space would be necessary. Using industry standards to estimate demand for office space, the Office of the Peconic County District Attorney will need approximately 10,000 gross square feet of office space including available East End Bureau space. Peconic County Financial Feasibility Report Page 100 JUDICIAL DEPARTMENTS Table 5.7-3 Calculation of Space Requirements Judicial Departments Net Space Needed Total Employees Net Space Net / Gross Gross Space Type of Staff/Shared Space per Employee by Type Needed Factor Needed Administrative Staff 90 sq. ft. 8 720 sq. ft. 1.60 X 1,152 sq. ft. Line Personnel 135 sq. ft. 24 3,240 sq. ft. 1.60 X 5,184 sq. ft. Supervisory Staff 175 sq. ft. 4 700 sq. ft. 1.60 X 1,120 sq. ft. Director 190 sq. ft. 1 190 sq. ft. 1.60 X 304 sq. ft. Common Space 128 sq. ft. (1) N/A 316 sq. ft. 1.60 X 505 sq. ft. Conference Rooms 120 sq. ft. (2) N/A 555 sq. ft. 1.60 X 888 sq. ft. Break Rooms 240 sq. ft. (3) N/A 555 sq. ft. 1.60 X 888 sq. ft. 37 6,276 sq. ft. 10,041 sq. ft. (1) Represents space needed for every 15 employees (2) Represents space needed for an eight person conference room (3) Represents space needed for every 16 employees First Fiscal Year Budget (in 1993 Dollars) The Office of the District Attorney will have a total staff of 37 and a departmental budget of $1.87 million. Peconic County will incur expenses of $0.74 million through its contracts with the Legal Aid Society. Expenditures District Attorney - Includes salaries and benefits, which are expected to make up 80% of all expenses. By New York State law, the salary of a county District Attorney is tied to the salary paid to a supreme court justice in that county. The Suffolk County District Attorney's salary is $113,000; an estimate of $110,000 has been assumed for Peconic County. Other cost areas include information systems, fleet services, supplies and equipment expenditures. The 1996 proposed Peconic County figure for the District Attorney line item is determined by estimating salaries for staff members and then multiplying non -salary expenditures by the ratio of Peconic County to Suffolk County staff. Other expenses include the net costs of programs which are partially funded by grants from New York State, including a Victim Assistance Program, Enhanced Narcotics Prosecution and Aid to Prosecution. Legal Aid Society - Includes the cost of contracting public defender services through the Society. The 1996 proposed Peconic County figure is based on an estimate of criminal cases originating East End as a percentage of total Suffolk County cases. Peconic County Financial Feasibility Report Page 101 JUDICIAL DEPARTMENTS Employee benefits for all departments are combined in the aggregate Peconic County operating budget. The benefit cost is estimated as 33% of all Peconic ,County salary expenditures. Actual benefit costs will be determined through negotiations with Peconic County employees. Table 5.7-4 indicates the anticipated composition of expenditures for the Judicial Departments, including a breakdown of salary and non -salary costs. Table 5.7-4 Summary of Salary and Non -Salary Expenditures Judicial Departments Expenditure Description Salaries Non -Salary Total Expenditures District Attorney Victim Witness Assistance Program $0 $30,000 District Attorney 1,350,000 331,962 Enhanced Narcotics Prosecution 0 30,000 Aid to Prosecution 0 125,000 Subtotal District Attorney 1,350,000 516,962 Legal Aid Society Legal Aid Society Family Violence Program Aid to Defense Subtotal Legal Aid Society Total Expenditures 0 631,347 0 38,142 0 70,397 0 739,886 $30,000 1,681,962 30,000 125,000 1,866,962 631,347 38,142 70,397 739,886 $1,350,000 $1,256,848 $2,606,848 Table 5.7-5 presents operating results for Fiscal Year 1993 for the Suffolk County District Attorney's Office's and the Legal Aid Society of Suffolk County, the share of those expenditures benefiting the East End towns and the proposed Peconic County's operating budget for these services for Fiscal Year 1996. Peconic County Financial Feasibility Report Page 102 JUDICIAL DEPARTMENTS Table 5.7-5 Comparison of Operating Budgets Judicial Departments $0 Suffolk's Cost of Services Proposed Peconic Expenditure Description 1993 Actual' Provided to East End County Budget District Attorney 254,277 38,142 38,142 Witness Protection Grant $15,570 $2,336 $0 Victim Witness Assistance Program 122,751 18,413 30,000 L.I. Regional Crack/Cocaine 43,304 6,496 0 Stop - D.W.I. 204,833 30,725 0 District Attorney 16,054,014 2,408,102 1,681,962 Violent Drug Gang Invest/Prosecution 66,779 10,017 0 Enhanced Narcotics Prosecution 393,012 58,952 30,000 Aid to Prosecution 1,014,538 152,181 125,000 Subtotal District Attorney 17,914,801 2,687,220 1,866,962 Legal Aid Society $0 $0 24,409 Legal Aid Society 4,208,980 631,347 631,347 Family Violence Program 254,277 38,142 38,142 Aid to Defense 469,316 70,397 70,397 Subtotal Legal Aid Society 4,932,573 739,886 739,886 Total Expenditures $22,847,374 $3,427,106 $2,606,848 Revenue Description Departmental Income State Aid Federal Aid Total Revenues Net Expense 'Source: 1995 Recommended Budget, County of Suffolk, New York $0 $0 $0 24,409 3,661 0 0 0 0 $24,409 $3,661 $0 $22,822,965 $3,423,445 $2,606,848 Peconic County Financial Feasibility Report Page 103 Peconic County Financial Feasibility Study 0 9 0 0 9 DEPARTMENT OF PARKS AND CULTURAL AFFAIRS Office of Cultural Affairs Recreational' Operations and Facilities Maintenance Commissioner of Parks and Cultural Affairs Division of Parks Administration Office of Historic Services Park Security' Environmental Enforcement "n'�-��.��'� - .. ��.�•�'„ rr- ' tr. .�. . r ��' �•� i.w—''' .. ,......,�Vr.i;11 1111, �� 117 i Tti .�'. "ipl� PARKS AND CULTURAL AFFAIRS Mission The Peconic County Department of Parks and Cultural Affairs will be responsible for developing and maintaining all County parks for public use and for funding cultural institutions and programs. The Department will provide these essential services recognizing their vital link to the County's economic base and to the quality of life that is currently enjoyed by residents and visitors to the region. The Department will carry out this mission reflecting the County's rural character, passive recreational opportunities and the critical importance of its cultural resources. Authority and Responsibility The Department will be responsible for over 17,000 acres of park lands, wetlands and pine barrens. This acreage includes numerous park land facilities, 1 golf course, 1 marina, 5 campgrounds, bay and ocean front beaches, nature trails, horseback riding, boating facilities, bird sanctuaries and nature preserves. The Department will be responsible for developing and maintaining all of these park lands and open spaces for public use. The Department will also have the authority to recommend, institute and implement conservation programs to preserve the greenery, wildlife and natural resources of the County. The Department's responsibilities related to parks will include organizing recreational activities, providing environmental tours and educational programs, providing a safe environment in the parks through the Park Ranger security force and meeting regularly with constituent organizations to enhance recreational opportunities in the parks. The Department will also include an Office of Cultural Affairs and an Office of Historic Services. The Office of Cultural Affairs will maintain a liaison with the arts and cultural community and administer a grant program to distribute funds annually to cultural institutions within the County. Initially, the level of this funding is assumed to be $50,000. The Office of Historic Services will administer the County's Historic Trust areas and historic buildings and provide interpretive tours of these properties. No services to be provided by the Department are mandated by any other government. Changes in Service Delivery The Department of Parks and Cultural Affairs will provide essentially the same services in Peconic County that the Department of Parks provides in Suffolk County. Neither the type nor level of services will change substantially; however, the size of the department will be reduced to administer a sub -set of the existing Suffolk County park system. Peconic County Financial Feasibility Report Page 105 PARKS AND CULTURAL AFFAIRS Table 5.8-1 highlights the financial impact that the formation of Peconic County would have on operations of the Department of Parks and Cultural Affairs. The figures in this chart represent the costs of services supported by County taxes and are derived by subtracting any departmental fees, state or federal assistance from the total costs of services. Since many of the facilities operated by the Department generate fee income, the Department's net expenses will be relatively small and therefore will not draw heavily upon general tax revenues. The first column represents Suffolk County's 1993 net expense for the Parks Department; the second column represents the East End's tax contribution toward that total Suffolk amount; the third represents Suffolk County's net cost of services provided to the East End in 1993 by the Department; and the fourth column represents the net expense of Peconic County's Department of Parks and Cultural Affairs during the County's first fiscal year. Please refer to Table 5.8-5 for a more detailed explanation of the following figures. Table 5.8-1 Comparison of Net Expenditures (FY 1993 dollars) Suffolk County East End Suffolk's Cost of Services Proposed Peconic 1993 Actual Tax Contribution Provided to East End County Budget $2,946,291 $423,971 $208,714 $1,551,483 As the above numbers indicate, in 1993 the East End towns contributed $0.42 million to the Suffolk County Department of Parks. In comparison, these offices in Peconic County will require approximately $1.55 million (in 1993 dollars) of appropriations in the County's first fiscal year and will offer East End citizens control over the level and quality of services provided. Economic Relationship with Other Governments East End Towns No increased costs to the East End towns and villages will result from the establishment of the Department or the ongoing provision of its services. Suffolk County It is anticipated that Peconic.County will establish a use agreement with Suffolk County, to allow Suffolk County and Peconic County residents to share use of park land and cultural facilities and programs. Peconic County Financial Feasibility Report Page 106 PARKS AND CULTURAL AFFAIRS Organization and Staffing The Department will be headed by the Commissioner of Parks and Cultural Affairs and include staffing for Administration, Operations and Maintenance, Recreational Facilities, Security (Park Rangers), Natural Resources and Education, the Office of Historic Services and the Office of Cultural Affairs. The staffing requirements of each of these areas as they currently exist for Suffolk County and as they are anticipated in Peconic County are shown in Table 5.8-2. Table 5.8-2 Staffing Analysis Department of Parks and Cultural Affairs Department / Division Suffolk 1993 Actual Proposed Peconic County Staffing Cost per Position Total Cost Administration 21 7 Administrative Staff 14 3 $25,000 $75,000 Line Staff 6 3 35,000 105,000 Supervisory Staff 1 0 50,000 0 Director 1 1 70,000 70,000 Operations and Maintenance 19 8 Administrative Staff 9 4 25,000 100,000 Line Staff 10 4 35,000 140,000 Supervisory Staff 0 0 50,000 0 Golf Courses 21 5 Administrative Staff 17 4 25,000 100,000 Line Staff 4 1 35,000 35,000 Supervisory Staff 0 0 50,000 0 Other Park Facilities 30 17 Administrative Staff 17 10 25,000 250,000 Line Staff 9 6 35,000 210,000 Supervisory Staff 4 1 50,000 50,000 Security (Park Rangers) 35 17 Administrative Staff 28 14 25,000 350,000 Line Staff 7 3 35,000 105,000 Supervisory Staff 0 0 50,000 0 Environmental Enforcement/Office of Natural Resources 12 3 Administrative Staff 11 1 25,000 25,000 Line Staff 1 2 35,000 70,000 Supervisory Staff 0 0 50,000 0 Office of Historic Services 3 2 Administrative Staff 1 0 25,000 0 Line Staff 2 2 35,000 70,000 Supervisory Staff 0 0 50,000 0 Office of Cultural Affairs 2 4 Administrative Staff 1 2 25,000 50,000 Line Staff 1 1 35,000 35,000 Supervisory Staff 0 1 50,000 50,000 Total Staff 143 63 $1,890,000 Peconic County Financial Feasibility Report Page 107 PARKS AND CULTURAL AFFAIRS Space Needs Using industry standards to estimate demand for office space, the Peconic County Department of Parks, Recreation and Culture will need approximately 12,900 square feet of space. Table 5.8-3 Calculation of Space Requirements Department of Parks and Cultural Affairs Net Space Needed Total Employees Net Space Net / Gross Gross Space Type of Staff/Shared Space per Employee by Type Needed Factor Needed Administrative Staff 90 sq. ft. 38 3,420 sq. ft. 1.60 X 5,472 sq. ft. Line Personnel 135 sq. ft. 22 2,970 sq. ft. 1.60 X 4,752 sq. ft. Supervisory Staff 175 sq. ft. 2 350 sq. ft. 1.60 X 560 sq. ft. Director 190 sq. ft. 1 190 sq. ft. 1.60 X 304 sq. ft. Common Space 128 sq. ft. (1) N/A 538 sq. ft. 1.60 X 860 sq. ft. Conference Rooms 120 sq. ft. (2) N/A 945 sq. ft. 1.60 X 1,512 sq. ft. Break Rooms 240 sq. ft. (3) N/A 945 sq. ft. 1.60 X 1,512 sq. ft. 63 9,358 sq. ft. 14,972 sq. ft. (1) Represents space needed for every 15 employees (2) Represents space needed for an eight person conference room (3) Represents space needed for every 16 employees First Fiscal Year Budget (in 1993 Dollars) The Department will have a total staff of 63, initial expenditures of $3.10 million, revenues of $1.55 million and a resulting departmental net expense of $1.55 million. Expenditures The Department's expenditures can be classified into the following three main categories: Parks - Includes the costs associated with operating and maintaining the County's park facilities, wetlands and pine barrens, including conservation programs. This expense category primarily includes salaries and benefits, along with expenses associated with fleet operation, supplies, utilities and equipment. Expenses in this category dominate the Department's total budget, making up 96% of total expenses. The 1996 proposed Peconic County figure for this expense is determined by estimating salaries for staff members and then multiplying non -salary expenditures by the ratio of Peconic County to Suffolk County Peconic County Financial Feasibility Report Page 108 PARKS AND CULTURAL AFFAIRS staff. It is possible that some cost savings could be achieved in the area of Park Security, if the rangers' dispatch costs could be effectively consolidated with town police and emergency services. For conservative purposes, no such potential savings have been reflected in the projected 1996 budget. Historic Services - Includes the costs of overseeing Historic Trust areas and historic buildings, particularly the administration, restoration and maintenance of historic properties and landmarks owned by the County. The 1996 proposed Peconic County figure for this expense is based on an estimate by the Suffolk County Parks Department of the distribution of historic properties between the East End and the remainder of Suffolk County. Office of Cultural Affairs - Includes expenses associated with maintaining a liaison with the cultural community and administering an annual grant program to distribute funds either to cultural institutions located in the County or to organizations with programs benefiting County residents. The total budget projected for Fiscal Year 1996 includes $50,000 of grants plus $135,000 for salary and other costs of administering the program. Employee benefits for all departments are combined in the aggregate Peconic County operating budget. The benefit cost is estimated as 33% of all Peconic County salary expenditures. Actual benefit costs will be determined through negotiations with Peconic County employees. Table 5.8-4 Summary of Salary and Non -Salary Expenditures Department of Parks and Cultural Affairs Expenditure Description Salaries Non -Salary Parks $1,685,000 $1,125,365 Office of Historic Services 70,000 12,834 Office of Cultural Affairs 135,000 75,668 Total Expenditures $1,890,000 $1,213,867 Revenues Total Expenditures $2,810,365 82,834 210,668 $3,103,867 Departmental income including fees for camping, concessions, beach/pool use, marinas, docks and golf courses will offset the majority of the Department's expenses. The $1.55 million revenue projected for Fiscal Year 1996 is based on actual 1993 revenues generated by Suffolk County park facilities existing on the East End. No state or federal aid is anticipated; therefore, the balance of the Department's net expenditures will be supported through the County's General Fund. Peconic County Financial Feasibility Report Page 109 PARKS AND CULTURAL AFFAIRS Table 5.8-5 presents the Suffolk County Parks Department's operating results for Fiscal Year 1993, the share of those expenditures benefiting the five East End towns and the proposed Fiscal Year 1996 operating budget for Peconic County's Department of Parks and Cultural Affairs. Table 5.8-5 Comparison of Operating Budgets Department of Parks and Cultural Affairs Expenditure Description 1993 Actual* Parks $8,275,227 Natural Resource Management 156 Office of Historic Services 117,166 Marine Museum 64,150 Cultural Affairs Council 58 Office of Cultural Affairs 300,000 Total Expenditures $8,756,757 Suffolk's Cost of Services Proposed Peconic Provided to East End County Budget $1,678,778 a $2,810,365 0 0 30,000 b 82,834 0 c 0 0 0 52,320 d 210,668 $1,761,098 $3,103,867 Revenue Description Departmental Income $5,810,466 $1,552,384 a $1,552,384 State Aid 0 0 0 Federal Aid 0 0 0 Total Revenues $5,810,466 $1,552,384 $1,552,384 Net Expense $2,946,291 $208,714 $1,551,483 'Source: 1995 Recommended Budget, County of Suffolk, New York a) Based on salaries for East End facilities versus total b) Estimate of expenses on historic properties on East End, provided by Suffolk County Parks department c) Museum is located in West End d) Grants to East End organizations plus population -based share of County -wide organizations plus cost of one line employee e) 1993 revenues from East End facilities Peconic County Financial Feasibility Report Page 110 Peconic County Financial Feasibility Study. 0 0 0 0 0 DEPARTMENT OF PLANNING AND REGIONAL SERVICES Planning Director — -- — — Cooperative Extension Association Planning' Soil and Water Conservation PLANNING AND REGIONAL SERVICES Mission The mission of the Department of Planning and Regional Services will be to effectively manage the uses of space and natural resources of Peconic County, recognizing the impact of open spaces and environmental preservation on the quality of life of the County's citizens and visitors. Authority and Responsibility Planning and Conservation The Department will be responsible for the County's comprehensive plan, a long-term plan for growth of the County. In addition to serving as a guide to County planning, the comprehensive plan will be a resource for the towns and villages in Peconic County. The Department will also prepare and maintain the official maps of the County, which will indicate the locations of existing and proposed streets, highways, drainage systems and parks in the County. These maps will be made available to citizens and local governments. The Department will coordinate all long-range planning among County departments, review zoning actions and assist localities by advising on development projects and performing environmental studies, demographics studies and economic research. In these activities, the Department will coordinate its efforts with the planning divisions of the towns and villages to perform comprehensive and integrated planning for the areas within the County. The Department will establish and enforce environmental policy in Peconic County. The Department will evaluate all resolutions and capital projects requiring environmental review. It will also oversee and monitor the Pine Barrens and enforce the protection of clean drinking water. The Department will develop, recommend and implement conservation measures for the region's soil and water resources. It will implement necessary erosion and flood control measures, provide technical assistance in land use and water management and classify land used in agricultural production for owners applying for agricultural assessment relief. Cooperative Extension Association The Cornell Cooperative Extension is a not-for-profit organization administered by the United States Department of Agriculture (USDA) which provides educational programs for school-age children and the general public in agriculture, home economics, 4-H youth development and marine education. The agricultural industry is one of the region's major employers and an important component of Long Island's economy. Peconic County Financial Feasibility Report Page 111 PLANNING AND REGIONAL SERVICES In Peconic County, the Cooperative Extension Association would be jointly financed by Peconic County, New York State and the United States Department of Agriculture. It is also possible that the Extension could jointly administer services to both Peconic County and Suffolk County, in which case Suffolk County would also finance a portion of its operating costs. In either case, this decision should not have a significant financial impact. Mandated Services No services to be provided by the Department are mandated by any other government. Changes in Service Delivery The Department of Planning and Regional Services will provide essentially the same services in Peconic County that the Department of Planning provides in Suffolk County. Neither the type nor level of services will change substantially; however, the size of the department will change in accordance with the smaller size of Peconic County. The following table highlights the financial impact that the formation of Peconic County would have on operations of the Department of Planning and Regional Services. The figures in this chart represent the costs of services supported by County taxes and are derived by subtracting any departmental fees, state or federal assistance from the total costs of services. The first column represents Suffolk County's 1993 net expense for the Planning Department, Cooperative Extension Association and Soil and Water Conservation District; the second column represents the East End's tax contribution toward that total Suffolk amount; the third column represents Suffolk County's net cost of services provided to the East End in 1993 by these divisions; and the fourth column represents the net expense of Peconic County's Department of Planning and Regional Services during the County's first fiscal year. Please refer to Table 5.9-5 for a more detailed explanation of the following figures. Table 5.9-1 Comparison of Net Expenditures (FY 1993 dollars) Suffolk County East End Suffolk's Cost of Services Proposed Peconic 1993 Actual Tax Contribution Provided to East End County Budget $3,597,895 $517,737 $1,376,650 $1,449,123 As the above numbers indicate, in 1993 the East End towns contributed $0.52 million to the Suffolk County Department of Planning and Cooperative Extension Association. In comparison, these offices in Peconic County will require approximately $1.45 million (in 1993 dollars) of appropriations in the County's first fiscal year and will offer East End Peconic County Financial Feasibility Report Page 112 PLANNING AND REGIONAL SERVICES citizens control over the level and quality of services provided. The bulk of these expenditures are for the Cooperative Extension Association. The East End currently receives approximately 60% of the services provided by the Cooperative Extension Association of Suffolk County. Economic Relationship with Other Governments East End Towns No increased costs to the East End towns and villages will result from the establishment of the Department. Suffolk County The Cornell Cooperative Extension could jointly administer services to both Peconic County and Suffolk County, in which case the two counties would each finance a portion of its operating costs. Organization and Staffing The Department will be headed by the Director of Planning and Regional Services and include a total staff of ten employees, including a staff division for soil and water conservation. Since the County will contract agricultural education and related services through the Cornell Cooperative Extension, no County employees will be assigned to provide these services. The staffing requirements for the Department's activities as they currently exist in Suffolk County and as they are anticipated in Peconic County are shown in the Table 5.9-2. Peconic County Financial Feasibility Report Page 113 PLANNING AND REGIONAL SERVICES Table 5.9-2 Staffing Analysis Department of Planning and Regional Services Department / Division Suffolk 1993 Actual Proposed Peconic Staffing Average Cost per Position Total Cost Planning 1,296 28 7 Net Space Type of Staff/Shared Space per Employee Administrative Staff 10 2 $25,000 $50,000 270 Line Staff 17 4 35,000 140,000 sq. ft. Supervisory Staff 1 0 50,000 0 Director Director 1 1 70,000 70,000 Soil and Water Conservation WA 4 3 Conference Rooms 120 sq. ft. (2) N/A Administrative Staff 2 1 25,000 25,000 150 Line Staff 2 2 35,000 70,000 Supervisory Staff 0 0 50,000 0 Total Staff 42 10 5355,000 Space Needs Using industry standards to estimate demand for office space, the Peconic County Department of Planning and Regional Services will need approximately 3,400 square feet of office space. Table 5.9-3 (1) Represents space needed for every 15 employees (2) Represents space needed for an eight person conference room (3) Represents space needed for every 16 employees Net / Gross Gross Space Factor Calculation of Space Requirements Department of Planning 432 sq. ft. 1.60 X 1,296 and Regional Services Net Space Needed Total Employees Net Space Type of Staff/Shared Space per Employee by Type Needed Administrative Staff 90 sq. ft. 3 270 sq. ft. Line Personnel 135 sq. ft. 6 810 sq. ft. Supervisory Staff 175 sq. ft. 0 0 sq. ft. Director 190 sq. ft. 1 190 sq. ft. Common Space 128 sq. ft. (1) WA 85 sq. ft. Conference Rooms 120 sq. ft. (2) N/A 150 sq. ft. Break Rooms 240 sq. ft. (3) N/A 150 sq. ft. 10 1,655 sq. ft. (1) Represents space needed for every 15 employees (2) Represents space needed for an eight person conference room (3) Represents space needed for every 16 employees Net / Gross Gross Space Factor Needed 1.60 X 432 sq. ft. 1.60 X 1,296 sq. ft. 1.60 X 0 sq. ft. 1.60 X 304 sq. ft. 1.60 X 137 sq. ft. 1.60 X 240 sq. ft. 1.60 X 240 sq. ft. Peconic County Financial Feasibility Report Page 114 PLANNING AND REGIONAL SERVICES First Fiscal Year Budget (in 1993 Dollars) The Department will have a total staff of ten, initial expenditures of $1.59 million, revenues of $.22 million and a resulting departmental net expense of $1.38 million. Expenditures The Department's expenditures can be classified into the following three main categories: Planning - Includes the costs associated with preparing the comprehensive County plan, official maps, designing and enforcing environmental policy and performing research studies. Over 90% of expenses in this category will be comprised of personnel costs. The 1996 proposed Peconic County figure for this expense is determined by estimating salaries for staff members and then multiplying non -salary expenditures by the ratio of Peconic County to Suffolk County staff. Cooperative Extension Association - Includes the County's contribution to finance the operating expenses of the Cornell Cooperative Extension. As discussed above, the Extension is a not-for-profit organization which would provide educational and other services regarding agriculture and related fields. These expenses represent the cost to Peconic County of contracting these services from the Extension. Roughly 60% of the services currently provided by the Extension to Suffolk County benefit residents of the East End towns and villages, reflecting the rural and agricultural nature of the East End versus the remainder of Suffolk County. Soil and Water Conservation - Includes costs of designing and implementing programs to prevent soil erosion, control floods, manage water resources and undertake conservation planning. Over 90% of these expenses represent costs of salaries and benefits. It is estimated that approximately 60% of these services currently provided by Suffolk County benefit the East End towns and villages. Employee benefits for all departments are combined in the aggregate Peconic County operating budget. The benefit cost is estimated as 33% of all Peconic County salary expenditures. Actual benefit costs will be determined through negotiations with Peconic County employees. Peconic County Financial Feasibility Report Page 115 PLANNING AND REGIONAL SERVICES Table 5.9-4 Summary of Salary and Non -Salary Expenditures Department of Planning and Regional Services Suffolk's Cost of Services Proposed Peconic 1993 Actual* Expenditure Description Salaries Non -Salary Total Expenditures Planning $260,000 $19,216 279,216 Cooperative Extension Association 0 1,285,000 1,285,000 Soil and Water Conservation 95,000 8,210 103,210 Total Expenditures $355,000 $1,312,425 $1,667,425 Revenues Revenues of the Peconic County Department of Planning and Regional Services will come from departmental income including fees for maps and performing research reports and state aid in the form of grants for environmental protection programs. The balance of the expenditures for the Department will be supported through the County's general tax revenues. The following table presents: 1.) the Fiscal Year 1993 operating results for the Suffolk County Planning Department and Cooperative Extension, 2.) the share of those expenditures benefiting the five East -end towns and 3.) the proposed Peconic County's Fiscal Year 1996 operating budget for its Department of Planning and Regional Services. Table 5.9-5 Comparison of Operating Budgets Department of Planning and Regional Services Expenditure Description Planning Environmental Quality Council Water Quality Protection Reserve Fund Cooperative Extension Association Soil and Water Conservation Total Expenditures Revenue Description Departmental Income State Aid Federal Aid Total Revenues Net Expense 'Source: 1995 Recommended Budget, County of Suffolk, New York $3,597,895 $1,376,650 $1,449,123 Peconic County Financial Feasibility Report Page 116 Suffolk's Cost of Services Proposed Peconic 1993 Actual* Provided to East End County Budget $1,412,435 $114,527 $279,216 151,502 90,901 0 94,723 7,681 0 2,137,608 1,282,565 1,285,000 165,464 99,278 103,210 $3,961,732 $1,594,952 $1,667,425 $82,555 $49,533 $49,533 281,282 168,769 168,769 0 0 0 $363,837 $218,302 $218,302 $3,597,895 $1,376,650 $1,449,123 Peconic County Financial Feasibility Report Page 116 Peconic County Financial Feasibility Study 0 0 0 0 0 DEPARTMENT OF PUBLIC WORKS Aviation Division Public Works Administration Public Transportation Buildings and Facilities Design and Maintenance PUBLIC WORKS Mission The Peconic County Department of Public Works (the "Department") will provide essential and efficient services to its citizens with the fewest number of staff and lowest overhead expenses possible. The Department will be committed to keeping Peconic County buildings, airport and bus service operational and in proper repair so as to make the County a safe and efficient place to live, travel and work. Authority and Responsibility General The Department will be responsible for the following duties: the operation, maintenance and repair of County facilities and buildings, including the court facilities in Riverhead; the organization of public transportation in the form of a County -wide bus system, whereby the County will own the buses which will be leased to independent private operators; the day to day operation of the Gabreski Airport (the "Airport"), including securing tenants and collecting rental revenues from the 28 tenants at the Airport; implementing and managing certain transportation based mandates; and insuring that surface transportation and capital projects are undertaken in a timely manner. It is anticipated that Peconic County will only own those buildings and facilities it actually requires to provide services pursuant to the Divestiture Method outlined in Chapter 7. Mandated Expenditures The State of New York mandates that counties on Long Island make a payment to aid the Long Island Railroad. As this payment deals with transportation within the County (the majority of the payment is used for station repair and maintenance), it has traditionally been paid through the Department of Public Works. In 1993, the mandate for Suffolk County was $17,693,150. All County buildings must be maintained in conformance with state building codes, Office of Safety and Health Administration (OSHA) safety standards and fire safety regulations. In many instances, the services provided by the Department as support to other departments are prerequisite to the receipt of federal or state reimbursement to those departments. Peconic County Financial Feasibility Report Page 117 PUBLIC WORKS Changes in Service Delivery Maintenance and repair of County highways and bridges, snow removal on the highways and bridges, and waterway and dredging responsibilities being provided by the Suffolk County Department of Public Works are to be provided by each individual town in Peconic County where the roads and bridges are located. Each town will be reimbursed by the County for the services the town provides on County property. See the section entitled "Economic Relationships with Other Entities" for discussion of this proposed agreement. The services will continue to be provided to the residents of the East End but the entity providing the service will change. Table 5.10-1 highlights the financial impact that the formation of Peconic County would have on the Department as outlined in this section of the report. The figures in this table represent the costs of services supported by County taxes and are derived by subtracting any departmental revenues, state aid or federal aid from the total costs of services. The first column represents Suffolk County's 1993 net expense for the Department; the second column represents the East End's tax contribution through the General Fund toward the existing Suffolk County total amount; the third column represents the net expense as an estimated dollar value of services provided to the East End in 1993 from the Department; and the fourth column represents the net expense of the Peconic County Department of Public Works in its first fiscal year. Table 5.10-1 Comparison of Net Expenditures (FY 1993 dollars) Suffolk County East End Suffolk's Cost of Services Proposed Peconic 1993 Actual Contribution Provided to East End County Budget $73,729,790 $10,609,717 $6,274,870 $4,641,361 As the above numbers indicate, in 1993 the East End towns contributed tax dollars to the operation of the Suffolk County Department of Public Works in an amount of approximately $10.6 million dollars. It cost Suffolk County nearly $6.3 million to provide these services. In comparison, in its first fiscal year, the Peconic County Department of Public Works can provide the outlined services at a cost of $4.6 million to the tax payers of the East End and will offer East End citizens control over the level and quality of services provided. Gabreski Airport The Aviation Division of the Department will be responsible for operating and maintaining the Gabreski Airport in Westhampton. The Airport was formerly part of a military base and sees limited commercial use. The Airport sits on nearly 1,500 acres of land and consists of 3 runways, the Air Traffic Control Tower and 29 rental properties. Peconic County Financial Feasibility Report Page 118 PUBLIC WORKS Eighty-eight aircraft are based at the Airport with additional transient aircraft, mainly air taxis, based there in the summer months. Specific responsibilities of the Aviation Division include the daily inspection and maintenance of the Airport's runways, taxiways and aircraft parking areas, maintenance of electrical systems and lighting, snow and ice control, grass cutting and maintenance of the Airport's buildings, roads and parking lots. Additionally, the division will monitor lease agreements and manage the property of its aviation and non -aviation tenants. These tenants include mainly industrial tenants, including plumbing and heating supply warehouses. Any non -aviation tenant must be approved by the FAA and any revenues generated by the Airport must be used for operation of the Airport, per FAA regulations. In 1993, there were 10 aviation and 18 non -aviation tenants leasing 29 buildings and 19 acres of land at the Airport. The Air National Guard is based at the Airport, rents five acres of land from Suffolk County and pays a user fee. The Air National Guard provides and fully funds Air Traffic Control Tower Service and Radio Maintenance service at the Airport. Capital improvements have in the past been funded by state and federal grants and proposals for further funding have been submitted to both the state Department of Transportation and the Federal Aviation Administration. Suffolk County's goals for the future of the Airport include the development of an industrial park. Toward this end, a Waste Treatment Facility funded by the federal government and jointly operated by the Air National Guard and Suffolk County is currently in the planning and design stage. Public Transportation County wide bus service will be organized and implemented by the Department. Buses and equipment will be obtained by the Department from the Omnibus service currently operated in Suffolk County. At present, there are six routes that service the five East End towns. Ten buses are used to service these routes. Buses have been purchased by Suffolk County and are operated under a contract with an independent operating company. Under this agreement, county, state and federal aid, along with farebox receipts are used to defray the costs of operating the service. Suffolk County is responsible for up to 35% of the costs, farebox receipts account for 25% of the costs and state and federal aid accounts for 35% and 5% of costs respectively. Buses are replaced every 12 years as an industry standard of useful life for buses. Buses were purchased by Suffolk County in 1981, 1982, 1983 and 1987. It is assumed that in the allocation of assets between Suffolk and Peconic County, an equitable number of both older and newer buses will assumed by Peconic County. Applying the aforementioned standard for replacement of buses, the earliest any buses owned by Peconic County would need to be replaced would be 1999. Peconic County Financial Feasibility Report Page 119 PUBLIC WORKS Building and Facility Design and Maintenance This division of the Department is responsible for the maintenance, repair, alterations and cleaning of all County owned buildings including Court Facilities. Included in these responsibilities is the monitoring and maintenance of all facilities plant and equipment including lighting systems, air conditioners, oil burners, roof drains and all mechanical, electrical and plumbing equipment. A grand total of over 1,400,000 square feet is maintained by this division of the Department. There is a chance that these services could be privatized to afford the County additional savings. This option will be explored in greater depth when asset allocation is finalized. Vehicles are of particular concern to this division as many of the vehicles currently used in Suffolk County are nearing the end of their useful lives. Again, it is assumed that Peconic County will be allocated an equitable number of older and newer vehicles. It may be necessary for Peconic County to replace vehicles with over 90,000 miles of use. This could add considerably to future capital costs for Peconic County. However, County -wide contingency and start-up resources should be sufficient to satisfy requests for additional equipment. County Roads and Bridges Peconic County will provide for maintenance of County roads and bridges by contracting out various services to each of the five towns in the County. These services include repair and maintenance of all roads, bridges, culverts and waterways within town boundaries and removal of snow from these areas. These services are currently provided by the towns' Departments of Public Works on non -county roads within town boundaries. The responsibilities of the individual Departments of Public Works would be expanded to include County property as well. Contracting out these services is estimated to cost the County $5,000 per lane mile to be serviced by the towns. This estimate is currently employed in compensating the town of East Hampton for the maintenance it provides on County roads and bridges within its boundaries. See the following section entitled "Economic Relationships with Other Entities" for further discussion of this arrangement. Capital construction projects to be undertaken by Peconic County will be handled through the Department. These projects are summarized in the section entitled "Capital Improvement Plan and Debt." Any construction to be undertaken by the County for roads, bridges, buildings and facilities will be organized and implemented through the Peconic County Department of Public Works. Peconic County Financial Feasibility