THE RECORDER
Amsterdam, NY
May 11, 2004
Regulating district hopes to collect from more users
By CRAIG CLARK
Recorder News Staff
JOHNSTOWN - Regulators on the Great Sacandaga Lake have placed funds in next year's tentative budget to begin a closer investigation into drawing money from a wider selection of those enjoying benefits of the reservoir.
The Hudson River-Black River Regulating District's new 2004-05 budget is scheduled for adoption in June and was discussed Monday at the regulating board's monthly meeting.
District officials have set aside $80,000 in the tentative budget for consultants to further explore the possibility of charging those who are seeing benefits from the lake but are not currently paying a benefits fee.
The possibility of the district charging a wider selection of lakeusers was first explored in a report on the subject ordered by the recent federal relicensing of the Sacandaga reservoir. That report, prepared by the environmental consulting firm of Gomez and Sullivan, was released in August and is available on the district's website.
The report recommended that the benefits of increased real estate values for lakeshore property owners, mainly those holding access permits on the lake, were significant enough to warrant further investigation. The report too noted that the benefits derived from the reservoir's water flow by the wastewater treatment plants on the Upper Hudson River were significant. The report as well discussed a variety of others deriving benefits that could be charged an annual fee.
Currently, only downstream hydro electric companies and municipalities which see flood protection from the Great Sacandaga pay fees to the regulating district. Under the tentative 2004-05 budget the current downstream beneficiaries will collectively be paying $800,000 more than this year bringing their total annual assessment to over $3.5 million.
The Gomez and Sullivan report and its pending further investigation drew comments from the two members of the public Monday.
"It is unclear whether the regulating district has the power to classify access permit holders as beneficiaries of the reservoir," Sacandaga property owner and cofounder of the Batchellerville Bridge Action Committee Peter VanAvery said Monday. "What is clear is that a cloud of uncertainty hangs over our heads."
District officials and regulating board members are yet to go through the reapportionment study in public and say they're unsure exactly what form the further investigation will take.
Robert Foltan, the district's chief engineer, said Monday the investigation will most likely involve bringing in at least one group of outside consultants, possibly more.
One Sacandaga property owner, Broadalbin resident Fred Wilhelm, Monday called for the district to present more details on the next step the reapportionment study will take.
"What is the objective? What's the process? And what are your expected results?" Wilhelm said. "You're spending a lot of money on it. What do you expect to come from this study?"
While a great deal concerning Gomez and Sullivan's reapportionment study has not been discussed in public lakeshore property owners since the report's release have taken issue with the suggestion they be charged an additional fee beyond the price of their annual access permits and property taxes.
"Identifying access permit holders as beneficiaries of the reservoir would be the equivalent of charging the citizens of Saratoga Springs an assessment because the presence of the NYRA (New York Racing Authority) ... adds value to their private property," VanAvery said.
DAILY GAZETTE
May 11, 2004
FULTON COUNTY EDITION
Lake regulators lean on utilities
District that runs Sacandaga approves plan for governance
By JOE MAHER Gazette Reporter
JOHNSTOWN - The Hudson River Black River Regulating District's proposed 2004 budget depends heavily on increased revenue from utilities that are already contesting their current payments.
The district, which operates the Great Sacandaga Lake as a flood-control reservoir, met Monday in Johnstown to work on the budget and other pending issues. The budget is scheduled to be adopted next month.
The district also approved a "governance plan" that is to be submitted to a state task force on public benefit corporations by Friday.
And as part of the plan the board voted to petition the state for an annual budget process instead of the three-year cycle currently prescribed by law.
The district finds itself in an annual budget cycle at this time because of what counsel Timothy Foley described as a "crisis," a situation that resulted from a failed plan last year to increase permit fees that lakefront property owners pay to access the lake.
The district had planned to increase those rates as much as 1,000 percent in some cases and raise additional hundreds of thousands of dollars from the 4,600 permit holders.
But after much public protest the district withdrew the access-permit fee proposal and the three-year budget that depended on those funds as revenue.
