Councilman Schiliro Comments on The Moody's Downgrade of North Castle
February 6, 2010
1. I'm not happy with the downgrade, but we have already put the first few steps in place to improve our fiscal health in the town. Namely, we adopted a Fund Balance Policy that requires this and any future town board to maintain a minimum General Fund Balance of 10% of the General Budget - we are one of only a few municipalities in Westchester County that has such a policy. In addition, we submitted a structurally balanced budget for 2010 - very few if any municipalities in Westchester offered a budget that didn't utilize their fund General Fund Balance.
2. Moody's did favorably recognize the following: a. Our 2010 budget is structurally balanced. b. The adoption of the General Fund Balance Policy was favorably received. c. Moody's commented that our projected revenue from Mortgage and Sales Tax is relatively conservative.
3. Clarification of % target: Moody's does look for 20%, but a target of 10%-20% is an acceptable standard. In fact, our town auditors recommend an acceptable target of about 15%, and recommend not to fall below 10%. The General Fund Balance Policy should help restore our reserve to a minimum of 10% of the General Budget within 3-5 years or sooner, and hopefully approach 20% so as to aide future town boards during future economic downturns.
4. Clarification of General Fund: For the most part, Moody's reviews our General Fund Budget and General Fund Balance. Our General Fund Budget is about $17,000,000 - 10% of that number is $1,700,000. I have underlined General, because that is what they really analyze. Our current General Fund Balance is approximately $455,000. You can't take 20% of the $24M budget without adding the fund balance for Highway and Library. If you did, the current fund balance for all three would be closer to $1,200,000. But we focus more on the General Fund because Highway and Library are spawned off of the General Fund Budget. (Our budget is comprised of 4 pieces - General, Highway, Library, and Special Districts - but Moody's focuses on the General Fund Budget).
5. Actual affect of downgrade in dollars: For short term borrowings (10 year - used for equipment etc.), current markets show a difference of about 20 basis points. This means that if we borrowed $200,000 to buy a new highway truck, additional interest would cost about $400 per year. For longer term borrowings (Capital Improvements - a new building), current markets show a difference of about 55 basis points. This means that if we borrowed $1,000,000, additional interest would cost about $5,500 per year. It certainly is higher interest, but not significantly higher. The key now is to improve our fiscal policy to restore our Aaa rating.
In summary, we will improve our fiscal policy in the Town of North Castle - we must improve our fiscal policy - and we have already started. We monitor mortgage recordings on a weekly basis and mortgage recording revenue on a monthly basis, and we monitor sales tax on a monthly basis. Over the past 5 years (2006-2010), we have increased our expenditures for General, Highway, and Library an average of only 2.49% per year - below inflation. For the 6 years prior to that (2000-2005), expenditures increased an average of 7.64% per year. There is much more work to be done, but we are on the right path.
North Castle's Bond Rating Drops
Moody's has downgraded North Castle's bond rating from Aaa to Aa1. The downgrade is based upon several factors, including North Castle's uncontrollable decline in revenues from sales and mortgage taxes, and the town's difficulty in cutting spending. Moody's is one of the three major bond rating groups agencies. (The others are Standard & Poor and Fitch.)
A Moody's downgrade generally indicates that the bond issuer has seen a drop-off in the Town's financial situation and performance.
North Castle politicians should not be surprised by this downgrade, but neither should they be proud of or satisfied with it. Lower ratings cause higher interest and payment that will have rates to be paid when new bonds are issued by North Castle in the future.
Another reason for the Moody's downgrade is the decline town's Fund Balance.(LINK)The downgrading is a reflection of the less then frugal management of our budget.
Supervisor Weaver says the current Fund Balance is $400,000. Bond rating companies recommend that the reserved balance be 20% of a budget. Our budget is $24 Million; 20% would be $4.8Million. The discrepancy between the agency's recommendation and the reserved funds current available have contributed to the downgrade.
Fortunately, "Aa1" rating is not a terrible rating.
An explanation of Moody's rating symbols and its Municipal Long-Term Rating definitions are as follows:
"Aaa Issuers or issues rated Aaa demonstrate the strongest creditworthiness relative to other US municipal or tax-exempt issuers or issues."
"Aa1 Issues or issues rated Aa1 demonstrate veer strong creditworthiness relative to other US municipal or tax-exempt issuers or issues."
"Moody's appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa."
In 2010 the Town Board has passed a budget (LINK) that will not further draw down the fund balance as it has in the past. Supervisor Bill Weaver says, "We are on the right track to fix the problems. In this difficult year, we are one of the few towns that have a budget that doesn't call for funding from reserves."
According to Councilman Mike Schiliro 2010's Town Budget is a structurally balanced.