Report Page 120 PUBLIC WORKS Economic Relationships with Other Entities East End Towns Peconic County will contract out to each of the East End towns to provide highway and bridge repair and maintenance for state owned roads. A fair estimate of the cost to the County of contracting with each town to assume these responsibilities is $5,000 per lane mile. This estimate is based upon a contract that the town of East Hampton currently has with Suffolk County to provide these services and upon discussions with the individual Town Highway Superintendents. The total cost to the County for these contracted services will be $1,527,750. If this provision had been in place in 1993, the payment to each of the five towns would have been as follows: Table 5.10-2 This $5,000 per lane mile estimate includes services that the Suffolk County Department of Public Works would provide, primarily the painting of lines on County roads within the towns' boundaries. The cost of line painting equipment is prohibitively expensive for any one of the five towns for its limited use in each town, so the County will provide the service. Organization and Staffing The Department of Public Works will be overseen by a Public Works Commissioner. Supervisors will head each of the major divisions which will provide service within the County: Buildings and Facilities, Aviation and Public Transportation. Peconic County Financial Feasibility Report Page 121 Payments From County to Town Departments of Public Works Total Payment Town Lane Miles Pavment/Lane Mile To Town East Hampton 31.77 $5,000 $158,850 Riverhead 42.97 $5,000 214,850 Shelter Island 12.00 $5,000 60,000 Southampton 169.05 $5,000 845,250 Southold 49.76 $5,000 248.800 $1.527.750 This $5,000 per lane mile estimate includes services that the Suffolk County Department of Public Works would provide, primarily the painting of lines on County roads within the towns' boundaries. The cost of line painting equipment is prohibitively expensive for any one of the five towns for its limited use in each town, so the County will provide the service. Organization and Staffing The Department of Public Works will be overseen by a Public Works Commissioner. Supervisors will head each of the major divisions which will provide service within the County: Buildings and Facilities, Aviation and Public Transportation. Peconic County Financial Feasibility Report Page 121 PUBLIC WORKS Staffing of the Department will be considerably smaller than that for Suffolk County due to the decrease in services provided. Staff will be needed for administrative duties, buildings and facilities maintenance, supervising the public transportation system and operation of the Airport. Table 5.10-3 details the Department staffing by division, staff classification and cost: Table 5.10-3 Space Needs Space necessary to run the Department of Public Works consists essentially of office space. This office space is currently in existence in Suffolk County and would be allocated to Peconic County. Gross space will total 7,070 square feet for the 28 staff members and will be adequately served by these facilities. Peconic County Financial Feasibility Report Page 122 Staffing Analysis Suffolk Proposed Average Department of Public Works 1993 Peconic Cost per Department/Division Actual Staffing Position Total Cost Commissioner's Office 2 2 Administrative Staff 1 1 $25,000 $25,000 Commissioner 1 1 70,000 70,000 Aviation 4 4 Administrative Staff 1 1 25,000 25,000 Line Staff 2 2 35,000 70,000 Supervisory Staff 1 1 50,000 50,000 Omnibus 1 1 Supervisory Staff 1 1 50,000 50,000 Building and Facilities Design and Maintenance 260 21 Administrative Staff 19 1 25,000 25,000 Line Staff 235 19 35,000 665,000 Supervisory Staff 6 1 50,000 50,000 Highways and Structures 54 0 Highway Maintenance 141 0 Transportation Costs 15 0 Dredging and Waterways 3 0 Total Staff 480 28 $1,030,000 Space Needs Space necessary to run the Department of Public Works consists essentially of office space. This office space is currently in existence in Suffolk County and would be allocated to Peconic County. Gross space will total 7,070 square feet for the 28 staff members and will be adequately served by these facilities. Peconic County Financial Feasibility Report Page 122 PUBLIC WORKS Table 5.10-4 Calculation of Space Requirements Department of Public Works Net Space Needed Total Employees Net Space Net/Gross Gross Space Type of Staff/ Shared Space Per Employee By Type Needed Factor Needed Administrative Staff 90 sq.ft. 3 270 sq. ft. 1.60 X 432 sq. ft. Line Personnel 135 sq. ft. 21 2,835 sq. ft. 1.60 X 4,536 sq. ft. Supervisory Staff 175 sq. ft. 3 525 sq. ft. 1.60 X 840 sq. ft. Commissioner 190 sq. ft. 1 190 sq. ft. 1.60 X 304 sq. ft. Common Space 128 sq. ft. (1) WA 239 sq. ft. 1.60 X 382 sq. ft. Conference Rooms 120 sq. ft. (2) WA 120 sq. ft. 1.60 X 192 sq. ft. Break Rooms 240sq. ft. (3) N/A 240 sq. ft. 1.60 X 384 sq. ft. 28 4,179 sq. ft. 7,070 sq. ft. (1) Represents space needed for every 15 employees (2) Represents space needed for an eight person conference room; the Department is estimated to need three (3) One break room has been assigned for every 16 staffers First Fiscal Year Budget For Fiscal Year 1996, the Department will have a staff of 28 people with initial expenditures totaling $8.5 million, departmental revenues and aid of $3.9 million and resulting departmental net expense to the General Fund of $4.6 million. Expenditures Approximately 12% of the proposed Fiscal Year 1996 Peconic County expenditures represent salary payments. Also included in the expenditures are non -salary items such as supplies, equipment, fleet vehicles and self insurance. The proposed Fiscal Year 1996 Peconic County figures were determined using the ratio of services provided to East End towns v. the Suffolk County total. This ratio is not constant as each service provided by Suffolk County benefits the East End towns in a different way. For example, in order to reach an equitable allocation of building maintenance costs, the level of use by East End residents was considered and the percentage of population living in the East End (8.11%) was used as a multiplier. To determine figures for bus service in Peconic County, a figure for value of services to the East End was arrived at by multiplying Suffolk County's total cost by ridership percentage from the East End (8.13%). Expenditures will not be seen in Fiscal Year 1996 for many of the duties formerly performed by the Suffolk County Department of Public Works. These cost of these duties will now be borne by the Towns comprising Peconic County. The County will be responsible for reimbursing the towns for the services provided at a rate of $5,000 per lane mile. See the section entitled "Economic Relationships with Other Entities" for a further discussion of how this figure was determined. Peconic County Financial Feasibility Report Page 123 PUBLIC WORKS Employee benefits for all departments are combined in the aggregate Peconic County Operating Budget. The benefit cost is estimated as 33% of all Peconic County salary expenditures. Actual benefit costs will be determined through negotiations with Peconic County employees. Table 5.10-5 Summary of Salary and Non -Salary Expenditures Department of Public Works Expenditure Description Salaries Non -Salary Total Expenditures Commissioner's Office $95,000 $6,825 $101,825 Transportation Mass Transit Operating Assistance 0 128,154 128,154 Buildings & Facilities 740,000 3,222,584 3,962,584 Aviation 145,000 306,596 451,596 Public Transportation Omnibus 50,000 902,755 952,755 Payments Aid to LIRR 0 1,458,092 1,458,092 Payments to Towns for Services Provided 0 1.527.750 1.527.750 Subtotal Payments 0 2,985,842 2,985,842 Total Expenditures Revenues $1,030,000 $7,552,757 $8,582,757 Nearly 26.5% of the Department's revenue will come from State and federal governments. Projections for Peconic County revenues were derived by taking the ratio of services benefiting the East End and multiplying that ratio by the various sources of revenues. Department revenues such as motor vehicle, registration fees allocated from the Registry of Motor Vehicles, take off landing and rental fees from the Airport and bus farebox receipts will account for nearly 9.4% of revenues. The remaining 64.1% of revenues will be in the form of tax revenues. Table 5.10-6 presents the Suffolk County Department of Public Works operating budget for Fiscal Year 1993, the share of those expenditures benefiting the five East End towns and the proposed Peconic County operating budget for FY 1996 (in 1993 dollars). Peconic County Financial Feasibility Report Page 124 0 PUBLIC WORKS Table 5.10-6 Comparison of Operating Budgets Buildings 6 Facilities- Exclenditure Description Court Facilities $22,114,715 Suffolk's Cost of Services Proposed Peconic Department of Public Works 1993 Actual' Provided to East End County Budget Transportation 1,716,735 139,201 c 139,201 Expenditure Description 14,514,708 1,176,925 c 1,176,925 Highways and Structures 3,487,536 746,333 a 0 1 Highway Maintenance 8,280,657 1,772,061 a 0 1 Snow Removal 1,712,802 366.540 a 0 t Bridges 481,738 210,038 b 0 f Waterways Administration 3,041 247 c 0 + Dredging 2.821 229 c 0 t Sub -regional Transportation Planning 48.468 3,930 c 0 t Transportation Costs 763,194 61,884 c 0 1 Mass Transit Operatino Assistance 1,580,493 128,154 c 128,154 Total Transportation Expenditures $16,360,750 53,289,414 $128,154 Revenue Description Department Revenues $5,114,976 $414,748 c $414,748 State Aid 10,496,605 2,196,939 a 2,196,939 Federal Aid 2,363,458 494,672 a 494,672 Total Transportation Revenues $17,975,039 $3,106,359 $3,106,359 Net Expense -Transportation ($1,614,289) $183,055 ($2,978,205) Buildings 6 Facilities- Exclenditure Description Court Facilities $22,114,715 $1,793,172 c $1,793,172 Rent: Offices and Buildings 7,207,841 584,448 c 584,448 Building Design and Construction 1,716,735 139,201 c 139,201 Building Operation and Maintenance 14,514,708 1,176,925 c 1,176,925 Custodial Services 3,315.511 268.838 c 268.838 Total Buildings b Facilities Expenditures $48,869,510 $3,962,584 $3,962,584 Total Buildings & Facilities Revenues -State Aid S2,703,369 $219,203 c $219,203 Net Expense -Buildings and Facilities $46,166,141 $3,743,382 $3,743,382 Aviation Total Aviation Expenditures $451,596 $451,596 $451,596 Total Aviation Revenues -Department Revenues $378,655 $378,655 $378,655 Net Expense -Aviation $72,941 $72,941 $72,941 Public Transportation Total Public Transportation Expendttures-Omnibus $11,718,998 $952,755 d $952,755 Total Public Transportation Revenues -Department Revenues $2,917,333 $237,179 d $237,179 Net Expense -Public Transportation $8,801,665 $715,575 $715,575 Payments Aid tollRR 17,693,150 1,458,092 a 1,458,092 Payments to Towns for Services Provided 0 0 1,527,750 t Total Payments $17,693,150 $1,458,092 $2,985,842 Total General Administration Expenditures Total Expenditures Department Revenues State Aid Federal Aid Total Revenues Total Net Expense -Souroe: 1995 Retanmended audget, Countyof Suffdk, Newyork -Possible privatization of saviaes to be studied s-Sufldk Carey a>manW Nn multiplied by %of Ira miles in East End (20.93%) b- Suffolk Carat' e>mendatre rmdbpli d by %of bridges In Fast End (43.60x) $2,610,182 $101,825 $101,825 $97,704,186 $10,216,266 $8,582,757 8,410,964 1,030,582 1,030,582 13,199,974 2,416,142 2,416,142 2.363,458 494,672 494,672 $23,974,396 $3,941,396 $3,941,396 $73,729,790 $6,274,870 $4,641,361 c-Sulfdk County EMen6ture multiplied by % of papulation residing In East End (8.11%) d-sundk catnty eVsndtU a mWnplied by % of nders from East End (8.13%) e-Sulfdk Caney expen6W,e multiplied by % of payments made by East End (924%) f -Services ,Daunted for in payment to tovms Peconic County Financial Feasibility Report Page 125 COUNTY COMMUNITY COLLEGE Peconic County Financial Feasibility Study 0 0 6 0 0 PECONIC-SUFFOLK COMMUNITY COLLEGE Peconic - Suffolk Community College Board of Trustees President Faculty' Support Staff v 1� Administration COUNTY COMMUNITY COLLEGE Mission Peconic-Suffolk Community College (the "College") will provide higher education services to the residents of the East End towns in an efficient and cost effective manner. Authority and Responsibility Peconic County proposes a school jointly run by Peconic and Suffolk Counties. Most services benefiting the residents of Peconic County will be based at the Peconic Campus of the College, the current Eastern Campus of Suffolk Community College ("SCC"). Certain other services such as purchasing, payroll administration, student billing, accounting and the Student Data System administration are already operational at the Ammerman Campus of SCC located in Seedless. These services will continue to be provided at the Ammerman Campus and the Peconic Campus of the College will benefit from these services under an agreement to be negotiated between Peconic and Suffolk Counties. See the subsection entitled, "Mandated Services" for further discussion of the creation of Peconic-Suffolk Community College. There are also various programs of instruction that are not offered at the Eastern Campus and students from the East End currently attend those courses at the campus at which they are offered. This practice is assumed to continue under the agreement to be reached by Peconic and Suffolk Counties in forming the joint community college. Mandated Services Under Title 7, Article 126, Section 6303 of the New York State Education Law, the College must provide two-year programs of post high school nature combining general education with technical education relating to the, occupational needs of the community, area or region in which the college is located. Under the same law, Sections 6302 and 6306 specify that a Peconic County Board of Supervisors would have the authority to join with Suffolk County's legislature to act as the local sponsors of the College in jointly establishing it pursuant to the approval of the State University of New York (SUNY) Board of Trustees. Upon approval by the SUNY Board of Trustees, a 10 member Board of Trustees for the College would be established with 5 members appointed by the Boards of Supervisors of Peconic County and the Legislature of Suffolk County, 4 members appointed by the Governor of the State of New York, and one student member elected by the student body of the College. The apportionment between East End and West End appointments to the College's Board of Trustees shall be determined by the SUNY trustees. Peconic County Financial Feasibility Report Page 127 COUNTY COMMUNITY COLLEGE Pursuant to the State Code of Procedures Title 8 Chapter V, Subchapter D, Part 601.5, provision of services by the College will be defined in an agreement between Suffolk and Peconic Counties. Also contained in the agreement will be provisions for the apportionment of costs between counties. The County's share of operating costs will likely be based upon a chargeback per FTE student basis to be negotiated by SCC and the College. Under Title 7, Article 126, Section 6304 of the New York State Education Law, state aid must constitute one-third of a community college's operating budget, 40% of the operating costs of a college providing a full opportunity program. The College will fit this criteria as a full opportunity program allows for education of all those who live within the College's service area and wish to be admitted to the college. It is proposed that Suffolk and Peconic Counties will provide funds equal to one-third operating costs and tuition will not exceed the final one-third of the operating budget. Changes in Service Delivery The following chart highlights the financial impact that the formation of Peconic-Suffolk Community College outlined in this section of the report would have on the County. The figures in this table represent the costs of services supported by County taxes and are derived by subtracting any departmental revenues, state aid or federal aid from the total costs of services. The first column represents Suffolk County's 1993 net expense for operating all three campuses of SCC; the second column represents the tax contribution East End residents make toward the existing total SCC amount; the third column represents the net expense as an estimated dollar value of services provided to the East End in 1993 from Suffolk Community College; and the fourth column represents the net expense Peconic County Community College in its first fiscal year. Please refer to Table 6-3 for a more detailed explanation of the source of the following numbers. Table 6-1 Comparison of Net Expenditures (FY 1993 dollars) Suffolk County East End Suffolk's Cost of Services Proposed Peconic 1993 Actual Contribution Provided to East End County Budget $22,106,132 $3,313,650 $2,411,376 $2,411,376 As the above numbers indicate, in 1993 $3.3 million of the tax dollars collected on the East End was dedicated to the operation of Suffolk Community College, while services received by the East End were valued at $2.4 million. In its first fiscal year, Peconic-Suffolk Community College will need a total of $2.4 million to operate its campus. Peconic County Financial Feasibility Report Page 128 COUNTY COMMUNITY COLLEGE Economic Relationships with Other Entities Suffolk County A service agreement will need to be negotiated with Suffolk County for the services and courses of instruction that the Eastern Campus does not provide. Chief among these is a Student Data System which tracks all student data, including registration information, student grading and student record management, and is currently in place at the Ammerman Campus. The College would continue to use this system through the agreement negotiated with Suffolk County. Additional services such as input of information for a centralized course scheduling catalog, purchasing duties, payroll administration, accounting services, student billing, mainframe computing and institutional research support would also continue to be provided at the Ammerman Campus of the current SCC. Due mainly to economies of scale associated with development and start up costs, it is most cost effective to the County utilize the services already in place at the Ammerman Campus. The current cost of contracting for these services has been estimated at $372,000. Mainframe computing charges comprise the largest segment of the total at $115,000 per year. The Student Data System, accounting services and student billing are the next three most costly services to be provided at $88,000, $62,000 and $33,000 per year respectively. These calculations are based upon information provided by the Provost of the Eastern Campus of SCC and are indicative of what the College could expect to pay for these services under a service agreement to be reached with Suffolk County. East End Towns Buildings and grounds maintenance will be provided to the College by one of the East End towns (most likely either Southampton or Riverhead) for an agreed upon charge. This will result in a greater expenditure for DPW services on the Town level but the increased expenditure will be directly offset by the amount charged to the College for these services. In the organization of Peconic County, duties such as snow removal and road repair and maintenance, traditionally performed by the Suffolk County Department of Public Works, will be performed by the Departments Public Works of each individual town. An agreement could be reached with the Town of Riverhead to provide these services in a manner more cost efficient than hiring full time employees for buildings and grounds functions at the College. Building and grounds maintenance for the Eastern Campus is currently performed by the Suffolk County Department of Public Works, under an agreement between Suffolk County and SCC. Under the agreement, Department employees remove snow from parking lots and maintain the buildings and grounds of the Eastern Campus. Peconic County Financial Feasibility Report Page 129 COUNTY COMMUNITY COLLEGE Organization and Staffing Like all community colleges in the state of New York, the College will be supervised by the SUNY, sponsored jointly by Peconic and Suffolk Counties and governed by a Board of Trustees. The day to day operation of the College will be carried out by a Provost and the administrative staff currently in place the Eastern Campus of SCC. It is assumed that initially, the same number of staff that currently runs the Eastern Campus of SCC will be retained to run the Peconic Campus of the College. Services not provided at the Peconic Campus will be provided at either of the other two campuses of the College. These services include purchasing duties, payroll administration and the Student Data System currently in place at the Ammerman Campus. Also, faculty and courses of instruction not provided at the Peconic Campus will be available at either of the other two campuses of the College and vice versa. As the College will be operated on a joint basis, no change in the existing rate structure regarding students from either Peconic or Suffolk County is contemplated. A service agreement will need to be negotiated between Peconic and Suffolk Counties to address the issues of which programs and faculty will be offered at which campus. Table 6-2 Peconic County Community College Eastern Campus Proposed 1996 Staff Analysis 1993 Actual _ Staffing 111 111 Supervisory Staff 11 11 Faculty 51 51 Support Staff 49 49 Total Staff 111 111 The option of a stand alone community college for Peconic County will continue to be studied. If, after a period of three years of joint operation, the economic and operational case for a stand alone college is strong enough to warrant a stand alone college, negotiations between the counties will be undertaken at that time. Initially, the most financially feasible option of providing higher education to the residents of Peconic County is through joint operation with Suffolk County. Space Needs No additional space is initially necessary for the creation of the College. The Peconic Campus of Peconic-Suffolk Community College provides adequate space for the operation of the College. It is assumed that services not housed specifically at the Peconic Campus will be accessible for Peconic residents at other campuses of the College and that adequate space already exists for those services. Peconic County Financial Feasibility Report Page 130 COUNTY COMMUNITY COLLEGE First Fiscal Year Budget For Fiscal Year 1996, the College will have a staff of 111 with initial expenditures totaling just over $8.3 million, revenues of $5.9 million and a contribution from Peconic County totaling $2.4 million. Expenditures The first column of Table 6-3 shows total expenditures for all 3 campuses of SCC for Fiscal Year 1993. The next column shows the value of services provided to the Eastern Campus based upon the actual 1993 figures provided by the Provost of the Eastern Campus. The Peconic County Fiscal Year 1996 projections are for the Peconic Campus of the College and are based upon these actual figures. The estimate for cost of contracted services is based upon assumptions provided by the Eastern Campus of SCC and represent current, conservative estimations of the cost of the services to be contracted with Suffolk County as detailed in a prior section entitled, "Economic Relationships with Other Entities." Revenues Revenues come from three sources: tuition and other department income, State aid and County assistance. It is assumed that, in accordance with State Education Law, Title 7, Article 126, Section 6304 that the state will account for the largest share of the three sources. The formula for amount of State aid is $1,650 per Full Time Equivalent student. Tuition revenues are based on the assumption that enrollment will remain steady under the new arrangement. The remainder of operating costs will be borne by Peconic County. The Table 6-3 presents the Suffolk County Community College Eastern Campus operating budget for Fiscal Year 1993 and the proposed Peconic-Suffolk Community College operating budget for Fiscal Year 1996. Peconic County Financial Feasibility Report Page 131 COUNTY COMMUNITY COLLEGE Table 6-3 Comparison of Operating Budgets Peconic-Suffolk Community College Suffolk's Cost of Services Proposed Peconic Expenditure Description _ 1993 Actual` Provided to East End County Budget Personnel $ 44,877,688 $5,670,603 b $5,670,603 b Employee Benefits 13,867,885 1,237,722 b 1,237,722 b Equipment 11,569,282 47,082 b 47,082 b Supplies 4,831,853 520,978 b 520,978 b Utilities Service & Travel 1,081,332 466,704 b 466,704 b Contracted Services 0 372,000 b 372,000 b Total Expenditures $ 76,228,040 $8,315,089 $8,315,089 Revenue Description Tuition and Other Departmental Revenues $31,253,496 $3,409,186 $3,409,186 State Aid 22,868,412 a 2,494,527 2,494,527 Federal Aid 0 0 0 Total Revenues $54,121,908 $5,903,713 $5,903,713 Net Expense $22,106,132 $2,411,376 $2,411,376 *Source: 1995 Recommended Budget, Suffolk County Community College, Eastern Campus a -State Aid allocated by FTE multiplied by $1,650 b -Figures provided by Suffolk County Community College, Eastern Campus Peconic County Financial Feasibility Report Page 132 SEPARATING FROM SUFFOLK COUNTY GENERAL ISSUES REGARDING SECESSION Overview The creation of Peconic County will require decisions about how resources taxing power, land, buildings, equipment, financial assets and obligations i.e., services, debt, litigation judgments, pension, and insurance should be allocated between Suffolk County and Peconic County. In providing services to its citizens, Suffolk County has obtained assets that will need to be reassigned when legal separation occurs and Peconic County is created. Suffolk County's existing resources and obligations will need to be fairly divided in a timely manner that enables both Suffolk County and Peconic County to function as independent County governments. Peconic County will need to obtain various resources -- property tax base, sales tax base, buildings, land, vehicles, office equipment, and financial assets -- that will enable the County to conduct its business. Certain assets, such as property tax base and sales tax base, are inherent in the creation of the new County; other assets, such as financial assets and office equipment, will need to be allocated based upon a mutually agreed-upon methodology. At the same time, there are obligations that Peconic County will need to assume as a cost of conducting County business. It is essential that both western Suffolk County and Peconic be self -sustainable, independent operating entities in order for a successful secession of Peconic County and allocation of Suffolk County's assets and liabilities between western Suffolk and Peconic. Following the creation of Peconic, both Peconic and western Suffolk County will need to have the resources to: • meet New York State Constitutional requirements to exist as a county, • operate over time as a financially self -sustainable entity, and • obtain and maintain access to the capital markets. State Constitutional Requirements Debt Limitations Counties in New York State have the power to contract indebtedness for County purpose provided the principal amount can not exceed seven percent (7%) of the average full valuation of taxable real estate of the County, and subject to certain enumerated exclusions and deductions, such as water and certain sewer facilities and cash or appropriations for Peconic County Financial Feasibility Report Page 133 GENERAL ISSUES REGARDING SECESSION current debt service. The constitutional and statutory method for determining full valuation is determined by taking the assessed valuation of the taxable real estate for the last completed assessment rolls of the County and dividing the same by the equalization rates, or the ratios which such assessed valuations bear to the full valuation, as determined by the State Board of Equalization and Assessment. The State Legislature prescribes the manner by which such ratios shall be determined. Average full valuation is determined by taking the sum of the full valuations of the last five completed assessment rolls and dividing that sum by five. Table 7.1-1 shows that Peconic County's proposed debt outstanding ($100 million) is substantially less (6.5%) than the estimated constitutional debt limit of $1.5 billion. This constitutional requirement will not be a concern in terms of financial feasibility. This estimate has been calculated by taking the sum of the full valuations of the East End Towns only, for the last five assessment rolls and dividing this sum by five. A less conservative approach would have been to take the average full valuation the East End Towns for just the year of the creation of Peconic County, as the County did not exist in prior years; however, the above approach gives a better illustration of Peconic's ongoing legal debt capacity. Following the creation of Peconic County, the debt limit for western Suffolk County is calculated by taking the sum of the average full valuations of the West End Towns only for the last five assessment rolls and dividing this sum by five. Table 7.1-2 shows that Suffolk County's revised debt outstanding (following Peconic's payment to Suffolk. County) is approximately $450 million, substantially less than the $4.9 billion constitutional limit. Thus, the revised limit for Suffolk County will not be a factor in terms of Suffolk's ability to issue bonds. Peconic County Financial Feasibility Report Page 134 GENERAL ISSUES REGARDING SECESSION Table 7.1-1 Peconic County Constitutional Debt Limit Full Valuation Year Roll Completed of Real Estate(l) 1990 $19,784,254,016 1991 22,218,473,156 1992 23,905,389,225 1993 23,963,885,207 1994 20,700,600,306 Total Five -Year Valuation Average Five -Year Valuation Debt Limit - 7% of Average Five -Year Full Valuation Debt to be Issued by Peconic County Debt Limit Utilized $110,572,601,910 $22,114,520,382 $1,548,016,427 $99,835,000 (2) 6.45% MEast End Towns only. (2)Includes debt proposed to be issued in 1996 to repay Suffolk County for existing debt, and debt issued for start-up costs and new capital improvements. For additional detail regarding Peconic County's proposed debt, please see Table 8-2.1 "Future Debt Outstanding" and Appendix II. Peconic County Financial Feasibility Report Page 135 GENERAL ISSUES REGARDING SECESSION Table 7.1-2 New Suffolk County Constitutional Debt Limit Year Roll Completed 1990 1991 1992 1993 1994 Total Five -Year Valuation Average Five -Year Valuation Debt Limit - 7% of Average Five -Year Full Valuation Allocated Indebtedness to (New) Suffolk County Debt Limit Utilized Full Valuation of Real Estate(l) $59,139,188,353 67,853,094,297 81,631,433,077 76,677,827,184 65,440,420,926 $350,741,963,837 $70,148,392,767 $4,910,387,494 $452,055,713 (2) 9.21% 0)West End Towns only. (2)lncludes all Suffolk County's general purpose debt outstanding as of December 31, 1993 less the amount of debt repayment by Peconic County. This amount does not include bonds issued for Suffolk County sewer districts, the Police District, or the lease on the Cohalan Court Complex, which is consistent with the representation in Suffolk County's official statements. Tax Limitations The New York State Constitution limits the amount that may be raised by Counties through levies on real estate in any fiscal year for purposes other, than debt service on county indebtedness to one and one-half percent (1.5%) of the average full valuation of real estate of the county. Peconic County Financial Feasibility Report Page 136 GENERAL ISSUES REGARDING SECESSION Table 7.1-3 Constitutional Taxing Limits Peconic County Suffolk County Total Five -Year Valuation $110,572,601,910 $350,741,963,837 Average Five -Year Valuation $22,114,520,382 $70,148,392,767 Taxing Limit - 1.5% of Average Five -Year Full Valuation $331,717,806 $1,052,225,892 Total Estimated Tax Levy $12,604,639 $350,000,000 (1> Taxing Margin Utilized 3.80% 33.26% (])Represents estimated Suffolk County General Fund Levy following secession of Peconic County (1996). Financial Self -Sustainable Entity Suffolk County and Peconic County will both need to be financially self-sustaining. Although the East End currently provides a net subsidy to Suffolk County, its relative impact on Suffolk County's budget is slight. That is, since the East End represents only a fraction (14.39% in 1993) of Suffolk County's general governmental budget, Suffolk County should be able to maintain operational and financial stability upon the creation of Peconic County. However, notwithstanding the creation of the new separate legal governmental entity of Peconic County, both western Suffolk County and Peconic will be financially dependent on the regional effect of decisions made by both counties and will, in certain instances, be dependent on each other for the ongoing operations of certain municipal services. For example, Peconic and Suffolk County will be jointly liable for all County general obligation debt payments including sewer district bonds and serial bonds. Peconic and western Suffolk County may also enter into contracts for correctional facility services, public safety training, Cooperative Extension, and other services. Should one county not be able to meet its obligations, the other will feel the effects in these joint service provision areas. The necessity to create two financially self -sustainable entities is particularly critical to the asset/liability allocation negotiation that will accompany the creation of a new county. Given that the two governments will be created with separate rights and responsibilities, and that there will be a high level of financial integration between the counties following the proposed secession of the East End creates a situation where neither party should strive to "win" the negotiation. Instead, the negotiation needs to ensure that both Counties can operate as distinct and sustainable entities. Please see Chapter 7.2: Asset and Liability_ Peconic County Financial Feasibility Report Page 137 GENERAL ISSUES REGARDING SECESSION Allocation for a discussion of the asset and liability allocation issues associated with the proposed secession of Peconic County Although this report is focused on the financial viability of Peconic County, the creation of Peconic County has effects on Suffolk County that can not be ignored. These effects have been noted throughout this chapter because they directly relate to the feasibility of Peconic. See Chapter 7.2: Asset Liability Allocation for a discussion of the criteria used to evaluate proposed allocation methods for the assets and liabilities of Suffolk County. Access to the Capital Markets and other Credit Considerations According to both the Constitution and State statutes, Peconic will pledge its full faith and credit to repay the financial obligation to secure its debt with its ability to levy an unlimited ad valorem property tax. The capacity and willingness of Peconic to repay their general obligation debt is assessed by examining four basic analytical areas: 1. Economic Factors 2. Financial Factors 3. Debt Burden 4. Administration 1. Economic Factors The economic base is a critical element in determining Peconic's cost and access to the credit markets and incorporates both local and national economic factors. Generally, those communities with higher income levels and diverse economic bases have superior debt repayment capabilities. They are better protected against sudden economic shocks or unexpected volatility than other communities. Demographics. The local population base is considered in terms of age, education, labor skills and competitiveness, and wealth and income levels. Tax base. The size, structure, and diversity of the tax base is of primary importance. The tax base's composition (in this case sales and property taxes) will be reviewed to identify proportionate contributions from residential, commercial, and industrial tax revenue sources. Composition of output and employment. Diversity and growth of the economy and employment base are prime considerations in evaluating the strength of the economy. Economic factors that are examined include: Peconic County Financial Feasibility Report Page 138 GENERAL ISSUES REGARDING SECESSION • Composition by employment sector --manufacturing, trade, construction, services, government, and agriculture; • Concentration in major employers or reliance on, particular industries; • Employer commitment to the community-- importance of local facilities and employees to the overall strategy of local employers, business development plans, age of plant, and industry prospects; • Employment trends and quality of the local labor force; and • Regional economic patterns to assess relative gains in employment and income growth. Economic Factors Analysis for Peconic and Suffolk Counties Peconic will have a healthy economic base that provides the foundations for it to be self - sustainable and achieve access to the credit markets. Peconic County's economic base, as discussed below, will be based upon second home ownership, tourism, agriculture, fishing and service industries, and will be rural in nature. Demographics, tax base and composition of output and employment will be strong. Peconic County has some unusual strengths and compares well to other counties in New York State or elsewhere in the United States. The attractiveness of its open spaces, ocean and bays, farms, beaches, forests, wood shingled houses and 350 -year history coupled with location only 70-120 miles from the New York City Metropolitan area, with its large concentration of high-income families, provide the foundation. Many thousand tourists visit the area during the late spring to early fall period. More important, 37% of the houses in Peconic County are second homes whose population (and guests) are not counted in the usual Census count of the population (106,593 in 1990). This means that Peconic County has a second home bonus of 59% (28,361 second homes divided by 48,430 year-round homes). The Long Island Regional Planning Board estimates that these second homes have many more people per household (including guests) than the year- round houses. Thus, in terms of peak seasonal population, the second homes create a population bonus of 86% (123,222 second home population divided by 143,990 year-round population). In addition, the rate of growth of second homes has been increasing in recent years. While 37% of the dwelling units in the East End were second homes in 1990, less than 34% were seasonal in 1980. Because second home owners pay full property taxes but do not use full governmental services -- that is, they are not in the public schools -- the economic bonus is a very real one. In a computer analysis of the 1995 tax bills sent to all owners of residences in Southampton, it was determined that those tax bills sent to owners with addresses located outside of the Town of Southampton (a good proxy for second home owners) comprised 45% of the total tax bills (13,628 out of 30,016), and they paid 54% of property taxes. Southampton is a Peconic County Financial Feasibility Report Page 139 GENERAL ISSUES REGARDING SECESSION good indicator for all of Peconic County because its percentage of second homes in the 1990 Census was very close to the average for all East End Towns - 38.6% for Southampton compared to 36.0% for Peconic County. As noted recently in the report of the East End Economic and Environmental Institute entitled Blueprint for the Future, "On the East End, over $10 billion has been invested directly in the second home real estate market ... the beauty of this $10 billion -plus industry is that, unlike other regions of New York State, which depend on one or two corporate giants for their economic base, this money has been invested by thousands of individuals/shareholders living throughout the area. Thus it can be viewed as a much more stable investment, not subject to the whims of one or two corporate giants, whose decision to leave an area could wreak long-lasting economic havoc." The many guests of second home owners and the many unrelated tourists who frequent the East End also provide a large extra bonus in the form of sales tax revenues. Finally it should be underscored that the East End seasonal population has been growing at a relatively fast rate. Between 1980 and 1990, total dwelling units in the East End increased from 63,543 to 76,618 -- a gain of 13,075 or 20.6%. This is far in excess of the growth rates of 9.9% for the five towns in western Suffolk, 12.0% for the five counties roughly comparable in size to Peconic (see Table 2-7 on page 20) and 5.2% for all of New York State. The unusually fast rate of growth of the economic base in the East End is understandable when it is recognized that i) the potentialrg_owth is large because there are still large undeveloped land areas remaining in the East End - indicated, in part, by the very low density of population (308 people per square mile compared, for example, to the 2,153 for the five towns in western Suffolk), and ii) as discussed immediately above, the extraordinary attractiveness of the East End coupled with its proximity to such a large concentration of high-income population in the New York City metropolitan area. These factors have led to ever-increasing numbers of second homeowners and tourists. There is no reason to assume that the relatively high growth rate of the 1980's for the East End will not continue for at least the next 10 or 20 years. Thus, the assessed valuation of all property in Peconic County is also likely to rise at a relatively fast rate. This will provide a substantial offset to possible needed increases in Peconic County government spending to maintain or enhance both human and environmental resources, and/or it will allow substantial tax reductions. In terms of Suffolk County, the creation of Peconic will not have a material effect on its economic base. As discussed above, Peconic accounts for 14.39% of the combined tax revenue in Suffolk County. Western Suffolk County would remain diverse in terms of employment sector, light industrial production, labor force demography, and tax base. This reduction in tax base from the secession of the East End would not be a substantial negative Peconic County Financial Feasibility Report Page 140 GENERAL ISSUES REGARDING SECESSION credit factor for two primary reasons. First, the East End represents a relatively small portion of the total Suffolk County revenues (estimated to be approximately 15%); and second, Suffolk County would have the opportunity to significantly reduce its operating expenses by no longer providing services to East End residents and potentially consolidating services to a more centrally located population. In addition, Suffolk County, particularly in the Town of Brookhaven will continue to have the opportunity to accommodate population and economic activity growth. 