037
037
PAGGI, MARTIN & DEL BENE LLP
Consultin~ En~ineers & Land Surveyors
54-56 Main Street
Poughkeepsie, New York 12601
914-471-7898
914-471-0905 (FAX)
August 28, 1998
Town Board
Town of Wappinger
P.O. Box 324
Wappingers Falls, New York 12590
Attention: Constance O. Smith, Supervisor
Reference: Wappinger Park Water
Dear Supervisor Smith & Board Members:
As requested at the August 24th, 1998 Town Board meeting, our office has
prepared a cost analysis for extending the water line along Old Route 9 from the
Alpine Shopping Center southerly and connecting into the Wappinger Park Water
District.
The purpose of the connection is to allow the existing source for the Wappinger
Park Water District to be abandoned, as it has been experiencing qualitative
problems most recently. It is also anticipated that the commercial entities along
the route will be tied in to the proposed line.
The basis for this cost analysis was our April 27th, 1998 letter to the Town Board
in which we described the project and detailed the associated project costs. Most
importantly in that memo, and at the Town Board meeting, it was stated that the
source for the Central Wappinger Water Improvement, which feeds the existing
distribution line at the most westerly point of the Alpine Shopping Center, will
need to be augmented either through the expansion of the Atias welifield and/or
some other avenue, probably an interconnection with the Joint CitylTown Water
system.
As instructed at the Town Board meeting, these calculations were to define the
cost to amortize the necessary $700,000.00 expenditure over what would be the
proposed "District" (including Wappinger Park Homes and the commercial
entities), and the entire Town outside the Village of Wappingers Falls.
I have analyzed the amortization two ways. The first was with a term of 20
years and 6% interest, and the second was with a five year BAN at 5% interest.
Joseph E. Paggi, Jr., P.E.
Ernst Martin, Jr., P.E., L.S.
Charles R. DelBene. .Jr.. P.E.
Constance O. Smith
Town Board
RE: Wappinger Park Water
- 2 -
August 28, 1998
The total assessed values that were utilized are as follows:
. THE TOWN OUTSIDE THE $ 780,378,198.00
VILLAGE
. THE "DISTRICT" ASSESSMENT $ 11, 540,500.00
I have asked AI Roberts, Attorney to the Town, if the cost for this "District" could
be levied on an ad valoram basis. AI has replied that it is possible, and therefore,
that is the methodology which we used. I have enclosed a copy of his letter for
your review.
Amortizing the $700,000.00 over a 20 year period at 6%, and using the 50%
rule, requires a first year maximum debt retirement of $70,000.00 (principal and
interest). The rates would then be as follows:
TOWN ASSESSMENT: $ 780,378,198.00
DISTRICT ASSESSMENT: $ 11,540,500.00
1. 0100% Town: $ 70.000.00 = $ 0.0897/$1,000 of Assessed Value
780,378,198
o
0% District:
2. 0 90% Town: $ 63.000.00 = $ 0.0807/$1,000 of Assessed Value
780,378,198
o 10% District: $ 7.000.00 = $ 0.6065/$1,000 of Assessed Value
11,540,500
3. 0 80% Town: $ 56.000.00 = $ 0.0718/$1,000 of Assessed Value
780,378,198
o 20% District: $ 14.000.00 = $ 1.213/$1,000 of Assessed Value
11,540,500
4. 0 60% Town: $ 42.000.00 = $ 0.0538/$1,000 of Assessed Value
780,378,198
o 40% District: $ 28.000.00 = $ 2.426/$1,000 of Assessed Value
11,540,500
Constance O. Smith
Town Board
RE: Wappinger Park Water
- 3 -
August 28, 1998
To amortize the $700,000 using a five year BAN @5% the following table was
developed.
