Text · page 7 of 14
After construction began, on January 18, 2018, the Board adopted a bond resolution, subject to permissive referendum,6 authorizing additional financing for the project with a revised estimated maximum cost of $14.9 million, or $5.1 million more than the initial cost estimate. The plan of financing included the issuance of up to $5.1 million in serial bonds, in addition to the $8.4 million in bonds previously authorized by the May 23, 2016 bond resolution, application of $1.4 million in energy performance contract funding and application of $1.6 million in grant funds expected from the State. Total financing sources included in this resolution totaled $16.5 million (more than the project’s estimated maximum cost indicated in the resolution by approximately $1.6 million). Officials did not prepare a detailed itemized budget in connection with this bond resolution to demonstrate the reason for the increase in the estimated cost. While the Board established financing sources needed to fund the project, only the initial revenue and appropriation budget entries were recorded in the accounting system. Subsequent budget changes were not recorded in the system. As a result, up-to-date budget status reports could not be prepared. Consequently, the Board was unable to effectively monitor the project by ensuring financing sources were sufficient to fund expenditures or that the budget was always in balance. After appointment in September 2017, the Director of Finance manually prepared spreadsheets that were used by the Board and Town officials to monitor the project. Following the adoption of the January 18, 2018 bond resolution, in February 2018, the Board was petitioned by residents seeking a referendum on that resolution. In light of the petition, the Board passed a resolution on February 26, 2018 stopping any further project expenditures, and directing the Town Attorney, the Director of Finance and the Town’s engineering firm to work with outside counsel, outside accountants and project contractors to provide a report and recommendations concerning the project, including the status of construction, costs incurred, legal obligations and available savings from changes in the scope of work, among other things. Before the referendum could be held, the Board adopted a resolution on March 12, 2018 to rescind the January 18, 2018 bond resolution. As a result, residents were unable to vote on that particular borrowing authorization. At the March 12, 2018 meeting, the Board adopted another bond resolution, subject to permissive referendum, with an estimated maximum project cost to be approximately $13.4 million. The revised financing plan included the issuance of up to $1.9 million in serial bonds in addition to the $8.4 million bonds previously authorized by the May 23, 2016 resolution, application of $1.4 million in energy performance contract funding 6 This resolution was subsequently rescinded, as discussed below. Of f ic e of t he New York State Comptroller 5