Officials in the Town of Bethlehem discussed and ultimately moved forward several items that have long been on the agendas of Town Board members, or at least the subject of past debate.
The Wednesday, March 28, Town Board meeting saw votes that established a fund balance policy and will lead to the formation of a Comprehensive Plan Assessment Committee.
The latter action sets off the first formal review of the town’s Comprehensive Plan to be undertaken in five years. In the 2011 elections, virtually every candidate spoke to the necessity of revisiting the 2005 document, and those thoughts were reiterated on Wednesday.
“It’s something I think that we’ve all discussed as desirable,” said Supervisor John Clarkson.
“I was on the board when we adopted the Comprehensive Plan, and I think it’s time for a review,” said Councilman George Lenhardt.
The committee to be convened differs from advisory groups the town has formed in the past in that there will be two bodies — a “core” committee consisting of town staff and representatives and a “community focus panel” made up of community stakeholders. A committee of 15 was pitched as a size for the latter group, but Clarkson said Wednesday it could conceivably be larger.
Several board members touted the plan’s allowances for public input. In addition to the focus panel, it calls for public surveys and neighborhood meetings around town.
“Public participation is absolutely critical,” said Councilman Kyle Kotary. “I think it’s a good outline and it’s a good way to both get at the fundamental aspects of the Comprehensive Plan … but also get public input.”
The “core group” will consist of Clarkson, Deputy Supervisor John Smolinsky, the chairpersons of the Planning and Zoning boards, Director of Economic Development and Planning Michael Morelli and (as unanimously approved by the board on Wednesday) Councilman Kotary. Town staff will also assist the group.
The policy does not specify a timeline for the creation of a report, but Clarkson said he’d like to see the committee begin work in the spring and have a product in hand by the end of the year.
The resolution sets a fairly broad charge for the committee, but it’s likely the town’s stance on the preservation of open space will play some role in the dialogue. The question of how (or if) the town should be involved in green space initiatives has been a matter of considerable debate in recent years, including a particularly lively discourse over whether the town should attempt to buy the Normanside Country Club when it went up for sale (the town made an offer but was outbid).
Details on how to express interest in serving on the focus panel should be posted in the near future on the town’s website at townofbethlehem.org.
Fund balance policy ‘memorialized’
The town of Bethlehem now has a formal policy on fund balance levels that codifies what has been the general planning practice in recent years.
The Town Board on Wednesday debated the fund balance policy for over an hour before unanimously adopting it. Its central tenant is the town should aim to hold in reserves 15 percent of its level of budgeted appropriations. If that level climbs to over 20 percent the town would transfer the extra money into the capital reserve funds (requiring that money to be earmarked for a specific purpose) and if it dropped below 7.5 percent the comptroller and Town Board would be required to formulate a plan to return the reserves to at least that minimum level within three years. The policy applies only to the general fund.
Though there is little guidance from the state comptroller’s office on fund balances, the National Government Finance Officer’s Association recommends governments keep about two months worth of spending on hand (or 17 percent of the budget), according to Bethlehem Comptroller Michael Cohen.
Cohen described the plan as “memorializing” what has long been the town’s budgeting practice, but some board members were concerned a formal policy might hobble the town’s ability to adjust to changing fiscal conditions.
“When you put in any policy … you’re taking what is unrestricted and restricting it,” said Kotary. “At what point do we go too far in creating restrictions?”
Clarkson described the policy as a “tripwire” that will prove to be more of a guide than a restrictive framework.
The town’s general fund reserves have been spent down considerably in recent years. In 2003 the town had $5.6 million on hand, and by 2010 that figure had fallen to $3.7 million (32 percent and 12 percent of general fund expenditures, respectively). Cohen’s office is projecting in 2011 the fund was spent down by another $100,000, but will also be nearly 15 percent of expenditures because of spending reductions.
Before adopting the policy the board voted to remove language giving the comptroller “authority to deviate from this policy if it is in the best interest of the town.” The policy is not legally binding, so the board could go outside its provisions if deemed necessary.
The policy also outlines changes in accounting practices to bring the town into compliance with new government accounting standards required by the state.
The best path to paving roads?
The Town Board on Wednesday had a brief discussion about borrowing for road paving before unanimously approving the bonding of $600,000 for such projects this year.
The town began borrowing for paving expenses in 2010, but in the past year some leaders have expressed an aversion to the practice. This year’s budget dialed back borrowing by about one-seventh, with the goal of eventually weaning the town off of bonding for paving and resume using general appropriations.
It was clear on Wednesday that there is still some disagreement about the wisdom in borrowing for this yearly expense. Kotary described it as an acceptable and prudent practice, while Clarkson and Councilman Jeffrey Kuhn said it’s bad form to borrow for such regular spending items.
Nixing the borrowing entirely would lead to a large tax increase in the highway fund though, since it’s mostly funded by property taxes, so even board members against the practice voted for the borrowing. It’s clear the practice will become a part of the 2013 budget discussions later this year, though.