2. Financial Factors Financial analysis involves several areas: • Revenue and expenditure structure and patterns, • Annual operating and budgetary performance, • Financial leverage and equity position, • Budget and financial planning, and • Contingency financial obligations, such as pension liability funding. An analysis of these factors described below will present a clear indication of the financial strengths and weaknesses of Peconic (and western Suffolk). This analysis will also provide the framework for credit analysts to judge the capacity of a county to manage economic, political, and financial uncertainties. Current account analysis. Current account analysis usually consists of an examination of operating trends focusing on the structure of revenue and expenditure items, primarily within the general fund and debt service funds. These are "track record" measurements, for which no data exist for Peconic County. It will be essential, however, for Peconic to sell to the credit markets the historical current account ratios that Peconic would have experienced given its annual resources and obligations. Revenue analysis. Diverse revenue sources are preferable as they can help strengthen financial performance. Although a balanced composition of revenues gives a debt issuer flexibility to meet all its financial obligations, it does not protect against general economic decline. For example, if a government's tax collections are dependent on several major revenue sources, the effects of an economic downturn can be broad enough to affect revenue performance significantly. The composition of the revenue stream and the stability of major revenues will be analyzed, including: • property, sales, and income taxes; • user charges; • intergovernmental aid; and • interest income. Peconic County Financial Feasibility Report Page 141 GENERAL ISSUES REGARDING SECESSION Expenditure analysis. Similarly, historical expenditure composition and stability are usually analyzed in the context of revenue patterns. Large expenditure items are identified and examined to determine if continued expenditure growth could endanger existing services or require additional taxing efforts. To the extent that certain spending items are extraordinary or non-recurring, their effect on long-term financial performance is discounted. Peconic start-up costs are an example of non- recurring expenditures. Balance sheet analysis. The balance sheet examination focuses on liquidity, fund balance position, and the composition of assets and liabilities. Credit rating agencies will consider appropriate fund balance levels and several variables important: • the volatility and patterns of the tax revenue stream, • the predictability of government spending, • the availability of unencumbered reserves or contingency funds, and • the ability of public officials to sustain a strong financial position. The fund balance position is a measure of an issuer's financial flexibility to meet essential services during periods of limited liquidity. Pensions and other long-term liabilities. The management of pension fund and other long-term financial obligations is having an increasingly meaningful impact on financial performance and position. While meeting unfunded accrued liabilities should be a high-priority objective, the task is often clouded by the variations in calculating future asset and liability values. Analysis of Financial Factors of Peconic and Suffolk Counties The balance sheet elements of a credit analysis will be particularly important when the East End and Suffolk County negotiate the allocation of assets and liabilities. This report only assumes asset/liability allocation scenarios which obtain/maintain the financial integrity of the counties. See Chanter 7.2: Asset and Liability Allocation .for a discussion of criteria for determining allocation methods. As discussed below, it will be essential for both counties to retain liquidity and reasonable fund balances to operate efficiently. Both Peconic and Suffolk Counties have more than adequate flexibility under New York State Constitutional taxing and debt limits. Suffolk County has recently rebuilt its fund balance, leaving Suffolk County with resources to deal with unforeseen events. Suffolk County is now current on all pension contributions to the New York State public employee pension funds. The Suffolk County balance sheet is expected to remain without material change following the creation of Peconic from the current base year of this analysis. Peconic County will have a sufficient financially strong position to operate as an independent county government. Using the Divestiture Method which is described in Peconic County Financial Feasibility Report Page 142 GENERAL ISSUES REGARDING SECESSION Chapter 7.3: Implementing a Peconic County Divestiture, Peconic has the resources (including ability to obtain sufficient revenues) to meet estimated expenditures. It will also have the balance sheet strength (mix of assets and liabilities), liquidity and current accounts to be a financially strong entity. 3. Debt Factors The analysis of debt focuses on the nature of the pledged security, the debt repayment structure, the current debt servicing burden, and the future capital needs of any municipality. Accelerated debt issuance can overburden a municipality, force the reduction of necessary services, and consequently lead to lower ratings. Alternatively, a low debt profile may not be a positive credit factor, since it may indicate under investment in capital facilities. Investment in public infrastructure is believed to enhance the growth prospects of the private sector. Neglecting critical capital needs may impede economic growth and endanger future tax revenue generation. In addition, deferment of capital needs may result in increased operations and maintenance costs that reduce any benefit from reduced debt service. Analysis of Debt Factors In general, credit analysts judge a municipality's repayment of debt as positive when 25% of the debt is scheduled to be paid off in five years and 50% is retired in 10 years. The Peconic County debt retirement schedule is appropriate and will provide more than adequate protection to bondholders. The debt schedule as anticipated calls for 30.4% retired in five years and 47.9% retired in ten years. In general, a debt burden is viewed as high when debt service payments comprise 15%-20% of the combined operating and debt service fund expenditures. This benchmark will vary with the structure of government and the level of services an issuer provides. The current Peconic County debt burden projections are approximately 9.6% of combined operating and debt service expenditures. The current market's view of Suffolk County's debt should not change, if the Divestiture Method of asset/liability allocation is implemented. The Divestiture Method is designed to hold Suffolk County in the same debt position as it currently enjoys, in terms of the revenues available and debt service payable. 4. Administrative factors The powers of a municipality to plan for changes in the political, economic, and financial environment, and the capacity to respond in a timely fashion is essential. The entity's degree of autonomy is affected by home rule powers, as well as both legal and political relationships between state and local levels of government. The range and growth potential of services provided by the issuer will also be examined in relation to its capacity to provide such services. The ability of officials to make timely and Peconic County Financial Feasibility Report Page 143 GENERAL ISSUES REGARDING SECESSION sound financial decisions in response to economic and fiscal demands can depend on the tenure of governmental officials and frequency of elections. The 'background. and experience of key members of the administration are important considerations if they affect policy continuity and ability to reformulate plans. Financial mann ement: Financial management is a major factor to be considered in the evaluation of state and local government creditworthiness. Past performance against original plans, depth of managerial experience, and risk preferences of key leaders all have an impact on the bottom line. Major aspects of financial management include: • Economic analysis and revenue forecasting, • Tax policies, • Governmental accounting practices, • Financial strategies, and • Debt management. Increasing attention is being paid to risk management policies. Risk management analysis includes investigating the adequacy of insurance coverage for accidents, health, and potential lawsuits for public officials liability. Annual budget: Credit rating agencies and investors view the budget as an expression of administrative capability and intent. A sound budget plan should anticipate risk elements that lie outside of administrative control, such as the uncertainty of economic performance and potential effects on major revenue sources. The administration is expected to present a realistic budget and exhibit willingness to address necessary intra -year revenue and expenditure changes to meet fiscal targets. Continuous budget surveillance should be maintained to identify problem areas and enable timely budget adjustments. Capital improvement urogram: A well documented capital improvement program (CIP) will be a necessary element of continued access to the capital markets. Necessary components of this plan include: • The outlook for capital needs, • The flexibility to modify the program in difficult economic periods, and • The ability to finance investment through operating surpluses. Labor settlements and litigation: The labor environment --relationships between employer and employees should be part of the financial management discussion. Full disclosure of the nature and implications of labor disputes, if any, are also analyzed. Peconic County Financial Feasibility Report Page 144 GENERAL ISSUES REGARDING SECESSION Analysis of Administrative Factors Many of these administrative factors are "track record" issues, and while it is intended that the Peconic County government, with a Board of Supervisors, will be efficient and economical, it will be important for the County to quickly demonstrate a history of prudent management willing to actively address challenges. Hiring quality management and demonstrating its ability to solve potential start-up problems will go along way to giving comfort to the municipal capital markets. Peconic should plan to establish audited financial statements for its first year of operation. In addition, it will need to produce a well reasoned budget prior to Peconic's creation for the purpose of efficiently borrowing money in the credit markets. As a fledgling municipality, Peconic County will need to pay careful attention to the costs of labor and the contracts the County negotiates with any unions (if the County government does unionize). The creation of Peconic County should have no effect on Suffolk County in terms of Administrative Factors. Peconic County Financial Feasibility Report Page 145 ASSET AND LIABILITY ALLOCATION Challenges Although the secession of Peconic from Suffolk County will occur at a single point in time, the value of the assets and liabilities shared between the newly formed counties will constantly be changing. Unspent bond proceeds are transformed into fixed assets; the value of Suffolk County -owned vehicles depreciates over time; lawsuits against Suffolk are settled and dismissed; debt service is paid; sales tax receipts are paid by the State, etc. Most of the information regarding assets and liabilities contained in this report is based on County records. Once Suffolk County and Peconic County agree on a defined date for separation, an independent auditor should assure agreement and an equitable transfer of title to assets and responsibility for obligations, based on agreed upon methodologies for valuation and allocation. Basis for Evaluating Methodologies Various methods of allocating assets and liabilities have been considered. However, methods which assumed a confrontational relationship and likely legal action through the courts were eliminated. Provided below are general examples of possible methodologies for allocating the assets and the liabilities. The general methodologies that were evaluated includes: • Historical Methods • Accounting Valuation Methods • Divestiture Method Each of these methodologies were evaluated on the following basis: • probability of producing an equitable and an agreed upon division, • probability of producing an efficient (or justifiable) division, and • probability of a method being implemented. The ability to create an equitable division of assets and liabilities is critical to the success of any allocation and valuation method. Likewise, it will be critical to communicate an efficient, comprehensible method to the citizens of both Counties. Lastly, the ability to implement any method is necessary for Peconic to be feasible. Peconic County Financial Feasibility Report Page 147 ASSET AND LIABILITY ALLOCATION Historical Methods Queens & Nassau Counties, Westchester County & Bronx Counties The legal precedents in New York relating to creation of new counties, as well as incorporation of portions of towns, villages and counties into newly created municipal corporations have been with respect to the creation of Nassau County from Queens and the creation of the Bronx from Westchester County, the legislation does not provide a detailed framework for apportionment of assets or liabilities. The favored legislative approach was to provide for a six month period for negotiations and agreement by the respective governing boards of the affected municipalities as to an equitable apportionment and this is what was done by Nassau and Queens counties. If such an agreement was not reached, the state supreme court, was empowered to determine a resolution of the issues. In addition, each statute provides that its provisions shall not impair the obligations of any contract, and that the property and inhabitants of the territory annexed or consolidated into a new municipality shall continue to be liable to the creditors of their former governing jurisdiction. Implementation Issues Complexity of Today's Government: While this historical method may have been equitable when all County revenues were derived from property taxes and all County functions were managed through one fund, (i.e., the legislation for the creation of Nassau was passed in 1898 and the creation of West Chester occurred in 1895.) the various revenue streams and multitude of funds in Suffolk County make any allocation based solely on property tax value inequitable. This property tax burden has been mitigated by the growth of sales tax revenues, which have become an ever increasing portion of the County's budget. Most sales taxes are generated in the Western Towns, and sales taxes provide the majority of locally generated County operating and debt service revenues. In addition, not all County assets are purchased from the same property tax streams. Certain assets have been purchased with dedicated property tax revenues from special levies (i.e., the Police District and the Sewer Districts). Simply using assessed value would not adjust for the contributions made by differing County tax levels. Valuation Unresolved: This method has two distinct aspects to it, one fairly elementary and the other quite complex. The elementary aspect is identifying and equalizing the assessed value of the County property within each of the ten Towns and aggregating the value of the West End towns and the East End towns respectively. The assessed values are readily available from Town Assessors and the equalization rates are provided by the State. As a result, this allocation method provides a clear basis for the public to understand the basis for making an allocation. However, the complex aspect, will be agreeing on the valuation of existing assets and liabilities. The Historical method does not provide any guidance that permits a fair and equitable valuation of the assets and the liabilities. Peconic County Financial Feasibility Report Page 148 ASSET AND LIABILITY ALLOCATION Lodestar Case In addition to older historical legal precedents, there have been recent decisions regarding the rights and remedies one government has to another in the case of a newly formed municipality. Lodestar v. County of Mono ("Lodestar") is a 1986 State of California court case that could provide the basis on which to build a case that Peconic County would have no responsibility for assuming any of Suffolk's existing liabilities. Lodestar indicates that "...the rule is that the old corporation owns all the public property within her new limits, and is responsible for all debts contracted by her before the Act of separation was passed. Old debts she must pay, without any claim of contribution [from the new entity]". Implementation Issues Equity: Should Peconic secede from Suffolk and not assume any responsibility for liabilities incurred when the County was whole, it would be leaving the citizens of the Western towns to bear the burden of what had been County -wide benefits. This could also have a profound effect on Suffolk County's credit rating and the value of existing Suffolk County debt, negatively impacting the values of the portfolios of investors holding Suffolk County bonds. Liability Retained: It is generally agreed that the five East End towns will have to retain a contingent liability for all outstanding general obligation debt of the County. In addition, there are portions of Lodestar that are specific to California law, and it remains unclear how New York State Courts would treat a similar claim. Finally, political reality may prevent the State Legislature from agreeing to create Peconic County if the East End towns do not bear at least some burden of Suffolk County obligations that were incurred while they were part of the County. Accounting Valuation Method The general premise of the Accounting Valuation Method of allocating assets and liabilities is to find an objective way to measure both the costs and benefits that the East End has contributed and received from Suffolk County, and would contribute and receive in the future if Suffolk County were divided. Since the founding of Suffolk County, citizens of the East End and Western towns have been paying for and receiving services, as well as paying for and utilizing County assets. Using the Accounting Valuation Method, an equitable allocation of assets and liabilities will take into account not just the value of the East End's share of a proposed division of Peconic County Financial Feasibility Report Page 149 ASSET AND LIABILITY ALLOCATION Suffolk's assets and liabilities, but also the value of any operating subsidy that has historically been made by one region to the other. The fundamental goal of this method is to calculate what the East End has received from Suffolk and what it contributed to determine an amount that should be paid in the future. In general, for equity to occur, the sum of the value of what is being received will equal the value of what has been paid. This is illustrated below: The sum of value received equals EAST END SERVICES [EES] + PECONIC ASSETS [PA] _ + PECONIC LIABILITIES [PL] the sum of value paid OPERATING CONTRIBUTION [OC]+ CAPITAL CONTRIBUTION [CC] In order to determine value received and paid, a measurement of the following would need to be completed: • the East End's historical accumulated contribution to Suffolk County's operating budget, [OC] • the historical accumulated benefit the East End has received in services from Suffolk County, [ESS] • the East End's historical accumulated contribution to Suffolk County's debt service and capital budget, [CC] • the value of the assets that have been acquired or built in the East End, [PA] and • the liability that the East End has to Suffolk County [PL]. Once these measurements have been made, the cost of secession could be determined by manipulating the assets to be received or the liabilities to be assumed in order for the total value of what is received to equal what has and will be paid. Implementation Issues Calculate Historical Amounts: It would be impossible to both accurately measure and value what has been received and paid. In order to measure what has been received, there has to be an investigation into the historical value the East End has received for Suffolk County services. Road maintenance, welfare payments, prison incarceration and additional county services would need to be measured on a yearly basis. Additionally, the parties would have to agree upon how far back the investigation would go. Any start date would be arbitrary. Peconic County Financial Feasibility Report Page 150 ASSET AND LIABILITY ALLOCATION It is extremely difficult to quantify current services provided by Suffolk County to the East End. Too many County services are accounted for on an aggregate basis and records are not kept as to where each individual "unit" of service is delivered. It is impossible to trace the value of past services provided by Suffolk County to the East End. Agreed Upon Asset Valuation Method: Each asset would need to be individually valued in order to determine the total value of the assets that Suffolk would keep and Peconic would receive. It is highly unlikely that the two County governments could agree on a method of valuation due to the fact that government is a non -revenue generating business. Unlike valuation methods in business commerce, where an asset's value is based upon either the revenue generated from the asset or what someone will pay for the asset itself, the value of government assets are more subjective. Good examples are parklands, jails, airports, etc. Asset Allocation: Assuming the two parties can come to an agreement on the valuation method of specific assets, the assets themselves would have to be divided. Given disagreements, the two parties will have the incentive to value assets in their own way depending on each asset's relative attractiveness. The location of the various assets could also cause disagreements between the parties when deciding on the appropriate valuation method and/or asset allocation. Certain assets, such as parks, will naturally be allocated by location. The incentive, in this case, would be to value the park at the lowest possible amount. Agreed Upon Liability Valuation Method: Each of Suffolk County's liabilities would need to be individually valued in order to determine the total cost to Peconic of assuming these liabilities. It may be impossible to have Suffolk and Peconic agree on a value for individual liability items. For example, litigation from County negligence would have to be allocated based upon some standard. It is unlikely a standard could be agreed upon, especially since given this allocation method, assets are valued independently. Modified Accounting Benefit Method An alternative method of allocating the assets and the liabilities is to measure the benefit associated with the assets that Peconic would receive and pay Suffolk County an amount equal to the liability associated with those assets. This approach has some appeal due to its potential simplicity and seeming ability to achieve an equitable split. The approach is to first identify each asset that has been financed debt. Peconic would be liable and would pay the debt service associated with the obtained asset; however, this approach, seems to have promise it is not a practical allocation method. The method breaks down when you add assets to be allocated that are not financed with debt. As mentioned above, how would Peconic value the airport which was purchased for one dollar from the federal government decades ago? Each asset would need to be individually valued in order to determine the total value of the assets that Suffolk County would keep and Peconic would receive. It is highly unlikely Peconic County Financial Feasibility Report Page 151 ASSET AND LIABILITY ALLOCATION that the two County governments could agree on a method of valuation due to the fact that government is a non -revenue generating business. Due to these valuation problems, an equitable allocation of assets and liabilities is not possible under a modified Accounting Benefit method. Divestiture Method The recommended method of allocating Suffolk County's assets and liabilities to Peconic County is based on a Divestiture Method. It is the recommended approach because the results of this method will produce a result which best meets the criteria on which allocation methods have been evaluated -- that is, the Divestiture Method offers Peconic and Suffolk County an equitable and agreed-upon division of resources and obligations. Further, the method is efficient and can be easily communicated to, and understood by the citizens of Suffolk County (east and west). It should have a high probability of being implemented. The fundamental elements of this method are: • Both Peconic and Suffolk County must retain the resources (i.e. taxpayer base, long - 1 -15 term assets, etc.) to be fully self -sustainable entities (in the short and long term). • With regard to fixed assets (land, building, and equipment), Peconic County will take only those assets that are absolutely necessary to operate. Suffolk would retain ownership of all other assets except where there is an agreement for joint ownership or operation such as the Community College. As an example, Peconic will retain the small, old courthouse on Griffing Avenue in Riverhead, while Suffolk will keep the large new courthouse in Riverhead. • This means that Suffolk County will retain all the buildings (and land thereon) and equipment that are not necessary for Peconic's operation even if these assets are physically located in Peconic County. Suffolk County can sell or lease these assets to provide for the cost of their replacement, if necessary, in Western Suffolk County. • All parcels of land in Peconic, except those connected to Suffolk -owned buildings, will be owned by Peconic. However, the residents of western Suffolk would still continue to use parks and open space in Peconic under the same terms as East End residents - that is, the same access and fees. • With regard to long-term liabilities, Peconic County would assume responsibility for a portion of Suffolk County's debt by issuing bonds and paying the proceeds to Suffolk on the first day that Peconic County is created. Peconic should pay for the same proportion of Suffolk's debt that it now pays for in the form of both property and sales taxes - that is, 14.39%. See Table 1-1 Calculation of East End Tax Contribution. This amount would be equal to an up -front payment of approximately Peconic County Financial Feasibility Report Page 152 ASSET AND LIABILITY ALLOCATION $76 million. In other words, Suffolk would get the same amount of payment as if Peconic were never formed. It would be kept whole. • With regard to Suffolk County's short-term assets and liabilities including cash balances, surplus monies, receivables and payables, the same 14.39% would be allocated to Peconic County. Again, Peconic County would pay and receive the net amount equal to the current tax contribution of the East End Citizens to the Suffolk County government. It is assumed this net amount is positive and that Peconic will end up with sufficient liquid assets so that it will not be compelled to borrow in anticipation of tax receipts. However, if it is required, Peconic County will have the economic factors, financial factors and debt factor necessary to undertake such a borrowing. Recommendation: The Divestiture Method The Divestiture Method of allocating the assets between Peconic and Suffolk County is the recommended approach because the results projected to be obtained using this method will produce an equitable and agreed-upon division of resources and obligations. Further, the method is efficient and can be communicated easily to the citizens of Suffolk County (east and west) and have a high probability of being implemented. Peconic County Financial Feasibility Report Page 153 IMPLEMENTING A PECONIC COUNTY DIVESTITURE Divestiture Method General As discussed in 7. 1, "Asset and Liability Allocation," of the various allocation methods evaluated, the Divestiture Method is the recommended approach to allocate Suffolk's assets and liabilities between Peconic and Suffolk routines. Most importantly, this method has the greatest likelihood of producing an equitable and an agreed-upon division of resources and obligations. Furthermore, this method can be easily communicated to and understood by the current citizens of Suffolk County (east and west). Thus, it has a high probability of being implemented. The fundamental premise of the divestiture method is the negotiation of a split between Suffolk and Peconic Counties that will result in the most efficient uses of governmental resources possible. Similar to corporate divestitures, being big for its own sake is rejected. Instead, assets and liabilities are allocated between Peconic and Suffolk based on each receiving (i) the resources needed for both Peconic and Suffolk to efficiently operate, (ii) the resources that will service Suffolk's existing obligations in an equitable manner without violating the financial integrity of either entity. What follows below is a description of how the major categories of resources (assets) and obligations (liabilities) of Suffolk County would be allocated under a Divestiture Method of allocation. Please note that assets and liabilities which are described below are based on the Suffolk County's Comprehensive Financial Statements, Year Ended December 31, 1993. Please refer to Appendix III Summary of Suffolk County's Balance Sheet. These figures represent the latest audited numbers available and provide an agreed upon "snap shot" of Suffolk County's financial position. When a date for secession is agreed upon, independent auditor(s) should be retained to perform a thorough inventory of all existing assets and liabilities as of that date. Auditors for both Counties should participate in and validate this process, assuring agreement and an equitable transfer of title to assets and responsibility for obligations, based on acceptable methodologies for valuation and allocation. Future resources and obligations allocated to Peconic could differ from the amounts estimated below due to changes in the financial position of Suffolk County from the projection date to the secession date. Such changes may be material. Peconic County Financial Feasibility Report Page 155 IMPLEMENTING A PECONIC COUNTY DIVESTITURE Short -Term Assets and Liabilities Working Capital For allocation purposes, operating working capital is defined as the sum of the operating cash, and amounts receivable less accounts payable and other current liabilities. Year-end working capital is generally volatile, especially for municipal governments, because of tax collections, short-term borrowing and operating expenditure trends. In order to allocate working capital of Suffolk County between Peconic and Suffolk (post-Peconic) the elements of working capital have been aggregated at a single point in time to calculate Suffolk's working capital balance. Only those amounts in Suffolk County's general fund have been used. Once Suffolk County's working capital balance has been calculated, an amount to be allocated to Peconic is determined based upon the percentage of taxes the East End has contributed to Suffolk County's general government requirements (14.39%). See Table 1-1, "East End Tax Contribution." Peconic County will use this working capital amount to provide itself with the liquid reserves needed to operate the new County's business. This is an important element for Peconic County as Peconic's expenses include both start-up costs and regular operating expenses that must be paid as they come due regardless of the receipt of County taxes and other income. Working capital is designed to be used when necessary to fund the County at intervals when expenses are greater than revenues. The future amount of Suffolk County (and therefore Peconic County) working capital will likely increase due to Suffolk County's improved financial performance since December 31, 1993. However, for consistency and projection purposes, Peconic's allocation of Suffolk's working capital has been estimated as of December 31, 1993. The calculation of Peconic County's working capital allocation is shown on the following page. Peconic County Financial Feasibility Report Page 156 IMPLEMENTING A PECONIC COUNTY DIVESTITURE Table 7.4-1 Peconic County Working Capital Worksheet (Based on 1993 Financial Statements) Current Assets and Accumulated Cash Cash and Cash Equivalents $26,345,506 Property Tax Receivable 121,100,854 Due from Other Governments 192,129,829 Due from Other Funds 30,652,851 Equity and Fund Balance 13,235,557 Total $383,464,597 Current Liabilities Accounts Payable $105,349,969 Notes Payable 94,800,000 Due to Other Funds 36,922,147 Deferred Tax Revenue 116,156,974 Other Deferred Revenue 12,176,447 Total $365,405,537 Excess/(Deficit) Current Assets over Current Liabilities $18,059,060 Peconic County Share of Working Capital $2,597,953 (14.39%) Long -Term Assets Land: All land in the East End will become the property and responsibility of Peconic County and all land in the Western Towns will remain the property and responsibility of Suffolk County, with a few important exceptions. The first exception is that all joint -owned facilities, such as those proposed in this report -- the Medical -Legal Investigations and Forensic Science Laboratory and the Community College -- will be owned by a new ownership entity or jointly by the two counties. The second exception to allocating land by locations is that Suffolk County would retain title to all land pertaining to buildings located in the East End, which are to be retained by Suffolk County This would include the Suffolk County Correctional Facilities and other buildings, not necessary for the operation of Peconic County. See Buildings, on the following page. Peconic County Financial Feasibility Report Page 157 IMPLEMENTING A PECONIC COUNTY DIVESTITURE In terms of the land that will be allocated by location -- this would include parks, open space, environmentally sensitive land, etc. -- citizens of both counties would retain equal access to these assets. Specifically, this means that all park access, park fees, access to open space, would remain the same for all current citizens of Suffolk County. Equal access to County land would be guaranteed as part of the separation of Peconic and Suffolk. The allocation of land as described above is consistent with the Divestiture Method of asset/liability allocation. Specifically, in situations where there would be no benefit to the citizenry of either County from the holder of title, land can be allocated most efficiently by location. In situations where there would be benefit to the titleholder, such as land pertaining to buildings, title would be allocated based on the usual method of combining the land and buildings thereon. Peconic would receive all title to land pertaining to buildings it needs to operate efficiently and Suffolk County would receive all title to the rest which would permit it to sell or lease fixed assets as it would see fit. See Buildings, below. Buildings: Both Suffolk County and Peconic County will need to ensure that. each county has the facilities necessary to provide municipal services. Some part of Suffolk County's general office space is located in the East End Towns, in excess of Peconic County's needs. As such, it is unlikely that Peconic County government will utilize all of the space available on the East End and equally likely that Suffolk County may continue to need more space than is available in the Western Towns. The facilities that Suffolk County currently owns are varied in type and location. The County owns fixed assets such as garages, office buildings, barracks, museums, dog security buildings, kennels, out houses, maintenance sheds, pump houses, stables, docks, pig feeders, helicopter buildings and more. The allocation of space is proposed to take into account Peconic and Suffolk County's needs. Much of the minor building allocation would take place through a negotiated agreement regarding continued use of these and other buildings :in the East End by Peconic County. Again, Peconic County will take title io only those buildings it needs to service the East End citizenry, all others will be retained by Suffolk County. Peconic County will have specific space needs with respect to offices, health clinics, public works and parks facilities. It is estimated that Peconic County will need approximately 150,000 to 200,000 square feet of gross office space to incorporate the: space needs of the new government and allow the flexibility for expansion. Peconic County Financial Feasibility Report Page 158 IMPLEMENTING A PECONIC COUNTY DIVESTITURE Table 7.4-2 Peconic County Office Space Requirements Department Office Space Board of Supervisors and Administrative Departments 18,959 Economic Assistance 49,136 Public Safety Coordinator 3,957 Sheriff 7,414 Probation 10,380 FRES 1,127 Health 14,292 Judicial 10,041 Parks 14,972 Planning 2,649 Public Works 7,070 Total County Office Space 139,998 There is sufficient space in the Riverhead County complex to accommodate these requirements, as well as sufficient space for the operations and meetings of the Board of Supervisors. It is expected that Peconic County will also require the Record Storage facility in Riverhead. For purposes of this report, it is proposed that Peconic County will own and occupy the Court House on Griffing Avenue in Riverhead. Similarly, as the criminal courts complex in Southampton may not be needed by Peconic, they will be retained by Suffolk County. Peconic County will also assume ownership of the health clinics in the East End as well as all facilities associated with parks. The public works facilities in Riverhead, BOMARC and the rest of the East End will be owned by Peconic County and used by the Towns in the maintenance of County roads. Gabreski Airport and all the land and facilities associated with it will become part of Peconic County. All other buildings in the East End will be owned by Suffolk County. Initially, Suffolk County will need these facilities to meet its own space needs. As those needs are met either through reduced staffing (i.e. Suffolk County's service levels will be lower with the creation of Peconic County) or acquisition/leasing of space in the Western Towns, Suffolk County can sell or rent these facilities for its own benefit. This method of allocation insures that both Counties receive the facilities that they need to operate as self-sustaining entities and permits Suffolk County to realize value from properties in the East End that it will need to replace with facilities in the Western Towns. Peconic County Financial Feasibility Report Page 159 IMPLEMENTING A PECONIC COUNTY DIVESTITURE Equipment: All County -owned equipment will be allocated by location with a number of noted exceptions. Some equipment will be allocated to joint -use facilities, such as the Community College, and offices and facilities located in the East End which are not required by Peconic County will therefore remain with Suffolk County. As noted, Suffolk County has publicly had difficulties in tracking the exact amount of County equipment. The County has begun an audit of County equipment, but as of the date of this study, Suffolk is unable track its equipment holdings by department, by location, or by value. This report assumes generally that there is sufficient equipment available to meet Peconic County's initial operating needs and that this equipment will be transferred to Peconic without affecting the operation of Suffolk County. Certain extra equipment will be required that is associated with Peconic County's establishment. Please see Chapter 8.1: "Capital Improvement Plan and Start-up Costs". Ongoing Capital Projects Ongoing capital projects and funds set aside for ongoing capital projects would be allocated also based upon the Divestiture Method. Although there are no funds that are planned to be received by Peconic from Suffolk's capital improvement fund, there will likely be transfers of projects that have been financed but where monies have not been spent as of the date of secession. Long Term Liabilities Long -Term Debt As mentioned earlier, the Technical Advisory Committee and this study's legal advisors have determined that Peconic County will need to maintain a contingent liability regarding all outstanding Suffolk County General Obligation Debt. The property values of the East End are part of the underlying security for these obligations, and without that security the value of these bonds to anyone holding them could fall precipitously. In terms of Peconic's allocated portion (14.39%) of the Suffolk County's general obligation debt and drinking water protection debt, a $76 million payment to Suffolk County is proposed based upon Western Suffolk County's retirement of the allocation portion of the debt service due. Peconic County would finance this payment upon the issuance of bonds which may represent a sale of property by Suffolk County to Peconic. In general, upon the cash sale by a municipality of an asset financed with debt which is outstanding at the time of such sale, state law requires that the proceeds of sale be placed in a mandatory reserve fund for the purpose of retiring the outstanding debt attributable to such asset. Similar mandatory reserve fund requirements apply to state and federal grant funds that have been received with respect to a capital improvement but not expended. Any balance remaining in a mandatory Peconic County Financial Feasibility Report Page 160 IMPLEMENTING A PECONIC COUNTY DIVESTITURE reserve fund upon payment of all outstanding debt service may be expended for any lawful municipal purpose. The above discussion regarding mandatory reserve funds applies to the cash sale of a capital improvement. If the allocation of assets between the two counties is structured in such a way that various assets are being transferred to and from each county with the net values of each asset being offset against the net values of other assets, or in any other transaction structure which does not result in a matching of cash proceeds with specific assets for which Suffolk County debt is outstanding, then the mandatory reserve fund provisions described above would be inapplicable. Special legislation related to the creation of Peconic County could be enacted providing an exception to such provisions, thus providing Suffolk with a measure of flexibility in the application of such cash proceeds. In the unlikely event that the two counties agree that Peconic will assume payment obligations on certain Suffolk debt attributable to assets transferred to Peconic, several options for structuring Peconic's payments are possible. Under current law, Peconic debt could only be issued for county purposes such as the acquisition of certain assets, each of which would have a specific statutory period of probable usefulness ("PPU") limiting the maximum term of the debt component attributable to each asset. Alternatively, debt could be issued with substantially level or declining debt service, structured with a weighted average PPU derived from the combined PPU of the acquired assets. As noted above, special legislation related to the creation of Peconic County could be enacted providing a specific PPU for "acquisition of Suffolk County assets by Peconic County" or some other defined object or purpose. This approach would simplify the debt structuring process, eliminating the need to match debt components with specific assets, as well as allow flexibility in the context of the overall budget and accounting concerns for each county. Suffolk County has issued general obligation debt based on a pledge of the full faith and credit of the taxing authority and real property values of all ten Towns. Peconic County is projected to issue bonds to repay Suffolk County for a portion of its existing general obligation debt allocable to Peconic County; and to repay Suffolk County for a portion of its existing Suffolk County drinking water protection bonds allocable to Peconic County. Based on the proposed Divestiture Method of allocating assets and liabilities, Peconic's share of payment for all existing Suffolk County general purpose debt and drinking water protection bonds is assumed to be $76 million or 14.39%, the same share of tax revenues that it contributed to Suffolk County in 1993 (see Table 1-1). These dollars, paid on the first day Peconic County is created, would allow Suffolk County to create an escrow fund to earn interest on the $76 million deposit. This interest plus the initial deposit would allow Suffolk County to pay off the $104 million which represents Peconic's 14.39% share over the years needed by Suffolk County to repay or defease these obligations. Consequently, Suffolk Peconic County Financial Feasibility Report Page 161 IMPLEMENTING A PECONIC COUNTY DIVESTITURE County is placed in the same economic position it would have been in had there been no secession. Provided below are Charts 7.4-3 and 7.4-4 depicting the portion of Suffolk County debt service which Peconic County would be obligated to repay. Charts 7.4-5 and 7.4-6 show the debt service on the Peconic County bonds that will be used to pay off Peconic County's debt service obligation to Suffolk County. 