Now the district board has plans to enact two annual budgets to complete the three-year cycle. And the utilities and downstream communities that benefit from the lake are being asked to pay more, instead of lake residents.
Secretary-Treasurer George Scaringe said downstream beneficiaries would pay $3.58 million this year compared to $2.7 million last year. And permit fees are static at $423,000.
District critics such as Batchellerville Bridge Action Committee co-founder Peter VanAvery have said that the district shouldn't count on extra funds from the beneficiaries in light of ongoing litigation and current fees being paid under protest.
A loss in court could result in prior-year payments being refunded, he said.
Also Monday, Scaringe urged the board to ask the state to approve legislation allowing for an annual budget process.
"It would really help establish realistic figures," he said. "We don't have a crystal ball." Executive Director Richard Lefebvre said staff worked diligently to find ways to cut the budget and also endorsed an annual budget cycle.
"I think we have budget numbers as well as a plan," he said. "[It] didn't come easy. It was not hocus-pocus."
The board approved the annual budget cycle request as part of the governance plan. The governance plan also includes boilerplate descriptions of board authority, budgeting, a new committee structure, audits, annual reports and similar items.
The board was compelled to file the plan and to submit any other proposals to the state after the permit-fee controversy.
The board also voted to advertise to hire a firm to audit the cost of running the permit system. Board critics have called for an independent audit to accurately gauge the costs because those costs are supposed to be borne by the permit holders.
The request for proposals will also have to be approved by the state, and Chief Engineer Robert Foltan said the earliest that auditors could begin work is in August.
Still, Fulton County Regional Chamber of Commerce and Industry President Wally Hart welcomed the news, as a chamber steering committee has been pushing for such a study.
Hart said the audit would hopefully provide a long-term solution.
District board member Jim Conkling said the audit should identify permit system costs precisely, leaving no room for argument at budget time.
Hart also complimented the district board for providing public information at its meetings and for showing a willingness to work with members of the lake community.
"We appreciate those changes," he said.
LEADER-HERALD
Gloversville, NY
May 11, 2004
District board eyes changes to procedures
By OMAR AQUIJE, The Leader-Herald
JOHNSTOWN - The budgetary process for the operators of the Great Sacandaga Lake is about to change in an effort to improve accuracy and dependability.
For more than a decade, the Hudson River-Black River Regulating District created its budgets in three-year cycles. On Monday, the board voted in favor of amending the procedure to a one-year cycle instead.
This motion comes amid the district's process of finalizing a proposed 2004-05 budget and during a time when the state is keeping a closer eye on how public agencies operate. These two entities were the primary reasons for minimizing the budgetary cycle to one year, said Richard Lefebvre, the district's executive director.
The district, a public corporation, plans to take action on a proposed one-year budget next month. The $7.1 million proposed budget consists of costs associated with maintaining the Hudson River, Black River, the Great Sacandaga Lake and general expenses. The Hudson River expense consists of $5.1 million of the budget, about $400,000 less than last year's adopted $5.5 million.
In order to achieve a reduction in overall expenses, the district will give no pay increases for managers, eliminate some contingencies and reduce expenses for engineering projects, public relations, equipment purchases and other capital improvements.
Once the proposed budget was reviewed figure by figure, the district's secretary-treasurer, George Scaringe, suggested that a change in cycle is necessary.
"It would really help establish accurate figures," Scaringe said. "It really gives you an accurate, clear picture."
District lawyer Timothy Foley said the agency is operating under a "crisis" situation after failing to enact a proposed plan to increase permit fees for lakefront property holders on the Great Sacandaga Lake.
Last year, the district released a proposed permit-fee schedule that included increases of up to 1,000 percent.
That plan was then withdrawn in light of strong public opposition, and the district eventually decided on freezing any fee increase for the 2004-05 fiscal year.
Residents were outraged by the proposed increase but also criticized the district for a lack of information and being untrustworthy.
The district has since then undergone a change in leadership, resulting in more open measures to operate the lake, a reservoir created nearly 70 years ago to control flooding along the Hudson River.
