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Local News

February 9, 2013

Dissolution process detailed

(Continued)

The information-gathering process takes about six months.

“The process is going to be transparent,” Maguire said.

FISCAL IMPACT ANALYSIS

The village could choose to hire a consultant, or the board could appoint a dissolution committee, Maguire said.

In either case, there would be a dissolution study that would include a fiscal impact analysis, a dissolution plan and alternatives to dissolution, he said.

The Department of State recommends the dissolution study include an examination of current costs and operations, cost estimates based on the village budget and a set of options to consider in developing a dissolution plan.

That plan should include the best options from the study on to dissolve, with final estimate costs included, the state recommends.

Alternatives to dissolution should also be developed, and the state recommends these include a strategy to reduce costs and improve services if the village is not dissolved.

Maguire distributed a document at the session that outlines the process that listed possible outcomes of dissolution. Among them are a 20 percent savings from municipal consolidation; property-tax reductions of almost 15 percent achieved through shared services; and an unchanged level of service.

However, he emphasized that each village dissolution case is unique, and taxes don’t always decrease. They could, in fact, go up.

A public meeting would follow each completed step of the process, Maguire said.

INCREASED EFFICIENCY

A fee for consultant work is between $40,000 and $50,000, Maguire said.

New York state offers grants to cover most of the cost of a consultant to municipalities that are moving toward dissolution in an effort to increase local government efficiency, he said.

“We want all of New York state to be as competitive as it can be,” he said.

The grant covers 90 percent of the cost of the consultant, and no village has been denied the funding to date, Maguire said.

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