12,000,000 m 10,000,000 to 8,000,000 0 6,000,000 4,000,000 c a 2,000,000 Chart 7.4-3 Allocated Suffolk County General Obligation Debt Service 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 1 Chart 7.4-4 Allocated Suffolk County Drinking Water Debt Service 4,000,000 m 3,500,000 ---------------------------------------------- d 3,000,000 ---------------------------------------------- 2,500,000 - - - - - - - - - - 0 2,000,000 - - - -- - - - -- 1,500,000 - - - - - - - - - - = 1,000,000 -- ---- --- -- - ---- - - - a 500,000 - -- -- - - -- 0 1996 1997 1998 1999 2000 All proposed bonds for Peconic County have been structured with current interest rates and a level debt repayment schedule. Please see Table 8.2-1 for a summary of total Peconic County debt outstanding. Detailed schedules of Peconic County bond calculations can be found in Appendix H. Peconic County Financial Feasibility Report Page 162 IMPLEMENTING A PECONIC COUNTY DIVESTITURE 7.4-5 New Peconic County Debt Service to Repay General Obligation Bonds 8,000,000 7,000,000-- - - - - - - - - - - ------------------------------------ iu6,000,000 ---------------------------------------------- 5,000,000 - - - - - - - ----- - - - - - - p 4,000,000 - - - - - - - - - - - - - - - - - - 3,000,000 - - - - - - - - ---------- 3 2,000,000 - - - - -- -- - - -- -- 1,000,000 - - ----- -- - - -- 4191 0 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Chart 7.4-6 New Peconic County Debt Service to Repay Drinking Water Obligation d 4,000,000 3,500,000 ---------------------------------------------- in3,000,000 ---------------------------------------------- 2,500,000 - - - -- - - - - -- - - - - C 2,000,000 -- - -- -- - -- 1,500,000 - - - - - - - - - - - - - - - = 1,000,000 -- - -- -- - - -- - - - -- Q 500,000 - - -- - - - -- ---- is 0 1996 1997 1998 1999 2000 Other Long -Term Liabilities: Capital Lease. As noted earlier, Suffolk County entered into an agreement with the New York State Dormitory Authority regarding the leasing of the Cohalan Court Complex in Central Islip. The Cohalan Court Complex will not provide any services to Peconic County, however, the liability is the capital lease, and as such, is a payment obligation of Suffolk County. Suffolk County may not be able to terminate the lease without financial difficulties, including harming Suffolk County's ability to borrow funds through the capital markets. Due to the nature of this lease, a payment of Peconic County is provided to Suffolk County based on the tax contribution of the East End (14.39% in 1993). Peconic County Financial Feasibility Report Page 163 IMPLEMENTING A PECONIC COUNTY DIVESTITURE Retirement Benefits: As described earlier, retirement benefits liability is a holdover from the State's conversion to a different billing system and then reconverting. By the time secession takes place, Suffolk County should be current on all actuarially -determined pension contributions and Peconic County will have no ongoing responsibility to Suffolk County employees. Contingent Long -Terni Liabilities Even though there are no immediate out-of-pocket costs associated with Suffolk County's Contingent Long -Term Liabilities, these liabilities will need to be allocated between Suffolk County and Peconic in a manner that is consistent with the Divestiture Method as described above. Accumulated Vacation and Sick Leave: Suffolk County is assumed to be responsible for all the accumulated vacation and sick leave of its employees. It cannot be predicted what cost, if any, Suffolk County will incur from the secession of Peconic. The Suffolk County labor contracts provide that this liability is the responsibility of the legal entity that negotiated the contracts. Other Liabilities: This category includes Medicaid Claims, Estimated Liability for Claims, and Mass Transit Aid (although the. Long Island Rail Road payment is still the subject of litigation and any obligation by Peconic County should be adjusted accordingly). Consistent with the Divestitive Method, the responsibility associated with these liabilities should be allocated in terms of the previous expenditures made by Suffolk County. In this regard, none of the liabilities associated with the expenditures in. Suffolk County's Sewer District Funds, the Police District Fund, and the District Court Fund would be allocated to Peconic County because no East End taxes were used to support these services. If any other liabilities that are associated with Suffolk County's General Fund become current and payable, Peconic County would propose to fund its share, if any, through additional moneys, Suffolk County insurance payments and any that have been budgeted for "Increase in County Reserves," ($1,500,000 per year) less any allocated reserves established by Suffolk County for these items which would be transferred to Peconic at the time of secession Litigation: Suffolk County, its officers and employees are defendants in a number of lawsuits. While the ultimate outcome of various proceedings and claims is not currently predictable, adverse determinations in some of them might cause Suffolk County to have to a pay claim. Suffolk County's 1993 Financial Statement's estimated liability for claims is shown as $240,984,978. Research into the basis for this item indicates that the financial statement number is calculated to be the aggregate of all claims filed against the County and not an estimation of the future pay out by Suffolk County. Furthermore, research indicates that a Peconic County Financial Feasibility Report Page 164 IMPLEMENTING A PECONIC COUNTY DIVESTITURE substantial portion of the liability is for items outside of Suffolk County's general government function (i.e. County Police items, County sewer district items, etc.) Furthermore, Suffolk County is and maybe insured for all claims against the County. If any of Litigation Liabilities become current and payable, Peconic County would propose to fund its share, if any, through additional moneys, Suffolk County insurance payments and any that have been budgeted for "Increase in County Reserves," ($1,500,000 per year) less any allocated reserves established by Suffolk County for these items which would be transferred to Peconic at the time of secession. LILCO Litigation: LILCO has pending in the Supreme Court of the State of New York, County of Suffolk, claims seeking a declaration that the entire assessment of the Shoreham property for the tax years ending in 1977 through 1992, with the exception of the tax year ending in 1979, was improper and illegal and should be stricken, and that the property should be valued at $0; and that a refund should be made to LILCO by the County for all taxes paid for Shoreham and that LILCO is entitled to a refund of taxes in excess of $825 million, excluding interest. The earlier seven tax years have been consolidated for trial in State court. On October 26, 1992, Judge Stark rendered a decision on the valuation portion of the Shoreham tax litigation for tax years 1976/77 through 1983/84 with the exception of tax year 1979/80, which is not subject to dispute. For all the tax years under review, the Judge found that there should be a reduction in the market value of Shoreham. The Judge's decision gives rise to a tax refund liability because LILCO has stipulated to the equalization rates established by the New York State Board of Equalization and Assessment (the 'State Equalization Rates'). There is an indicated refund of approximately $72.0 million, including interest, through October, 1994. The County's direct tax refund liability, including interest through October, 1994, is approximately $26.28 million. The valuation decision has been reduced to a judgment and signed by the Judge. LILCO has filed a Notice of Appeal and all defendants have filed Cross Notices of Appeal. Assuming that LILCO meets its burden of proof in establishing tax refund liability, the taxing jurisdiction's appraisal indicates a refund for tax years 1990/91 and 1991/92 of approximately $27.6 million plus interest, of which approximately $10 million plus interest represents Suffolk County's direct share. There is currently a proposal that LIPA (Long Island Power Authority) would purchase the assets of LILCO from the proceeds of municipal bonds. This proposal terminates tax liability for Suffolk County. If any of these LILCO Litigation liabilities become current and payable Peconic County would propose to fund the amount due through additional moneys ($1,500,000 per year) that have been budgeted for "Increase in County Reserves," less (1) any allocated reserves established by Suffolk County for these items which would be transferred to Peconic at the Peconic County Financial Feasibility Report Page 165 IMPLEMENTING A PECONIC COUNTY DIVESTITURE time of secession, (2) the proceeds of insurance awards for insurance that was purchased by Suffolk County prior to the secession of Peconic and, (3) the proceeds of insurance awards for insurance that was purchased by Peconic County following the secession. Peconic County Financial Feasibility Report Page 166 FUTURE INVESTMENT IN PECONIC COUNTY CAPITAL IMPROVEMENT PLAN AND START UP COSTS The Three -Year Capital Program The Three -Year Capital Program represents Peconic County's financing plan for the construction and renovation of County -owned buildings and public facilities and equipment purchases for the benefit of certain operating departments and for a number of land acquisitions. The expenditures included in the capital program do not incorporate additional start-up costs that Peconic County will incur when it begins operation as an independent entity (see the end of this section). The Capital Program was developed using the schedule of projects that each Suffolk County operating department established for the Suffolk County capital budget. Projects were then identified as East End projects, Western projects, or projects which appropriately fall under a "joint use" designation. (Examples of joint use projects include "Roof Repair: Various County Buildings" and "Drainage: County Roads".) For joint use projects, we then used an appropriate multiplying factor (i.e. road miles in the East End) to determine which portion of the joint use projects were allocable to the East End. Once a reasonable estimate of Suffolk County East End projects was developed, each project was carefully examined to determine its congruence with the mission of the applicable Peconic County department. For example, the Suffolk County Sports Hall of Fame was eliminated from consideration as a Peconic County project. This further screening provided an estimate of what Peconic County' capital needs will be in its first three years in order to meet its operating needs and priorities. Once annual needs were identified, debt issuance and debt service projections were developed for each fiscal year, incorporating these expenditures into the operating budget model. Since most of the projects associated with this program are derived from Suffolk County's plans, it is possible that some of these projects may be undertaken by Suffolk County prior to the creation of Peconic County. It is likely, therefore, that the actual projects that need to be completed by Peconic County will differ from the projects listed in this section. However, the costs associated with these projects and the priorities that they indicate for Peconic County provide a good guide for future capital needs and investment in Peconic County. The figures presented in the following section represent the net cost to Peconic County of these capital improvements. They do not include anticipated federal and State matching funds. Where it is expected that matching funds will be available, a notation is made as to what portion of those projects will be funded by non -County sources. The costs of the projects listed below are reflected in the debt service figure in Table 2-5. The individual operating department budgets in Chapters 4 and 5 do not contain capital costs. Peconic County Financial Feasibility Report Page 167 CAPITAL IMPROVEMENT PLAN AND START-UP COSTS Please refer to the summary of proposed capital expenditures and respective costs located at the end of this section. Board of Supervisors and Administrative Departments The Board of Supervisors and Administrative Departments are expected to undertake three main capital investments during the first three years: (1) enhancing office computer information systems, (2) replacing or renovating building operations equipment and (3) purchasing and implementing a new geographic information system (GIS). The County Administrator will coordinate upgrades of computer systems for the Departments of Law, Public Works, Health, Finance and Probation. During Peconic County's first three years, approximately $850,000 of investments will be made in hardware (e.g. personal computers, printers and file servers) and software (e.g. word processing, spreadsheets and databases). The second project provides for the replacement of mechanical equipment in County buildings which have reached or exceeded their useful life, plus the installation of water pre- treatment equipment for boilers. The proposed list of projects includes re -tubing the boiler at BOMARC in Westhampton, replacing absorption machines at the Riverhead Power Plant and replacing boilers and/or chillers at the Riverhead Courthouse Annex and the DPW warehouse. These projects are estimated to cost $450,000 over three years. Finally, Peconic County would partially finance a geographic information system, a capital project being undertaken by Suffolk County. The system will contain digitized tax maps and information on all of the parcels and spaces in both Suffolk County and Peconic County. Peconic County's total contribution to this project would be approximately $75,000, bringing the total cost of general government capital projects to, approximately $1,375,000 over three years. Department of Economic Assistance The Department currently has minimal capital improvement needs. Over the next several years the Department will need to purchase a van for handicapped services. Sheriffs Department The Peconic County Sheriffs Department's will require capital expenditures for the purchase of mobile security vans and mini -buses to be used in the transportation of prisoners for local travel. The total cost of this capital expenditure is expected to be $132,500. Peconic County Financial Feasibility Report Page 168 CAPITAL IMPROVEMENT PLAN AND START-UP COSTS Health Department The Health Department will require capital expenditures for replacing laboratory, radiology, medical and office equipment and furnishings for county health centers; other improvements to the health centers include modifications to improve air change rates and provide additional "negative pressure" rooms to protect employees and staff from airborne infectious diseases, mainly tuberculosis; these improvements will bring Peconic County health centers into compliance with both Center for Disease Control and OSHA standards. The Department will also purchase replacement vehicles for its fleet and a new mammography van. The total cost of these expenditures is expected to be $1,683,344 over Peconic County's first three fiscal years. Department of Parks and Cultural Affairs The Department is expected to undertake several capital projects over Peconic County's first three years, including improvements to various recreational facilities and park buildings. The various projects are as follows: • installation of fencing and lockable gates at Robert Cushman Murphy Park and Indian Island Country Club; • improvements to various campground facilities at Sears Bellows Park, Cedar Point Park, Shinnecock East Park and Indian Island Park; • purchase of a variety of vehicles and heavy equipment items to use in maintaining facilities; • installation of a parking field and marina lighting at Indian Island Park; • improvements to park access roads at Cedar Point Park, Meschutt Beach, Indian Island and Shinnecock West; • installation of a new floating dock ,with electric and water service at the Shinnecock marina; • installation of an automatic irrigation system at the Indian Island Golf Course; • roof replacement at the Montauk Third House and Meschutt Beach concession stand; and • design and construction of a new maintenance facility at Indian Island Golf Course. These projects are expected to cost a total of approximately $4.1 million over three years. Peconic County Financial Feasibility Report Page 169 CAPITAL IMPROVEMENT PLAN AND START-UP COSTS Department of Planning and Regional Services The Department will invest in seven capital projects in Peconic; County's first three years, with Pine Barrens preservation, purchase of environmentally sensitive lands, and dredging of County waterways representing ongoing expenditures: • a study of the County's needs for an additional scavenger waste facility to process sludge (60% State supported); • purchase of heavy duty vehicles and drilling equipment to perform groundwater monitoring, investigate hazardous waste spills and gather data for geological studies; • funding for Peconic County's share of the Peconic Bay Estuary Program, which is part of the U.S. Environmental Protection Agency's National Estuary Program; • Pine Barrens preservation; • purchase of farmland in the East End; • purchase of environmentally sensitive lands ; and • dredging of County waterways. These projects are estimated to cost approximately $11.5 million over three years. Department of Public Works The 1996-1998 Capital program for Peconic County involves the financing and planning of improvement or construction projects on many of the County's roads, buildings and facilities. In many cases, these projects are budgeted in the Capital Budget of the Department of Public Works. For the fiscal years 1996-1998, the Department of Public Works proposed capital budget is $10.2 million in net costs for improvements to or rehabilitation and construction of various roads, buildings, facilities and structures. Many of these projects receive matching funds or grants from the State and/or federal government. Capital projects associated with the Department can be organized into the following categories: (1) general government related projects, and (2) transportation related projects. General government projects deal mainly with buildings and facilities in Peconic County. Transportation related projects include highway maintenance and repair, public transportation :improvements and aviation related projects. (1) General government related projects are those projects which may benefit several County departments through their completion. As noted above, the; projects deal mainly with repair, maintenance and construction of various County facilities. These projects include: Peconic County Financial Feasibility Report Page 170 CAPITAL IMPROVEMENT PLAN AND START-UP COSTS • Roof replacement of various County buildings; • Improvements to the County Center in Riverhead; • Projects to increase energy conservation in buildings County -wide; • Rehabilitation of various parking lots, curbs and drives; • Reconstruction projects at the Power Plant in BOMARC; • Replacement of fuel and hazardous waste storage tanks; • Removal of hazardous building materials; • Installation of Emergency Systems for various County Buildings; • Projects to improve the County Water Supply System; and Renovation of various County buildings General government related projects account for approximately $5.0 million in 1996, nearly $4.4 million in 1997 and $0.9 million in 1998. The most costly of these projects is the improvement of the County Center in Riverhead. Plans calls for $2.0 million to be expended in FY 1996 and nearly $4.5 million is allocated for expenditures in subsequent years. (2) The Transportation portion of the Department's Capital Budget can be divided into several subsections: Highways, Public Transportation, Erosion and Flood Control, Aviation and Bridges. Certain transportation expenditures will be funded from a variety of sources. The figures shown in the capital budget represent the net amount that will have to be bonded by Peconic County. For example, the State and federal government will support 90% of the costs of the purchase of street signs and transit vehicles, while federal and state aid will be available to meet 95% of the costs of improvements to Gabreski Airport. Capital budget monies will be used to accomplish the following: Highways • Strengthen and improve various County roads • Purchase Public Works maintenance equipment • Construct highway maintenance facilities, including salt storage shed • Replace various traffic signals throughout the County • Upgrade the safety of several locations throughout the County • Purchase Vector Control Equipment Public Transportation • Purchase signs, street furniture and transit vehicles (90% federal and State supported) Erosion and Flood Control Reconstruct various culverts and inlets throughout the County Peconic County Financial Feasibility Report Page 171 CAPITAL IMPROVEMENT PLAN AND START-UP COSTS Aviation • Extend North Taxiway at Gabreski Airport (95% federal and State supported) • Improve lighting on South Taxiway at Gabreski Airport (95% federal and State supported) Bridges • Rehabilitate various bridges and embankments • Paint Goose Creek bridge Highway projects are the most costly to the County, as expenditures in the Fiscal Years 1996, 1997 and 1998 are projected to be nearly $1.3 million, $2.3 million and $3.6 million respectively. The increases are mainly due to the increased costs of plans to reconstruct County Road 58 in Riverhead. Capital appropriations for subsequent years total nearly $7.6 million. The majority of this amount is set aside for the reconstruction of County Road 48 in Southold. The Department's Capital Budget allocates $1.0 million in 1996 and $1.1 million in 1998 for the repair and reconstruction of inlets and culverts :in the County. On-going maintenance will cost the County $2.0 million in subsequent years. Allocations of $580,000 in FY 1996 and $90,000 in FY 1997 will be used for the repair of various bridges and embankments. Improvements to Gabreski Airport's runways and sewer system account for $2.6 million of the Capital Budget in 1996 and $2.4 million in 1998 although these improvements are 95% financed by the State and Federal Government. New signs and seating at the County's bus stops will account for $13,000 of the Capital Budget in Fiscal Year 1996. Peconic County's share of a new closed loop traffic system to increase safety on its roadways will account for $14,860 of the Capital Budget in both 1997 and 1998 and $125,580 in subsequent years. Joint Community College Two projects are currently budgeted for SCC in the Suffolk County Capital Plan for 1995-1997. It has been determined that $208,333 is budgeted for projects at the Eastern Campus in 1996 for replacement of underground fuel tanks and $750,000 is budgeted for 1997 to improve fire alarm and sprinkler safety devices. These projects will be added to the Peconic County Capital Budget. It is expected that the State will meet 50% of these costs, reducing the County's contribution to $104,167 and $375,000 respectively. Based upon information provided to the East End Economic and Environmental Institute in a draft version of the Proposal for a Regional Education Center, the future Capital Program for the College includes two specific projects, although time frames for implementation are not discussed. The first is the creation of the Regional Information and Distance Learning Center. The Center will consist of a library and information center, a Peconic County Financial Feasibility Report Page 172 CAPITAL IMPROVEMENT PLAN AND START-UP COSTS center for community research and a small business development center. The Regional Information and Distance Learning Center will provide specialized information resources to all of Peconic and Suffolk Counties. The total estimated cost of this project is $11.06 million. As to what portion of this cost will be attributable to Peconic County, agreements regarding the joint Peconic-Suffolk Community College will need to be negotiated before an accurate estimate can be made. The second project included in the capital plan is the creation of an Early Childhood Education, Child Care and Parenting Education Program. This project will focus on serving the needs of families by offering a degree program in early childhood education, developing a child care center and by providing training for day care providers. The program will be run by the student association and funding will come from a state grant, student activity moneys and user fees. No funds from the County are needed for the completion of this project. General Start -Up Costs In its first few years of operation, Peconic County will incur costs associated with temporary operating adjustments, training, consulting services and supplies, equipment and other purchases which are not included in the Capital Program or in the individual departments' budget projections; rather, they are included in the Operating Budget summary as an aggregate figure for the entire county. Start-up costs are assumed to be 4%, 2% and 0.5% of total departmental operating expenditures for the County's first three fiscal years, respectively, or $8 million total over the three years. It is assumed that half of these start-up costs will be capital costs and therefore, can be capitalized and funded with tax-exempt bond proceeds. The balance of these costs will need to be paid out of current revenues. Examples of these costs are: • Legal fees • Consulting fees • Equipment and vehicle purchases • Asset and liability audit • Employee testing and training • Printing of County stationery • Re -configuring office space Peconic County Financial Feasibility Report Page 173 Operating Expenses Capital Expenses(1) Total CAPITAL IMPROVEMENT PLAN AND START-UP COSTS Table 8.1-1 Summary of Start -Up Costs 1996 1997 1998 Totals $2,472,119 $1,273,141 $327,834 $4,073,094 2,472,119 1,273,141 327,834 4,073,094 $4,944,238 $2,546,282 $655,668 $8,146,188 (1) Debt is to be issued in 1996 to finance capitalized start-up expenses between 1996 and 1998. Peconic County Financial Feasibility Report Page 174 Peconic County Feasibility Study Suffolk County 1995 - 1997 Adopted Capital Program and Peconic County Capital Improvement Plan 1996 - 2000 Project Adopted Suffolk (1) Subsequent Number Project Title Location 1995 1996 1997 Years (1) General Government Support: Judicial 560,000 1123 Renovation to Court Complex, Gritting Ave., Riverhead E General Government Support: Shared Services 2,500,000 1623 Roof replacement of various county buildings X 1643 Improvements to the County Center, Riverhead E 1664 Energy Conservation, Various County Buildings X 1678 Rehabilitation of Parking lots, drives and curbs X 1686 Equipment technology advancements and productivity X 1705 Reconstruction of Power Plant, BOMARC E 1706 Replacement/Cleanup of Fossil Fuel, Toxic & Hazardous X 1710 Installation of Emergency Systems for major county Building. X 1724 Improvements to Water Supply System X 1732 Removal of toxic & hazardous bldg. materials X 1737 Replacement of major bldg. operations equipment X 1750 Geographic information system X 1753 Renovations to Marine Science Bldg. and Adjacent bldg. E 1755 Infrastructure Improvements for Traffic & Public Safety & Public Health X Education: Community College 0 2161 Replacement of underground gasoline/fuel oil tanks X 2167 Life Safety Alternations and Fire Alarm and Sprinklers X Public SafMy: Qlher Protection 0 3047 Purchase of Mobile Security Vehicles X Public Safet : Law Enforcement 3197 Replacing Major helicopter Components X Public Safety: Communications 3205 Purchase & Installation of Equip. for EMS/ALS Training X 3223 Infrastructure/Productivity Improvements 800 MHz System X Public Safely: Traffic 3309 county share for closed loop traffic signal system X Health• Public Nurse 4055 Purchase of equipment for health centers X 4073 Planned replac. of health srvs. fleet w/heavy duty vehicles X 4075 Improvements at health centers for infections control X 4076 Replacement of Mammography Van X 400,000 2,525,000 0 14,200,000 760,000 410,000 560,000 590,000 2,055,000 0 0 4,460,000 2,500,000 1,500,000 1,500,000 0 175,000 260,000 0 0 1,525,000 2,019,000 752,000 0 15,000 415,000 0 0 250,000 125,000 125,000 0 0 275,000 450,000 0 600,000 0 0 0 600,000 360,000 360,000 0 630,000 495,000 285,000 265,000 500,000 250,000 0 0 500,000 0 0 0 5,000,000 0 0 0 312,500 0 0 0 0 750,000 1,100,000 14,000,000 265,000 0 0 0 451,000 0 0 0 538,000 353,000 403,000 0 372,000 0 0 0 0 200,000 200,000 600,000 398,160 1,054,407 203,860 140,000 38,000 96,000 88,000 0 6,000,000 0 0 0 537,000 0 0 0 Peconic County Subsequent 1996 1997 1998 Years (2) 400,000 2,525,000 0 0 380,000 205,000 0 0 2,055,000 0 0 4,460,000 700,000 420,000 420,000 0 36,628 54,418 0 0 300,000 400,000 150,000 0 15,000 415,000 0 0 87,500 43,750 43,750 0 0 96,250 157,500 0 100,000 0 0 0 168,000 100,800 100,800 0 200,000 150,000 100,000 75,000 50,000 25,000 0 0 500,000 0 0 0 0 0 0 0 104,167 0 0 0 0 375,000 0 0 132,500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 41,860 49,770 131,801 9,721 24,558 750,000 0 537,000 0 41,860 125,580 25,483 17,500 22,512 0 0 0 0 0 Peconic County Feasibility Study Suffolk County 1995 - 1997 Adopted Capital Program and Peconic County Capital Improvement Plan 1996 - 2000 . Project Adopted Suffolk (1) Subsequent Number Project Title Location 1995 1996 1997 Years (1) Transpgrtation: Highways 5014 Strengthening and improving County roads 5044 Improvements to old county road - C.R. 58 -Riverhead 5047 Purchase of public works maintenance equipment 5048 Construction of highway maintenance facilities 5054 Traffic Signal Improvement 5173 Drainage Improvements to Middle Road, CR 48 - Southold 5180 Installation of Guide Rail and Safety Upgrading at various locations 5504 Renovations and additions to building C-342 5505 Cnty. Share - Reconst. of North Road CR 39 - Traffic Signal System 5509 Purchase of Vector Control Equipment 5518 Intersection Improvement on Middle Road, CR 48 - Southold 5526 Reconstruction of CR 48 -Southold Construction of Salt Storage Shed Transportation: Erosion and Flood Control 5347.1 Const./resetting stone revetment and maint. at Shinnecock Inlet 5371 Reconstruction of Culverts Transportation: Public Transoortation 5651 Purchase of signs and street furniture 5658 Purchase transit vehicles (UMTA 5 & 9) Transportation: Aviation 5719 South Taxiway Lighting System at Gabreski Airport - Westhampton 5729 Extend North Taxiway at Gabreski Airport - Westhampton Transportation: Bridges 5815 Painting of bridge at Goose Creek 5846 County Share for rehab. of bridges on CR 105 Cross River Drive 5847 Rehabilitation of Bridge on Cr 39 -Southampton 5850 Rehabilitation of various bridges and embankments Transpgrtation: Dredges 5200 Dredging of County Waters Economic Assistance and Opportunity 6009 Purchase and modification of van for office of the handicapped 6418 High technology greenhouse education facility X 3,000,000 3,000,000 3,000,000 0 E 100,000 470,000 1,300,000 0 X 1,045,000 996,500 722,500 0 X 600,000 600,000 500,000 0 X 820,000 1,000,000 1,000,000 0 E 0 0 50,000 800,000 X 75,000 175,000 175,000 0 X 245,000 0 0 0 E 0 5,000 340,000 0 X 294,000 346,000 456,000 0 E 20,000 0 680,000 0 E 30,000 0 50,000 6,150,000 E 0 0 0 0 E 1,000,000 0 1,000,000 2,000,000 X 100,000 60,000 100,000 0 X 16,500 0 0 0 X 348,000 0 0 0 E 13,570 0 6,251 0 E 0 0 116,998 0 E 17,000 0 0 0 E 405,000 0 0 0 E 175,000 0 0 0 X 50,000 170,000 0 0 X 2,000,000 2,000,000 2,000,000 4,200,000 X 45,000 0 0 0 E 240,000 435,000 0 0 Peconic County Subsequent 1996 1997 1998 Years (2) 612,360 612,360 612,360 612,360 100,000 470,000 1,300,000 0 218,719 208,567 151,219 0 0 600,000 0 0 171,626 209,300 209,300 0 0 0 50,000 800,000 15,750 36,750 36,750 0 0 0 0 0 0 5,000 340,000 0 147,000 173,000 228,000 0 20,000 0 680,000 0 30,000 0 50,000 6,150,000 75,000 0 0 0 1,000,000 0 1,000,000 2,000,000 0 0 100,000 0 1,338 0 0 0 0 0 0 0 13,570 0 6,251 0 0 0 116,998 0 17,000 0 0 0 405,000 0 0 0 175,000 0 0 0 0 90,000 0 0 500,000 500,000 500,000 1,000,000 45,000 0 0 0 Peconic County Feasibility Study Suffolk County 1995 -1997 Adopted Capital Program anc Peconic County Capital Improvement Plan 1996 - 2000 Project Number Project Title Location Culture and Recreation: Parks 0 7007 Fencing and Surveying County Parks X 7009 Improvements to Campgrounds X 7011 Purchase of Equipment for County Parks X 7079 Improvements & lighting to Park Access Roads and Parking Fields X 7109 Improvements to County Marinas X 7153 Automatic Irrigation Systems at County Golf Courses X 7155 Roof replacement on Park Buildings X 7167 Demolition/Construction of Park Maintenance Building X Home and Community Services: Sanitation 500,000 8177 Construction of a Sewage Treatment Plant-Gabreski Airport E 8179 Scavenger Waste Facility Study X Home and Community Services: Water Supply 0 8226 Purchase of equipment for monitoring groundwater contamination X 8235 Peconic Bay Estuary Program E ` Purchase of Environmentally Sensitive Land E Home and Community Services: Farmland Preservation 1,000,000 8701 Acquisition of Farmland X Home and Community Services: Pine Barrens • Land Acquisition E TOTAL CAPITAL IMPROVEMENT PROGRAM Indicates new capital projects in addition to Suffolk County's CIP. (1) East End or joint use capital projects only. (2) $24 million of capital projects beyond 1998 are anticipated to be financed by a bond issue to occur in 1999. Adopted Suffolk (1) Subsequent 1995 1996 1997 Years (1) 40,000 40,000 40,000 0 1,515,000 513,000 1,070,000 0 392,000 468,000 482,000 0 80,000 80,000 80,000 0 120,000 142,500 0 0 410,000 385,000 0 0 75,000 120,000 0 0 730,000 0 500,000 0 950,000 0 0 0 300,000 0 0 0 94,000 125,000 75,000 0 250,000 0 0 0 500,000 0 0 0 $40,516,730 $22,218,407 $19,770,609 $47,405,000 LEGEND E = East End X = Joint Use/Undetermined Peconic County Subsequent 1996 1997 1998 Years (2) 20,000 0 0 0 750,000 260,000 535,000 0 200,000 235,000 245,000 0 65,000 30,000 30,000 0 40,000 47,500 0 0 370,000 0 0 0 70,000 0 0 0 730,000 0 500,000 0 950,000 0 0 0 24,325 0 0 0 94,000 62,500 75,000 0 250,000 250,000 250,000 250,000 1,000,000 1,000,000 1,000,000 1,000,000 500,000 500,000 500,000 500,000 2,000,000 2,000,000 2,000,000 2,000,000 $17,185,973 $12,298,414 $11,577,782 $18,990,440 Rounded to nearest $1,000 (to be used for bond sizings): $17,186,000 $12,298,400 $11,577,800 INSURANCE COSTS Insurance Needs Peconic County will need to provide insurance for a variety of purposes, ranging from health insurance for County employees to liability insurance for claims resulting from County actions. Examples of classifications of insurance are: • General Liability; • Workers Compensation; • Environmental Liability; • Flood Insurance; and • Indemnity of County Officials. Options There are three fundamental options for the way in which Peconic County can approach insurance: 1. Private Insurance 2. Self -Insurance 3. Combination of Private and Self -Insurance Private Insurance Under this option, Peconic County would contract with a private insurer. The insurer would provide specific policies regarding coverage for the different classes of potential claims and the County would pay premiums. Self -Insurance The County would bear the costs of all claims itself, establishing a special fund for payments to claimants. This fund could be endowed and generate interest earnings or the County could adopt a pay-as-you-go policy of appropriating necessary amounts each year. Combination of Private and Self -Insurance Under this option, the County would analyze the costs and benefits of private or self- insurance for each class of potential claims. It is likely that there will be certain areas where private insurance will beneficial and others where the costs of private insurance are Peconic County Financial Feasibility Report Page 175 INSURANCE COSTS prohibitive when measured against the benefits. This "a la carte" approach will allow the County to optimize the costs and benefits of insurance and develop the best package. Costs of Insurance for Peconic County These estimates derived from Suffolk County costs and are, of necessity, based on the insurance structure adopted by Suffolk County. A relationship has also been made between the amount of activity generated by Suffolk County and the incurring of insurance liabilities and claims. That is, if the County has more employees providing more service in the Western Towns, it is logical to assume that insurance needs will be commensurate with that higher level of activity. Analyzing the activities of all Suffolk County employees and all funds, it was determined that activities in the East End account :for 7.72% of total Suffolk County activities. Suffolk County utilizes a combination of private and self-insurance. In order to determine what Peconic County's costs would be, we analyzed both the premiums for private insurance as well as the actual annual payments out of the Self -Insurance Fund. Based on the 7.72% activity measure and Suffolk County's actual costs, we estimate that Peconic County's annual insurance costs for FY 1993 would have been $1,865,757. Peconic County Financial Feasibility Report Page 176 DEBT SUMMARY Debt Peconic County will need to issue debt for three distinct purposes: 1. funding of certain start-up costs; 2. payment of existing Suffolk County obligations; and 3. funding of capital improvements and purchases necessary for the future operation of the County. The debt associated with each of these three purposes has been estimated as separate bond issues (See Appendix H, "Debt: Bond Sizings Detail"). Each bond series was structured in accordance with applicable New York State law. Peconic County is assumed to have a credit rating of Baal, that of Suffolk County, and a constant 6.0% interest rate was assumed for all bond issues conservatively based upon market interest rates. Interest rate fluctuations between the time this report is issued and the creation of Peconic County will affect the annual debt service that the County will need to pay. The bonds to be issued to fund start-up costs are assumed to be issued in the County's first year of operation and will be spent down over the County's first five years. The bonds to be issued for payment of existing Suffolk County debt will also be issued in the County's first year. These bonds will provide sufficient funds to Suffolk County to pay for the East End towns' share of debt (14.39%) incurred by Suffolk County prior to the creation of Peconic County. Detailed cash flows of what the costs of this payment will be are provided in Appendix II, "Debt: Bond Sizing Detail". The bonds that need to be repaid include bonds issued by Suffolk County for general capital improvements as well as Drinking Water Protection bonds. The bonds to be issued for future capital improvements are assumed to be issued in each of the first four years of the County's operation and correspond to the County's projected capital needs for the first three years as shown in the Capital Improvement Plan detailed in Chapter 8: "Capital Improvement Plan and Start -Up Costs" and an additional $24 million of capital needs anticipated between 1999 and 2000. A summary of Peconic County's future debt is shown in Table 8.2-1 on the following page. Peconic County Financial Feasibility Report Page 177 DEBT SUMMARY Table 8.2-1 Future Debt Outstanding (orincioal onl Peconic County Financial Feasibility Report Page 178 As of January 15, ($ millions) 1996 1997 1998 1999 2000 New Money - Start Up Costs $4.19 $3.49 $2.87 $2.21 $1.52 New Money - Capital Improvements 17.27 27.30 39.15 61.76 59.21 Repayment of General Obligation to Suffolk County 66.22 62.60 60.74 58.78 56.69 Repayment of Drinking Water to Suffolk County 12.17 9.72 7.47 5.10 2.62 Total $99.84 $103.10 $110.22 $127.85 $120.03 Peconic County Financial Feasibility Report Page 178 APPENDIX I. The Case for a Weighted Board of Supervisors for Peconic County THE CASE FOR A WEIGHTED BOARD OF SUPERVISORS FOR PECONIC COUNTY Prepared for the Technical Advisory Committee of the Peconic County Citizens Advisory Committee Hal Ross and Liz Granitz January 19, 1995 Revised July 2, 1995 TABLE OF CONTENTS Page I. Conclusion and Summary..................................................................1 II. Advantages of a Board of Supervisors...................................................1 III. The Proposed Weighted Board of Supervisors.........................................4 IV. Note on Legislatures with Equal -Size Districts.......................................7 V. Legal Argument............................................................................9 A. Addendum...............................................................................15 VI. Appendices A. 1990 U.S. Census of Population Data B. Division of 4 and 5 Equal -Size District Legislatures C. Comparison of Actual and Ideal Population in Different -Size Legislatures Using Town Lines D. (1) Critical Coalition Analysis With 5 Representatives D. Critical Coalition Analysis With 93 Weighted Votes E. Quotes From U.S. Supreme Court Decision in Abate and Brown F. Allocation of At -Large Voting Power to the Towns Based on Their Population Size I. CONCLUSION AND SUMMARY The form of government for Peconic County should be a weighted Board of Supervisors. This is because there are many compelling substantive advantages to such a Board rather than a legislature based on districts of equal population. 