As proposed in the 2004-05 budget, downstream beneficiaries would pay $3.58 million, compared to $2.7 million the previous year. Revenue from permit fees, which were frozen in December, are estimated at $423,000.
One of the district's biggest critics, Peter VanAvery of the Batchellerville Bridge Action Committee, was comfortable with the decision to change the cycle.
"From recent experience, that's a very good idea," VanAvery said.
Also on Monday, the district approved a "governance plan" as requested by a state task force. The plan is scheduled to be submitted by Friday and will give some insight into the district's operations, including budgeting, audits, annual reports, purpose descriptions and other information.
The district also decided to begin advertising to hire an auditing firm.
This decision follows a request by the public.
VanAvery said he is concerned about the district's definition of "independent."
He suggested that a company with no existing business with the state is chosen.
TIMES UNION
Albany, NY
May 11, 2004
River regulating board eyes smaller '04 budget
Johnstown-- Panel wants to go from a 3- year to a 1- year fiscal cycle
By LEIGH HORNBECK, Staff writer
The Hudson River Black River Regulating District, the state agency that oversees the Great Sacandaga Lake, hopes to shave $1.1 million off its budget for 2004-05.
District Secretary-Treasurer George Scaringe presented the budget at the board's monthly meeting Monday. The board is expected to vote on it June 15.
The total proposed budget is $7.1 million, which Scaringe broke into three parts; the general board, the budget to run Black River side of operations, and the Hudson River side, which is the biggest chunk at $5.5 million.
Despite a $42,000 savings in capital expenditures, the Hudson River budget is dominated by school tax payments, a projected total of $2.3 million in 2004 and 2005. The district is taxed for the land under the 29-mile-long man-made lake. Board member James Jankowski expressed frustration over the bill, which stems from an agreement made in 1926 when the reservoir was built to compensate local towns for land that was flooded.
"It was an agreement made so residents would have a permanent income, but it's not relevant now," Jankowski said. "But I don't see how we can get out of them."
Salaries and employee benefits account for the next biggest portion of the budget at 24 percent, or $1.2 million.
The four-member board unanimously passed a resolution Monday to petition the state Legislature to change in how it puts its budget together. As it stands now, the board approves a budget every three years, the members would like to write a budget every year.
"A one-year budget cycle would mean better budgeting, better financing and accountability," said Executive Director Richard Lefebvre.
THE RECORDER
Amsterdam, NY
May 13, 2004
Access permit system audit a step closer
By CRAIG CLARK
Recorder News Staff
JOHNSTOWN - Officials with the Great Sacandaga Lake's governing authority are a step closer to commissioning auditors to evaluate the access permit system employed on the reservoir.
The board of the Hudson River-Black River Regulating District Monday gave approval to send out a request for proposals for auditors to examine the permit system and the costs the annual permit fees should cover.
District officials said Monday they expect to have an auditor selected by August or September and could not predict how long an audit may take.
The regulating board approved the idea of performing an audit following the public outcry that resulted from the district's attempt last year to substantially increase the price of access permits.
The regulating district owns all the land surrounding the Great Sacandaga, creating what is referred to as the buffer zone. The regulating district then sells permits to lakefront property owners, giving them exclusive use of the land for access to the lake. Permits can also be sold to those not owning property in the immediate vicinity of the lake. Permits must be renewed annually.
Last year's proposed increases, which for some permit holders could have meant an increase as high as 1,000 percent, were later found to be against state and district regulations so the board froze access permit fees at last year's levels.
The audit is intended to arrive at exactly what the price of access permit fees should be and to help give public confidence in whatever the new prices are.
Richard Lefebvre, the regulating district's executive director, said it is the district's desire to see the auditors interface with permit holders and district employees during the audit.
For the proposed 2004-05 budget, the price of access permits is to remain steady with last year's prices. The district is slated to approve the 2004-05 budget at its June meeting.
During the past several years access permits from the lake's some 4,200 permit holders have generated about $423,000 a year for the district.