The town is looking to sell thirteen parcels of town-owned property and anticipates that the proceeds from these sales will increase the Town's Fund Balance. At the last Town Board meeting, the Board approved $5,200 for a survey of the property on Old Route 22 that IBM had donated to the town.
Click to view Housing Appreciation Data
Armonk/Byram Hills Real Estate 2009 Year End Overview and 2010 Outlook
By Barbara Hirsch January 31, 2010
While the Byram Hills market was one of the few in Westchester to record an increase in median sales price (+4.7%), there is no denying that 2009 was a challenging year to be a seller. Buyers had a wealth of choices and were choosing value as one of the top priorities. If sellers weren’t willing to adjust to the new market realities, savvy buyers quickly moved on to the next home. Read More
Farmer's Market After All?
North
Castle's Town Board is taking a second look at the Farmer's Market
issue. At the last board meeting, the Board approved Councilman Diane
Roth's motion to permit a Farmer's Market in Armonk subject to the
approval of a location and the issuance of a license. The two locations
being considered are both town-owned: Wampus Brook Park and the
town-owned lot behind Kent Place near the library. Read More
Byram Hills Intel Science Talent Search finalist Rachel Cawkwell (right) with semifinalists, John Capua (front), Ian Schneider, and Lily Kosminsky.
February 1, 2010 Byram Hills Student Named Intel Finalist
A Byram Hills High School senior is the only Westchester student named a finalist in the country’s oldest and most prestigious pre-college science competition, Intel Science Talent Search. Rachel Cawkwell was named one of 40 finalists from the 300 semifinalists announced last week.
Rachel is a student in Byram Hills High School’s Authentic Science Research in the High School program, which involves three years of college-level scientific research under the guidance of a mentor who is a professional in the field. Read More
Aeriel view of Armonk Shopping Center at the corner of Maple Avenue and Route 22.
Four Years of Redeveloping Armonk Shopping Center
January 29, 2010 The downtown supermarket development is a popular project. Two weeks ago real estate developer Michael Fareri presented a plan that calls for a new supermarket at 99 Business Park. Lashins Development may also have submitted preliminary plans for a supermarket and an adjacent building housing residential apartments behind 80 Business Park, although Lashins did not return our phone call to confirm this.
And the Werber Brothers, owners of Eden Enterprises, have gone once again gone before the planning board with yet another plan for the A & P at the Armonk Shopping Center. The presentation of a new plan addresses the entrance and parking spaces at the local supermarket.
The plan calls the A & P to expand to 33,725 square feet, considerably more than the A & P's current size of 25,725 sq. ft. The A& P will still be a local shop and not a destination store. This version also calls for smaller retail stores to be located in a separate 7,000 sq. ft. building on the northwest side of the property. Made in Asia and Fernando's Pizzeria would remain in the shopping center.
The main concern about this project in the past was insufficient parking ratio for the proposed larger retail space. Given the public outcry, the use of town land for parking is no longer possible. The applicant did an extensive parking and traffic study and found that the parking area has always been underutilized, even on the busiest supermarket day of the year, the day before Thanksgiving. But we didn't need a parking study to tell us that the parking lot is never full. (Although Planning Board member Jane Black remembers that, when the Outdoor Art Show was still in town, the A & P parking lot was full for two days.) The fact that the supermarket will remain a local shop and not a destination store does put less strain on the parking lot.
The plan proposes that a retaining wall be constructed along Main Street with a decorative wrought iron fence. Engineer Bob Roth says it would be very attractive, but others differ. The owners of Eden Enterprises are willing to consider laying paver-stones on the sidewalk, but not beyond their own property.
Landscape in the parking lot, with a tree or a large plant for every four spaces, would be a welcome improvement. According to Bob Roth, there are currently 143 parking spaces, and the new proposed lot would have parking is 157 spaces. He says he is confident of the parking study that concludes there will be sufficient parking.
A proposal for truck-loading docks in the rear of the A & P is practical, says Alfred DeBello of DeBello, Donnellan, Weingarten, et al, attorney for Eden Enterprises. "It may not be perfect, but it works on paper." Perhaps, but the area appeared to be very tight.
Another proposal is for the entrance off Main Street to be closer to the heart of town. A widening of the entrance off Maple Avenue has been proposed, with either 21' with a variance, or 24' with the removal of trees along the office building adjacent to the Maple Avenue entrance. Either way, a sidewalk is proposed along that entry. But Eden Enterprises is not willing to dedicate, nor grant access, as was suggested by Director of Planning Adam Kaufman, for adjacent properties to use the shopping center's Maple Avenue entrance in order to decrease curb cuts and ease traffic on Maple Avenue. Traffic on Maple Avenue is anticipated to increase once Armonk Square is built with its main entrance across the street off Maple Avenue.