2. The specific Board of Supervisors we propose will have 7 Supervisors -- one from each of 5 of the Towns, and two at -large. They will cast 93 (or possibly 81) weighted votes. The proposed Board will meet the constitutional requirement of one-person, one vote because 1) the numerical deviations of voting power conform so closely to the differences in population size -among the five Towns that they meet the 12 % to 16 % range of deviation approved by the courts, and 2) the many compelling substantive advantages -- that is, the practical considerations -- would be given great weight by any reasonable court in the event that such a Board is ever challenged legally. Among the most important of these practical considerations are the small rural nature of Peconic County, the need for Shelter Island to have a voice and vote, and our long 330 -year history of using Town Supervisors as Suffolk County Supervisors and the subsequent establishment of the East End Supervisors and Mayors Association to continue handling problems concerning the East End -- that is Peconic County. II. THERE ARE COMPELLING SUBSTANTIVE ADVANTAGES TO PECONIC COUNTY FOR A WEIGHTED BOARD OF SUPERVISORS RATHER THAN A LEGISLATURE BASED ON DISTRICTS OF EQUAL POPULATION 1. It retains the knowledge and experience of the Town Supervisors. No one knows more about what is happening in the five East End Towns than the Town Supervisors. Most of them are working full time or almost full time at their jobs. The new County should have the benefit of this knowledge and experience. Moreover, there is no way that representatives elected by districts in this small rural county, working perhaps only two days per week would ever have the knowledge and experience of what is happening in their areas compared to what Town Supervisors have. As seen later in this memo, the particular weighted Board of Supervisors that will be proposed for Peconic County will also include two at -large representatives, one elected from the Peconic County area as a whole and, to meet the legal range of deviation, one elected from the 4 largest Towns excluding Shelter Island. The first of these two representatives will be elected to serve as the Chairman of the Board of Supervisors, a full-time job. The other will be a part-time Vice Chairman. This will add a valuable resource to the five Town Supervisors who naturally will be focused on representing the interests of their own Towns in addition to the county as a whole. The Chairman's and Vice Chairman's focus will be on county -wide problems. -1- We are also recommending that the Board appoint a County Administrator who will handle the day-to-day operations of Peconic County. Not only will this person provide solid professional management, but he or she (along with the Chairman and Vice Chairman of the Board) will relieve the Town Supervisors, who are the other members of the Board, of much of the executive function in running the new County. Of the 19 counties in N.Y. State which are governed by a Board of Supervisors, 10 use such a County Administrator. 2. It allows Shelter Island to be able to cast its own vote and influence the votes of other Towns. Any legislature based on a reasonable number of districts (less than 24) would require Shelter Island, with only 2% of the population of Peconic County, to be combined with all,, or a much larger part, of either East Hampton or Southold. See Section IV. below. Consequently , Shelter Island would not be able to cast its own vote. Moreover, not only would Shelter Island have no vote, but it would not even be able to try to influence the votes of the other representatives. Historically and geographically Shelter Island is, and always has been, a separate entity from the other four East End Towns. As an island it is geographically separate -- requiring ferries from Southold or Southampton to reach it. It is much smaller and more rural than the other towns. The smallest of the other towns, East Hampton, is more than seven times as large in population size -- 16,132 to 2,263. And with a population density of only 187 people per square mile, Shelter Island is more rural than the next most rural town, East Hampton with 220. The average population density of the other four East End Towns is 314 or 68% more dense than Shelter Island. It would certainly be an unfortunate and sad irony if Shelter Island, which gave birth to the Peconic County movement a generation ago, ended up with no individual vote and voice in Peconic County. 3. It corresponds to the small, rural nature of Peconic County. A Board of Supervisors more closely corresponds to the basic purpose of Peconic County -- that is, to maintain the rural, small scale quality of life which exists on the East End. Such a Board would obviously require a smaller number of employees and a smaller infrastructure than would be the case with a new legislature based on districts. With 8% of the population and 38% of the land area of Suffolk County, the rural, rather than urban or suburban, quality of the five East End Towns is demonstrated. It is here that the Towns emphasize the identity of their small villages and hamlets rather than the large commercial and residential developments which are so typical of the five West End Towns. The difference becomes even more striking when it is recognized that the West End Towns of Suffolk County have a population of 1,215,271 -- 12 times greater than the five East End Towns; and a population density of 2,153 people per square mile or seven times the density of a new Peconic county (308 people). (See Appendix A.) -2- 4. It adds a new level of government taking it farther away from the people. This is especially unnecessary in a small rural county such as Peconic. 5. It costs much less to establish and to operate. A Board of Supervisors will cost considerably less than a legislature based on newly formed districts. Whether it be the number of elections, the number of employees, the number of offices, the number of cars ... the infrastructure of a district -based legislature will be more costly to establish and to operate. It is also less likely to expand over time as the Suffolk County government has. 6. It corresponds to the boundaries of the five Towns. A Board of Supervisors will correspond precisely to the current historic identities of each of these Towns. In fact, 4 of the 5 Towns are the oldest in New York State. The fifth, Riverhead, was a part of Southold for many years. If a district -based legislature were established, it would be most logical and reasonable to set up five districts of equal population size. In this event, 7,000 to 11,000 people (including all 2,263 on Shelter Island) might have to be transferred out of their Towns into the new districts. Under the best possible legal interpretation, and as an absolute minimum, the 2,263 residents of Shelter Island would have to be moved. These "transferees" really lose their influence because they become such a small minority in the district to which they are transferred. In no case would they represent more than 13.7% of the new district. (See Appendix B.) 7. It is a simple extension of the East End Supervisors and Mayors Association and the 330 -year history_(that is, born in 1665) using, the Town Supervisors as a County Board of Supervisors to manage the affairs of the 10 Towns as a whole (before Suffolk County began 118 years later) and then to manage the affairs of Suffolk County. The Town Supervisors and Village Mayors in the 5 East End Towns have been meeting every other month for the last 17 years or so, after the adoption by Suffolk County in 1970 of a new legislature, to discuss matters pertaining to the East End as a whole. This is precisely the fact situation that was one of the major reasons causing the U.S. Supreme Court in 1971 in the Abate case (Rockland County) to approve a weighted voting concept with what was then considered a large 12% population discrepancy. Incidentally, after Suffolk County adopted its legislature in 1970, not only was the East End Association of Supervisors and Mayors formed, but a Suffolk County Association of all 10 Town Supervisors came into being. The unusual strength of the towns, as political units, in N.Y. State and especially on Long Island east of the Oyster Bay- Huntington line, has been noted by others. It is "directly traceable to the New England influence upon settlers who came from Connecticut and Massachusetts" Jack Weinstein, "The Effect of the Federal Reapportionment Decisions on Counties and other Forms of Municipal Government, " 65 Columbia Law Review 21 (1965). -3- Perhaps the many compelling advantages noted above explain, at least in part, why so many of the smaller, rural counties in New York State are run by a Board of Supervisors. More specifically, of 62 counties in the State, 19 or 31 % are run by Boards of Supervisors. And more: importantly, of the 48 rural counties in New York State (arbitrarily determined to be counties with less than 500 people per square mile) 19 or 40% have a Board of Supervisors. III. THE PROPOSED WEIGHTED 13OARD OF SUPERVISORS 1. In order to understand how to evaluate a weighted voting scheme to see if it is equitable. it is necessary to understand why one-person, one -vote is equitable. In a one-person, one -vote strategy, each person by definition has equal voting power. Voting power is the ability to cast the deciding vote.' For example, if there are five legislators (each representing 20% of the population) and the vote is 3 to 2, then the group of three is called a "critical coalition". That is, each member of the group is essential for passage of the measure and, by casting a decisive vote, each is exercising voting power. If a vote is 4 to 1 the coalition is not critical and no voting power was exercised by any single legislator. In a 5 -member legislature, there are 10 different net critical coalitions which can be formed.' These 10 net critical coalitions result in 6 opportunities (see footnote 2) for each legislator to cast a decisive vote for a total of 30 opportunities. We will refer to this as 30 gross critical coalitions. Therefore, each of the 5 legislators has the opportunity to cast 6/30th's of the possible gross critical votes, and each exercises 20% of the voting power. This is exactly proportional to the share of the population they represent. Thus, one-person one -vote yields a completely equitable result measured by voting power in critical coalitions. In our simple example, each district contained exactly the same number of people. In real life, however, districts are not identical and so a measure must be devised to determine the deviation from the ideal. And the amount of acceptable deviation must 'Voting power only exists when you are part of a voting coalition where your vote was essential to success. If you are part of a coalition which had more affirmative votes than what was needed, you did not exercise voting power. You could have changed your vote and the outcome would not have changed. 'For this example, the net critical coalitions are: 1,1,1,0,0; 1,1,0,0,1; 1,1,0,1,0; 1,0,1,1,0; 1,0,1,0,1; 1,0,0,1,1; 0,1,1,1.,0; 0,1,1,0,1; 0,1,0,1,1; 0,0,1,1,1. Note that each member votes, yes or 1, 6 times in forming the 10 critical coalitions. For the detailed tabulation of this example, see Appendix Table D(1). -4- Mahan, (references in Section V. below) both address the issue of districts with different population size, but whose legislators each have one vote. The measure used by the Court is to first, take the difference between the population that is actually represented for each town and the population that would be represented based on critical coalition voting power. We then divide this population deviation by the ideal population. In Abate, the Court accepted a maximum spread of deviation of 11.9%. In the Mahan case, two years later in 1973, the Court permitted a spread of 16.4%' In the Abate case, each of the 5 towns in the county constituted one district and elected a different number of legislators, 18 in total. Each of the legislators had one vote -- that is, equal voting power. 2. Our task is slightly different. Instead of multiple representation in each town, our proposed weighted voting plan has one representative per Town with votes weighted by votingpower (i.e: critical coalitions). This is done to make the voting power of the Towns proportionate to the population share of the Towns. Weighted voting plans require that each legislator cast all of his or her votes as a single unit. As stated 25 years ago by the N.Y. Court of Appeals in a weighted voting case pertaining to Washington County: Ideally, in any weighted voting plan, it should be mathematically possible for every member of the legislative body to cast the decisive (emphasis added) vote on legislation in the same ratio with the population of his constituency bears to the total population.... A legislator's voting power, must approximate the power he would have in a legislative body which did not employ weighted voting. N.Y. Court of Appeals in Iannucci v. Board of Supervisors of Washington Countv, 282 N.Y.S. 2d 502, 508 (1967). 3. The weighted voting plan which we are prgposing includes each of the 5 Town Supervisors plus one at -large representative elected by the entire county (who serves as a full-time Chairman) and one at -large representative who is elected by the four largest towns, excluding Shelter Island, and who serves as a _part-time Vice Chairman. 'The maximum spread of deviation is the range between the most over -represented and the most under -represented unit. For example, in Table 1. Col. 8. the most over- represented Town is Southold with +5.8% and the most under -represented Town is Shelter Island with -8.0%. Add these two extreme deviations together to get 13.8% -- the maximum spread of deviation. -5- The voting power of the at -large representative who is Chairman is allocated to the 5 Towns in proportion to their share of the population, while the allocation for the Vice Chairman is, of course, only over the 4 Towns that elect him.° This allocation is shown in Appendix F. As Table 1. shows, for a simple: majority vote, our plan has a maximum spread of deviation of 13.8% -- less than 2% point above the Abate standard of 11.9%. But it is well below the 16.4% approved by the Court in Mahan when it stated that " While this percentage may well approach tolerable limits, we do not believe it exceeds them. " The averse of all of the Towns' deviations is only 4.3 %. 'This average is, statistically (and any other way), just as valid a measure of deviation as is the maximum spread -- but with one important exception, the courts rarely use it.' For a two-thirds vote, Table Ia. shows that the maximum spread of deviation becomes 16.5% (with a 6.0% average) essentially equal to Mahan's 16.4% but moderately above Abate's 11.9%. 4. An alternative plan with 81, rather than 93, votes is shown below in Tables 2. and 2a. for the majority and two-thirds votes. This plan results in slightly lower deviations -- 12.6% spread (3.9% average) and 15.5% spread (5.4% average), respectively. These figures are practically equal to the Abate and Mahan standards of 11.9% and 16.4%. 6 While this 81 -vote plan has slightly lower deviations than our recommended plan, it requires that we change the structure of votes cast when a two-thirds vote is taken. More specifically, in order to secure a deviation as low as 1.5.5 %, we had to add two votes to the at -large Chairman (raising him from 10 to 12 votes) and subtract one vote from each of the Supervisors representing Riverhead and Southold. Please keep in mind that this chane is only for the two-thirds votes. 5. It should be emphasized that the size of the deviations in either of our plans are 1) smaller than the 21.7% deviation in our best 5 -district plan (should a legislature be necessary)(See Appendix C, p.4.), and 2) slightly smaller or equivalent to the 13.7% 4The U.S. Supreme Court requires the allocation of at -large representatives in New York City Bd. of Estimate v. Morris, 489 U.S. 688, 701, 109 S.Ct., 1433, 1442, 103 L.Ed. 2d 717 (1989). 'An important exception occurred in Brown v. Thomson, 462 U.S. 835 (1983) when the decision by the U.S. Supreme Court used the average deviation as well as the maximum spread of deviation throughout the decision. 6It should be noted that the court in Mahan did not use the 1.6.4% as a rigid limit, it used the words "approached tolerable limits" and in both the majority decision and the dissent it was mentioned that a deviation of 23.6% might, in fact, exist. -6- Table 1. Comparison of Critical Coalition Voting Power with Population Table 1 a. Comparison of Critical Coalition Voting Power with Population (Based on a two-thirds majority vote.) Percent of Voting Percent Voting Power Population Deviation of Critical Power Population Deviation Population Town Votes Coalitions Col.(3) / 98 Pop. Col.(4)xTot. Pop Col(6)-(5) Col(7) / (5) (1) (2) (3) (4) (5) (6) (7) (8) Shelter Island 1 (Based on a simple majority vote.) 2.34% 2263 2499 236 10.43% Percent of 14 Voting 16.30% Percent 17375 1243 7.71% Voting 15 Power Population Deviation of 20543 707 Critical Power 16 Population Deviation Population Town Votes Coalitions Col.(3) / 122 Pop. Col.(4)xTot. Pop Col(6)-(5) Col(7) / (5) (1) (2) (3) (4) (5) (6) (7) (8) Welter Island 1 2 1.95% 2263 2081 -182 -8.04% East Hampton 14 14 15.48% 16132 16503 371 2.30% Southold 15 18 19.68% 19836 20979 1143 5.76% Riverhead 16 18 20.47% 23011 21820 -1191 -5.18% Southampton 29 38 42.41% 45351 45209 -142 -0.31% At -Large 1 15 18 At -Large 2 3 14 Total 93 100.00% 106593 106592 Gross Coalitions 122 Spread 13.80% Net Coalitions 49 Average 4.32% Winning Votes 47 Table 1 a. Comparison of Critical Coalition Voting Power with Population (Based on a two-thirds majority vote.) Percent of Voting Percent Voting Power Population Deviation of Critical Power Population Deviation Population Town Votes Coalitions Col.(3) / 98 Pop. Col.(4)xTot. Pop Col(6)-(5) Col(7) / (5) (1) (2) (3) (4) (5) (6) (7) (8) Shelter Island 1 2 2.34% 2263 2499 236 10.43% East Hampton 14 12 16.30% 16132 17375 1243 7.71% Southold 15 14 19.27% 19836 20543 707 3.56% Riverhead 16 16 22.11% 23011 23569 558 2.42% Southampton 29 28 39.97% 45351 42607 -2744 -6.05% At -Large 1 15 14 At -Large 2 3 12 Total 93 Gross Coalitions 98 Net Coalitions 30 Winning Votes 62 100.00% 106593 106593 -6a- Spread 16.48% Average 6.03% Table 2. Comparison of Critical Coalition Voting Power with Population (Based on a simple majority vote.) Total 81 Voting Percent Power Population Deviation of Population Deviation Population Pop. Col.(4)xTot. Pop Col(6)-(5) Col(7) / (5) 2263 2061 -202 Percent of 16132 15345 -787 Voting 19836 19630 Critical Power Town Votes Coalitions Col.(3) / 110 (1) (2) (3) (4) Shelter Island 1 2 1.93% East Hampton 12 14 14.40% Southold 14 18 18.42% Riverhead 15 22 22.38% Southampton 26 42 42.87% At -Large 1 10 6 At -Large 2 3 6 Total 81 Voting Percent Power Population Deviation of Population Deviation Population Pop. Col.(4)xTot. Pop Col(6)-(5) Col(7) / (5) 2263 2061 -202 -8.93% 16132 15345 -787 -4.88% 19836 19630 -206 -1.04% 23011 23856 845 3.67% 45351 45700 349 0.77% 100.00% 106593 106592 Gross Coalitions 110 Spread 12.60% Net Coalitions 53 Average 3.86% Winning Votes 41 Table 2a. Comparison of Critical Coalition Voting Power with Population (Based on a two-thirds majority vote.) (Note: The vote structure changes by adding 2 to the at -large Chairman and subtracting 1 each from Southold and Riverhead.) Town (1) Shelter Island East Hampton Southold Riverhead Southampton At -Large 1 At -Large 2 Total Percent of Voting Percent Voting Power Population Deviation of Critical Power Population Deviation Population Votes Coalitions Col.(3) / 96 Pop. Col.(4)xTot. Pop Col(6)-(5) Col(7) / (5) 12 13 14 26 12 3 81 Gross Coalitions Net Coalitions Winning Votes 2 12 16 16 30 12 8 96 32 54 2.25% 2263 2403 140 6.19% 15.67% 16132 16705 573 3.55% 20.51% 19836 21867 2031 10.24% 21.24% 23011 22637 -374 -1.63% 40.32% 45351 42980 -2371 -5.23% 100.00% 106593 0 106592 Spread 15.47% Average 5.37% deviation in a 17 -member legislature? -- not much smaller than Suffolk County's 18 - member legislature for 1.3 million people! It would be necessary to set up a 23 - member, or more, legislature to achieve deviations moderately better than ours -- 9.2% (see Appendix C. p.2.) to our 13.8%) and Shelter Island would still have no vote. We believe that the size of the deviations in either of our plans would withstand legal challenge if ever necessary. IV. NOTE ON LEGISLATURES WITH EQUAL -SIZE DISTRICTS (See Appendix B) 1. If we are compelled to use a legislature with equal -size districts, it should have 5 districts. This is because 5 districts follow Town boundaries much more closely than any other number. Appendix B shows that with 5 districts, starting with Montauk and going west, and including Shelter Island with East Hampton, only 6,879 people (including Shelter Island's 2,263) or 6.5% of Peconic's total population would have to be transferred across Town lines. If the process began with Orient and headed west, including Shelter Island with Southold, there would be 10,700 transferees across Town boundaries or 10.0% of the total. In either case, there would be two districts within Southampton. In other words, the dislocation (that is, loss of representation) would be very small. The U.S. Supreme Court in 1973 acknowledged the importance of reducing the number of transferees across county lines even though it meant that a greater discrepancy from an ideal share of the population would result. (Mahan v. Howell, 410 U.S. 323-4.) For more detail see Section V. below. The Table on page 4 of Appendix C shows 1) that the maximum spread of deviation with 5 districts, and combining Shelter Island with East Hampton, is 21.7% using the Abate method of comparing actual populations with an ideal population of 21,319 (106,593 divided by 5), and 2) 8.7% which is the average of the actual town -by -town deviations. While the 21.7% figure is a little on the high side, we think there would be a good chance for the 5 district plan to withstand legal challenge for all the reasons 'Legislatures sized between 6 members and 15 members have higher maximum deviations than the 5 -member legislature. Equal -size legislative districts are discussed in Section IV. with supporting Tables in Appendix C. -7- enumerated in Section II. above. 2. The most ideal number of districts from the point of view of minimum deviation from population would, of course be 106,593 districts - one for each citizen. To say the least, this is not very practical. The Abate methodology would result in 47 districts - also with only minimum discrepancies from population although it should be noted that even with 47 districts, the maximum spread of deviation is 4.4% (and the average is 1.2%). But 47 is too large for an efficient and orderly deliberative body, although this would mean that Shelter Island could be one district. All of the deviation figures shown in this subsection are in Appendix C. At the level of 24 districts, and 24 is still too large and impractical, the deviations would be increased significantly to 60.7 % and 15.1 %, respectively. But, in this case, Shelter Island would be able to represent a little over 50% and, at least conceivably, be able to have a decisive vote (that is, if almost every person in Shelter Island voted together). While still too large, a 17 -district legislature is a good possibility as far as deviations are concerned (13.7% spread and 4.8% average). The next best fit is the 5 - district legislature we recommended at the outset of this Section IV. with its deviations of 21.7% at 8.8%, respectively. 3. A 4 -District Legislature would result in too many people being, transferred across Town lines, and it is likely that Southampton would be significantly under- represented. The discrepancies from population would also be much too large. As Appendix C, p.4 shows, the maximum spread of deviation would be 101.2% and the average deviation would be 35.1 91o. This alternative is discussed here because it has been proposed, at least as one possibility, by the government sub -committee of the Peconic County Citizens Advisory Committee. Appendix B shows that with 4 districts starting with Montauk and including Shelter Island with East Hampton, 27,779 people would have to be transferred across Town lines. This number is reduced to 25,515 if the process begins with Orient, and Shelter Island is combined with Southold. But in either event, the dislocation is at least 2.5 times as great as with 5 districts. Moreover Southampton, with 42.6% of the population, is likely to have only 1 of 4 representatives or 25% (excluding its theoretical share of any at -large representatives). This is because, as shown in Appendix B, if the process begins in Montauk, 8,253 people from Southampton would be transferred to District 1 (East Hampton and Shelter Island) and 10,450 would be transferred to District 3 (with Riverhead constituting more than 50%). If the process begins at Orient, these numbers become 8,186 (to the Riverhead -8- district) and 10,517 (to the East Hampton -Shelter Island district). In other words, about 18,700 Southampton residents, or 41.2% of Southampton's population is transferred across its Town lines to wind up as minorities (substantially losing representation) in these other districts. As the U.S. Supreme Court emphasized in Mahan v. Howell, 410 U.S. 323-4, a proposed apportionment plan (of Virginia's State Legislature) while resulting in less deviation of population than the current plan (approximately 10% compared to 16%), reduced substantially the representation of several counties because so many people would need to be transferred out of these counties into other districts. The parallel with the proposed 4 -district plan for Peconic County is striking. In our ideal 5 -district plan, Southampton has, of course, 2 of its 5 representatives, or 40%, corresponding much more closely to its 42.6% share of population. Incidentally, Southampton is also larger in population than any other 2 towns, has 40.1 % of the land area of Peconic County, and 45.1 % of the maximum seasonal population during the summer months. It should be clear from these comparisons that a 25% share for Southampton would not be reasonable. V. LEGAL ARGUMENT 1. Conclusion: The Weighted Board of Supervisors which we propose will pass the constitutional test of one-person, one -vote. 2. For a good summary of some of the more important legal cases see Linda Riley's recent memorandum to the Peconic County Technical Advisory Committee entitled "County Board of Supervisors"._ 3. There are recent U.S. Supreme Court and U.S. District Court decisions which declare that weighted voting is unconstitutional under certain circumstances. In the most recent case which pertained to Nassau County, the U.S. District Court in our district (Eastern) held in 1993 that: What is clear from [the U.S. Supreme Court decision in 1989 in Morris, a New York City case] ... is that the Supreme Court firmly rejected weighted voting, not only because of the mathematical quagmire such a system engenders, but just as importantly because the methodology fails to take into account other critical factors related to the actual daily operations of a governing body. There is no question that the Supreme Court took the opportunity to express not only a preference, but a directive that legislators be elected by and represent citizens in districts of substantially equal size. Jackson v. Nassau County Board of Supervisors, 818 F.Supp. -9- 509,532 (E.D.N.Y. 1993). 4. Fortunately, these two decisions pertained to large urban and suburban areas such as New York City (69 times the size of Peconic County) and Nassau County (12 times the size of Peconic) where the specific problems involved were not only much more complex, but the particular weighted voting plans being considered had such large obvious disabilities that even a layman could see that theypresentedserious constitutional problems. In the Morris case, Brooklyn and Staten Island were each given one vote even though the population of Brooklyn is six times larger than Staten Island. Board of Estimate v. Morris 489 U.S. 688,109S.Ct. 1433, 103 L.Ed. 2d 717. In the Jackson case, Hempstead, with more than 50% of the population of Nassau County, was given a weighted vote that amounted to less than a majority. 5. It is critical to note that there are no court decisions that ban weighted voting per se. And there are several New York court decisions which specifically state this fact. Iannucci v. Board of Supervisors, 282 N.Y.S. 2d 502 (1967), Greenburgh v. Board of Supervisors, 293 N.Y.S. 2d 958 (1968), and Franklin v. Krause, 72 Misc. 2d 104,338 N.Y.S. 2d 561 (1972) cited in Jackson, Ibid. at 515. 6. There are, in fact, 19 counties in New York State (out of 48 rural counties and 62 total counties) that have weighted Boards of Supervisors. In addition, there are four counties run by weighted legislative districts. A number of these weighted voting plans have been specifically approved by various New York Supreme courts.' We are proposing a form of government for Peconic County which already exists in many places in this State. 7. There is one important U.S. Supreme Court case (not overruled by later cases) that specifically approved a weightedvoting concept in Rockland County - a small suburban county in New York State with, what was then a population of 219,000. Abate v. Mundt, 403 U.S. 182,91 S.Ct. 1904, 29 L.Ed.2d 399 (1971). In this case, each of the 5 towns in the County elected a different number of legislators (18 in total) depending upon the proportion of its population to that of the smallest town. As noted in Section III above, the "weights" in this plan are multiple representatives from each of these 5 towns (in proportion to their populations). This may be compared to our proposed plan which has only one representative from each of the five towns (plus two elected at large), but with voting power that is weighted in proportion to the populations of the 5 towns. 8. As long go as 1966, the Supreme Court in Westchester County (Town of 'Jefferson, Oswego and Sullivan Counties are among those counties that have such court -approved plans. -10- Greenburgh v. Board of Supervisors of Westchester County, 272 N.Y. S. 2d 906, 912) citing the U.S. Supreme Court (Cf. Burns v. Richardson, 384 U.S. 73,86 S. Ct. 128 6, 16 L. Ed. 2d 376) stated that: It is the distribution of legislators, or of voting power, rather than the method of distributing legislators or voting power, which must satisfy the demands of the equal protection clause and the similar provision of our own constitution... (emphasis added). There is no reason to think that this concept is not valid today. 9. We are convinced that the specific weighted voting plan we are proposing (described in detail in Section III. above) will be considered constitutional if ever challenged. This is not only because the deviations in population in our plan are so small when compared to an ideal district -based plan, and meet the range of deviations approved by the courts, but because the courts will give significant weight to the many compelling advantages of a weighted voting plan for Peconic County discussed in Section II. above. First, as shown in detail in Section III. above, compared to an ideal legislature based on equal sized districts, the deviations in our plan are within the range of deviations approved by the U. S. Supreme Court in Abate, (11.9 % deviation) and in Mahan (16.4% deviation) two years later in 1973. Mahan v. Howell, 410 U.S. 315, 93 S. Ct. 979, 35 L. Ed. 2d 320. The U.S. Supreme Court has invalidated at least three different apportionment plans with deviations approximating 25% - 26%. Mahan, Ibid. at 336-7.) As the Supreme Court said in Mahan Qid. at 329.): Neither courts nor legislatures furnished any specialized calipers that enable them to extract from the general language of the Equal Protection Clause of the Fourteenth Amendment the mathematical formula that establishes what range of percentage deviations is permissible, and what is not. The 16 -odd percent maximum deviation ... in the legislative plan for the reapportionment of the House is substantially less than the percentage deviations that have been found invalid in the previous decisions of this Court. While this percentage may well approach tolerable limits, we do not believe it exceeds them. (emphasis added) Virginia has not sacrificed substantial equality to justifiable deviations. The policy of maintaining the integrity of political subdivision lines in the process of reapportioning a state legislature, the policy consistently advanced by Virginia as a justification for disparities in population among districts that elect members to the House of Delegates, is a rational one. Second, the compelling advantages of a weighted voting plan for Peconic County, which are set forth in Section II. above, are the same factors (if not more so) that the N.Y. Court of Appeals and the U.S. Supreme Court emphasized in Abate. The Appeals Court said (305 N.Y.S. 2d 465,469): What the plan does is not to ignore population equality, but rather to achieve substantial equality within the context of a long- established town government framework, thus accommodating both constitutional and practical considerations. (See Jackson v. Bodine, 53 N.J. 585,252, A.2d. 209. cert.den. 396 U.S. 822, 90 Ct. 63,24 L.Ed.73 (Oct. 14, 1969). It represents a balanced, bona fide application of the 'one man -one vote' principle to the needs and circumstances of local government. As such, it comes within the gambit of the Supreme Court's declaration "that variations from a pure population standard might be justified by such state policy considerations as the integrityof.political subdivisions, the maintenance of compactness and contiguity in legislative districts or the recognition of natural or historical boundaryines. (Swann v. Adams, 385 U.S. 440,444, 87 S.Ct. 569,17 L.Ed.2d 501 (emphasis added). In affirming the Court of Appeals, the U.S. Supreme Court (Ibid. at 186.) noted that: To us, therefore, it is significant that Rockland County has long recognized the advantages of having the same individuals occupy the governing positions of both the county and its towns. For over 100 years, the five town supervisors were the only members of the county board, a system that necessarily fostered extensive interdependence between the towns and their county government. As far as "historical" and "natural"' boundary lines are concerned, our Town lines , with 350 years of age, are as old as any in N.Y. state or most other parts of the country. And as an island, Shelter Island certainly is a clear cut "natural " line. Perhaps the most cogent early statement 1) recognizing "that the one man -one vote doctrine would not be applied with the same precision to local elective bodies as to State legislatures." and 2) opposing the idea of equal -size districts because they would eliminate the vote and voice of places such as Shelter Island is that of Judge Breitel of the N.Y. Court of Appeals in his dissent in Iannuci v. Board of Supervisors, 282 -12- N.Y.S. 2d 511 (1967). In referring to the Rockland County plan, he states that: This would appear to be a recognition that mathematical precision in this area may involve a correlative sacrifice of socially and politically desirable values. Consequently, it cannot be said that weighted voting plans are generically invalid, or that there is or should be any presumption to that effect. Most suggested alternatives to a weighted voting plan (of some formula)...are undesirable: either local bodies are to be composed of numerous members, with a commensurate loss of deliberative capability, or the political voices of small but discrete and geographically compact groups are to be overwhelmed by combining the votes of their members with those of larger groups in a single district. The Supreme Court in Abate, Ibid. at 185 (1971), then emphasized the need for more flexibility -- that is allowing more deviation -- for local government apportionment plans. One part of this opinion is in Appendix E. Then, in an extraordinary 5 to 4 decision in 1983, (12 years after Abate and 10 years after Mahan , the U.S. Supreme Court upheld that part of Wyoming's reapportionment plan which permitted one tiny county with 2,924 people to be given one representative in the 64 -seat State legislature even though the maximum deviation was 89% and the average was 16% (emphasis added) Brown v. Thomson, 462 U.S. 835, 103 S.Ct. 2690. Here, "the narrow issue [was] whether Wyoming's policy of preserving county boundaries justifies the additional deviation from population equality resulting from the provision of representation to Niobrara County."bid. at 846.) There was no need for the Court to decide on the constitutionality of the whole State-wide plan. The Court noted that if Niobrara County were combined with a nearby county, the deviation would only drop to 66% maximum and 13% average. Thus, Niobrara's impact was considered "de minimis"I( bid. at 847.) It is important to recognize that the problem in Wyoming was that Niobrara was significantly over -represented and the court was trying to justify this fact. Shelter Island is actually under -represented in the simple majority vote by 8.0%, and over- represented in the two-thirds majority by only 10.4%. Our case for giving Shelter Island a vote is much stronger. The realistic alternative to a weighted voting plan for Peconic County is a 5 -district legislature that follows Town lines. Our weighted voting plan, in fact, gives lower maximum and average deviations -- 13.8 % and 4.3 % compared to 21.7 % and 8.7 %, respectively, for the 5- -13- district legislature.' The small deviations in our proposed plan are hardly enough to justify the elimination of Shelter Island's vote, and voice, in view of the "...longstanding and legitimate policy of preserving county [substitute "town"] boundaries..." and when the effect of not allowing our proposed plan "'...would be to deprive the voters of Niobrara County [substitute "Shelter Island"] of their own representative, even though the rest of the House of Representatives [substitute "Peconic County Board of Supervisors"] would be constituted so as to facilitate representation of the interests of each county. " [substitute "town"] .Imo. at 847, 848.) For the sake of brevity, we will not set forth here the long, specific discussion of the U.S. District Court, also approving Wyoming's plan, except to note that the parallels with Shelter Island are overwhelming.Ibid. at 844 and 536 F. Supp. at 784.) Some of the full text is in Appendix E., 10. The courts have consistently stated that a proposed reapportionment scheme cannot discriminate against minority groups or show "indigenous bias" Abate, 403 U.S. 186). This is probably not a problem for us because we have only small pockets of minorities . The black population of the 5 East End Towns in 1990 was 8,370 or 7.85 % of the total, and 4,116 resided in the contiguous communities of Flanders and Riverhead. If for some reason a district providing special black representation was ever considered necessary, it would require a legislature with 26 districts. This is not an efficient or reasonably deliberative body for only 106,000 people. Moreover, as far as we know, there is no historic identity of this 4,116 black population. It can also be argued that if we create a legislature with equal -size districts, rather than our proposed Board of Supervisors, we would, in fact, be showing a built-in "indigenous bias" against Shelter Island. This is because Shelter Island would receive no chance for representation unless the legislature we set up had at least 24 districts -- again, much too large to be an efficient or deliberative body for only 106,000 people. 