YEAR PRINCIPAL INTEREST TOTAL PAYMENT
1 $ 120,000 $ 35,000 $ 155,000
2 $ 140,000 $ 29,000 $ 169,000
3 $ 140,000 $ 22,000 $ 162,000
4 $ 140,000 $ 15,000 $ 155,000
5 $ 160,000 $ 8,000 $ 168,000
As you can see from the table above, the maximum yearly debt retirement would
be $169,000.00. The rates would them be calculated as follows:
1. 0100% Town: $169.000.00 = $ 0.2165/$1,000 of Assessed Value
780,378,198
0 0% District:
2. o 95% Town: $160.550.00 = $ 0.2057/$1,000 of Assessed Value
780,378,198
0 5 % District: $ 8.450.00 = $ 0.7322/$1,000 of Assessed Value
11,540,500
3. o 90% Town: $152,100.00 = $ 0.1949/$1,000 of Assessed Value
780,378,198
o 10% District: $ 16.900.00 = $1.4644/$1,000 of Assessed Value
11,540,500
Constance O. Smith
Town Board
RE: Wappinger Park Water
- 4-
August 28, 1998
To determine what the average resident would pay, we have determined that the
average assessment in the Wappinger Park Subdivision is somewhat less than
$80,000.00, and have used $80,000.00 as the average assessment.
We have also used $125,000.00 as an average assessed value of a resident
outside the proposed "District".
To look at the commercial properties that would be included in the proposed
"District", I have used the three Hark Buildings and Greenbaums & Gilhooley's as
examples.
Utilizing the above numbers, I have prepared the table below that shows the tax
rate for each of the options previously discussed.
PROPERTY WAPPINGER HARK GREENBAUM AVERAGE
PARK BUilDINGS & RESIDENT
RESIDENT I, II, III GllHOOlEYS (OUTSIDE
-DISTRICT-)
($80,0001 ($1,100,0001 ($420,0001 ($125,000)
OPTION (AVERAGE (AVERAGE (AVERAGE (AVERAGE
ASSESSED ASSESSED ASSESSED ASSESSED
VALUE) VALUE) VALUE) VALUEI
20 YEARI1 00% TOWN $ 7.18 $ 98.67 $ 37.67 $ 11.21
0% DISTRICT
20 YEAR! 90 % TOWN 54.98 755.92 288.64 10.09
10% DISTRICT
20 YEAR! 80% TOWN 102.78 1413.28 539.62 8.98
20% DISTRICT
20 YEAR! 60% TOWN 198.38 2727.78 1041.52 6.73
40% DISTRICT
5 YEAR! 100% TOWN 17.32 238.1 5 90.93 27.06
0% DISTRICT
5 YEAR! 95% TOWN 75.03 1031.69 393.92 25.71
5% DISTRICT
5 YEAR! 90% TOWN 132.74 1825.23 696.91 24.36
10 % DISTRICT
Constance O. Smith
Town Board
RE: Wappinger Park Water
- 5 -
August 28, 1998
As you can see from the above table, utilizing 100% - Town and 0% - District,
for a 20 year and 5 year term calculates that an average resident would pay
slightly more than a Wappinger Park resident. As the Wappinger Park resident is
most benefited, it would seem that this would not be the appropriate option to
follow.
I have calculated 90% and 95% for a 20 year and 5 year term, respectively, and
they work out approximately a factor of 5: 1 and 3: 1, respectively. (For the ratio,
Wappinger Park resident payment to be average outside "District" resident
payment). This appears logical as the Wappinger Park resident is most benefited.
The 20 year option is somewhat less than the 5 year option, ($54.98 and $10.09
compared to $75.03 and $25.71). However, the total amount paid would be less
in the 5 year option.
The Town Board should review these numbers and decide which framework
would be best to pursue.
Once the Town has chosen an amortization schedule and "District" make-up (Le.
percentage of "District" percent of "Town"), I would then recommend that the
Town authorize us to sit down with the Health Department to determine what
they would allow as far as an emergency tie-in to Central Wappinger. It would
seem to me that the Health Department would want to see a formalized plan for
augmenting the source, put in place PRIOR to allowing anything other than the
emergency hook-up. However, this will need to be clarified through consultation
with the Dutchess County Health Department and the New York State
Department of Environmental Conservation.
We will be ready to discuss these numbers at the September 14th, 1998
Workshop meeting, and advise that if anyone has any questions prior to the
meeting, please contact me at the office.
V/l:;;rJl;J
~~ E. Paggi, Jr., P.E.
JEP:law
cc: Hon. Vincent Bettina, Councilman
Hon. Joseph Paoloni, Councilman
Hon. Joseph Ruggiero, Councilman
Hon. Robert Valdati, Councilman
Hon. Elaine Snowden
Albert P. Roberts, Esq.
Michael Tremper