The next step is for the engineers working for each party to sit down to discuss the details.
Everyone knows that Armonk residents would like a new supermarket. The question remains, which plan is the best?
The Lumber has been approved for a 10,000 sq. ft. retail space
The Old Lumber Yard
The old French’s Lumber Yard at the end of Bedford Road near I-684 has been an empty shell for many years. Pop and Mom French began their lumber yard business in the late 1940's. The entire family, Tom Sr., Jesse, and kids: Kenny, Sonny Jr. and June and all the grand kids worked there. Kenny French and his wife Susan ran the business until there was a fire in the 1980's. Two Bronx businessmen bought the property, but couldn't pay taxes that eventually totaled one million dollars. Six years ago, real estate developer Michael Fareri bought the distressed property. According to Fareri, the property now has approved building plans (as rendered above) and permits for a 7,000 square foot retail mall, plus 3,000 square feet of second level apartments.
Fareri admits that there would be a negative impact on Armonk's Main Street stores if he were to build the lumberyard property as a shopping mall. He says he won’t build on the lot unless he can build residential units instead.
At January 13th town board meeting, Fareri submitted a new petition requesting that the Town Board amend the zoning ordinance to permit multi-family dwellings in a single structure. Fareri presented plans for 16 condominium units, with 14 at market rates and two middle income units (MIUs).
The average size of the condominiums is 1,100 square feet, but the two penthouse units are about 3,000 square feet each. The plan calls for a roof garden and underground parking. The exterior design of the building will echo the exterior brick architecture of the Boies Building on Main Street. Fareri Company would own and rent the units as condominiums.
Several years ago Antares built the Cider Mill residential complex on Old Route 22. The project was supposed to include middle income units, but they were never built and the current owners of the unbuilt units, Crab Apple Properties, will not receive any building permits or certificates of occupancy to complete the Cider Mill Complex until the middle income housing requirements are met. Michael Fareri is obliged to build these middle units and is attempting to work with Alan Zaretsky of Crab Apple Properties. They are discussing whether the town's requirements can be met if the middle income units are be built near the old Cochren property along Old Route 22, across from Gavi Restaurant and down the road from Cider Mill.
At the recent Town Board meeting, Fareri said that if he cannot meet the town's middle income housing requirements by building MIUs along Old Route 22, he will alternatively propose to complete the lumber yard project with nine market value apartments and seven middle income units. Either way, Fareri is proposing to build 16 units at the old French's Lumber Yard.
The Planning Board is still to review the complicated application. A question arises, as it did in another application (the Lashins' supermarket proposal along Route 22 and I-684). Do we want our neighbors to live in apartment buildings along I-684? Care to comment?
Click to view the eight communities of Westchester's 89th AD
The Democrat candidate, Peter Harckham
Robert Castelli, Republican candidate
February 9, 2010 Special Election called for the eighty-ninth Assembly District of Westchester
Updated January 25, 2010
A special election is to be
held on February 9, 2010 to fill the vacant seat of State Assemblyman
of the 89th District. The District includes the towns of Bedford,
Harrison, Lewisboro, Mount Kisco, New Castle, North Castle, Pound Ridge
and most of White Plains.
New York Governor David Paterson scheduled the election to fill the seat vacated by Adam Bradley
who was elected and took oath as Mayor of White Plains in the beginning
of January 2010.
The Democrat candidate is Peter Harckham, a Bedford county legislator. North Castle Democratic Committee endorsed Peter Harckham.
Democratic Chairman Linda Trummer Napolitano says, "Harckman is a fiscal
conservative in the sense that he opposed pay raises for the County
legislators, and was active in reducing the County's budget. He is known
to work well with Republicans and is a consensus builder. He won his
legislative district handily, and is a known name in Westchester. He
covers a Legislative District that is about half Republican and half
Democrat and is well respected in the District." Furthermore she says, "John Nonna, (Legislator of District 9),
described Harckham as a dedicated and extremely hard worker."
The Republican candidate is Robert Castelli. Castelli is a resident of Lewisboro, where he served one term in 2000 as Councilman. He is currently a professor at John Jay College of Criminal Justice in New York City and president of Robert J. Castelli Associates Inc. Castelli Associates provides services in security consulting, police management, confidential investigations and expert testimony for police agencies, law firms and private corporations. He ran for the District Assemblyman's seat against Adam Bradley in 2004 winning 41% of the vote.
Armonk resident Howard Arden and Frank Benish were considered as nominees for the seat by the North Castle Republican Town Committee. NCRTC Chairman Loronda Murphy said it would have benefited North Castle to see a local resident as Assemblyman in Albany representing our Town and the 89th District.
The Westchester District leaders of the eight communities making up
the 89th Assembly District considered all the candidates. At the
Albany Commissioners' meeting on January 14, 2010, the majority of votes were for Democrat Harckham and Republican Castelli.