11. The courts state that the burden of proof is on us to prove that the particular weighted voting plan we are recommending does conform to the one-person, one -vote principle. (Reynolds v. Sims, 377 U.S. 533, 579 (1964), Iannucci v. Board of Supervisors, 282 N.Y.S. 2d 502,509-10(1967), and Curcio v. Boyle, 147 A.D. 2d 194,542 N.Y.S. 2d 1009, 1011(2d Dept 1989). We believe we have done this. 'See Table 1. and Appendix C. -14- ADDENDUM On May 15, 1995, the U.S. District Court, Northern District of New York, issued a landmark decision in Roxbury Taxpayers Alliance v. Delaware County Board of Supervisors. Delaware County, a small rural county, is located northwest of the Catskill Mountains with a population in 1990 of 47,225 in 19 towns ranging in population from 550 to 6,667. The County had been run by a Board of Supervisors from its beginning in 1797. After the one-person, one vote cases of the 1960's, the Board proposed (and a Court finally ordered) a weighted Board of Supervisors in 1976. The specific weights in this plan were revised by the Board in 1991, based on the population figures in the 1990 census. The 1991 plan was established by a computer -projected analysis and used a different number of weighted votes for a simple majority, three-fifths and two-thirds decisions -- 3,480, 2,244 and 2,428, respectively. It is this plan that is the subject of this case. The plaintiffs argued simply that the U.S. Supreme Court in the 1988 Morris case (the New York City Board of Estimate case), held that weighted boards of supervisors were unconstitutionalep r se, because this "system violates the one person, one vote principle implicit in the Equal Protection Clause of the 14th Amendment" (p. 1), and that legislatures with districts of equal population size are required. They did not question that the precise Delaware County plan was, or was not, proportional to the population of the 19 towns involved. . Judge Thomas McAvoy, Chief Justice of the District, ruled unequivocally that "Weighted voting plans which apportion votes in proportion to the populations of the electoral districts were not made per se unconstitutional by the Supreme Court in Board of Estimate v. Morris." (p. 29) The decision emphasized that in the Abate case, discussed at length in our earlier comments, the U.S. Supreme Court in 1971 specifically approved a weighted voting scheme in Rockland County, New York. And that the concept of multiple representatives for each of the 5 towns in Rockland County, while different from using 1 Supervisor with multiple votes to represent each town, was clearly the same concept "and serves the same purposes - providing all citizens a vote of equal weight, while maintaining traditional political units." (p. 20) Judge McAvoy said: "The desire to provide for the efficient delivery of local services and the maintenance of traditional political units that formed the purpose behind the multiple representative system in Abate also underlies weighted voting systems. -15- Both systems are designed to satisfy the quantitative command of one person, one vote by giving all citizens a vote of equivalent weight, while preserving the traditional political units. " (p. 13) He also stated that the concept of a weighted board of supervisors "... is designed to maintain a smaller and more efficient legislature in counties in which the difference in population between the largest and smallest towns would require the election of a large number of representatives in order to ensure that the smallest town was assigned one representative. " (p. 14) and that "If Delaware County was required to use the Abate method to achieve its goal of retaining the traditional political units, the Board of Supervisors would be large and unwieldy, with over 85 members. To force Delaware County into this inefficient method of apportionment would run counter to the very flexibility that the Supreme Court was trying to encourage in Abate. Inflexibly using this method to calculate the deviation from population equality of all electoral systems will simply invalidate all systems other than an Abate -type multiple representative plan or a plan designed around equal population districts. Because this approach frustrates the objective of encouraging flexibility and efficiency in local government organization, this Court declines to adopt the position that a single test is appropriate in all situations." (pp. 26-27) The Court then noted that the total deviation in population was less than 1 % in Delaware County -- well within the 11.9% deviation allowed in Abate. Thus "This deviation is clearly within the permissible constitutional range, as defined by Abate and its progeny." (p. 27) The District Court also considered at some length the opinion of observers who believed that Judge Spatt's decision in the Jackson case, holding the Nassau Board of Supervisors to be unconstitutional, meant that all weighted Boards of Supervisors were unconstitutionalen r se. It was clear to Judge McAvoy that the Jackson decision "was narrowly tailored to the facts of the weighted voting system in Nassau County" and that the Nassau system was "artificial and contrived" and "could not work with a simple majority, which is a fundamental part of most democratic systems." (p. 23) Judge McAvoy concluded by stating: "The Court conducting this inquiry should be guided by the desirability of affording local governments considerable flexibility in -16- structuring municipal arrangements to meet the changing needs of their communities, and to preserve traditional political units. Because the Delaware County weighted voting system satisfies each of these requirements, this Court holds that the plan is constitutional. " (p. 30) The importance placed by Judge McAvoy on the desires of local governments cannot be overemphasized. He repeated the arguments offered by the Defendants "... as justification for the weighted voting plan: (1) that the natural and historical political units in the county have been the nineteen towns that today form the electoral districts; (2) that citizens identify with their towns through the school PTAs and other civic organizations; and (3) that this identification of the voters with their political units would be lost if a system of equal population districts split some communities and artificially created others. " (p. 28) While the essence and critical reasoning of the Delaware case has been discussed immediately above, it must be noted that Judge McAvoy appears to have made a mem cal error. For some reason, which I am not able to even imagine, he seems to believe that the weighted system of Delaware County is not based on the concept of voting power but on a simple method of comparing the population of the different towns as was used by Rockland County in the Abate case. In discussing Morris, Judge McAvoy stated that "When the Court rejected the Branzhaf Index as a measure of deviation from ideal population, the Court reaffirmed the 'population -based approach of...cases from Reynolds through Abate'," (p. 18) and even if the population deviations of a place are constitutionally acceptable it cannot "substantially circumscribe or overvalue the votes of any particular population groups by, for example, granting a representative with 51 % of the population 100 % of the power, thereby denying the smaller political units an effective voice in government. " (p. 20) And then in talking about the Delaware County plan, he notes that "No single group of voters are permanently underrepresented in proportion to their numbers, and even the smallest political unit has a meaningful say in the decisions of the board." (p. 29) These comments represent the very heart of the voting power concept. Judge McAvoy doesn't seem to understand that the Delaware County weighted scheme that he has ringingly endorsed as both constitutional and practical is, in fact, a computer- assisted plan based on voting power - not simple proportions of populations. How else can one explain the fact that 3,480 weighted votes are used to determine simple majority votes, and 2,428 and 2,244 to determine two-thirds and three-fifths majorities, respectively? -17- APPENDIX A 1990 U.S. CENSUS OF POPULATION DATA Nassau County 1,287,348 287.8 * Includes 1.3 square miles for the Shinnecock Indian Reservation. -1- 4,473 Pop. Density Percent of Land Area Percent of Per Sq. Mile Area Population Population Sq. Miles Land Area Col. (2) / Col. (4) (1) (2) (3) (4) (5) (6) Suffolk County 1,321,864 100.00% 911.2 100.00% 1,451 Shelter Island 2,263 2.12% 12.1 3.49% 187 East Hampton 16,132 15.13% 73.3 21.14% 220 Southold 19,836 18.61% 53.7 15.49% 369 Riverhead 23,011 21.59% 67.4 19.44% 341 Southampton 45,351 42.55% 138.9 40.06% 327 Peconic County 106,593 8.06% 346.7* 38.04% 308 5 West End Towns 1,215,271 91.94% 564.5 61.96% 2,153 Nassau County 1,287,348 287.8 * Includes 1.3 square miles for the Shinnecock Indian Reservation. -1- 4,473 --cont'd. Appendix A CONCLUSIONS ON POPULATION AND POPULATION DENSITY: Peconic County, with a population of 106,593,would be larger than 36 other counties in N.Y. State and smaller than 26 (including the 5 N.Y.C. boroughs as counties). It is larger in land area than 12 other counties and smaller than 50. Its population is more dense than 43 other counties and less dense than 19. 2. Peconic County has 8.1% of the population but covers 38% of the land area of Suffolk County. 3. The population density of Peconic County is 308 people per square mile compared to the 5 West End Towns with 2,153 people per square mile -- 7 times as dense as Peconic. 4. The population density of the 5 Peconic Towns ranges from 187 people per square mile for Shelter Island to 369 people for Southold.. 5. The population of Nassau County (site of the recent Jackson case) is just under 1.3 million or 12 times the population of Peconic County. 6. The population density of Nassau County is 4,473 people per square miles compared to Peconic County's 308 -- 14.5 times as dense as Peconic. 7. The black population in Peconic County is 8,370 or 7.85% of the total. Except for 4,116 located in the contiguous areas of Flanders (in Southampton) and Riverhead, there are no other even relatively large pockets of minority populations. -2- APPENDIX B DIVISION OF 4 AND 5 EQUAL -SIZE DISTRICTS FOR PECONIC COUNTY (If districts, rather than a Board of Supervisors, are necessary.) Note: All transfers across Town lines are underlined.) Plan I. 5 Districts, East to West from Montauk (106593 _ 5 = 21,319) District 1: EH 16,132 -+ ,.I. 2,263 = 18,395 + 2,924 from District 2 = 21,31' District 2: SH (east) 45,351 - 2,924 to District 1 = 42,427 but only use 21,319 42,427 SH bal. - 21,319 for Dist 2 = 21,108 SH for Dist 3 . District 3: SH (west) 21,108 SH balance + 211 from Dist 4 = 21,319 District 4: Riverhead 23,011 - 211 to Dist 3 = 22,800 - 1.481 to Dist 5 = 21,319 District 5: Southold 19,836 + 1,481 from Dist 4 = 21,317 Total People Transferred = 6,879 Plan H. 5 Districts, East to West from Montauk (106593 _ 5 = 21,319) District 1: Southold 19,836 + S.I. 2,263 = 22,099 - 780 to Dist 2 = 21,319 District 2: Riverhead 23,011 + 780 from Dist 1 = 23,791 - 2,472 to Dist 3 = 21,319 District 3: SH (west) 45,351 S.H. + 2,472 from Dist 2 = 47,823 use only 21,319 47,823 - 21,319 = 26,504 balance of SH available for Dist 4 District 4: SH (east) 26,504 - 5.185 Dist 5 = 21,319 District 5: East Hampton 16,132 + 5,185 from Dist 4 = 21,317 Total People Transferred = 10,700 Plan III. 4 Districts, East to West from Montauk (106593 - 4 = 26.648) District 1: East Hampton 16,132 + S.I. 2,263 = 18,395 + 8,253 from District 2 = 26,648 District 2: Southampton 45,351 - 8,253 to District 1 = 37,098 but only use 26,648 37,098 SH bal. - 26,648 for Dist 2 = 10,450 SH Bal. istrict 3: Riverhead 10,450 SH balance + 16,198 Rivf -ead = 26,648 Riverhead 23,011 -.16,198 used in Dist 3 = 6,813 nal. District 4: Southold 19,836 + Riverhead Bal. 6.813 = 26,649 Total People Transferred = 27,779 Plan IV. 4 Districts, East to West from Montauk (106593 _ 4 = 26,648) District 1: Southold 19,836 + S.I. 2,263 = 22,099 + 4,549 from Dist 2 = 26,648 District 2: Riverhead 23,011 - 4,549 to Dist 1 = 18,462 + 8,186 from Dist 3 = 26,648 District 3: Southampton 45,351 S.H. - 8,186 to Dist 2 = 37,165 use only 26,648 37,165 SH bal. - 26,648 for Dist'2 = 10,517 SH Bal. District 4: East Hampton 16,132 + 10,517 from Dist 3 = 26,649 Total People Transferred = 25,515 CONCLUSIONS: Plan I Plan II Plan III Plan IV 1. No. of Transfers: 6,879 10,700 27,779 25,515 2. Shelter Island has no vote in either district plan. 3. Southampton, with 42.55 % of the population, is likely to have 1 of 4 votes, or 25 % if there are 4 districts; or a more reasonable (and legally allowable) 40% if it has 2 of the 5 districts in a 5 -district plan. Southampton is also bigger than any other 2 Towns, and has 40.1 % of the land area, and 45.1 % of the maximum seasonal population. 51A APPENDIX C. Comparison of Actual and Ideal Population in Different -Size Legislatures Using town Lines (The methodology follows the "Abate" case.) 47 -Person Legislature (2268 People per representative) Population Percent Summary Statistics Spread 4.43% Average 1.23% 24 -Person legislature (4441 People per representative) Population Percent Ideal Actual Deviation Deviation Town Votes Population Population Col.(3)-(4) Col.(5)/(3) (1) (2) (3) (4) (5) (6) Shelter Island 1 2268 2263 5 0.22% East Hampton 7 15876 16132 -256 -1.61% Riverhead 9 20412 19836 576 2.82% Southold 10 22680 23011 -331 -1.46% Southampton 20 45360 45351 9 0.02% Total 47 106596 106593 3 Summary Statistics Spread 4.43% Average 1.23% 24 -Person legislature (4441 People per representative) Population Percent Total Summary Statistics 24 106584 -1- 106593 -9 Spread 60.71% Average 15.13% Ideal Actual Deviation Deviation Town Votes Population Population Col.(3)-(4) Col.(5)/(3) (1) (2) (3) (4) (5) (6) Shelter Island 1 4441 2263 2178 49.04% East Hampton 4 17764 16132 1632 9.19% Riverhead 4 17764 19836 -2072 -11.66% Southold 5 22205 23011 -806 -3.63% Southampton 10 44410 45351 -941 -2.12% Total Summary Statistics 24 106584 -1- 106593 -9 Spread 60.71% Average 15.13% 23 -Person legislature (4634 People per representative) Population Percent Summary Statistics Spread 9.15% No vote for Shelter Island Average 2.65% 17 -Person legislature (6270 People per representative) Population Percent Ideal Actual Deviation Deviation Town Votes Population Population Col.(3)-(4) Col.(5)/(3) (1) (2) (3) (4) (5) (6) East H. + Shlt. Is 4 18536 18395 141 0.76% Riverhead 4 18536 19836 -1300 -7.01% Southold 5 23170 23011 159 0.69% Southampton 10 46340 45351 989 2.13% Total 23 106582 106593 -11 Summary Statistics Spread 9.15% No vote for Shelter Island Average 2.65% 17 -Person legislature (6270 People per representative) Population Percent Total 17 106590 Summary Statistics No vote for Shelter Island -2- 106593 -3 Spread 13.70% Average 4.81% Ideal Actual Deviation Deviation Town Votes Population Population Col.(3)-(4) Col.(5)/(3) (1) (2) (3) (4) (5) (6) East H. + Shlt. Is 3 '18810 18395 415 2.21% Riverhead 3 '18810 19836 -1026 -5.45% Southold 4 25080 23011 2069 8.25% Southampton 7 43890 45351 -1461 -3.33% Total 17 106590 Summary Statistics No vote for Shelter Island -2- 106593 -3 Spread 13.70% Average 4.81% 9 -Person legislature 15 -Person legislature (7106 People per representative) Population Population Percent Ideal Ideal Actual Deviation Deviation Town Votes Population Population Col.(3)-(4) Col.(5)/(3) (1) (2) (3) (4) (5) (6) East H. + Shlt. Is 3 21318 18395 2923 13.71% Riverhead 3 21318 19836 1482 6.95% Southold 3 21318 23011 -1693 -7.94% Southampton 6 42636 45351 -2715 -6.37% Total 15 106590 106593 -3 Summary Statistics Summary Statistics Spread 21.65% No vote for Shelter Island Average 8.74% 9 -Person legislature (11844 People per representative) Population Percent Ideal Actual Deviation Deviation Town Votes Population Population Col.(3)-(4) Col.(5)/(3) (1) (2) (3) (4) (5) (6) East H. + Shlt. Is 1 11844 18395 -6551 -55.31% Riverhead 2 23688 19836 3852 16.26% Southold 2 23688 23011 677 2.86% Southampton 4 47376 45351 2025 4.27% Total 9 106596 106593 3 Summary Statistics Spread 71.57% No vote for Shelter Island Average 19.68% -3- 4 -Person legislature (26648 People per representative) Population Percent Ideal Actual Deviation Deviation Town 5 -Person legislature (21319 People per representative) Population Col.(3)-(4) Col.(5)/(3) (1) Population Percent (4) (5) Ideal Actual Deviation Deviation Town Votes Population Population Col.(3)-(4) Col.(5)/(3) (1) (2) (3) (4) (5) (6) East H. + Shit. Is 1 21,319 18395 2924 13.72% Riverhead 1 21319 19836 1483 6.96% Southold 1 21,319 23011 -1692 -7.94% Southampton 2 42638 45351 -2713 -6.36% Total 5 106595 106593 . 2 Summary Statistics Spread 21.65% No vote for Shelter Island Average 8.74% 4 -Person legislature (26648 People per representative) Population Percent Ideal Actual Deviation Deviation Town Votes Population Population Col.(3)-(4) Col.(5)/(3) (1) (2) (3) (4) (5) (6) East H. + Shlt. Is 1 26648 18395 8253 30.97% Riverhead 1 26648 19836 6812 25.56% Southold 1 26648 23011 3637 13.65% Southampton 1 26648 45351 -18703 -70.19% Total 4 106592 106593 -1 Summary Statistics No vote for Shelter Island -4- Spread 101.16% Average 35.09% -1- APPENDIX 01 CRITICAL COALITION ANALYSIS All Possible Voting Combinations with 5 Representatives Voting Combinations Simple Majority, 3 Votes to Pass x13 Majority, 4 Votes to Pass No. of Tot. Tot. Yes Yes WT,n Yes Win Votes R1 R2 R3 R4 R5 Vote 13y R1 R2 R3 R4 R5 CC VoteBy R1 R2 R3 R4 R5 CC 5 1 1 1 1 1 5 2 0 0 0 0 0 0 5 1 0 0 0 0 0 0 4 1 1 1 1 0 4 1 0 0 0 0 0 0 4 0 1 1 1 1 0 1 4 1 1 1 0 1 4 1 0 0 0 0 0 0 4 0 1 1 1 0 1 1 3 1 1 1 0 0 3 0 1 1 1 0 0 1 3 -1 0 0 0 0 0 0 4 1 1 0 1 1 4 1 0 0 0 0 0 0 4 0 1 1 0 1 1 1 3 1 1 0 1 0 3 0 1 1 0 1 0 1 3 -1 0 0 0 0 0 0 3 1 1 0 0 1 3 0 1 1 0 0 1 1 3 -1 0 0 0 0 0 0 2 1 1 0 0 0 2 -1 0 0 0 0 0 0 2 -2 0 0 0 0 0 0 4 1 0 1 1 1 4 1 0 0 0 0 0 0 4 0 1 0 1 1 1 1 3 1 0 1 1 0 3 0 1 0 1 1 0 1 3 -1 0 0 0 0 0 0 3 1 0 1 0 1 3 0 1 0 1 0 1 1 3 -1 0 0 0 0 0 0 2 1 0 1 0 0 2 -1 0 0 0 0 0 0 2 -2 0 0 0 0 0 0 3 1 0 0 1 1 3 0 1 0 0 1 1 1 3 -1 0 0 0 0 0 0 2 1 0 0 1 0 2 -1 0 0 0 0 0 0 2 -2 0 0 0 0 0 0 2 1 0 0 0 1 2 -1 0 0 0 0 0 0 2 -2 0 0 0 0 0 0 1 1 0 0 0 0 1 -2 0 0 0 0 0 0 1 -3 0 0 0 0 0 0 4 0 1 1 1 1 4 1 0 0 0 0 0 0 4 0 0 1 1 1 1 1 3 0 1 1 1 0 3 0 0 1 1 1 0 1 3 -1 0 0 0 0 0 0 3 0 1 1 0 1 3 0 0 1 1 0 1 1 3 -1 0 0 0 0 0 0 2 0 1 1 0 0 2 -1 0 0 0 0 0 0 2 -2 0 0 o o 0 0 3 0 1 0 1 1 3 0 0 1 0 1 1 1 3 -1 0 0 0 0 0 0 2 0 1 0 1 0 2 -1 0 0 0 0 0 0 2 -2 0 0 0 0 0 0 2 0 1 0 0 1 2 -1 0 0 0 0 0 0 2 -2 0 0 0 0 0 0 1 0 1 0 0 0 1 -2 0 0 0 0 0 0 1 -3 0 0 0 0 0 0 3 0 0 1 1 1 3 0 0 0 1 1 1 1 3 -1 0 0 0 0 0 0 2 0 0 1 1 0 2 -1 0 0 0 0 0 0 2 -2 0 0 0 0 0 0 2 0 0 1 0 1 2 -1 0 0 0 0 0 0 2 -2 0 0 0 0 0 0 1 0 0 1 0 0 1 -2 0 0 0 0 0 0 1 -3 0 0 0 0 0 0 2 0 0 0 1 1 2 -1 0 0 0 0 0 0 2 -2 0 0 0 0 0 0 1 0 Q 0 1 0 1 -2 0 0 0 0 0 0 1 -3 0 0 0 0 0 0 1 0 0 0 0 1 1 -2 0 0 0 0 0 0 1 -3 0 0 0 0 0 0 0 0 0 0 0 0 0 -3 0 0 0 0 0 0 Q -4 0 0 0 0 0 0 Total 6 6 6 6 6 10 4 4 4 4 4 5 -1- APPENDIX D CRITICAL COALITION ANALYSIS All Possible Voting Combinations 93 Weighted Votes - Simple Majority Vote 93 Weighted Votes - 213 Majority Vote No. of Tot. Tot. Yes At At Yes Win At At Yes Win At At Votes SH RH HD EH SI Lg1 Lg2 Vote By SH RH HD EH SI Lg1 Lg2 CC Vote By SH RH HD EH SI Lg1 Lg2 CC 7 29 16 15 14 1 15 3 93 46 0 0 0 0 0 0 0 0 93 31 0 0 0 0 0 0 0 0 6 29 16 15 14 1 15 0 90 43 0 0 0 0 0 0 0 0 90 28 1 0 0 0 0 0 0 1 6 29 16 15 14 1 0 3 78 31 0 0 0 0 0 0 0 0 78 16 1 0 0 0 0 0 0 1 5 29 16 15 14 1 0 0 75 28 1 0 0 0 0 0 0 1 75 13 1 1 1 1 0 0 0 1 6 29 16 15 14 0 15 3 92 45 0 0 0 0 0 0 0 0 92 30 0 0 0 0 0 0 0 0 5 29 16 15 14 0 15 0 89 42 0 0 0 0 0 0 0 0 89 27 1 0 0 0 0 0 0 1 5 29 16 15 14 0 0 3 77 30 0 0 0 0 0 0 0 0 77 15 1 1 0 0 0 0 0 1 4 29 16 15 14 0 0 0 74 27 1 0 0 0 0 0 0 1 74 12 1 1 1 1 0 0 0 1 6 29 16 15 0 1 15 3 79 32 0 0 0 0 0 0 0 0 79 17 1 0 0 0 0 0 0 1 5 29 16 15 0 1 15 0 76 29 0 0 0 0 0 0 0 0 76 14 1 1 1 0 0 1 0 1 5 29 16 15 0 1 0 3 64 17 1 0 0 0 0 0 0 1 64 2 1 1 1 0 0 0 1 1 4 29 16 15 0 1 0 0 61 14 1 1 1 0 0 0 0 1 61 -1 0 0 0 0 0 0 0 0 5 29 16 15 0 0 15 3 78 31 0 0 0 0 0 0 0 0 78 16 1 0 0 0 0 0 0 1 4 29 16 15 0 0 15 0 75 .28 1 0 0 0 0 0 0 1 75 13 1 1 1 0 0 1 0 1 4 29 16 15 0 0 0 3 63 16 1 0 0 0 0 0 0 1 63 1 1 1 1 0 0 0 1 1 3 29 16 15 0 0 0 0 60 13 1 1 1 0 0 0 0 1 60 -2 0 0 0 0 0 0 0 0 6 29 16 0 14 1 15 3 78 31 0 0 0 0 0 0 0 0 78 16 1 0 0 0 0 0 0 1 5 29 16 0 14 1 15 0 75 28 1 0 0 0 0 0 0 1 75 13 1 1 0 1 0 1 0 1 5 29 16 0 14 1 0 3 63 16 1 0 0 0 0 0 0 1 63 1 1 1 0 1 0 0 1 1 4 29 16 0 14 1 0 0 60 13 1 1 0 1 0 0 0 1 60 -2 0 0 0 0 0 0 0 0 5 29 16 0 14 0 15 3 77 30 0 0 0 0 0 0 0 0 77 15 1 1 0 0 0 0 0 1 4 29 16 0 14 0 15 0 74 27 1 0 0 0 0 0 0 1 74 12 1 1 0 1 0 1 0 1 4 29 16 0 14 0 0 3 62 15 1 1 0 0 0 0 0 1 62 0 1 1 0 1 0 0 1 1 3 29 16 0 14 0 0 0 59 12 1 1 0 1 0 0 0 1 59 -3 0 0 0 0 0 0 0 0 5 29 16 0 0• 1 15 3 64 17 1 0 0 0 0 0 0 1 64 2 1 1 0 0 0 1 1 1 4 29 16 0 0 1 15 0 61 14 1 1 0 0 0 1 0 1 61 -1 0 0 0 0 0 0 0 0 4 29 16 0 0 1 0 3 49 2 1 1 0 0 0 0 1 1 49 -13 0 0 0 0 0 0 0 0 3 29 16 0 0 1 0 0 46 -1 0 0 0 0 0 0 0 0 46 -16 0 0 0 0 0 0 0 0 4 29 16 0 0 0 15 3 63 16 1 0 0 0 0 0 0 1 63 1 1 1 0 0 0 1 1 1 3 29 16 0 0 0 15 0 60 13 1 1 0 0 0 1 0 1 60 -2 0 0 0 0 0 0 0 0 3 29 16 0 0 0 0 3 48 1 1 1 0 0 0 0 1 1 48 -14 0 0 0 0 0 0 0" 0 2 29 16 0 0 0 0 0 45 -2 0 0 0 0 0 0 0 0 45 -17 0 0 0 0 0 0 0 0 6 29 0 15 14 1 15 3 77 30 0 0 0 0 0 0 0 0 77 15 1 0 0 0 0 0 0 1 No. of Tot. Tot. Yes At At Yes W n At At Yes Win At At Votes SH RH HD EH Sl Lg1 Lg2 Vote By SH RH HD EH Sl Lg1 Lg2 CC Vote By SH RH HD EH SI Lg1 Lg2 CC 5 29 0 15 14 1 15 0 74 27 1 0 0 0 0 0 0 1 74 12 1 0 1 1 0 1 0 1 5 29 0 15 14 1 0 3 62 15 1 0 0 0 0 0 0 1 62 0 1 0 1 1 1 0 1 1 4 29 0 15 14 1 0 0 59 12 1 0 1 1 0 0 0 1 59 -3 0 0 0 0 0 0 0 0 5 29 0 15 14 0 15 3 76 29 0 0 0 0 0 0 0 0 76 14 1 0 1 0 0 1 0 1 4 29 0 15 14 0 15 0 73 26 1 0 0 0 0 0 0 1 73 11 1 0 1 1 0 1 0 1 4 29 0 15 14 0 0 3 61 14 1 0 1 0 0 0 0 1 61 -1 0 0 0 0 0 0 0 0 3 29 0 15 14 0 0 0 58 11 1 0 1 1 0 0 0 1 58 -4 0 0 0 0 0 0 0 0 5 29 0 15 0 1 15 3 63 16 1 0 0 0 0 0 0 1 63 1 1 0 1 0 0 1 1 1 4 29 0 15 0 1 15 0 60 13 1 0 1 0 0 1 0 1 60 -2 0 0 0 0 0 0 0 0 4 29 0 15 0 1 0 3 48 1 1 0 1 0 0 0 1 1 48 -14 0 0 0 0 0 0 0 0 3 29 0 15 0 1 0 0 45 -2 0 0 0 0 0 0 0 0 45 -17 0 0 0 0 0 0 0 0 4 29 0 15 0 0 15 3 62 15 1 0 0 0 0 0 0 1 62 0 1 0 1 0 0 1 1 1 3 29 0 15 0 0 15 0 59 12 1 0 1 0 0 1 0 1 59 -3 0 0 0 0 0 0 0 0 3 29 0 15 0 0 0 3 47 0 1 0 1 0 0 0 1 1 47 -15 0 0 0 0 0 0 0 0 2 29 0 15 0 0 0 0 44 -3 0 0 0 0 0 0 0 0 44 -18 0 0 0 0 0 0 0 0 5 29 0 0 14 1 15 3 62 15 1 0 0 0 0 0 0 1 62 0 1 0 0 1 1 1 1 1 4 29 0 0 14 1 15 0 59 12 1 0 0 1 0 1 0 1 59 -3 0 0 0 0 0 0 0 0 4 29 0 0 14 1 0 3 47 0 1 0 0 1 1 0 1 1 47 -15 0 0 0 0 0 0 0 0 3 29 0 0 14 1 0 0 44 -3 0 0 0 0 0 0 0 0 44 -18 0 0 0 0 0 0 0 0 4 29 0 0 14 0 15 3 61 14 t 0 0 0 0 1 0 1 61 -1 0 0 0 0 0 0 0 0 3 29 0 0 14 0 15 0 58 11 1 0 0 1 0 1 0 1 58 -4 0 0 0 0 0 0 0 0 3 29 0 0 14 0 0 3 46 -1 0 0 0 0 0 0 0 0 46 -16 0 0 0 0 0 0 0 0 2 29 0 0 14 0 0 0 43 -4 0 0 0 0 0 0 0 0 43 -19 0 0 0 0 0 0 0 0 4 29 0 0 0 1 15 3 48 1 1 0 0 0 0 1 1 1 48 -14 0 0 0 0 0 0 0 0 3 29 0 0 0 1 15 0 45 -2 0 0 0 0 0 0 0 0 45 -17 0 0 0 0 0 0 0 0 3 29 0 0 0 1 0 3 33 -14 0 0 0 0 0 0 0 0 33 -29 0 0 0 0 0 0 0 0 2 29 0 0 0 1 0 0 30 -17 0 0 0 0 0 0 0 0 30 -32 0 0 0 0 0 0 0 0 3 29 0 0 0 0 15 3 47 0 1 0 0 0 0 1 1 1 47 -15 0 0 0 0 0 0 0 0 2 29 0 0 0 0 15 0 44 -3 0 0 0 0 0 0 0 0 44 -18 0 0 0 0 0 0 0 0 2 29 0 0 0 0 0 3 32 -15 0 0 0 0 0 0 0 0 32 -30 0 0 0 0 0 0 0 0 1 29 0 0 0 0 0 0 29 -18 0 0 0 0 0 0 0 0 29 -33 0 0 0 0 0 0 0 0 6 0 16 15 14 1 15 3 64 17 0 0 0 0 0 0 0 0 64 2 0 1 1 1 0 1 1 1 5 0 16 15 14 1 15 0 61 14 0 1 1 0 0 1 0 1 61 -1 0 0 0 0 0 0 0 0 5 0 16 15 14 1 0 3 49 2 0 1 1 1 0 0 1 1 49 -13 0 0 0 0 0 0 0 0 4 0 16 15 14 1 0 0 46 -1 0 0 0 0 0 0 0 0 46 -16 0 0 0 0 0 0 0 0 5 0 16 15 14 0 15 3 63 16 0 0 0 0 0 0 0 0 63 1 0 1 1 1 0 1 1 1 -2- No. of Tat. Tot. Yes At At Yes Win At At Yes Win At At Votes SH RH HD EH St Lg1 Lg2 Vote By SH RH HD EH SI Lg1 Lg2 CC Vote By SH RH HD EH SI Lg1 Lg2 CC 4 0 16 15 14 0 15 0 60 13 0 1 1 1 0 1 0 1 60 -2 0 0 0 0 0 0 0 0 4 0 16 15 14 0 0 3 48 1 0 1 1 1 0 0 1 1 48 -14 0 0 0 0 0 0 0 0 3 0 16 15 14 0 0 0 45 -2 0 0 0 0 0 0 0 0 45 -17 0 0 0 0 0 0 0 0 5 0 16 15 0 1 15 3 50 3 0 1 1 0 0 1 0 1 50 -12 0 0 0 0 0 0 0 0 4 0 16 15 0 1 15 0 47 0 0 1 1 0 1 1 0 1 47 -15 0 0 0 0 0 0 0 0 4 0 16 15 0 1 0 3 35 -12 0 0 0 0 0 0 0 0 35 -27 0 0 0 0 0 0 0 0 3 0 16 15 0 1 0 0 32 -15 0 0 0 0 0 0 0 0 32 -30 0 0 0 0 0 0 0 0 4 0 16 15 0 0 15 3 49 2 0 1 1 0 0 1 1 1 49 -13 0 0 0 0 0 0 0 0 3 0 16 15 0 0 15 0 46 -1 0 0 0 0 0 0 0 0 46 -16 0 0 0 0 0 0 0 0 3 0 16 15 0 0 0 3 34 -13 0 0 0 0 0 0 0 0 34 -28 0 0 0 0 0 0 0 0 2 0 16 15 0 0 0 0 31 -16 0 0 0 0 0 0 0 0 31 -31 0 0 0 0 0 0 0 0 5 0 16 0 14 1 15 3 49 2 0 1 0 1 0 1 1 1 49 -13 0 0 0 0 0 0 0 0 4 0 16 0 14 1 15 0 46 -1 D 0 0 0 0 0 0 0 46 -16 0 0 0 0 0 0 0 0 4 0 16 0 14 1 0 3 34 -13 0 0 0 0 0 0 0 0 34 -28 0 0 0 0 0 0 0 0 3 0 16 0 14 1 0 0 31 -16 0 0 0 0 0 0 0 0 31 -31 0 0 0 0 0 0 0 0 4 0 16 0 14 0 15 3 48 1 0 1 0 1 0 1 1 1 48 -14 0 0 0 0 0 0 0 0 3 0 16 0 14 0 15 0 45 -2 0 0 0 0 0 0 0 0 45 -17 0 0 0 0 0 0 0 0 3 0 16 0 14 0 0 3 33 -14 0 0 0 0 0 0 0 0 33 -29 0 0 0 0 0 0 0 0 2. 0 16 0 14 0 0 0 30 -17 0 0 0 0 0 0 0 0 30 -32 0 0 0 0 0 0 0 0 4 0 16 0 0 1 15 3 35 -12 0 0 0 0 0 0 0 0 35 -27 0 0 0 0 0 0 0 0 3 0 16 0 0 1 15 0 32 -15 0 0 0 0 0 0 0 0 32 -30 0 0 0 0 0 0 0 0 3 0 16 0 0 1 0 3 20 -27 0 0 0 0 0 0 0 0 20 -42 0 0 0 0 0 0 0 0 2 0 16 0 0 1 0 0 17 -30 0 0 0 0 0 0 0 0 17 -45 0 0 0 0 0 0 0 0 3 0 16 0 0 0 15 3 34 -13 0 0 0 0 0 0 0 0 34 -28 0 0 0 0 0 0 0 0 2 0 16 0 0 0 15 0 31 -16 0 0 0 0 0 0 0 0 31 -31 0 0 0 0 0 0 0 0 2 0 16 0 0 0 0 3 19 -28 0 0 0 0 0 0 0 0 19 43 0 0 0 0 0 0 0 0 1 0 16 0 0 0 0 0 16 -31 0 0 0 0 0 0 0 0 16 -46 0 0 0 0 0 0 0 0 5 0 0 15 14 1 15 3 48 1 0 0 1 1 0 1 1 1 48 -14 0 0 0 0 0 0 0 0 4 0 0 15 14 1 15 0 45 -2 0 0 0 0 0 0 0 0 45 -17 0 '0 0 0 0 0 0 0 4 0 0 15 14 1 0 3 33 -14 0 0 0 0 0 0 0 0 33 -29 0 0 0 0 0 0 0 0 3 0 0 15 14 1 0 0 30 -17 0 0 0 0 0 0 0 0 30 -32 0 0 0 0 0 0 0 0 4 0 0 15 14 0 15 3 47 0 0 0 1 1 0 1 1 1 47 -15 0 0 0 0 0 0 0 0 3 0 0 15 14 0 15 0 44 -3 0 0 0 0 0 0 0 0 44 -18 0 0 0 0 0 0 0 0 3 0 0 15 14 0 0 3 32 -15 0 0 0 0 0 0 0 0 32 -3D 0 0 0 0 0 0 0 0 2 0 0 15 14 0 0 0 29 -18 0 0 0 0 0 0 0 0 29 -33 0 0 0 0 0 0 0 0 4 0 0 15 0 1 15 3 34 -13 0 0 0 0 0 0 0 0 34 -26 0 0 0 0 0 0 0 0 -3- 110. ut I.Ot. Tot. Yes At At Yes V`An At At Yes Win At Votes SH RH HD EH Si Lg1 Lg2 Vote By SH RH HD EH SI L91 L92 CC Vote By SH RH HD EH SI Lg1 Lg2 CC 3 0 0 15 0 1 15 0 31 -16 0 0 0 0 0 0 0 0 31 -31 0 0 0 0 0 0 0 0 3 0 0 15 0 1 0 3 19 -28 0 0 0 0 0 0 0 0 19 -43 0 0 0 0 0 0 0 0 2 0 0 15 0 1 0 0 16 -31 0 0 0 0 0 0 0 0 16 46 0 0 0 0 0 0 0 0 3 0 0 15 0 0 15 3 33 -14 0 0 0 0 0 0 0 0 33 -29 0 0 0 0 0 0 0 0 2 0 0 15 0 0 15 0 30 -17 0 0 0 0 0 0 0 0 30 -32 0 0 0 0 0 0 0 0 2 0 0 15 0 0 0 3 18 -29 0 0 0 0 0 0 0 0 18 -44 0 0 0 0 0 0 0 0 1 0 0 15 0 0 0 0 15 -32 0 0 0 0 0 0 0 0 15 -47 0 0 0 0 0 0 0 0 4 0 0 0 14 1 15 3 33 -14 0 0 0 0 0 0 0 0 33 -29 0 0 0 0 0 0 0 0 3 0 0 0 14 1 15 0 30 -17 0 0 0 0 0 0 0 0 30 -32 0 0 0 0 0 0 0 0 3 0 0 0 14 1 0 3 18 -29 0 0 0 0 0 0 0 0 18 -44 0 0 0 0 0 0 0 0 2 0 0 0 14 1 0 0 15 -32 0 0 0 0 0 0 0 0 15 -47 0 0 0 0 0 0 0 0 3 0 0 0 14 0 15 3 32 -15 0 0 0 0 0 0 0 0 32 -30 0 0 0 0 0 0 0 0 2 0 0 0 14 0 15 0 29 -18 0 0 0 0 0 0 0 0 29 -33 0 0 0 0 0 0 0 0 2 0 0 0 14 0 0 3 17 -30 0 0 0 0 0 0 0 0 17 -45 0 0 0 0 0 0 0 0 1 0 0 0 14 0 0 0 14 -33 0 0 0 0 0 0 0 0 14 48 0 0 0 0 0 0 0 0 3 0 0 0 0 1 15 3 19 -28 0 0 0 0 0 0 0 0 19 -43 0 0 0 0 0 0 0 0 2 0 0 0 0 1 15 0 16 -31 0 0 0 0 0 0 0 0 16 -46 0 0 0 0 0 0 0 0 2 0 0 0 0 1 0 3 4 -43 0 0 0 0 0 0 0 0 4 -58 '0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 1 46 n n n n n n n 0 1 -61 0 0 0 0 0 0 0 0 2 0 0 0 0 0 15 3 18 -29 0 0 0 0 0 0 0 0 18 -44 0 0 0 0 0 0 0 0 1 0 0 0 0 0 15 0 15 -32 0 0 0 0 0 0 0 0 15 -47 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 3 3 -44 0 0 0 0 0 0 0 0 3 -59 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -47 0 0 0 0 0 0 0 0 0 -62 0 0 0 0 0 0 0 0 448 38 18 18 14 2 18 14 49 28 16 14 12 2 14 12 30 448 -4- APPENDIX E QUOTES FROM U.S. SUPREME COURT DECISIONS IN ABATE AND BROWN 1. Abate V. Mundt, 403 U.S. 182, 185, 91 S . Ct. 1904 (1971) In assessing the constitutionality of various apportionment plans, we have observed that viable local governments may need considerable flexibility in municipal arrangements if they are to meet changing societal needs, Sailors v. Board of Education, 387 U.S. 105, 110-111 (1967), and that a desire to preserve the integrity of political subdivisions may justify an apportionment plan which departs from numerical equality. Reynolds v. Sims, supra, at 578. These observations, along with the facts that local legislative bodies frequently have fewer representatives than do their state and national counterparts and that some local legislative districts may have a much smaller population than do congressional and state legislative districts, lend support to the argument that slightly greater percentage deviations may be tolerable for local government apportionment schemes, cf. ibid. Of course, this Court has never suggested that certain geographic interests are entitled to disproportionate representation. Rather, our statements have reflected the view that the particular circumstances and needs of a local community as a whole may sometimes justify departures from strict equality. 2. Brown v. Thomson, 462 U.S. 835, 844, 103 S.Ct. 2690 (1983) The District Court stated: "Wyoming as a state is unique among her sister states. A small population is encompassed by a large area. Counties have always been a major form of government in the State. Each county has its own special economic and social needs. The needs of the people are different and distinctive. Given the fact that the representatives from the combined counties of Niobrara and Goshen would probably come from the larger county, i.e., Goshen, the interests of the people of Niabrara County would be virtually unprotected. "The people within each county have many interests in common such as public facilities, government administration, and work and personal problems. Under the facts of this action, to deny these people their own representative borders on abridging their right to be represented in the determination of their futures. "In Wyoming, the counties are the primary administrative agencies of the State government. It has historically been the policy of the State that counties -1- remain in this position. "The taxing powers of counties are limited by the Constitution and some State statutes. Supplemental monies are distributed to the counties in accordance with appropriations designated by the State Legislature. It comes as no surprise that the financial requirements of each county are different. Without representation of their own in the State House of Representatives, the people of Niobrara County could well be forgotten." 536 F , Supp., at 784. To see the dramatic similarities with our own case, simply substitute the words "town" or "Shelter Island" for "county" or "Niobrara County," and "Peconic County" or "Suffolk County" for "Wyoming" or "State," and "East Hampton" or "Southold" for "Goshen County." -2- APPENDIX F ALLOCATION OF AT -LARGE VOTING POWER TO THE TOWNS BASED ON THEIR POPULATION SIZE (93 -Vote Case) Table 1 b. Allocation of At -Large Voting Power for Simple Majority Total Voting Power Col(5) + (6) (7) 1.95% 15.48% 19.68% 20.47% 42.41% 100.00% Table 1 c. Allocation of At -Large Voting Power for Two -Thirds Majority Percent of Allocated Total Gross At -Large At -Large Percent of Critical Coalitions Share Town Population Votes Coalitions Col(4) / 122 Col(4)AL x (3) (1) (3) (2) (4) (5) (6) Shelter Island 2.12% 1 2 1.64% 0.31% East Hampton 15.13% 14 14 11.48% 4.01% Southold 18.61% 15 18 14.75% 4.93% Riverhead 21.59% 16 18 14.75% 5.72% Southampton 42.55% 29 38 31.15% 11.27% At -Large 1 22.11% 15 18 14.75% 28 At -Large 2 11.40% 3 14 11.48% 15 Total 14.29% 93 122 100.00% 26.23% Total Voting Power Col(5) + (6) (7) 1.95% 15.48% 19.68% 20.47% 42.41% 100.00% Table 1 c. Allocation of At -Large Voting Power for Two -Thirds Majority -1- Percent of Allocated Total Gross At -Large Voting Percent of Critical Coalitions Share Power Town Population Votes Coalitions Col(4) / 98 Col(4)AL x (3) Col(5) + (6) (1) (3) (2) (4) (5) (6) (7) Shelter Island 2.12% 1 2 2.04% 0.30% 2.34% East Hampton 15.13% 14 12 12.24% 4.06% 16.30% Southold 18.61% 15 14 14.29% 4.99% 19.27% Riverhead 21.59% 16 16 16.33% 5.78% 22.11% Southampton 42.55% 29 28 28.57% 11.40% 39.97% At -Large 1 15 14 14.29% At -Large 2 3 12 12.24% Total 93 98 100.00% 26.53% 100.00% -1- APPENDIX II. DEBT0 : BOND SIZINGS DETAIL DEBT: BOND SIZINGS DETAIL Peconic County Capital Projects and Debt New Money Bonds for Start Up Costs Sources and Uses of Funds Sources: Par Amount of Bonds 4,185,000.00 Accrued Interest 0.00 Total Sources 4,185,000.00 Uses: Available for Start -Up Costs 4,073,094.05 Accrued Interest 0.00 Bond Insurance Premium 0.500% 24,809.25 Underwriters' Discount + Costs of Issuance 2.000% 83.700.00 Rounding 3,396.70 Total Sources 4,185,000.00 Assumptions Dated Date 1/15/96 Delivery Date 1/15/96 Appendix II. Debt: Bond Sizings Detail page II -1 Peconic County Capital Projects and Debt New Money Bonds for Start Up Costs Debt Service Schedule Appendix H. Debt: Bond Sizings Detail Page II -2 Interest Total Annual Date Principal Rate Interest Debt Service Debt Service 1/15/96 7/15/96 700,000.00 6.000% 125,550.00 825,550.00 825,550.00 1/15/97 104,550.00 104, 550.00 7/15/97 620,000.00 6.000% 104,550.00 724,550.00 829,100.00 1/15/98 85,950.00 85,950.00 7/15/98 655,000.00 6.000% 85,950.00 740,950.00 826,900.00 1/15/99 66,300.00 66,300.00 7/15/99 695,000.00 6.000% 66,300.00 761,300.00 827,600.00 1/15/00 45,450.00 45,450.00 7/15/00 735,000.00 6.000% 45,450.00 780,450.00 825,900.00 1/15/01 23,400.00 23,400.00 7/15/01 780,000.00 6.000% 23,400.00 803,400.00 826,800.00 4,185,000.00 4,961,850.00 776,850.00 4,961,850.00 Appendix H. Debt: Bond Sizings Detail Page II -2 Peconic County Capital Projects and Debt New Money Bonds for Capital Improvement Projects Total Debt Service Obligations for 1996 - 1999 Annual Bond Issues Appendix II. Debt: Bond Sizings Detail Page II -3 1996 Financing 1997 Financing 1998 Financing 1999 Financing Total Total Annual Date Debt Service Debt Service Debt Service Debt Service Debt Service Debt Service 1/15/96 7/15/96 1,462,950.00 1,462,950.00 1,462,950.00 1/15/97 489,600.00 489,600.00 7/15/97 974,600.00 1,045,650.00 2,020,250.00 2,509,850.00 1/15/98 475,050.00 350,400.00 825,450.00 7/15/98 990,050.00 695,400.00 983,900.00 2,669,350.00 3,494,800.00 1/15/99 459,600.00 340,050.00 329,850.00 1,129,500.00 7/15/99 1,004,600.00 705,050.00 654,850.00 2,043,300.00 4,407,800.00 5,537,300.00 1/15/00 443,250.00 329,100.00 320,100.00 683,700.00 1,776,150.00 7/15/00 1,018,250.00 719,100.00 665,100.00 1,358,700.00 3,761,150.00 5,537,300.00 1/15/01 426,000.00 317,400.00 309,750.00 663,450.00 1,716,600.00 7/15/01 1,036,000.00 732,400.00 674,750.00 1,378,450.00 3,821,600.00 5,538,200.00 1/15/02 407,700.00 304,950.00 298,800.00 642,000.00 1,653,450.00 7/15/02 1,052,700.00 739,950.00 688,800.00 1,402,000.00 3,883,450.00 5,536,900.00 1/15/03 388,350.00 291,900.00 287,100.00 619,200.00 1,586,550.00 7/15/03 1,073,350.00 756,900.00 697,100.00 1,424,200.00 3,951,550.00 5,538,100.00 1/15/04 367,800.00 277,950.00 274,800.00 595,050.00 1,515,600.00 7/15/04 1,092,800.00 767,950.00 709,800.00 1,445,050.00 4,015,600.00 5,531,200.00 1/15/05 346,050.00 263,250.00 261,750.00 569,550.00 1,440,600.00 7/15/05 1,116,050.00 783.250.00 721,750.00 1,474,550.00 4,095,600.00 5,536,200.00 1/15/06 322,950.00 247,650.00 247,950.00 542,400.00 1,360,950.00 7/15/06 1,137,950.00 797,650.00 737,950.00 1,497,400.00 4,170,950.00 5,531,900.00 1/15/07 298,500.00 231,150.00 233,250.00 513,750.00 1,276,650.00 7/15/07 1,163,500.00 816,150.00 753,250.00 1,528,750.00 4,261,650.00 5,538,300.00 1/15/08 272,550.00 213,600.00 217,650.00 483,300.00 1,187,100.00 7/15/08 1,187,550.00 833,600.00 767,650.00 1,558,300.00 4,347,100.00 5,534,200.00 1/15/09 245,100.00 195,000.00 201,150.00 451,050.00 1,092,300.00 7/15/09 1,220,100.00 850,000.00 786,150.00 1,591,050.00 4,447,300.00 5,539,600.00 1/15/10 215,850.00 175,350.00 183,600.00 416,850.00 991,650.00 7/15/10 1,245,850.00 870,350.00 803,600.00 1,626,850.00 4,546,650.00 5,538,300.00 1/15/11 184,950.00 154,500.00 165.000.00 380,550.00 885,000.00 7/15/11 1,279,950.00 894,500.00 820,000.00 1,660,550.00 4,655,000.00 5,540,000.00 1/15/12 152,100.00 132,300.00 145,350.00 342,150.00 771,900.00 7/15/12 1,312,100.00 912,300.00 840,350.00 1,702,150.00 4,766,900.00 5,538,800.00 1/15/13 117,300.00 108,900.00 124,500.00 301,350.00 652,050.00 7/15/13 1,347,300.00 938,900.00 859,500.00 1,741,350.00 4,887,050.00 5,539,100.00 1/15/14 80,400.00 84,000.00 102,450.00 258,150.00 525,000.00 7/15/14 1,380,400.00 964,000.00 882,450.00 1,783,150.00 5,010,000.00 5,535,000.00 1/15/15 41,400.00 57,600.00 79,050.00 212,400.00 390,450.00 7/15/15 1,421,400.00 987,600.00 909,050.00 1,832,400.00 5,150,450.00 5,540,900.00 1/15/16 29,700.00 54,150.00 163,800.00 247,650.00 7/15/16 