VILLAGE OF WEST CARTHAGE
BOARD OF TRUSTEES
Special Meeting
March 15, 2017
A special meeting of the West
Carthage Village Board of Trustees was held March 15, 2017 at 3:00 p.m. at the West Carthage
Municipal Building.
Said building is declared smoke free and accessible to handicapped persons. The
press was informed of the meeting and notice was posted. The Village of Carthage Board of Trustees
also attended and called a special meeting to order to coincide with the
Village of West Carthage.
Present: Mayor
Scott Burto, Deputy Mayor Scott Sullivan, Trustee Jim Smith, Trustee Mike Bigness,
Trustee Rob Peluso
Present: G. Wayne McIlroy, Mike Astafan, Linda Smith
Spencer, Becky Vary
Guests: E. Avallone, Mark Gebo, Pat Purdy, Kristy
O’Shaughnessey, Debi Pierce
Mayor Burto opened the
meeting at 3:00 p.m. and did President McIlroy.
Mayor Burto noted he had received Wayne’s letter. The Village of West Carthage is requesting
that the bonding amount for the WPCF project be split 50/50. We will receive 4 million dollars in grants
and zero percent interest and we need to close by September 30th of
this year. A draft memorandum of
understanding spells out how the bonds would be payed if Carthage Specialty
Paper were to close. Wayne stated that
the Village of West Carthage is protected by the MOU. Everyone would share the costs if CSP were to
go out of business. Mayor Burto stated
that’s correct and you are asking us to take a risk that you won’t.
Wayne stated that the Village
of Carthage will only bond at 30% for the Village of Carthage and 70% for the
Village of West Carthage. They are upset
because West Carthage officials agreed to get CSP to sign a debt agreement and
have not done so. He also stated 80% of
the currents bonds are carried by the Village of Carthage. M. Astafan stated he had a conversation with
Mayor Burto and wondered if his taxpayers asked why we are taking on 50% of the
debt when it’s West Carthage/s debt how should answer that? Mayor Burto remarked if you feel comfortable
that the MOU or IMA is protecting us, then it’s protecting you as well. Wayne stated that “you use 70%” of the total
and Mayor Burto that the Village of West Carthage uses 16% of the total.
A discussion was held
regarding the amount of funds that each village will have to raise. Wayne stated he cannot raise rates to pay for
50% of the bond. Mayor Burto explained
several times that the end user rates will be the same no matter who bonds what. The actual payment is based on usage. The
annual payment will be about $230,000.
Mark Gebo stated that how the
funds are raised is based on each village’s rates. The users for the Village of Carthage will
absorb a greater share if CSP closes due to usage. If there is a default they will come after
who owes what. On the open market the
debt will show and will effect bond ratings.
The sewer debt can be excluded from the constitutional debt limit upon
application to the NYS Comptroller’s Office.
The debt will also show on each village’s balance sheets depending upon
the percentage bonded.
The WPCF clerk reported that
the bond renews on Friday, March 24th. She also stated that the Village of Carthage
has one meeting per month and has paid the debt amounts for both villages at
that time. The West Carthage clerk asked
if she had ever sent the entire amount due from VWC, CSP and the Town of
Champion to Carthage late; she stated she had not.
Mayor Burto stated that the
Village of West Carthage is the smaller community with a lower debt limit. Wayne stated it would be stupid for you to do
it this way and not do the whole project.
Mayor Burto remarked that he believes doing the entire 11.9 million
dollar project is the best route to take and asked why Carthage won’t meet us
halfway. He stated that Wayne is saying
it’s ok for us to take on the extra debt but not Carthage. Wayne stated that there is no growth in the
Village of Carthage and they are having to pay $100,000 to tear down buildings. Mayor Burto noted that West Carthage has a
much small tax base. Wayne stated that
he has some major debt problems and he needs to find the money somewhere.
M. Astafan noted that he was
bothered that after an agreement was reached in 2014, West Carthage then wants
to change it. Mayor Burto noted he had
different board members then and the project was 3 million dollars less.
Pat Purdy was asked how
business was for CSP. He reported that
they are a profitable business but are seeking to increase their equity. He acknowledged that they fell behind in
their payments but are catching up now.
He agreed with the board that it would be foolish not to have a backup
plan in the event they did close.
Mayor Burto reviewed the
project costs and payment amounts. He
stated no one from his board disagrees that the 11.8 million dollars of work is
the way to go. Wayne stated the Ft.
James paid for 80% of the plant and “we have done things the same way for the
last 50 years and we should continue that”.
The West Carthage clarified
that the 2003 project was bonded at 70/30 with West Carthage bonding the larger
share of that. West Carthage payed off
their plant debt several years ago.
Wayne stated that Fort James had honored their contracts and given
Carthage money for the debt payments, which they still have.
Mayor Burto noted that the
previously approved bond resolution had been rescinded.
The boards met separately for
several minutes. The West Carthage board
compromised and offered a split of 60/40 with West Carthage taking on the
larger share. Wayne stated that they
were at a standstill but will be meeting tomorrow at 5:00
On a motion by R. Peluso, seconded by S.
Sullivan, the meeting concluded at 4:36 p.m.
with no further business being necessary.
Deborah J. Pierce
Village Clerk/Treasurer