Armonk, NY
Around Town
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The delicious smell of hamburgers cooking brought crowds to The Burger Factory on opening day Monday. Vincent was one of their first customers.
Avery and Abbie enjoyed every bite of their delicious made to order hamburgers at The Burger Factory.
Ecco il mio passaporto Preparing for a summer trip, Samantha, Skyler, Matteo and parents went to the post office to renew their passports.
USEFUL AND SIMPLE ITALIAN FOR PEOPLE ON THE GO Here is my passport. Ecco il mio passaporto. (Ek-koh eel mee-oh pahs-sah-porr-toh).
St. Stephen's Episcopal Church inducted their new minister on Thursday. Rev. Josh Condon was welcomed to the community by Town Supervisor Bill Weaver.
Newly Adopted Cara and Ike couldn't wait to greet their new dog, Roscoe, after school. They adopted him last week from the animal shelter in Briarcliff Manor.
Ken Fried, standing, teaches computer classes at the Hergenhan Recreation Center. On Tuesday evening, Ossie, Luisa and Bonnie honed their software skills.
Final Touches
Lauren Harmata, HCC Choir Director, foraged in the woods by the school for props for this weekend's production of Beauty and the Beast Jr.
For Sale
There are two new listings for sale of middle-income, two-bedroom units located in Whippoorwill Commons and Whippoorwill Hills. Click here for more info.
Drive with Care The rain, snow and fluctuating temperatures have left dangerous ice patches on town roads. Read about the origin of "Ice"
Turning Over the Compost Michael designed and built his compost for a school project.
After Saturday morning basketball, Xander enjoyed breakfast at the bagel store.
At VIP Video, Alex picked out a Saturday night movie.
15° Cal found the sunniest spot to wait for the bus on a cold Friday morning.
Karen Resnick and Jen Kossoy chaired Parents as Reading Partners week at Coman Hill. Here they read the class a story about friendship. After a discussion, the students made doughnut friends.
Shovels and snowplows were brought out this morning to clean up the three inches of snow. Share you winter photos with us at edit@allaboutarmonk.com, jpeg files please.
A Long Night for Armonk Fire Fighters
A house under construction on North Porchuck Road in Greenwich went up in flames at 4:30am on Wednesday. Armonk Fire Department participated in putting out the blaze. Armonk firefighters, including, L to R, Lance Hinrichs and Andrew Burns, got back to the firehouse at 11am.
Enjoying the improved weather, Rev. Hikari Chang of Armonk Methodist Church takes her bichon frise, Kenya, for a walk.
Monday's downpour didn't prevent the postman from delivering the mail on Main Street.
Flooding on School Street and other areas of town caused delays and closures.
Ceramics at the Senior Center
At the Hergenhan Recreation Center, Genevieve Carpentieri, age 98, displayed the rabbit she completed.
Mary Mazzella and Rita Vettoretti painted their platters.
Helen Massano showed off her just completed fruit bowl.
Bake Sale for Haiti
Over the weekend, the children of St. Patrick's Church held a bake sale for Haitian relief. L to R, Gina, Jake, Nick, Andrew and Alea sold baked goods.
Con Ed Repairs
Con Edison was in Town for emergency repairs twice this week. Sunday afternoon they were repairing a destroyed cable that closed Hickory and Tweed's bike shop on Saturday. Earlier in the week, Whippoorwill Hills was without electricity for hours due to a blown transformer.
TGIF?
Even on Friday afternoons, Laura tutors students atthe Armonk Tutoring Club.
This big bird was seen flying from rooftop to rooftop in the Whippoorwill Road East area. Do you have any idea of what type of bird this is? To leave a comment, please click here.
Chess Is A Game of Skill
John Gallagher teaches chess classes at the North Castle library on Sunday afternoons. Click for photos of some of our young player's sharpening their skills.
Around Town photos by Charity Lunder for AllAboutArmonk.com.
School Budget
The Byram Hills 2010 - 2011 school budget process has begun. All Board of Education meetings are scheduled to start at 7:30pm and will be held at the district office at 10 Tripp Lane, Armonk.
February 9, 2010
The Budget will be discussed as an Agenda Item during this BOE Meeting
March 2, 2010
Presentation of the Administration's Proposed Budget
March 8 & 9, 2010
Budget Hearings ll and lll
April 13, 2010
Budget Hearing lV (Budget Workshop)
April 20, 2010
Adoption of Budget by the BOE
May 4, 2010
Budget Hearing V (Presentation of Proposed Budget)
May 18, 2010 6:30 am - 9:00pm
Budget Vote
Source: District letter from Jacquelyn Taylor, Superintendent of Schools, dated December 2009
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