1,019,700.00 929,150.00 1,878,800.00 3,827,650.00 4,075,300.00 1/15/17 27,900.00 112.350.00 140,250.00 7/15/17 957,900.00 1,932,350.00 2,890,250.00 3,030,500.00 1/15/18 57,750.00 57,750.00 7/15/18 1,982,750.00 1,982,750.00 2,040,500.00 29,251,950.00 20,935,150.00 19,707,200.00 40,850,900.00 110,745,200.00 110,745,200.00 Appendix II. Debt: Bond Sizings Detail Page II -3 Peconic County Capital Projects and Debt New Money Bonds for Capital Improvement Projects 1996 Financing Sources and Uses of Funds Sources: Par Amount of Bonds Accrued Interest Total Sources Uses: Deposit to Construction Fund Accrued Interest Bond Insurance Premium Underwriters' Discount + Costs of Issuance Rounding Total Sources 17,265,000.00 0.00 17,265,000.00 16,771,385.51 0.00 0.500% 146,259.75 2.000% 345,300.00 2,054.74 Assumptions Dated Date 1/15/96 Delivery Date 1/15/96 Construction Fund investment rate 5.500% 17,265,000.00 Appendix II. Debt: Bond Sizings Detail Page II -4 Peconic County Capital Projects and Debt New Money Bonds for Capital Improvement Projects 1996 Financing Debt Service Schedule Appendix H. Debt: Bond Sizings Detail Page II -5 Interest Total Annual Date Principal Rate Interest Debt Service Debt Service 1/15/96 7/15/96 945,000.00 6.000% 517,950.00 1,462.950.00 1,462,950.00 1/15/97 489,600.00 489,600.00 7/15/97 485,000.00 6.000% 489,600.00 974,600.00 1,464,200.00 1/15/98 475,050.00 475,050.00 7/15/98 515,000.00 6.000% 475,050.00 990,050.00 1,465,100.00 1/15/99 459,600.00 459,600.00 7/15/99 545,000.00 6.000% 459,600.00 1,004,600.00 1,464,200.00 1/15/00 443,250.00 443,250.00 7/15/00 575,000.00 6.000% 443,250.00 1,018,250.00 1,461,500.00 1/15/01 426,000.00 426,000.00 7/15/01 610,000.00 6.000% 426,000.00 1,036,000.00 1,462,000.00 1/15/02 407,700.00 407,700.00 7/15/02 645,000.00 6.000% 407,700.00 1,052,700.00 1,460,400.00 1/15/03 388,350.00 388,350.00 7/15/03 685,000.00 6.000% 388,350.00 1,073,350.00 1,461,700.00 1/15/04 367,800.00 367,800.00 7/15/04 725,000.00 6.000% 367,800.00 1,092,800.00 1,460,600.00 1/15/05 346,050.00 346,050.00 7/15/05 770,000.00 6.000% 346,050.00 1,116,050.00 1,462,100.00 1/15/06 322,950.00 322,950.00 7/15/06 815,000.00 6.000% 322,950.00 1,137,950.00 1,460,900.00 1/15/07 298,500.00 298,500.00 7/15/07 865,000.00 6.000% 298,500.00 1,163,500.00 1,462,000.00 1/15/08 272,550.00 272,550.00 7/15/08 915,000.00 6.000% 272,550.00 1,187,550.00 1,460,100.00 1/15/09 245,1010.00 245,100.00 7/15/09 975,000.00 6.000% 245,100.00 1,220,100.00 1,465,200.00 1/15/10 215,850.00 215,850.00 7/15/10 1,030,000.00 6.000% 215,850.00 1,245,850.00 1,461,700.00 1/15/11 184,950.00 184,950.00 7/15/11 1,095,000.00 6.000% 184,950.00 1,279,950.00 1,464,900.00 1/15/12 152,100.00 152,100.00 7/15/12 1,160,000.00 6.000% 152,100.00 1,312,100.00 1,464,200.00 1/15/13 117,300.00 117,300.00 7/15/13 1,230,000.00 6.000% 117,300.00 1,347,300.00 1,464,600.00 1/15/14 80,400.00 80,400.00 7/15/14 1,300,000.00 6.000% 80,400.00 1,380,400.00 1,460,800.00 1/15/15 41,400.00 41,400.00 7/15/15 1,380,000.00 6.000% 41,400.00 1,421,400.00 1,462,800.00 17,265,000.00 29,251,950.00 11,986,950.00 29,251,950.00 Appendix H. Debt: Bond Sizings Detail Page II -5 Peconic County Capital Projects and Debt New Money Bonds for Capital Improvement Projects 1996 Financing Yield Calculations Delivery Date 1/15/96 Yield 6.11035223% 6.37681920% Target Present Value Par Amount of Bonds 17,265,000.00 + Accrued Interest 0.00 Bond Insurance Premium (146,259.75) Underwriters' DiscountfCosts of Issuance Target Amount 17,118,740.25 17,265,000.00 0.00 (146,259.75) (345,300.00) 16,773,440.25 Appendix II. Debt: Bond Sizings Detail Page II -6 Arbitrage Yield All -In Yield Present Value Present Value Date Debt Service PV Factor Debt Service PV Factor Debt Service 1/15/96 1.00000000 1.00000000 7/15/96 1,462,950.00 0.97035398 1,419,579.35 0.96910109 1,417,746.44 1/15/97 489,600.00 0.94158684 461,000.92 0.93915692 459,811.23 7/15/97 974,600.00 0.91367254 890,465.25 0.91013799 887,020.49 1/15/98 475,050.00 0.88658578 421,172.57 0.88201572 419,001.57 7/15/98 990,050.00 0.86030204 851,742.03 0.85476239 846,257.51 1/15199 459,600.00 0.83479750 383,672.93 0.82835116 380,710.19 7/15/99 1,004,600.00 0.81004908 813.775.30 0.80275601 806,448.69 1/15/00 443,250.00 0.78603434 348,409.72 0.77795173 344,827.10 7/15/00 1,018,250.00 0.76273155 776,651.40 0.75391386 767,672.79 1/15/01 426,000.00 0.74011959 315,290.95 0.73061875 311,243.59 7/15101 1,036,000.00 0.71817799 744,032.40 0.70804342 733,532.98 1/15/02 407,700.00 0.69688687 284,120.78 0.68616565 279,749.74 7/15102 1,052,700.00 0.67622695 711,864.11 0.66496388 700,007.47 1/15/03 388,350.00 0.65617951 254,827.31 0.64441722 250,259.43 7/15/03 1,073,350.00 0.63672639 683,430.28 0.62450543 670,312.90 1/15/04 367,800.00 0.61784999 227,245.23 0.60520889 222,595.83 7/15/04 1,092,800.00 0.59953319 655,169.87 0.58650859 640,936.59 1/15/05 346,050.00 0.58175942 201,317.85 0.56838611 196,690.01 7/15/05 1,116,050.00 0.56451257 630,024.25 0.55082360 614,746.66 1/15/06 322,950.00 0.54777701 176,904.59 0.53380375 172,391.92 7/15/06 1,137,950.00 0.53153760 604,863.22 0.51730980 588,672.68 1/15/07 298,500.00 0.51577963 153,960.22 0.50132549 149,645.66 7/15/07 1,163,500.00 0.50048881 582,318.73 0.48583507 565,269.11 1/15/08 272,550.00 0.48565131 132,364.26 0.47082330 128,322.89 7/15/08 1,187,550.00 0.47125368 559,637.31 0.45627537 541,849.82 1/15/09 245,100.00 0.45728288 112,080.03 0.44217696 108,377.57 7/15/09 1,220,100.00 0.44372626 541,390.41 0.42851417 522,830.14 1/15/10 215,850.00 0.43057155 92,938.87 0.41527355 89,636.80 7/15/10 1,245,850.00 0.41780681 520,524.62 0.40244205 501,382.43 1/15/11 184,950.00 0.40542050 74,982.52 0.39000703 72,131.80 7/15/11 1,279,950.00 0.39340140 503,534.12 0.37795623 483,765.08 1/15/12 152,100.00 0.38173861 58,062.44 0.36627780 55,710.85 7/15/12 1,312,100.00 0.37042158 486,030.15 0.35496021 465,743.30 1/15/13 117,300.00 0.35944005 42,162.32 0.34399233 40,350.30 7/15/13 1,347,300.00 0.34878408 469,916.79 0.33336334 449,140.43 1/15/14 80,400.00 0.33844402 27,210.90 0.32306278 25,974.25 7/15/14 1,380,400.00 0.32841050 453,337.86 0.31308049 432,176.30 1/15/15 41,400.00 0.31867444 13,193.12 0.30340664 12,561.03 7/15/15 1,421,400.00 0.30922701 439,535.27 0.29403171 417,936.67 29,251,950.00 17,118,740.25 16,773,440.25 Delivery Date 1/15/96 Yield 6.11035223% 6.37681920% Target Present Value Par Amount of Bonds 17,265,000.00 + Accrued Interest 0.00 Bond Insurance Premium (146,259.75) Underwriters' DiscountfCosts of Issuance Target Amount 17,118,740.25 17,265,000.00 0.00 (146,259.75) (345,300.00) 16,773,440.25 Appendix II. Debt: Bond Sizings Detail Page II -6 Peconic County Capital Projects and Debt New Money Bonds for Capital Improvement Projects 1996 Financing Construction Fund Cashflows Date Beginning Balance Interest Earnings Drawdown Ending Balance 1/15/96 16,771, 385.51 0.00 1,432,166.67 15,339, 218.84 2/15/96 15,339,218.84 68,592.37 1,432,166.67 13,975,644.54 3/15/96 13,975,644.54 62,494.87 1,432,166.67 12,605,972.75 4/15/96 12,605,972.75 56,370.11 1,432,166.67 11.230,176.20 5/15/96 11,230,176.20 50,217.97 1,432,166.67 9,848,227.50 6/15/96 9,848,227.50 44,038.31 1,432,166.67 8,460,099.14 7/15/96 8,460,099.14 37,831.02 1,432,166.67 7,065,763.49 8/15/96 7,065,763.49 31,595.97 1,432,166.67 5,665,192.79 9/15/96 5,665,192.79 25,333.04 1,432,166.67 4,258,359.16 10/15/96 4,258,359.16 19,042.10 1,432,166.67 2,845,234.59 11/15/96 2,845,234.59 12,723.03 1,432,166.67 1,425,790.96 12/15/96 1,425,790.96 6,375.71 1,432,166.67 0.00 414,614.49 17,186,000.00 Appendix II. Debt: Bond Sizings Detail Page II -7 Peconic County Feasibility Study Capital Projects and Debt New Money Bonds for Capital Improvement Projects 1997 Financing Sources and Uses of Funds Sources: Par Amount of Bonds Accrued Interest Total Sources Uses: Deposit to Construction Fund Accrued Interest Bond Insurance Premium Underwriters' Discount + Costs of Issuance Rounding Total Sources Assumptions 12,355,000.00 0.00 12,355,000.00 12,001,699.50 0.00 0.500% 104,675.75 2.000% 247,100.00 11 ,524.75 Dated Date 1/15/97 Delivery Date 1/15/97 Construction Fund investment rate 5.500% 12,355,000.00 Appendix H. Debt: Bond Sizings Detail Page II -8 Peconic County Capital Projects and Debt New Money Bonds for Capital Improvement Projects 1997 Financing Debt Service Schedule Appendix II. Debt: Bond Sizings Detail Page II -9 Interest Total Annual Date Principal Rate Interest Debt Service Debt Service 1/15/97 7/15/97 675,000.00 6.000% 370,650.00 1,045,650.00 1,045,650.00 1/15/98 350,400.00 350,400.00 7/15/98 345,000.00 6.000% 350,400.00 695,400.00 1,045,800.00 1/15/99 340,050.00 340,050.00 7/15/99 365,000.00 6.000% 340,050.00 705,050.00 1,045,100.00 1/15/00 329,100.00 329,100.00 7/15/00 390,000.00 6.000% 329,100.00 719,100.00 1,048,200.00 1/15/01 317,400.00 317,400.00 7/15/01 415,000.00 6.000% 317,400.00 732,400.00 1,049,600.00 1/15/02 304,950.00 304,950.00 7/15/02 435,000.00 6.000% 304,950.00 739,950.00 1,044,900.00 1/15/03 291,900.00 291,900.00 7/15/03 465,000.00 6.000% 291,900.00 756,900.00 1,046,800.00 1/15/04 277,950.00 277,950.00 7/15/04 490,000.00 6.000% 277,950.00 767,950.00 1,045,900.00 1/15/05 263,250.00 263,250.00 7/15/05 520,000.00 6.000% 263,250.00 783,250.00 1,046,500.00 1/15/06 247,650.00 247,650.00 7/15/06 550,000.00 6.000% 247,650.00 797,650.00 1,045,300.00 1/15/07 231,150.00 231,150.00 7/15/07 585,000.00 6.000% 231,150.00 816,150.00 1,047,300.00 1/15/08 213,600.00 213,600.00 7/15/08 620,000.00 6.000% 213,600.00 833,600.00 1,047,200.00 1/15/09 195,000.00 195,000.00 7/15/09 655,000.00 6.000% 195,000.00 850,000.00 1,045,000.00 1/15/10 175,350.00 175, 350.00 7/15/10 695,000.00 6.000% 175,350.00 870,350.00 1,045,700.00 1/15/11 154,500.00 154,500.00 7/15/11 740,000.00 6.000% 154,500.00 894,500.00 1,049.000.00 1/15/12 132,300.00 132,300.00 7/15/12 780,000.00 6.000% 132,300.00 912,300.00 1,044,600.00 1/15/13 108,900.00 108,900.00 7/15/13 830,000.00 6.000% 108,900.00 938,900.00 1,047,800.00 1/15/14 84,000.00 84,000.00 7/15/14 880,000.00 6.000% 84,000.00 964,000.00 1,046,000.00 1/15/15 57,600.00 57,600.00 7/15/15 930,000.00 6.000% 57,600.00 987,600.00 1,045,200.00 1/15/16 29,700.00 29,700.00 7/15/16 990,000.00 6.000% 29,700.00 1,019,700.00 1,049,400.00 12,355,000.00 20,935,150.00 8,580,150.00 20,935,150.00 Appendix II. Debt: Bond Sizings Detail Page II -9 Peconic County Capital Projects and Debt New Money Bonds for Capital Improvement Projects 1997 Financing Yield Calculations Date Debt Service Arbitrage PV Factor Yield Present Value Debt Service All -in PV Factor Yield Present Value Debt Service 1/15/97 1.00000000 Par Amount of Bonds 1.00000000 12,355,000.00 7/15/97 1,045,650.00 0.97035406 1,014,650.72 0.96910151 1,013,340.99 1/15/98 350,400.00 0.94158700 329,932.09 0.93915774 329,080.87 7/15/98 695,400.00 0.91367277 635,368.05 0.91013918 632,910.79 1/15/99 340,050.00 0.88658608 301,483.60 0.88201725 299,929.97 7/15/99 705,050.00 0.86030241 606,556.21 0.85476425 602,651.53 1/15/00 329,100.00 0.83479793 274,732.00 0.82835333 272,611.08 7/15/00 719,100.00 0.81004956 582,506.64 0.80275846 577,263.61 1/15/01 317,400.00 0.78603488 249,487.47 0.77795443 246,922.74 7/15/01 732,400.00 0.76273214 558,625.02 0.75391682 552,166.68 1/15/02 304,950.00 0.74012023 225,699.66 0.73062192 222,803.16 7/15/02 739,950.00 0.71817867 531,416.31 0.70804681 523,919.24 1/15/03 291,900.00 0.69688759 203,421.49 0.68616923 200,292.80 7/15/03 756,900.00 0.67622770 511,836.75 0.66496764 503,314.01 1/15/04 277,950.00 0.65618030 182,385.31 0.64442114 179,116.86 7/15/04 767,950.00 0.63672722 488,974.67 0.62450950 479,592.07 1/15/05 263,250.00 0.61785084 162,649.23 0.60521310 159,322.35 7/15/05 783,250.00 0.59953407 469,585.06 0.58651293 459,386.25 1/15/06 247,650.00 0.58176032 144,072.94 0.56839057 140,761.92 7/15/06 797,650.00 0.56451349 450.284.18 0.55082815 439,368.08 1/15/07 231,150.00 0.54777796 126,618.87 0.53380840 123,389.81 7/15/07 816,150.00 0.53153856 433,815.20 0.51731452 422,206.25 1/15/08 213,600.00 0.51578060 110,170.74 0.50133028 107,084.15 7/15/08 833,600.00 0.50048980 417,208.30 0.48583994 404,996.17 1/15/09 195,000.00 0.48565231 94,702.20 0.47082821 91,811.50 7/15/09 850,000.00 0.47125469 400,566.49 0.45628033 387,838.28 1/15/10 175,350.00 0.45728391 80,184.73 0.44218196 77,536.61 7/15/10 870,350.00 0.44372729 386,198.05 0.42851921 372,961.69 1/15/11 154,500.00 0.43057258 66,523.46 0.41527861 64,160.55 7/15/11 894,500.00 0.41780785 373,729.12 0.40244713 359,988.95 1/15/12 132,300.00 0.40542155 53,637.27 0.39001212 51,598.60 7/15/12 912,300.00 0.39340244 358,901.05 0.37796133 344,814.12 1/15/13 108,900.00 0.38173966 41,571.45 0.36628290 39,888.21 7/15/13 938,900.00 0.37042263 347,789.81 0.35496531 333,276.93 1/15/14 84,000.00 0.35944110 30,193.05 0.34399742 28,695.78 7/15/14 964,000.00 0.34878513 336,228.87 0.33336842 321,367.15 1/15/15 57,600.00 0.33844507 19,494.44 0.32306783 18,608.71 7/15/15 987,600.00 0.32841155 324,339.24 0.31308553 309,203.27 1/15/16 29,700.00 0.31867548 9,464.66 0.30341166 9,011.33 7/15/16 1,019,700.00 0.30922804 315,319.84 0.29403669 299,829.22 20,935,150.00 12,250,324.25 12,003,224.25 Delivery Date 1/15/97 Yield 6.11033450% 6.37672942% Target Present Value Par Amount of Bonds 12,355,000.00 12,355,000.00 +Accrued Interest 0.00 0.00 Bond Insurance Premium (104,675.75) (104,675.75) Underwriters' Discount/Costs of Issuance (247,100.00) Target Amount 12,250,324.25 12,003,224.25 Appendix H. Debt: Bond Sizings Detail Page II -10 Peconic County Capital Projects and Debt New Money Bonds for Capital Improvement Projects 1997 Financing Construction Fund Cashflows Date Beginning Balance Interest Earnings Drawdown Ending Balance 1/15/97 12,001,699.50 0.00 1,024,866.67 10,976,832.83 2/15/97 10,976,832.83 49,085.09 1,024,866.67 10,001,051.25 3/15/97 10,001,051.25 44,721.69 1,024,666.67 9,020,906.28 4/15/97 9,020,906.28 40,338.78 1,024,866.67 8,036,378.39 5/15/97 8,036,378.39 35,936.26 1,024,866.67 7,047,447.98 6/15/97 7,047,447.98 31,514.07 1,024,866.67 6,054,095.38 7/15/97 6,054,095.38 27,072.09 1,024,866.67 5,056,300.81 8/15/97 5,056,300.81 22,610.25 1,024,866.67 4,054,044.40 9/15/97 4,054,044.40 18.128.47 1,024,666.67 3,047,306.20 10/15/97 3,047,306.20 13,626.64 1,024,866.67 2,036,066.17 11/15/97 2,036,066.17 9,104.67 1,024,866.67 1,020,304.17 12/15/97 1,020,304.17 4,562.49 1,024,866.67 0.00 296, 700.50 12, 298,400.00 Appendix H. Debt: Bond Sizings Detail Page II -11 Peconic County Feasibility Study Capital Projects and Debt New Money Bonds for Capital Improvement Projects 1998 Financing Sources and Uses of Funds Sources: Par Amount of Bonds Accrued Interest Total Sources Uses: Deposit to Construction Fund Accrued Interest Bond Insurance Premium Underwriters' Discount + Costs of Issuance Rounding Total Sources Assumptions 11,630,000.00 0.00 11,630,000.00 11,298,484.06 0.00 0.500% 98,536.00 2.000% 232,600.00 379.94 Dated Date 1/15/38 Delivery Date 1/15/98 Construction Fund investment rate 5.500% 11,630,000.00 Appendix II. Debt: Bond Sizings Detail Page II -12 Peconic County Capital Projects and Debt New Money Bonds for Capital Improvement Projects 1998 Financing Debt Service Schedule Appendix II. Debt: Bond Sizings Detail Page II -13 Interest Total Annual Date Principal Rate Interest Debt Service Debt Service 1/15/98 7/15/98 635,000.00 6.000% 346,900.00 983,900.00 983,900.00 1/15/99 329,850.00 329,850.00 7/15/99 325,000.00 6.000% 329,850.00 654,850.00 984,700.00 1/15/00 320,100.00 320,100.00 7/15/00 345,000.00 6.000% 320,100.00 665,100.00 985,200.00 1/15/01 309,750.00 309,750.00 7/15/01 365,000.00 6.000% 309,750.00 674,750.00 984,500.00 1/15/02 298,800.00 298,800.00 7/15/02 390,000.00 6.000% 298,800.00 688,800.00 987,600.00 1/15/03 287,100.00 287,100.00 7/15/03 410,000.00 6.000% 287,100.00 697,100.00 964,200.00 1/15/04 274,800.00 274,800.00 7/15/04 435,000.00 6.000% 274,800.00 709,800.00 964,600.00 1/15/05 261,750.00 261,750.00 7/15/05 460,000.00 6.000% 261,750.00 721,750.00 983,500.00 1/15/06 247,950.00 247,950.00 7/15/06 490,000.00 6.000% 247,950.00 737,950.00 985,900.00 1/15/07 233,250.00 233,250.00 7/15/07 520,000.00 6.000% 233,250.00 753,250.00 986,500.00 1/15/08 217,650.00 217,650.00 7/15/08 550,000.00 6.000% 217,650.00 767,650.00 985,300.00 1/15/09 201,150.00 201,150.00 7/15/09 585,000.00 6.000% 201,150.00 786,150.00 987,300.00 1/15/10 183,600.00 183,600.00 7/15/10 620,000.00 6.000% 183,600.00 803,600.00 987,200.00 1/15/11 165,000.00 165,000.00 7/15/11 655,000.00 6.000 % 165,000.00 820,000.00 985,000.00 1/15/12 145,350.00 145,350.00 7/15/12 695,000.00 6.000% 145,350.00 840,350.00 985,700.00 1/15/13 124,500.00 124,500.00 7/15/13 735,000.00 6.000% 124,500.00 859,500.00 984,000.00 1/15/14 102,450.00 102,450.00 7/15/14 780,000.00 6.000% 102,450.00 882,450.00 984,900.00 1/15/15 79,050.00 79,050.00 7/15/15 830,000.00 6.000% 79,050.00 909,050.00 988,100.00 1/15/16 54,150.00 54,150.00 7/15/16 875,000.00 6.000% 54,150.00 929,150.00 983,300.00 1/15/17 27,900.00 27,900.00 7/15/17 930,000.00 6.000% 27,900.00 957,900.00 985,800.00 11,630,000.00 8,077,200.00 19,707,200.00 19,707,200.00 Appendix II. Debt: Bond Sizings Detail Page II -13 Peconic County Capital Projects and Debt New Money Bonds for Capital Improvement Projects 1998 Financing Yield Calculations 19,707, 200.00 11,531,464.00 11,298,864.00 Delivery Date 1/15/98 Yield 6.11032752% 6.37669763% Target Present Value Par Amount of Bonds 11,630,000.00 + Accrued Interest 0.00 Bond Insurance Premium (98,536.00) Underwriters' Discount/Costs of Issuance Target Amount 11,531,464.00 11,630,000.00 0.00 (98,536.00) (232,600.00) 11,298,864.00 Appendix H. Debt: Bond Sizings Detail Page II -14 Arbitrage Yield All -In Yield Present Value Present Value Date Debt Service PV Factor Debt Service PV Factor Debt Service 1/15/98 1.00000000 1.00000000 7/15/98 983,900.00 0.97035409 954,731.39 0.96910166 953,499.12 1/15/99 329,850.00 0.94158707 310,582.49 0.93915802 309,781.27 7/15/99 654,850.00 0.91367286 598,318.68 0.91013960 596,004.92 1/15/00 320,100.00 0.88658620 283,796.24 0.88201780 282,333.90 7/15/00 665,100.00 0.86030255 572,187.23 0.85476491 568,504.14 1/15/01 309,750.00 0.83479610 258,578.71 0.82835409 256,582.68 7/15/01 674,750.00 0.81004976 546,581.07 0.80275932 541,661.85 1/15/02 298,800.00 0.78603510 234,867.29 0.77795539 232,453.07 7/15/02 688,800.00 0.76273237 525,370.06 0.75391786 519,298.62 1/15/03 287,100.00 0.74012048 212,488.59 0.73062305 209,761.88 7/15/03 697,100.00 0.71817894 500,642.54 0.70804801 493,580.27 1/15/04 274,800.00 0.69688787 191,504.79 0.68617050 188,559'.65 7/15/04 709,800.00 0.67622800 479,986.63 0.66496897 471,994.97 1/15/05 261,750.00 0.65618061 171,755.27 0.64442253 168,677.60 7/15/05 721,750.00 0.63672754 459,558.10 0.62451094 450,740.77 1/15/06 247,950.00 0.61785117 153,196.20 0.60521459 150,062.96 7/15/06 737,950.00 0.59953442 442.426.42 0.58651447 432,818.35 1/15/07 233,250.00 0.58176067 135,695.68 0.56839214 132,577.47 7/15/07 753,250.00 0.56451385 425,220.06 0.55082977 414,912.52 1/15/08 217,650.00 0.54777833 119,223.95 0.53381004 116,183.76 7/15/08 767,650.00 0.53153894 408,035.87 0.51731620 397,117.78 1/15/09 201,150.00 0.51578099 103,749.35 0.50133198 100,842.93 7/15/09 786,150.00 0.50049019 393,460.36 0.48584166 381,944.42 1/15/10 183,600.00 0.48565271 89,165.84 0.47082996 86,444.38 7/15/10 803,600.00 0.47125509 378,700.59 0.45628209 366,668.29 1/15/11 165,000.00 0.45728431 75,451.91 0.44218373 72,960.32 7/15/11 820,000.00 0.44372770 363,856.71 0.42852099 351,387.21 1/15/12 145,350.00 0.43057299 62,583.78 0.41528040 60,361.01 7/15/12 840,350.00 0.41780826 351,105.17 0.40244892 338,197.95 1/15/13 124,500.00 0.40542196 50,475.03 0.39001392 48,556.73 7/15/13 859,500.00 0.39340286 338,129.76 0.37796314 324,859.32 1/15/14 102,450.00 0.38174007 39,109.27 0.36628470 37,525.87 7/15/14 882,450.00 0.37042304 326,879.81 0.35496711 313,240.73 1/15/15 79,050.00 0.35944152 28,413.85 0.34399922 27,193.14 7/15/15 909,050.00 0.34878555 317,063.50 0.33337021 303,050.19 1/15/16 54,150.00 0.33844548 18,326.82 0.32306963 17,494.22 7/15/16 929,150.00 0.32841196 305,143.97 0.31308731 290,905.07 1/15/17 27,900.00 0.31867589 8,891.06 0.30341343 8,465.23 7/15/17 957,900.00 0.30922845 296,209.93 0.29403846 281,659.44 19,707, 200.00 11,531,464.00 11,298,864.00 Delivery Date 1/15/98 Yield 6.11032752% 6.37669763% Target Present Value Par Amount of Bonds 11,630,000.00 + Accrued Interest 0.00 Bond Insurance Premium (98,536.00) Underwriters' Discount/Costs of Issuance Target Amount 11,531,464.00 11,630,000.00 0.00 (98,536.00) (232,600.00) 11,298,864.00 Appendix H. Debt: Bond Sizings Detail Page II -14 Peconic County Capital Projects and Debt New Money Bonds for Capital Improvement Projects 1998 Financing Construction Fund Cashflows Date Beginning Balance Interest Earnings Drawdown 1/15/98 11,298,484.06 0.00 964,816.67 2/15/98 10,333,667.40 46,209.05 964,816.67 3/15/98 9,415,059.78 42,101.31 964,816.67 4/15/98 8,492,344.43 37,975.21 964,816.67 5/15/98 7,565,502.97 33,830.65 964,616.67 6/15/98 6,634,516.95 29,667.56 964,816.67 7/15/98 5,699,367.85 25,485.86 964,816.67 8/15/98 4,760,037.04 21,285.45 964,816.67 9/15/98 3,816,505.82 17,066.26 964,616.67 10/15/98 2,868,755.42 12,828.21 964,816.67 11/15/98 1,916,766.97 8,571.20 964,816.67 12/15/98 960,521.50 4,295.16 964,816.67 279,315.94 11,577,800.00 Ending Balance 10, 333, 667.40 9,415,059.78 8,492,344.43 7,565,502.97 6,634,516.95 5,699,367.85 4,760,037.04 3,816,505.82 2.868,755.42 1,916,766.97 960,521.50 0.00 Appendix II. Debt: Bond Sizings Detail Page II -15 Peconic County Feasibility Study Capital Projects and Debt New Money Bonds for Capital Improvement Projects 1999 Financing Sources and Uses of Funds Sources: Par Amount of Bonds Accrued Interest Total Sources Uses: Deposit to Construction Fund Accrued Interest Bond Insurance Premium Underwriters' Discount + Costs of Issuance Rounding Total Sources 24,110,000.00 0.00 24,1 10,000.00 23,420,996.87 0.00 0.500% 204,254.50 2.000% 482,200.00 2,548.63 Assumptions Dated Date 1/15/99 Delivery Date 1/15/99 Construction Fund investment rate 5.500 24,110,000.00 Appendix II. Debt: Bond Sizings Detail Page II -16 Peconic County Capital Projects and Debt New Money Bonds for Capital Improvement Projects 1999 Financing Debt Service Schedule Appendix H. Debt: Bond Sizings Detail Page II -17 Interest Total Annual Date Principal Rate Interest Debt Service Debt Service 1/15/99 7/15/99 1,320,000.00 6.000% 723,300.00 2,043,300.00 2,043,300.00 1/15/00 683,700.00 683,700.00 7/15100 675,000.00 6.000% 683,700.00 1,358,700.00 2,042,400.00 1/15/01 663,450.00 663,450.00 7/15/01 715,000.00 6.000% 663,450.00 1,378,450.00 2,041,900.00 1/15/02 642,000.00 642,000.00 7/15/02 760,000.00 6.000% 642,000.00 1,402,000.00 2,044,000.00 1/15/03 619,200.00 619,200.00 7/15/03 805,000.00 6.000% 619,200.00 1,424,200.00 2,043,400.00 1/15/04 595,050.00 595,050.00 7/15/04 850,000.00 6.000% 595,050.00 1,445,050.00 2,040,100.00 1/15/05 569,550.00 569,550.00 7/15/05 905,000.00 6.000% 569,550.00 1,474,550.00 2,044,100.00 1/15/06 542,400.00 542,400.00 7/15/06 955,000.00 6.000% 542,400.00 1,497,400.00 2,039,800.00 1/15/07 513,750.00 513,750.00 7/15/07 1,015,000.00 6.000% 513,750.00 1,528,750.00 2,042,500.00 1/15/08 483,300.00 483,300.00 7/15/08 1,075,000.00 6.000% 483,300.00 1,558,300.00 2,041,600.00 1/15109 451,050.00 451,050.00 7/15/09 1,140,000.00 6.000% 451,050.00 1,591,050.00 2,042,100.00 1/15/10 416,850.00 416,850.00 7/15/10 1,210,000.00 6.000% 416,850.00 1,626,850.00 2,043,700.00 1/15/11 380,550.00 380,550.00 7/15/11 1,280,000.00 6.000% 380,550.00 1,660,550.00 2,041,100.00 1/15/12 342,150.00 342,150.00 7/15/12 1,360,000.00 6.000% y 342,150.00 1,702,150.00 2,044,300.00 1/15/13 301,350.00 301,350.00 7/15/13 1,440,000.00 6.000% 301,350.00 1,741,350.00 2,042,700.00 1/15/14 258,150.00 258,150.00 7/15/14 1,525,000.00 6.000% 258,150.00 1,763,150.00 2,041,300.00 1/15/15 212,400.00 212,400.00 7/15/15 1,620,000.00 6.000% 212,400.00 1,832,400.00 2,044,800.00 1/15/16 163,800.00 163,800.00 7/15/16 1,715,000.00 6.000% 163,800.00 1,878,800.00 2,042,600.00 1/15117 112,350.00 112,350.00 7/15/17 1,820,000.00 6.000% 112,350.00 1,932,350.00 2,044,700.00 1/15/18 57,750.00 57,750.00 7/15/16 1,925,000.00 6.000% 57,750.00 1,982,750.00 2,040,500.00 24,110,000.00 16,740,900.00 40,850,900.00 40,850,900.00 Appendix H. Debt: Bond Sizings Detail Page II -17 Peconic County Capital Projects and Debt New Money Bonds for Capital Improvement Projects 1999 Financing Yield Calculations 40,850,900.00 23,905,745.50 23,423,545.50 Delivery Date 1/15/99 Yield 6.11034335% 6.37677801°k Target Present Value Par Amount of Bonds 24,110,000.00 24,110,000.00 + Accrued Interest 0.00 0.00 Bond Insurance Premium (204,254.50) (204,254.50) Underwriters' Discount(Costs of Issuance (482,200.00) Target Amount 23,905,745.50 23,423,545.50 Appendix II. Debt: Bond Sizings Detail Page II -18 Arbitrage Yield All -In Yield Present Value Present Value Date Debt Service PV Factor Debt Service PV Factor Debt Service 1/15/99 1.00000000 1.00000000 7/15/99 2,043,300.00 0.97035402 1,982,724.37 0.96910128 1,980,164.65 1/15/00 683,700.00 0.94158692 643,762.98 0.93915729 642,101.84 7/15/00 1,358,700.00 0.91367265 1,241,407.03 0.91013854 1,236,605.23 1/15/01 663,450.00 0.88658593 588,205.44 0.88201642 585,173.80 7/15/01 1,378,450.00 0.86030222 1,185,883.60 0.85476324 1,178,248.39 1/15/02 642,000.00 0.83479772 535,940.14 0.82835216 531,802.08 7/15/02 1,402,000.00 0.81004932 1,135,689.15 0.80275714 1,125,465.50 1/15/03 619,200.00 0.78603461 486,712.63 0.77795297 481,708.48 7/15/03 1,424,200.00 0.76273185 1,086,282.70 0.75391522 1,073,726.05 1/15/04 595,050.00 0.74011991 440,408.35 0.73062020 434,755.55 7/15/04 1,445,050.00 0.71817833 1,037,803.60 0.70804498 1,023,160.39 1/15/05 569,550.00 0.69688723 396,912.12 0.68616729 390,806.58 7/15/05 1,474,550.00 0.67622732 997,131.00 0.66496560 980,525.03 1/15/06 542,400.00 0.65617990 355,911.98 0.64441902 349,532.88 7/15/06 1,497,400.00 0.63672681 953,434.72 0.62450730 935,137.23 1/15/07 513,750.00 0.61785041 317,420.65 0.60521082 310,927.06 7/15/07 1,528,750.00 0.59953363 916,537.04 0.58651058 896.628.05 1/15/08 483,300.00 0.58175987 281,164.55 0.56838816 274,702.00 7/15/08 1,558,300.00 0.56451303 879,680.65 0.55082569 858,351.67 1/15/09 451,050.00 0.54777749 247,075.03 0.53380588 240,773.14 7/15/09 1,591,050.00 0.53153808 845,703.67 0.51731196 823,069.20 1/15/10 416,850.00 0.51578012 215,002.94 0.50132769 208,978.45 7/15/10 1,626,850.00 0.50048931 814,221.03 0.48583730 790,384.42 1/15/11 380,550.00 0.48565181 184,814.80 0.47082555 179,172.66 7/15/11 1,660,550.00 0.47125419 782,541.14 0.45627765 757,671.85 1/15/12 342,150.00 0.45728339 156,459.51 0.44217925 151,291.63 7/15/12 1,702,150.00 0.44372678 755,289.54 0.42851648 729,399.33 1/15/13 301,350.00 0.43057206 129,752.89 0.41527587 125,143.38 7/15/13 1,741,350.00 0.41780733 727,548.80 0.40244438 700,796.52 1/15/14 258,150.00 0.40542102 104,659.44 0.39000936 100,680.92 7/15/14 1,783,150.00 0.39340192 701,494.63 0.37795857 673,956.83 1/15/15 212,400.00 0.38173913 81,081.39 0.36628014 77,797.90 7/15/15 1,832,400.00 0.37042210 678,761.46 0.35496255 650,433.38 1/15/16 163,800.00 0.35944058 58,876.37 0.34399466 56,346.33 7/15/16 1,878,800.00 0.34878461 655,296.52 0.33336567 626,327.42 1/15/17 112,350.00 0.33844455 38,024.24 0.32306510 36,296.36 7/15/17 1,932,350.00 0.32841103 634,605.04 0.31308280 604,985.55 1/15/18 57,750.00 0.31867496 18,403.48 0.30340894 17,521.87 7/15/18 1,982,750.00 0.30922753 613,120.88 0.29403399 582,995.90 40,850,900.00 23,905,745.50 23,423,545.50 Delivery Date 1/15/99 Yield 6.11034335% 6.37677801°k Target Present Value Par Amount of Bonds 24,110,000.00 24,110,000.00 + Accrued Interest 0.00 0.00 Bond Insurance Premium (204,254.50) (204,254.50) Underwriters' Discount(Costs of Issuance (482,200.00) Target Amount 23,905,745.50 23,423,545.50 Appendix II. Debt: Bond Sizings Detail Page II -18 Peconic County Capital Projects and Debt New Money Bonds for Capital Improvemenj Projects 1999 Financing Construction Fund Cashtlows Date Beginning Balance Interest Earnings Drawdown Ending Balance 1/15/99 23,420,996.67 0.00 2,000,000.00 21,420,996.87 2/15/99 21,420,996.87 95,788.25 2,000,000.00 19,516,785.12 3/15/99 19,516,785.12 87,273.19 2,000,000.00 17,604,058.31 4/15/99 17,604,058.31 78,720.05 2,000,000.00 15,682,778.36 5/15/99 15,682,778.36 70,128.66 2,000,000.00 13,752,907.02 6/15/99 13,752,907.02 61,496.86 2,000,000.00 11,814,405.88 7/15/99 11,814,405.88 52,830.47 2,000,000.00 9,867,236.35 8/15/99 9,867,236.35 44,123.31 2,000,000.00 7,911,359.66 9/15/99 7,911,359.66 35,377.22 2,000,000.00 5,946,736.88 10/15/99 5,946,736.88 26,592.02 2,000,000.00 3,973,328.90 11/15/99 3,973,328.90 17,767.53 2,000,000.00 1,991,096.43 12/15/99 1,991,096.43 8,903.58 2,000,000.00 0.01 579,003.14 24,000,000.00 Appendix II. Debt: Bond Sizings Detail Page II -19 Peconic County Capital Projects and Debt Repayment of Suffolk County G.O. Debt Sources and Uses of Funds Sources: Par Amount of Bonds 66,220,000.00 Accrued Interest 0.00 Total Sources 66,220,000.00 Uses: Amount to be Paid to Suffolk County 64,332,805.00 Accrued Interest 0.00 Bond Insurance Premium 0.500% 560,982.50 Underwriters' Discount + Costs of Issuance 2.000% 1,324,400.00 Rounding 1,812.50 Total Sources 66,220,000.00 Assumptions Dated Date 1/15/96 Delivery Date 1/15196 Appendix H. Debt: Bond Sizings Detail Page II -20 Peconic County Capital Projects and Debt Repayment of Suffolk County G.O. Debt Debt Service Schedule Date Principal Interest Rate Interest Total Debt Service Annual Debt Service 1/15/96 7/15/96 3,625,000.00 6.000% 1,986,600.00 5,611,600.00 5,611,600.00 1/15/97 1,877,850.00 1,877,850.00 7/15/97 1,855,000.00 6.000% 1,877,850.00 3,732,850.00 5,610,700.00 1/15/98 1,822,200.00 1,822,200.00 7/15/98 1,965,000.00 6.000% 1,822,200.00 3,787,200.00 5,609,400.00 1/15/99 1,763,250.00 1, 763, 250.00 7/15/99 2,085,000.00 6.000% 1,763,250.00 3,848,250.00 5,611,500.00 1/15/00 1,700, 700.00 1,700,700.00 7/15/00 2,210,000.00 6.000% 1,700,700.00 3,910,700.00 5,611,400.00 1/15/01 1,634,400.00 1,634,400.00 7/15/01 2,340,000.00 6.000% 1,634,400.00 3,974,400.00 5,608,800.00 1/15/02 1,564, 200.00 1,564, 200.00 7/15/02 2,480,000.00 6.000% 1,564,200.00 4,044,200.00 5,608,400.00 1/15/03 1,489,800.00 1,489,800.00 7/15/03 2,630,000.00 6.000% 1,489,800.00 4,119,800.00 5,609,600.00 1/15/04 1,410,900.00 1,410,900.00 7/15/04 2,790,000.00 6.000% 1,410,900.00 4,200,900.00 5,611,800.00 1/15/05 1,327,200.00 1, 327, 200.00 7/15/05 2,955,000.00 6.000% 1,327,200.00 4,282,200.00 5,609,400.00 1/15/06 1,238,550.00 1,238,550.00 7/15/06 3,130,000.00 6.000% 1,238,550.00 4,368,550.00 5,607,100.00 1/15/07 1,144,650.00 1,144,650.00 7/15/07 3,320,000.00 6.000% 1,144,650.00 4,464,650.00 5,609,300.00 1/15/08 1,045,050.00 1,045,050.00 7/15/08 3,520,000.00 6.000% 1,045,050.00 4,565,050.00 5,610,100.00 1/15/09 939,450.00 939,450.00 7/15/09 3,730,000.00 6.000% 939,450.00 4,669,450.00 5,608,900.00 1/15/10 827,550.00 827,550.00 7/15/10 3,955,000.00 6.000% 827,550.00 4,782,550.00 5,610,100.00 1/15/11 708,900.00 708,900.00 7/15/11 4,190,000.00 6.000% 708,900.00 4,898,900.00 5,607,800.00 1/15/12 583,200.00 583,200.00 7/15/12 4,445,000.00 6.000% 583,200.00 5,028,200.00 5,611,400.00 1/15/13 449,850.00 449,850.00 7/15/13 4,710,000.00 6.000% 449,850.00 5,159,850.00 5,609,700.00 1/15/14 308,550.00 308,550.00 7/15/14 4,995,000.00 6.000% 308,550.00 5,303,550.00 5,612,100.00 1/15/15 158,700.00 158,700.00 7/15/15 5,290,000.00 6.000% 158,700.00 5,448,700.00 5,607,400.00 66,220,000.00 45,976,500.00 112,196,500.00 112,196,500.00 Appendix II. Debt: Bond Sizings Detail Page II -21 Peconic County Capital Projects and Debt Repayment of Suffolk County G.O. Debt Debt Service to be Repaid Suffolk County General Purpose Peconic Share @ Fiscal Year Debt Service 14.39 1996 70,255,920.86 10,106,926.58 1997 65,535,698.76 9,427,881.49 1998 60,034,740.11 8,636,520.64 1999 56,622,032.89 8,145,572.96 2000 51,575,568.86 7,419,595.12 2001 47,893,703.80 6,889,926.74 2002 44,922,635.19 6,462,512.63 2003 40,093,901.75 5,767,857.23 2004 31,377,096.63 4,513,868.84 2005 25,737,971.43 3,702,631.53 2006 18,797,883.11 2,704,239.33 2007 17, 325,849.31 2,492,474.44 2008 15,611,797.54 2,245,893.15 2009 13,963,308.55 2,008,743.64 2010 12, 245,363.94 1,761,602.34 2011 10,456,129.74 1,504,205.40 2012 9,645,010.91 1,387,518.89 2013 8,974,154.71 1,291,010.38 2014 7,497,337.58 1,078,557.36 2015 5,169,436.05 743,668.43 2016 3,271,171.50 470,586.53 2017 3,139,261.86 451,610.18 2018 2,965,567.34 426,622.71 2019 2,661,386.53 382,863.65 2020 2,192,451.68 315,403.28 627,965,380.63 90,338,293.49 Appendix II. Debt: Bond Sizings Detail Page II -22 Peconic County Capital Projects and Debt Repayment of Suffolk County G.O. Debt Cash Flow Requirements for Repayment "Escrow" Suffolk County Peconic General Purpose Share @ Present Value Present Value Date Debt Service 14.39% @ 6.000% of Peconic Share 1/15/96 1,607,532.06 231,257.50 1.00000000 231,257.50 2/1/96 1,054,787.50 151,740.38 0.99737600 151,342.21 2/15/96 3,521,606.29 506,613.76 0.99508565 504,124.08 3/1/96 666,630.00 98,777.71 0.99247454 98,034.36 3/15/96 651,750.00 93,759.92 0.99019545 92,840.64 4/l/96 10, 254,673.15 1,475, 224.11 0.98759717 1,456, 927.17 4/15/96 2,346,561.29 337,573.29 0.98532928 332,620.85 5/1/96 4,919,036.96 707,646.34 0.98274377 695,435.04 6/15/96 7,696,326.17 1,107,183.60 0.97566857 1,080,244.24 7/15/96 8,153,060.86 1,172,888.87 0.97087379 1,138,727.06 8/1/96 781,093.75 112,367.14 0.96832621 108,608.05 8/15/96 399,846.91 57,521.46 0.96610257 55,571.63 9/1/96 67,680.00 9,736.36 0.96356752 9,381.64 9/15/96 538,250.00 77,431.95 0.96135480 74,439.58 10/1/96 9,233,707.01 1,328,349.24 0.95883221 1,273,664.03 10/15/96 4,889,989.29 703,467.58 0.95663037 672,958.45 11/1/96 12,198,919.46 1,754,920.89 0.95412017 1,674,405.42 12/15/96 1,254;470.16 180,466.47 0.94725103 170,947.05 1/15/97 1,492,985.31 214,778.95 0.94259591 202,449.76 2/1/97 1,018,275.00 146,487.73 0.94012254 137,716.42 2/15/97 3,039,846.91 437,308.47 0.93796366 410,179.46 3/1/97 662,680.00 95,332.29 0.93550244 89,183.59 3/15/97 552,750.00 79,517.91 0.93335418 74,218.37 4/1/97 10,062,434.89 1,447,568.97 0.93090506 1,347,549.27 4/15/97 2,193,668.08 315,578.27 0.92876735 293,098.80 5/1/97 4,411,058.58 634,569.22 0.92633026 587,820.68 6/15/97 7,252,369.71 1,043,316.60 0.91966120 959,497.79 7/15/97 7,917,019.02 1,138,932.19 0.91514166 1,042,284.30 8/1/97 644,225.00 92,677.38 0.91274033 84,590.38 8/15/97 328,187.53 47,212.64 0.91064433 42,993.92 9/1/97 48,717.50 7,008.44 0.90825480 6,365.45 9/15/97 516,500.00 74,303.03 0.90616910 67,331.11 10/1/97 8,693,564.85 1,250,645.08 0.90379132 1,130,322.16 10/15/97 4,929,161.08 709,102.78 0.90171587 639,409.24 11/1/97 10,674,346.08 1,535,597.72 0.89934977 1,381,039.46 12/15/97 1,097,909.22 157,943.81 0.89287495 141,024.07 1/15/98 1,374,140.69 197,682.12 0.88848705 175,638.00 2/1/98 983,125.00 141,431.10 0.88615566 125,329.97 2/15/98 2,868,187.53 412,613.78 0.88412071 364,800.38 3/1/98 638,717.50 91,885.08 0.88180078 81,024.33 3/15/98 531,000.00 76,388.98 0.87977583 67,205.18 4/1/98 9,818,206.67 1,412,434.61 0.87746730 1,239,365.18 4/15/98 2,040,266.50 293,510.12 0.87545230 256,954.11 5/1/98 3,768,932.75 542,193.83 0.87315511 473,419.31 6/15/98 6,645,374.52 955,995.05 0.86686888 828.722.36 7/15/98 7,776,680.44 1,118,743.26 0.86260878 965,037.77 8/1/98 259,075.00 37,270.20 0.86034530 32,065.24 8/15/98 258,978.15 37,256.26 0.85836962 31,979.65 9/1/98 29,577.50 4,254.98 0.85611726 3,642.76 9/15/98 494,750.00 71,174.10 0.85415129 60,793.45 10/1/98 8,852,262.99 1,273,475.19 0.85191000 1,084,886.25 10/15/98 3,177,779.50 457,151.28 0.84995369 388,557.42 11/1/98 9,569,822.75 1,376,702.42 0.84772341 1,167,062.87 12/15/98 947,862.62 136,358.30 0.84162027 114,761.91 1/15/99 1,249,291.16 179,721.42 0.83748426 150,513.86 2/1/99 956,675.00 137,626.04 0.83528670 114,957.20 2/15/99 2,498,978.15 359,499.79 0.83336856 299,595.82 3/1/99 589,577.50 84,815.86 0.83118180 70,497.40 3/15/99 509,250.00 73,260.05 0.82927310 60,752.59 4/1/99 9,417,989.89 1,354,859.93 0.82709709 1,120,600.70 4/15/99 1,832,641.04 263,641.39 0.82519776 217,556.28 5/1/99 3,468,853.25 499,024.78 0.82303244 410,713.58 Appendix II. Debt: Bond Sizings Detail Page II -23 Peconic County Capital Projects and Debt Repayment of Suffolk County G.O. Debt Cash Flow Requirements for Repayment "Escrow" Suffolk County Peconic General Purpose Share @ Present Value Present Value Date Debt Service 14.39% @ 6.000% of Peconic Share 6/15/99 6,448,618.41 927,689.97 0.81710706 758,022.02 7/15/99 7,525,335.82 1,082,585.15 0.81309151 880,240.80 8/1/99 232,625.00 33,465.13 0.81095796 27,138.82 8/15/99 197,637.52 28,431.88 0.80909569 23,004.11 9/1/99 11,212.50 1,613.02 0.80697263 1,301.66 9/15/99 473,000.00 68,045.17 0.80511951 54,784.50 10/1/99 8,622,680.77 1,240,447.79 0.80300688 996,088.10 10/15/99 2,687,122.04 386,565.93 0.80116287 309,702.27 11/1/99 9,106,343.25 1,310,026.85 0.79906062 1,046,790.87 12/15/99 794,201.59 114,252.82 0.79330783 90,637.66 1/15/00 1,120,632.25 161,212.72 0.78940923 127,262.81 2/1/00 930,225.00 133,820.97 0.78733782 105,362.31 2/15/00 2,437,637.52 350,675.40 0.78552980 275,465.98 3/1/00 336,212.50 48,367.10 0.78346857 37,894.10 3/15/00 487,500.00 70,131.12 0.78166943 54,819.36 4/1/00 8,562,473.18 1,231,786.40 0.77961833 960,323.25 4/15/00 1,736,866.42 249,863.37 0.77782803 194,350.74 5/1/00 3,181,377.45 457,668.88 0.77578701 355,053.57 6/15/00 5,837,322.19 839,749.68 0.77020177 646,776.69 7/15/00 7,275,181.83 1,046,598.32 0.76641673 802,130.46 8/1/00 206,175.00 29,660.07 0.76440565 22,672.33 8/15/00 136,296.89 19,607.50 0.76265029 14,953.66 9/1/00 0.00 0.00 0.76064910 0.00 9/15/00 451,250.00 64,916.25 0.75890236 49,265.09 10/1/00 6,553,504.04 942,778.68 0.75691100 713,599.55 10/15/00 2,648,200.42 380,966.71 0.75517285 287,695.72 11/1/00 9,026,567.45 1,298,550.41 0.75319127 978,056.83 12/15/00 648,146.72 93,241.56 0.74776871 69,723.12 1/15/01 988,309.44 142,176.93 0.74409391 105,792.99 2/1/01 903,775.00 130, 015.91 0.74214141 96,490.19 2/15/01 1,951,296.89 280,711.07 0.74043718 207,848.91 3/1/01 0.00 0.00 0.73849427 0.00 3/15/01 465,750.00 67,002.20 0.73679841 49,367.11 4/1/01 7,802,775.07 1,122,497.20 0.73486505 824,883.96 4/15/01 1,639,038.58 235,789.99 0.73317752 172,875.92 5/1/01 2,862,627.05 411,813.85 0.73125366 301,140.39 6/15/01 5,712,519.27 821,795.69 0.72598904 596,614.66 7/15/01 7,031,363.93 1,011,522.99 0.72242128 730,745.73 8/1/01 179,725.00 25,855.01 0.72052564 18,629.20 8/15/01 86,031.26 12,376.35 0.71887104 8,897.00 9/1/01 0.00 0.00 0.71698473 0.00 9/15/01 404,500.00 58,190.85 0.71533826 41,626.14 10/1/01 5,948,557.13 855,757.79 0.71346121 610,545.71 10/15/01 2,561,822.58 368,540.51 0.71182284 262,335.55 11/1/01 8,858,167.05 1,274,324.54 0.70995501 904,713.09 12/15/01 497,445.55 71,561.88 0.70484373 50,439.94 1/15/02 855,362.24 123,051.31 0.70137988 86,305.72 2/1/02 902,325.00 129,807.32 0.69953946 90,805.34 2/15/02 1,751,031.26 251,901.11 0.69793305 175,810.11 3/1/02 0.00 0.00 0.69610168 0.00 3/15/02 444,750.00 63,981.16 0.69450316 44,435.12 4/1/02 7,569,100.78 1,088,881.12 0.69268079 754,247.03 4/15/02 1,446,589.11 208,104.45 0.69109013 143,818.93 5/1/02 2,437,841.30 350.704.72 0.68927671 241,732.60 6/15/02 4,968,230.33 714,723.24 0.68431430 489,095.33 7/15/02 6,781,921.65 975,638.54 0.68095134 664,362.37 8/1/02 152,537.50 21,943.85 0.67916452 14,903.48 8/15/02 39,815.63 5,727.83 0.67760491 3,881.20 9/1/02 0.00 0.00 0.67562687 0.00 9/15/02 383,500.00 55,169.82 0.67427492 37,199.62 10/1/02 5,791,022.25 833,089.03 0.67250562 560,257.05 10/15/02 2,523,996.11 363,098.84 0.67096129 243,625.27 11/1/02 8,450,851.30 1,215,728.62 0.66920069 813,566.43 12/15/02 423,760.73 60,961.67 0.66438282 40,501.89 Appendix II. Debt: Bond Sizings Detail Page II -24 Peconic County Capital Projects and Debt Repayment of Suffolk County G.O. Debt Cash Flow Requirements for Repayment "Escrow" Date Suffolk County General Purpose Debt Service Peconic Share @ 14.39% Present Value Present Value @ 6.000% of Peconic Share 1/15/03 719,051.38 103,441.81 0.66111781 68,387.22 2/1/03 875,137.50 125,896.16 0.65938303 83,013.79 2/15/03 1,454,815.63 209,287.91 0.65786884 137,683.99 3/1/03 0.00 0.00 0.65614259 0.00 3/15/03 423,750.00 60,960.13 0.65463584 39,906.69 4/1/03 7,332,868.69 1,054,897.08 0.65291808 688,761.37 4/15/03 457,188.00 65,770.48 0.65141873 42,844.12 5/1/03 1,397,767.22 201,081.00 0.64970941 130,644.22 6/15/03 4,605,956.65 662,607.01 0.64503186 427,402.63 7/15/03 6,439,114.59 926,322.76 0.64186195 594,571.33 8/1/03 50,350.00 7,243.29 0.64017770 4,636.99 8/15/03 0.00 0.00 0.63870761 0.00 9/1/03 0.00 0.00 0.63703164 0.00 9/15/03 362,500.00 52,148.78 0.63556878 33,144.14 10/1/03 5,505,436.53 792,005.03 0.63390105 502,052.62 10/15/03 2,174,059.00 312,757.34 0.63244537 197,801.93 11/1/03 7,943,679.72 1,142,767.57 0.63078583 720,841.59 12/15/03 352,226.84 50,670.90 0.62624453 31,732.37 1/15/04 584,629.89 84,104.11 0.62316694 52,410.90 2/1/04 750,350.00 107,944.39 0.62153175 67,090.86 2/15/04 0.00 0.00 0.62010448 0.00 3/1/04 0.00 0.00 0.61847732 0.00 3/15/04 327,750.00 47,149.69 0.61705707 29,094.05 4/1/04 5,669,333.13 815,582.99 0.61543791 501,940.69 4/15/04 419,646.84 60,369.86 0.61402463 37,068.58 5/1/04 1;095,981.99 157,666.56 0.61241343 96,557.12 6/15/04 3,867,055.43 556,309.63 0.60800439 338,238.70 7/15/04 4,103,198.01 590,280.80 0.60501645 357,129.59 8/1/04 28,762.b0 4,137.74 0.60342888 2,496.83 8/15/04 0.00 0.00 0.60204318 0.00 9/1/04 0.00 0.00 0.60046342 0.00 9/15/04 343,750.00 49,451.43 0.59908453 29,625.59 10/1/04 5,103,390.31 734,167.18 0.59751253 438,674.09 10/15/04 2,132,859.84 306,830.48 0.59614042 182,914.05 11/1/04 6,664,901.99 958,804.24 0.59457615 570,082.13 12/15/04 285,486.70 41,069.75 0.59029553 24,243.29 1/15/05 500,184.25 71,955.86 0.58739461 42,266.49 2/1/05 353,762.50 50,891.82 0.58585328 29,815.14 2/15/05 0.00 0.00 0.58450794 0.00 3/1/05 0.00 0.00 0.58297419 0.00 3/15/05 309,000.00 44,452.34 0.58163547 25,855.06 4/1/05 4,880,735.54 702,136.35 0.58010925 407,315.79 4/15/05 381,334.54 54,858.30 0.57877710 31,750.73 5/1/05 790,602.29 113,735.03 0.57725839 65,654.50 6/15/05 3,163,489.82 455,095.58 0.57310245 260,816.40 7/15/05 2,857,257.28 411,041.36 0.57028603 234,411.15 8/1/05 19,175.00 2,756.49 0.56878960 1,569.00 8/15/05 0.00 0.00 0.56748344 0.00 9/1/05 0.00 0.00 0.56599436 0.00 9/15/05 0.00 0.00 0.56469463 0.00 10/1/05 4,327,282.93 622,517.37 0.56321287 350,609.79 10/15/05 2,102,736.54 302,496.98 0.56191952 169,978.96 11/1/05 5,827,402.29 838,322.61 0.56044504 469,833.75 12/15/05 225,008.45 32,369.43 0.55641015 18,010.68 1/15/06 442,435.96 63,648.27 0.55367575 35,240.50 2/1/06 344,175.00 49,512.57 0.55222291 27,341.98 2/15/06 0.00 0.00 0.55095480 0.00 3/1/06 0.00 0.00 0.54950909 0.00 3/15/06 0.00 0.00 0.54824721 0.00 4/1/06 4,183,465.32 601,827.95 0.54680861 329,084.70 4/15/06 341,979.79 49,196.77 0.54555293 26,839.44 5/1/06 639,290.66 91,967.53 0.54412140 50,041.50 6/15/06 1,892,644.00 272,273.34 0.54020403 147,083.15 7/15/06 2,663,013.91 383,097.76 0.53754928 205,933.92 Appendix II. Debt: Bond Sizings Detail Page II -25 Peconic County Capital Projects and Debt Repayment of Suffolk County G.O. Debt Cash Flow Requirements for Repayment "Escrow" Suffolk County Peconic General Purpose Share @ Present Value Present Value Date Debt Service 14.39% @ 6.000% of Peconic Share 8/1/06 9,587.50 1.379.25 0.53613875 739.47 8/15/06 0.00 0.00 0.53490757 0.00 9/1/06 0.00 0.00 0.53350397 0.00 9/15/06 0.00 0.00 0.53227885 0.00 10/1/06 3,456,762.90 497,285.47 0.53088215 263,999.98 10/15/06 2,050,807.79 295,026.58 0.52966304 156,264.67 11/1/06 2,574,290.66 370,334.15 0.52827320 195,637.61 12/15/06 199,429.62 28,689.69 0.52446993 15,046.88 1/15/07 386,921.50 55,662.03 0.52189250 29,049.60 2/1/07 334,587.50 48,133.33 0.52052305 25,054.51 2/15/07 0.00 0.00 0.51932774 0.00 3/1/07 0.00 0.00 0.51796502 0.00 3/15/07 0.00 0.00 0.51677558 0.00 4/1/07 3,858,680.08 555,104.76 0.51541956 286,111.85 4/15/07 302,064.83 43,454.66 0.51423596 22,345.95 5/1/07 578,821.91 83,268.58 0.51288661 42,707.34 6/15/07 1,303,525.93 187,523.57 0.50919411 95,485.90 7/15/07 2,571,005.49 369,861.55 0.50669175 187,405.80 8/1/07 0.00 0.00 0.50536219 0.00 8/15/07 0.00 0.00 0.50420169 0.00 9/1/07 0.00 0.00 0.50287866 0.00 9/15/07 0.00 0.00 0.50172386 0.00 10/1/07 3,224,128.22 463,818.95 0.50040734 232,098.40 10/15/07 2.044,143.83 294,067.91 0.49925821 146,815.82 11/1/07 2,533,821.91 364,512.37 0.49794816 181,508.26 12/15/07 188,148.11 27,066.75 0.49436321 13,380.80 1/15/08 331,227.36 47,649.94 0.49193374 23,440.61 2/1/08 0.00 0.00 0.49064290 0.00 2/15/08 0.00 0.00 0.48951620 0.00 3/1/08 0.00 0.00 0.48823171 0.00 3/15/08 0.00 0.00 0.48711055 0.00 4/1/08 3,694,425.92 531,475.37 0.48583237 258,207.94 4/15/08 260,690.46 37,502.59 0.48471671 18,178.13 5/1/08 517,728.16 74,479.71 0.48344482 36,006.83 6/15/08 1,177,955.64 169,459.19 0.47996428 81,334.36 7/15/08 2,488,502.88 357,992.83 0.47760557 170,979.37 8/1/08 0.00 0.00 0.47635233 0.00 8/15/08 0.00 0.00 0.47525845 0.00 9/1/08 0.00 0.00 0.47401137 0.00 9/15/08 0.00 0.00 0.47292286 0.00 10/1/08 3,047,782.14 438,450.03 0.47168191 206,808.95 10/15/08 1,592,989.46 229,165.42 0.47059875 107,844.96 11/1/08 2,322,728.16 334,144.69 0.46936390 156,835.46 12/15/08 177,767.36 25,573.38 0.46598474 11,916.81 1/15/09 275,138.20 39,581.03 0.46369473 18,353.51 2/1/09 0.00 0.00 0.46247799 0.00 2/15/09 0.00 0.00 0.46141597 0.00 3/1/09 0.00 0.00 0.46020521 0.00 3/15/09 0.00 0.00 0.45914841 0.00 4/1/09 3,223,002.33 463,656.98 0.45794360 212,328.75 4/15/09 228,715.29 32,902.69 0.45689199 15,032.97 5/1/09 461,321.91 66,365.18 0.45569311 30,242.15 6/15/09 1,164,063.52 167,460.68 0.45241237 75,761.28 7/15/09 2,098,660.82 301,910.65 0.45018906 135,916.87 8/1/09 0.00 0.00 0.44900776 0.00 8/15/09 0.00 0.00 0.44797667 0.00 9/1/09 0.00 0.00 0.44680118 0.00 9/15/09 0.00 0.00 0.44577515 0.00 10/1/09 2,840,483.23 408,628.27 0.44460544 181,678.35 10/15/09 1,232,465.29 177,300.87 0.44358446 78,647.91 11/1/09 2,296,321.91 330,345.92 0.44242049 146,151.81 12/15/09 143,136.05 20,591.37 0.43923531 9,044.46 1/15/10 227,270.73 32,694.88 0.43707675 14,290.17 2/1/10 0.00 0.00 0.43592986 0.00 Appendix II. Debt: Bond Sizings Detail Page II -26 Peconic County Capital Projects and Debt Repayment of Suffolk County G.O. Debt Cash Flow Requirements for Repayment "Escrow" Suffolk County Peconic General Purpose Share @ Present Value Present Value Date Debt Service 14.39% @ 6.000% of Peconic Share 2/15/10 0.00 0.00 0.43492880 0.00 3/1/10 0.00 0.00 0.43378755 0.00 3/15/10 0.00 0.00 0.43279141 0.00 4/1/10 2,762,354.21 397,388.73 0.43165577 171,535.14 4/15/10 204,375.91 29,401.26 0.43066452 12,662.08 5/1/10 403,978.16 58,115.78 0.42953446 24.962.73 6/15/10 1,136,024.03 163,426.96 0.42644205 69,692.13 7/15/10 2,019,858.52 290,574.25 0.42434636 123,304.13 8/1/10 0.00 0.00 0.42323288 0.00 8/15/10 0.00 0.00 0.42226097 0.00 9/1/10 0.00 0.00 0.42115296 0.00 9/15/10 0.00 0.00 0.42018584 0.00 10/1/10 1,893,353.47 272,375.40 0.41908327 114,147.97 10/15/10 1,226,005.91 176,371.64 0.41812089 73,744.67 11/1/10 2,263,978.16 325,692.99 0.41702375 135,821.71 12/15/10 108,164.84 15,560.46 0.41402141 6,442.36 1/15/11 179,767.16 25,861.07 0.41198676 10,654.42 2/1/11 0.00 0.00 0.41090571 0.00 2/15/11 0.00 0.00 0.40996211 0.00 3/1/11 0.00 0.00 0.40888637 0.00 3/15/11 0.00 0.00 0.40794741 0.00 4/1/11 2,478,963.52 356,620.51 0.40687696 145,100.67 4/15/11 179,410.34 25,809.74 0.40594262 10,477.27 5/1/11 345,853.16 49,753.99 0.40487742 20,144.27 6/15/11 1,122,442.45 161,473.13 0.40196253 64,906.15 7/15/11 1,942,828.55 279,492.82 0.39998715 111,793.54 8/1/11 0.00 0.00 0.39893758 0.00 8/15/11 0.00 0.00 0.39802147 0.00 9/1/11 0.00 0.00 0.39697706 0.00 9/15/11 0.00 0.00 0.39606545 0.00 10/1/11 1,510,974.92 217,366.91 0.39502617 85,865.62 10/15/11 1,022,673.34 147,120.47 0.39411905 57,982.98 11/1/11 1,600,853.16 230,296.68 0.39308488 90,526.14 12/15/11 72,363.14 10,410.07 0.39025488 4,062.58 1/15/12 132,164.50 19,013.02 0.38833703 7,383.46 2/1/12 0.00 0.00 0.38731804 0.00 2/15/12 0.00 0.00 0.38642861 0.00 3/1/12 0.00 0.00 0.38541462 0.00 3/15/12 0.00 0.00 0.38452956 0.00 4/1/12 2,299,965.03 330,870.02 0.38352056 126,895.45 4/15/12 158,815.39 22,846.96 0.38263985 8,742.16 5/1/12 306,184.41 44,047.30 0.38163580 16,810.03 6/15/12 1,093,127.30 157,255.89 0.37888824 59,582.41 7/15/12 1,780,700.63 256,169.31 0.37702625 96,582.55 6/1/12 0.00 0.00 0.37603693 0.00 8/15/12 0.00 0.00 0.37517341 0.00 9/1/12 0.00 0.00 0.37418895 0.00 9/15/12 0.00 0.00 0.37332967 0.00 10/1/12 1,380,082.62 198,536.91 0.37235006 73,925.23 10/15/12 1,016,477.39 146,229.13 0.37149500 54,323.39 11/1/12 1,441,184.41 207,326.94 0.37052020 76,816.82 12/15/12 36,309.23 5,223.40 0.36785266 1,921.44 1/15/13 87,654.02 12,609.79 0.36604490 4,615.75 2/1/13 0.00 0.00 0.36508440 0.00 2/15/13 0.00 0.00 0.36424603 0.00 3/1/13 0.00 0.00 0.36329024 0.00 3/15/13 0.00 0.00 0.36245599 0.00 4/1/13 2,188,164.89 314,786.59 0.36150491 113,796.90 4/15/13 137,802.67 19,824.12 0.36067476 7,150.06 5/1/13 270,259.41 38,879.17 0.35972835 13,985.94 6/15/13 1,063,660.07 153,016.77 0.35713850 54,648.18 7/15/13 1,717,906.36 247,135.80 0.35538340 87,827.96 8/1/13 0.00 0.00 0.35445087 0.00 8/15/13 0.00 0.00 0.35363692 0.00 Appendix II. Debt: Bond Sizings Detail Page II -27 Peconic County Capital Projects and Debt Repayment of Suffolk County G.O. Debt Cash Flow Requirements for Repayment "Escrow" Suffolk County Peconic General Purpose Share @ Present Value Present Value Date Debt Service 14.39% @ 6.000% of Peconic Share 9/1/13 0.00 0.00 0.35270898 0.00 9/15/13 0.00 0.00 0.35189902 0.00 10/1/13 1,276,477.21 183,632.37 0.35097564 64,450.49 10/15/13 886,970.67 127,598.46 0.35016967 44,681.11 11/1/13 1,345,259.41 193,527.29 0.34925082 67,589.57 12/15/13 0.00 0.00 0.34673641 0.00 1/15/14 43,637.21 6,277.59 0.34503243 2,165.97 2/1/14 0.00 0.00 0.34412706 0.00 2/15/14 0.00 0.00 0.34333661 0.00 3/1/14 0.00 0.00 0.34243590 0.00 3/15/14 0.00 0.00 0.34164954 0.00 4/1/14 2,083,939.88 299,792.92 0.34075305 102,155.35 4/15/14 119,448.05 17,183.64 0.33997055 5,841.93 5/1/14 236,203.16 33,979.88 0.33907847 11,521.85 6/15/14 0.00 0.00 0.33663729 0.00 7/15/14 1,659,830.02 238,781.02 0.33498294 79,987.57 8/1/14 0.00 0.00 0.33410394 0.00 8/15/14 0.00 0.00 0.33333671 0.00 9/1/14 0.00 0.00 0.33246204 0.00 9/15/14 0.00 0.00 0.33169858 0.00 10/1/14 1,209,151.05 173,946.92 0.33082820 57,546.55 10/15/14 818,925.05 117,809.51 0.33006850 38,885.21 11/1/14 1,326,203.16 190,785.88 0.32920240 62,807.17 12/15/14 0.00 0.00 0.32683232 0.00 1/15/15 0.00 0.00 0.32522615 0.00 2/1/15 0.00 0.00 0.32437276 0.00 2/15/15 0.00 0.00 0.32362788 0.00 3/1/15 0.00 0.00 0.32277868 0.00 3/15/15 0.00 0.00 0.32203746 0.00 4/1/15 1,649,157.95 237,245.75 0.32119243 76,201.54 4/15/15 102,310.86 14,718.31 0.32045485 4,716.55 5/1/15 201,668.78 29,011.81 0.31961398 9,272.58 6/15/15 0.00 0.00 0.31731293 0.00 7/15/15 0.00 0.00 0.31575355 0.00 8/1/15 0.00 0.00 0.31492501 0.00 8/15/15 0.00 0.00 0.31420182 0.00 9/1/15 0.00 0.00 0.31337736 0.00 9/15/15 0.00 0.00 0.31265772 0.00 10/1/15 1,146,931.82 164,996.14 0.31183731 51,451.95 10/15/15 777,697.86 111,878.62 0.39112121 34,807.81 11/1/15 1,291,668.78 185,817.81 0.31030483 57,660.16 12/15/15 0.00 0.00 0.30807081 0.00 1/15/16 0.00 0.00 0.30655684 0.00 2/1/16 0.00 0.00 0.30575244 0.00 2/15/16 0.00 0.00 0.30505031 0.00 3/1/16 0.00 0.00 0.30424986 0.00 3/15/16 0.00 0.00 0.30355119 0.00 4/1/16 385,847.47 55,507.52 0.30275467 16,805.16 4/15/16 85,763.88 12,337.88 0.30205943 3,726.77 5/1/16 167,128.15 24,042.84 0.30126683 7,243.31 6/15/16 0.00 0.00 0.29909787 0.00 7/15/16 0.00 0.00 0.29762800 0.00 8/1/16 0.00 0.00 0.29684702 0.00 8/15/16 0.00 0.00 0.29616535 0.00 9/1/16 0.00 0.00 0.29538821 0.00 9/15/16 0.00 0.00 0.29470989 0.00 10/1/16 616,542.97 88,695.08 0.29393657 26,070.73 10/15/16 758,760.88 109,154.37 0.29326158 32,010.76 11/1/16 1,257,128.15 180,848.84 0.29249206 52,696.85 12/15/16 0.00 0.00 0.29038628 0.00 1/15/17 0.00 0.00 0.28895922 0.00 2/1/17 0.00 0.00 0.28820099 0.00 2/15/17 0.00 0.00 0.28753918 0.00 3/1/17 0.00 0.00 0.28678467 0.00 Appendix II. Debt: Bond Sizings Detail Page II -28 Peconic County Capital Projects and Debt Repayment of Suffolk County G.O. Debt Cash Flow Requirements for Repayment "Escrow" Suffolk County Peconic General Purpose Share @ Present Value Present Value Date Debt Service 14.39% @ 6.000% of Peconic Share 3/15/17 0.00 0.00 0.28612611 0.00 4/1/17 359,723.74 51,749.40 0.28537531 14,768.00 4/15/17 68,995.45 9,925.60 0.28471998 2,826.02 5/1/17 132,581.27 19,072.97 0.28397288 5,416.21 6/15/17 0.00 0.00 0.28192843 0.00 7/15/17 0.00 0.00 0.28054294 0.00 8/1/17 0.00 0.00 0.27980679 0.00 8/15/17 0.00 0.00 0.27916425 0.00 9/1/17 0.00 0.00 0.27843172 0.00 9115/17 0.00 0.00 0.27779234 0.00 10/1/17 592,130.68 85,183.16 0.27706341 23,601.14 10/15/17 748,249.45 107,642.21 0.27642717 29,755.23 11/1/17 1,237,581.27 178,036.85 0.27570182 49,085.08 12/15/17 0.00 0.00 0.27371692 0.00 1/15/18 0.00 0.00 0.27237178 0.00 2/1118 0.00 0.00 0.27165708 0.00 2/15/18 0.00 0.00 0.27103325 0.00 3/1/18 0.00 0.00 0.27032206 0.00 3/15/18 0.00 0.00 0.26970130 0.00 411118 324,413.82 46,669.76 0.26899360 12,553.87 4/15/18 52,071.23 7,490.90 0.26837589 2,010.38 5/1/18 97,559.39 14,034.77 0.26767167 3,756.71 6/15/18 0.00 0.00 0.26574459 0.00 7/15/18 0.00 0.00 0.26443862 0.00 8/1/18 0.00 0.00 0.26374474 0.00 8/15/18 0.00 0.00 0.26313908 0.00 9/1/18 0.00 0.00 0.26244860 0.00 9/15/18 0.00 0.00 0.26184592 0.00 10/1/18 573,016.28 82,433.39 0.26115884 21,528.21 10/15/18 740,947.23 106,591.72 0.26055912 27,773.44 11/1/18 1,177,559.39 169,402.18 0.25987541 44,023.46 12/15/18 0.00 0.00 0.25800445 0.00 1115/19 0.00 0.00 0.25673653 0.00 2/1119 0.00 0.00 0.25606285 0.00 2115/19 0.00 0.00 0.25547483 0.00 3/1/19 0.00 0.00 0.25480447 0.00 3/15/19 0.00 0.00 0.25421934 0.00 4/1/19 190,966.18 27,472.15 0.25355227 6,965.63 4/15119 34,906.27 5,021.57 0.25297002 1,270.31 5/1/19 63,312.51 9,108.06 0.25230622 2,298.02 6/15/19 0.00 0.00 0.25048976 0.00 7/15119 0.00 0.00 0.24925876 0.00 8/1/19 0.00 0.00 0.24860471 0.00 8/15/19 0.00 0.00 0.24803382 0.00 9/1/19 0.00 0.00 0.24738298 0.00 9/15/19 0.00 0.00 0.24681489 0.00 10/1/19 546,695.79 78,646.95 0.24616725 19,360.30 10/15/19 732,193.27 105,332.38 0.24560196 25,869.84 11/1119 1,093,312.51 157,282.53 0.24495750 38,527.54 12/15/19 0.00 0.00 0.24319394 0.00 1115/20 0.00 0.00 0.24199880 0.00 2/1/20 0.00 0.00 0.24136380 0.00 2/15/20 0.00 0.00 0.24080953 0.00 3/1/20 0.00 0.00 0.24017765 0.00 3/15/20 0.00 0.00 0.23962611 0.00 4/1120 128,230.94 18,447.14 0.23899733 4,408.82 4/15120 17,530.24 2,521.88 0.23844850 601.34 5/1/20 30,628.13 4,406.12 0.23782281 1,047.88 6/15/20 0.00 0.00 0.23611062 0.00 7/15/20 0.00 0.00 0.23495029 0.00 8/1120 0.00 0.00 0.23433378 0.00 8/15/20 0.00 0.00 0.23379566 0.00 9/1/20 0.00 0.00 0.23318218 0.00 9/15/20 0.00 0.00 0.23264671 0.00 Appendix II. Debt: Bond Sizings Detail Page II -29 Peconic County Capital Projects and Debt Repayment of Suffolk County G.O. Debt , Cash Flow Requirements for Repayment "Escrow" Suffolk County General Purpose Date Debt Service 10/1/20 299,425.00 10/15/20 721,009.24 11/1/20 995,628.13 12/15/20 0.00 Peconic Share @ Present Value Present Value 14.39% @ 6.000% of Peconic Share 43,074.90 0.23203624 9,994.94 103,723.46 0.23150340 24,012.33 143,229.78 0.23089594 33,071.18 0.00 0.22923361 0.00 627,965,380.63 90,338,293.49 64,332,805.00 c,-r7,,tgs Detail Page II -30 Peconic County Capital Projects and Debt Repayment of Suffolk County G.O. Debt Yield Calculations Yield 6.11034645% 6.37679735% Target Present Value Par Amount of Bonds 66,220,000.00 + Accrued Interest 0.00 Bond Insurance Premium (560,982.50) Underwriters' Discount/Costs of Issuance Target Amount 65,659.017.50 66,220,000.00 0.00 (560,982.50) (1,324,400.00) 64,334,617.50 Appendix H. Debt: Bond Sizings Detail Page II -31 Arbitrage Yield All -In Yield Present Value Present Value Date Debt Service PV Factor Debt Service PV Factor Debt Service 1/15/96 1.00000000 1.00000000 7/15/96 5,611,600.00 0.97035400 5,445,238.53 0.96910119 5,438,208.24 1/15/97 1,877,850.00 0.94158689 1,768,158.95 0.93915712 1,763,596.19 7/15/97 3,732,850.00 0.91367261 3,410,602.81 0.91013828 3,397,409.68 1/15/98 1,822,200.00 0.88658588 1,615,536.79 0.88201609 1,607,209.72 7/15/98 3,767,200.00 0.86030216 3,258,136.33 0.85476284 3,237,157.84 1/15/99 1,763,250.00 0.83479764 1,471,956.94 0.82835169 1,460,591.12 7/15/99 3,848,250.00 0.81004924 3,117,271.97 0.80275661 3,089.208.12 1/15/00 1,700,700.00 0.78603452 1,336,808.91 0.77795239 1,323,063.62 7/15/00 3,910,700.00 0.76273174 2,982,815.03 0.75391458 2,948,333.76 1/15/01 1,634,400.00 0.74011980 1,209,651.80 0.73061952 1,194,124.54 7/15/01 3,974,400.00 0.71817821 2,854,327.49 0.70804425 2,814,051.05 1/15/02 1,564,200.00 0.69688710 1,090,070.81 0.68616652 1,073,301.67 7/15/02 4,044,200.00 0.67622719 2,734,798.01 0.66496479 2,689,250.62 1/15/03 1,489,800.00 0.65617976 977,576.61 0.64441817 960,054.19 7/15/03 4,119,800.00 0.63672666 2,623,186.50 0.62450642 2,572,841.54 1/15/04 1,410,900.00 0.61785027 871,724.94 0.60520991 853,890.67 7/15/04 4,200,900.00 0.59953348 2,518,580.19 0.58650965 2,463,868.38 1/15/05 1,327,200.00 0.58175971 772,111.49 0.56838720 754,363.49 7/15/05 4,282,200.00 0.56451287 2,417,357.00 0.55082471 2,358,741.57 1/15/06 1,238,550.00 0.54777732 678,449.60 0.53380488 661,144.04 7/15/06 4,366,550.00 0.53153792 2,322,049.96 0.51731095 2,259,698.74 1/15/07 1,144,650.00 0.51577995 590,387.51 0.50132665 573.843.56 7/15/07 4,464,650.00 0.50048914 2,234,508.82 0.48583626 2,169,088.85 1/15/08 1,045,050.00 0.48565164 507,530.24 0.47082450 492,035.14 7/15/08 4,565,050.00 0.47125401 2,151,298.12 0.45627658 2,082,925.40 1/15/09 939,450.00 0.45728322 429,594.72 0.44217818 415,404.29 7/15/09 4,669,450.00 0.44372660 2,071,959.17 0.42851540 2,000,931.22 1/15/10 827,550.00 0.43057188 356,319.76 0.41527478 343,660.65 7/15/10 4,782,550.00 0.41780715 1,998,183.59 0.40244328 1,924,705.13 1/15/11 708,900.00 0.40542084 287,402.83 0.39000827 276,476.86 7/15/11 4,898,900.00 0.39340174 1,927,235.77 0.37795748 1,851,575.88 1/15/12 583,200.00 0.38173895 222,630.16 0.36627904 213,613.94 7/15/12 5,028,200.00 0.37042192 1,862,555.50 0.35496145 1,784,817.18 1/15/13 449,850.00 0.35944039 161,694.26 0.34399357 154,745.51 7/15/13 5,159,850.00 0.34878442 1,799,675.31 0.33336458 1,720,111.20 1/15/14 308,550.00 0.33844436 104,427.01 0.32306401 99,681.40 7/15/14 5,303,550.00 0.32841084 1,741,743.33 0.31308171 1,660,444.52 1/15/15 158,700.00 0.31867478 50,573.69 0.30340786 48,150.83 7/15/15 5,448,700.00 0.30922735 1,684,887.04 0.29403292 1,602,097.17 112,196,500.00 65,659,017.50 64,334,617.50 Delivery Date 1/15/96 Yield 6.11034645% 6.37679735% Target Present Value Par Amount of Bonds 66,220,000.00 + Accrued Interest 0.00 Bond Insurance Premium (560,982.50) Underwriters' Discount/Costs of Issuance Target Amount 65,659.017.50 66,220,000.00 0.00 (560,982.50) (1,324,400.00) 64,334,617.50 Appendix H. Debt: Bond Sizings Detail Page II -31 Peconic County Capital Projects and Debt Repayment of Suffolk County Drinking Water Debt Sources and Uses of Funds Sources: Par Amount of Bonds 12,165,000.00 Accrued Interest 0.00 Total Sources 12,165,000.00 Uses: Amount to be Paid to Suffolk County 11,850,563.72 Accrued Interest 0.00 Bond Insurance Premium 0.500% 68,696.54 Underwriters' Discount + Costs of Issuance 2.000% 243,300.00 Rounding 2,439.74 Total Sources 12,165,000.00 Assumptions Dated Date 1/15/96 Delivery Date 1/15/96 Appendix H. Debt: Bond Sizings Detail Page I1-32 Peconic County Capital Projects and Debt Repayment of Suffolk County Drinking Water Debt Debt Service Schedule Appendix H. Debt: Bond Sizings Detail Page II -33 Interest Total Annual Date Principal Rate Interest Debt Service Debt Service 1/15/96 7/15/96 2,445,000.00 4.700% 303,187.50 2,748,187.50 2,748,187.50 1/15/97 245,730.00 245,730.00 7/15/97 2,255,000.00 4.900% 245,730.00 2,500,730.00 2,746,460.00 1/15/98 190,482.50 190,482.50 7/15/96 2,365,000.00 5.000% 190,482.50 2,555,482.50 2,745,965.00 1/15/99 131,357.50 131,357.50 7/15/99 2,465,000.00 5.100% 131,357.50 2,616,357.50 2,747,715.00 1/15/00 67,990.00 67,990.00 7/15/00 2,615,000.00 5.200% 67,990.00 2,682,990.00 2,750,980.00 12,165,000.00 13,739,307.50 1,574,307.50 13,739,307.50 Appendix H. Debt: Bond Sizings Detail Page II -33 Peconic County Capital Projects and Debt Repayment of Suffolk County Drinking Water Debt Debt Service to be Repaid Suffolk County Drinking Water Peconic Share @ Fiscal Year Debt Service 14.39 1996 18,597,600.00 2,675,426.86 1997 20,457,506.25 2,942,990.59 1998 19,326,918.75 2,780,345.72 1999 18,196,331.25 2,617,700.85 2000 17,065,743.75 2,455,055.99 93,644,100.00 13,471,520.01 i Appendix II. Debt: Bond Sizings Detail Page II -34 Peconic County Capital Projects and Debt Repayment of Suffolk County Drinking Water Debt Cash Flow Requirements for Repayment "Escrow" Suffolk County Peconic Drinking Water Share @ Present Value Present Value Date Debt Service 14.39% @ 5.750% of Peconic Share 1/15/96 1.00000000 3/1/96 12,028,125.00 1,730,350.62 0.99278258 1,717,861.96 6/15/96 705,050.00 101,427.59 0.97665638 99,059.90 9/1/96 1,659,375.00 238,715.56 0.96503775 230,369.52 12/15/96 4,205,050.00 604,933.09 0.94936222 574,300.63 3/1/97 12,909,375.00 1,857,126.11 0.93806829 1,742,111.11 6/15/97 601,800.00 86,574.18 0.92283083 79,893.32 9/1/97 1,244,531.25 179,036.67 0.91185253 163,255.04 12/15/97 5,701,800.00 820,253.63 0.89704091 735,801.06 3/1/98 12,494,531.25 1,797,447.23 0.88636941 1,593,202.23 6/15/98 451,350.00 64,930.63 0.67197172 56.617.67 §/1/98 829,687.50 119,357.78 0.86159845 102,838.48 12/15/98 5,551,350.00 798,610.08 0.84760313 676,904.41 3/1/99 12,079,687.50 1,737,768.34 0.83751976 1,455,415.31 6/15/99 300,900.00 43,287.09 0.82391556 35,664.91 9/1/99 414,843.75 59,678.89 0.81411398 48,585.42 12/15/99 5,400,900.00 776,966.54 0.80088997 622,264.71 3/1/00 11,664,843.75 1,678,089.45 0.79136231 1,327,976.75 6/15/00 150,450.00 21,643.54 0.77850787 16,649.67 9/1/00 0.00 0.00 0.76924648 0.00 12/15/00 5,250,450.00 755,323.00 0.75675127 571,591.64 93,644,100.00 13,471,520.01 11,850,563.72 Appendix II. Debt: Bond Sizings Detail Page II -35 Peconic County Capital Projects and Debt Repayment of Suffolk County Drinking Water Debt Yield Calculations 13,739,307.50 12,096,303.46 11,853,003.46 Delivery Date 1/15/96 Arbitrage Yield All -In Yield Yield Present Value 6.20689217% Present Value Date Debt Service PV Factor Debt Service PV Factor Debt Service 1/15/96 12,165,000.00 1.00000000 0.00 1.00000000 Bond Insurance Premium 7/15/96 2,748,187.50 0.97407789 2,676,948.67 0.96989969 2,665,466.19 1/15/97 245,730.00 0.94882773 233,155.44 0.94070540 231,159.54 7/15/97 2,500,730.00 0.92423211 2,311,254.96 0.91238987 2,281,640.73 1/15/98 190,482.50 0.90027406 171,486.45 0.88492665 168,563.04 7/15/98 2,555,482.50 0.87693705 2,240,997.29 0.85829008 2,193,345.28 1/15/99 131,357.50 0.85420499 112,206.23 0.83245528 109,349.24 7/15/99 2,616,357.50 0.83206219 2,176,972.16 0.80739812 2,112,442.12 1/15/00 67,990.00 0.81049338 55,105.44 0.78309518 53,242.64 7/15/00 2,682,990.00 0.78948368 2,116,176.82 0.75952377 2,037,794.68 13,739,307.50 12,096,303.46 11,853,003.46 Delivery Date 1/15/96 Yield 5.32239034% 6.20689217% Target Present Value Par Amount of Bonds 12,165,000.00 12,165,000.00 +Accrued Interest 0.00 0.00 Bond Insurance Premium (68,696.54) (68,696.54) Underwriters' DiscountfCosts of Issuance (243,300.00) Target Amount 12,096,303.46 11,853,003.46 Appendix H. Debt: Bond Sizings Detail Page II -36 APPENDIX III. SUMMARY OF SUFFOLK COUNTY BALANCE SHEET SUMMARY OF SUFFOLK COUNTY BALANCE SHEET The following pages contain an explanation of Suffolk County's audited balance sheet from its General Purpose financial statements, fiscal year ended December 31, 1993. The assets and liabilities presented in the balance sheet conform to Generally Accepted Accounting Principles ("GAAP") of governmental entities. These accounting principles have been developed to provide a standard method of evaluating and presenting the financial position of a government or an enterprise, but the individual items do not represent a specific "value" of a specific asset or liability. That is, the dollar amount on a GAAP basis does not necessarily reflect the dollar amount for which Suffolk County could sell a respective asset, or the dollar amount Suffolk would have to pay another party to take and be responsible for a respective liability, or the dollar amount to replace a respective asset. . For example, as described below, fixed assets (e.g., buildings) are valued at historical cost plus the cost of additional improvements made to the building since its purchase or construction. This historical cost basis may or may not have anything to do with the value of the asset if it were sold or had to be replaced. Description of Major Suffolk County Funds Suffolk County has created separate funds and accounts in accordance with GAAP due to past and present financial practices, past political initiatives and in general to enable the County to perform its various functions. While most County functions are performed County -wide for the benefit of the entire County and accounted for in the County's main general purpose fund, (i.e., the General Fund), there are often specific County functions that have targeted uses and purposes and are established by legislative authorization that benefit limited and specific groups of citizens. These funds are usually funded by dedicated revenue streams and are segregated into special funds in order to prevent the commingling of resources or liabilities as well as to better match sources and uses of funds. An example of this in Suffolk County is the Police District. There is an independent property tax levy to fund Police District operations and purchases. These revenues, and the operations, assets and liabilities that they support are accounted for in the Police District Fund. Suffolk County utilizes transfers between funds to alternate the cost or the benefit of certain pay for employee benefits, payments in claims against the County, and debt service. In the past, Suffolk County has been criticized for over utilization and inadequate tracking of interfund transfers. Appendix III Page III -1 V to 0a 0) r�4 N BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS CASH AND CASH EQUIVALENTS PROPERTY TAX RECEIVABLE (net of allotxence for estimated uncollectibles of 96,343,000) DUE FROM OTHER GOVERNMENTS: Now York Stec end Federal sources: Programs of e"lalance Gkents4n-ald Sobs tax Other Total due from other governments DUE FROM OTHER FUNDS CONTRACTORS'BONDSHELD INVESTMENT SECURITIES OTHER ASSETS FIXED ASSETS AMOUNTS TO BE PROVIDED IN FUTURE BUDGETS FOR RETIREMENT OF LONG- TERM ONGTERM DEBT AMOUNTS AVAILABLE IN SEGREGATED FUNDS FOR FUTURE RETIREMENT OF LONGTERM DEBT AMOUNTS TO BE PROVIDED BY PAYMENTS TO BE RECEIVED FROM NEW YORK STATE AND HOSPITALS TOTAL ASSETS FIDUCIARY GOVERNMENTAL FUND TYPES FUND TYPE ACCOUNT GROUPS TOTALS MEMORANDUM ONLY TRUST GENERAL SPECIAL CAPITAL AND GENERAL LONG-TERM DECEMBER 31, DECEMBER 31, ME & REVENUE PROJECTS AGENCY FIXED ASSETS am An im $26,346,506 $62,970,859 $114,761,631 {47,236,683 $251,214,679 9288,908,610 121,100,854 121,100,064 106,408,400 22,931,622 22,931,622 27,144,669 71,280,388 16,082,671 87,362,959 91,092,7" 17,118,784 17,119,784 16,892,627 2,200,000 2,200,000 3,800,000 78,699,035 78,699,035 38.110.618 192,129,829 18,092,671 208,212,400 176,460,741 30,662,861 10,442,002 2,461,647 51,656,400 104,9119,672 1,326,400 1,326,400 1,264,"0 110,904,296 110,904,298 92,471,9" 8,412,064 6,490,769 114,760 9,628,601 23,646,444 21,117,901 • 1,148,407,161 1,148,407,161 1,105,60,001 1,636,074,107 1 1,636,074,107 1,500,970,672 2,689,690 2,696,690 4,466,631 6,043,406 $,1 $378,641,004 $102,006,191 $116,202,781 $170,231,409 $1,148,407,151 $1,646,807,203 $3,663,1 00 ED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS FIDUCIARY GOVERNMENTAL FUND TYPES FUND TYPE ACCOUNT GROUPS TOTALS MEMORANDUM ONLY TRUST GENERAL SPECIAL CAPITAL AND GENERAL LONG-TERM DECEMBER 31, DECEMBER 31, 91HEBAL REVENUE PROJECTS AGENCY FIXED ASSETS DEBT Im ion ACCOUNTS PAYABLE AND ACCRUED LIABILITIES $106,349,969 $33,332,406 $9,361,832 $32,601,634 RETIREMENT BENEFITS 7,991,963 68,363,978 CONTRACT RETAINAGE PAYABLE 4,730.833 4,730,833 NOTES PAYABLE 94,61 24,093,000 DUE TO STATE OF NEW YORK • MEDICAID CLAIMS 9,222,000 9,364,868 DUE TO MASS TRANSIT AUTHORITY • 8,866,000 8,687,986 MASS TRANSIT AUTHORITY AID 61,666,400 104,339,372 TO LONG ISLAND RAILROAD 134, 307,246 114,302,698 DUE TO OTHER FUNDS 36.922,147 11,920,926 100,004 2,614,334 AGENCY FUND LIABILITIES 28,390,706 134,307,246 DEFERRED TAX REVENUE 116,166.974 160,966,867 OTHER DEFERRED REVENUE 12,176,447 16,214,269 176.064,1184 ACCUMULATED VACATION AND SICK LEAVE 166,660,000 166,660,000 ESTIMATED LIABILITY FOR CLAIMS 1,041,490,000 986,016000 OBLIGATION UNDER CAPITAL LEASE 2,382.466,292 2,294,884 062 GENERAL LONG-TERM DEBT 416,844 33 216,666 Total IabONas 366,406,637 61,476,660 39,266,669 169,613,214 3TMENT IN GENERAL FIXED ASSETS $190,736,920 8167,981,186 7,991,963 7,991,963 68,363,978 1,106,660,001 4,730.833 3,690,198 119, 703,000 196, 636,000 9,222,000 9,222,000 9,364,868 8,866,000 8,866,000 8,687,986 302,361 61,666,400 104,339,372 rved for debt service 134, 307,246 114,302,698 116,166,974 99.090,608 4,466,631 28,390,706 36,032,9N 171,603,262 171,603,262 160,966,867 240,984,978 240,984,979 176.064,1184 166,660,000 166,660,000 166,660,000 1,041,490,000 1,041,490,000 986,016000 1,640,807,203 2,382.466,292 2,294,884 062 3TMENT IN GENERAL FIXED ASSETS 1,148,407,161 1,140,407,161 1,106,660,001 I BALANCES (DEFICIT): rved for encumbrances 12,462,480 9,870,237 67,231,232 302,361 70,946,300 06,620,401 rved for debt service 366,600 2,199,069 2,666,870 4,466,631 rve for water quality protection 16,672,662 16,672,862 rve for long-term deposits with Insurance company 2,620,266 larval 416,468 12,760,364 19,614,800 416,844 33 216,666 •34 406 072 equity and other credits 13,236,667 41,410,622 76,646,122 718,106 1,140,407,161 1,280,707,647 1 174 660 147 L LIABILITIES, EQUITY AND OTHER CREDITS $379,641,094 $102,906,191 $116,112,701 $170,231,409 $1,148,407,161 $1,646,807,203 $3,663,176,829 $3,460,744,209 T i11I1 IIIIII IN III VIII III SUMMARY OF SUFFOLK COUNTY BALANCE SHEET General Fund The General Fund is the general operating fund of the County, responsible for most County services including: • General Government and Administration • Economic Assistance • Health • Public Safety • Culture and Recreation • Education • Home and Community Services • General Transportation expenditures • General Fund Employee Benefits (not including Police District, Sewer District, or other Special Fund employees) • Certain Debt Service Costs (not including Police District, Sewer District, or other Special Fund debt service costs) The assets and liabilities associated with the General Fund are for County -wide purposes and are not assignable to the Police District, the District Court, the Sewer Districts, or other Special Funds. Special Revenue Funds Special Revenue Funds are used to account for the uses of proceeds of specific and designated revenue sources. The proceeds from these sources are legally restricted to expenditures for specific purposes. Suffolk County has twenty-eight Special Revenue Funds, not including the individual Sewer District funds. Each Sewer District has its own ,fund, as well. The Suffolk County Special Revenue Funds are: 1) District Court 2) Police District 3) County Road 4) Hotel and Motel Tax 5) Assessment Stabilization Reserve 6) Deficit Bond 7) Environmental Trust 8) Dislocated Workers (Fairchild) 9) Federal Manpower Revenue 10) Veterans' Grant 11) Edge Program 12) Dislocated Workers 13) Displaced Homemakers 14) Dislocated Workers (Grumman 28) Corp.) 15) Community Development Block Grants 16) Community Development Rental Rehabilitation 17) Housing Preservation 18) State Home Improvement 19) Environmental Preservation 20) State Youth Conservation 21) Suffolk County Nursing Home 22) Housing Trust 23) Community College 24) Electrical Authority 25) Community Development Emergency Shelter Grant 26) Water Quality Protection Reserve & Hams 27) Home Improvement Partnership 28) Sewer Tax Rebate Reserve Appendix III Page III -4 SUMMARY OF SUFFOLK COUNTY BALANCE SHEET Capital Projects Funds The Suffolk County Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. Suffolk County has four Capital Projects Funds: Road Construction Fund: funded solely from the County Road Fund, it is used for construction or reconstruction of County roads. The County Road Fund is funded through the General Fund and provides resources for work on roads in both the East End and the Western Towns. Capital Sewer Fund: accounts for capital projects involving the costs of acquisition and construction of operating sewer districts other than the Southwest Sewer District. Southwest Sewer Fund: accounts for capital projects involving the costs of acquisition and construction for the Southwest Sewer District. Capital Fund: all capital projects not specifically accounted for by the Road Construction, Capital Services and Southwest Services Funds. Fiduciary Funds Suffolk County has two fiduciary funds. Fiduciary Fund are established to account for Suffolk's or a third party's individual service in a separate and distinct manner. ExMndable Trust Funds: account for the assets and activities used to satisfy the current year's claims and settlements, insurance department costs, and covered. medical costs for County employees and retirees. These Trust Funds are funded by transfers from the General Fund and Special Revenue Funds based upon the departmental source of the current year's claims, settlements and costs. The Agency Fund: is a custodial fund whose assets equal its liabilities. It is used to account for assets held by the County as an agent for individuals, private organizations, other governmental units and/or other funds. Description of Major Account Groups The Account Groups are used to establish accounting control for Suffolk County's general fixed assets and long-term debt. They represent an aggregate of assets and liabilities from all Suffolk County funds. Appendix III Page III -5 SUMMARY OF SUFFOLK COUNTY BALANCE SHEET General Fixed Assets Account Group: The General Fixed Assets Account of the Suffolk County Balance Sheet includes all Suffolk County fixed assets. These assets are not broken down by the fund or function to which they are assigned, and therefore sewer district and District Court assets are included in this account. An accurate schedule assigning assets to individual funds is not available. General Lona -Terni Debt Account Group: This group accounts for all outstanding long-term bonds as well as other long-term obligations of the County including pension liabilities, medical assistance liabilities, estimated liability on claims and litigation, and accrued vacation and sick leave. Description of Major Asset / Liability Categories Assets Cash and cash equivalents: Cash and securities with an original maturity of three months or less. These are both liquid and easily valued. The GAAP value of these assets as of December 31, 1993 in the General Fund was $26,345,506. Property Tax Receivables: Aggregate unpaid taxes transferred from the Towns Tax Receivers to the County and interest and penalties on such unpaid taxes. [See Chapter 3 "Revenue", for a description of Suffolk County's property tax collection method.] Due from Other Governments: Grants, repayments, fees for services or other funds owed to the County from other governmental units. This consists mostly of federal and State reimbursements or grants. A substantial portion of these funds are used for Economic Assistance programs, which are paid on a reimbursement basis. Due from Other Funds: Transfers between governmental funds. Certain Funds, such as the Self -Insurance Fund and the County Road Fund provide specific services on a government -wide basis. Contractor Bonds Held: Good faith or surety bonds provided by private contractors and held by Suffolk County as security for the provisions of the contract being met in a timely manner. Investment Securities: Securities held by the County as part Agent for the Agency Funds. Other Assets: Miscellaneous assets that do not fall into other asset categorizations. Appendix III Page III -6 SUMMARY OF SUFFOLK COUNTY BALANCE SHEET Fixed Assets: Assets of a long-term character that are intended to continue to be held or used, such as land, buildings, machinery, furniture, and other equipment. Suffolk County does not assign assets to separate operating funds, thus all fixed assets are aggregated into a single account. Liabilities Current Liabilities Accounts Payable and Accrued Liabilities: Expenses recorded as soon as they result in liabilities for benefits received, payment for which may take place in whole or in part in another accounting period. These need to be segregated according to fund, ensuring that only those liabilities used for County -wide purposes are included in the allocation. Retirement Benefits: In 1993, Suffolk County made a payment to the State of New York retirement system for amounts owed to the system as a result of a change in State collection methods. The County has been current in its contribution to the State system and makes payments in the current fiscal year and does not create annual liabilities. This item is a holdover from the State's conversion to a different billing system and then reconverting. By the time secession takes place, Suffolk County should be current on all actuarially determined pension contributions and Peconic County will have no ongoing responsibility to Suffolk County employees. Contract Retainage Pam: This represents funds owed by Suffolk County to contractors for capital projects. This liability should be segregated into both Special Fund projects and, where possible, County -wide projects that can be located in the East End or Western Towns. Due to the State of New York: This represents a long-term liability for which the County needs to reimburse the State of New York for Medicaid claims. Due to Mass Transit (LIRR): The County makes annual payments to the Long Island Rail Road. This amount represents a disputed payment between the County and the LIRR and is currently the subject of litigation. Due to Other Funds: Transfers between governmental funds. Agency Fund Liabilities: Liabilities owed to funds consisting of resources received and held by the County as an agent for individuals, private organizations, other governmental units (e.g. taxes collected and held for the school districts) and/or other funds. For the purposes of allocation, however, these liabilities have nothing to do with the operations of Suffolk County. Appendix III Page III -7 SUMMARY OF SUFFOLK COUNTY BALANCE SHEET Deferred Tax Revenue: Tax revenues not recognized as revenues because they are not received until a subsequent period. Generally Accepted Accounting Principles allow Suffolk County to show as revenue taxes that are not collected until sixty days after the close of a fiscal year. Other Deferred Revenue: Other revenues not recognized as revenues because they are not received until a subsequent period. Loner -Term Liabilities Accumulated Vacation and Sick Leave: Under the terms of multiple union contracts, County employees are granted vacation and sick leave in varying amounts. In the event of termination, employees are reimbursed for certain accumulated vacation and sick leave. The 1993 Suffolk County Balance Sheet values this liability at $171,603,262. This account also aggregates all vacation and sick leave for all Suffolk County employees. Estimated Liability for Claims: This represents the total GAAP -based amount of liability which the County must set aside for pending claims and litigation. It should be noted that this is not the amount that the County believes it will have to pay; instead, it represents total potential liability. Obligations Under Capital Lease: The County entered into an agreement with the New York State Dormitory Authority regarding the leasing of the Cohalan Court Complex in Central Islip. The Dormitory Authority issued debt for the construction of the complex. In return, the County is obligated under the lease to operate and maintain the Cohalan Court Complex as well as pay annual lease rental payments equal to the debt service on the Dormitory Authority bonds. These rental payments are subject to annual appropriation and are not general obligations of the County. In addition, the Cohalan Court Complex will not provide any services to Peconic County. Long Term Debt: Includes General Obligation bonds of the County, including certain debt associated with the sewer districts, and the drinking water protection program. Suffolk County does not segregate long-term general obligation debt by the fund which it benefits. The information from Suffolk County's balance sheet has been used to determine a proposed method of allocating Suffolk's assets and liabilities between Suffolk and Peconic. In addition, information from these financial statements have been used in the analysis of valuing asset and liabilities. See "General Issues Regarding Secession" and "Implementing a Peconic County Divestiture" for a description of how the information above is proposed to be implemented. Appendix III Page III -8 Peconic County Citizens District Legal Aid County Board of Peconic - Suffolk Attomey Sheriff _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ -_ -_ Community College Society Clerk Supervisors ' Board of Trustees I I I 1 Town & L Exe cut al County I President Vill e _ Investigative � I unitive Services Administration Administrator I Police Services Unit Unit 1 � Administration 1 1 I I Support i Faculty Staff Civil Claims Family Orders Criminal ' Bureau Investigation Court of Invest.- Pistol 1 Bureau Protection tion I 1 I I 1 (Continued) I I Commissioner of Parks Law Board of Health Services Public Works Director of Planning & Cultural Affairs Public Safety Office (County Finance Health - Administration Administration Economic Director Attorney) Assistance 1 Fire, Rescue & Civil Finance I Cooperative Emergency and Office of Service Aviation 4 Extensive Services Taxation Cultural Division of Historic Public Environ- Community Emergency Division Association Affairs Parks Services Health mental Mental Medical Health Health Services Welfare Family & Division of Budget and Management & Children's :::P:Ia:nn]ing Police Support Elections Public Management Administration Services Admini- Environmental Recreational Facilities stration Enforcement Patient Alcohol & MedicauLegal Transportation Probation Purchasing Care Substance Investigations Abuse &Forensic Sciences Public Labor/Jobs Soil and Assistant Other Water Operations & Park Services ConservationAudit and Maintenance Security Control Buildings and Administration Facilities Design & Maintenance Criminal Family Court Court Intensive I I Juvenile I I Persons in Need Supervision I IDelinquentsiof Supervision