003
GERALD A. VERGILIS.
KENNETH M. STENGER
ALBERT P. ROBERTS
THOMAS R. DAVIS
STEPHEN E. DIAMOND....
JOAN F. GARRETT"
VERGILIS, STENGER, ROBERTS, DAVIS & DIAMOND, LLP
ATTORNEYS AND COUNSELORS AT LAW
1136 ROUTE 9
WAPPINGERS FALLS, NEW YORK 12590
OF COUNSEL:
KAREN MacNISH
KEVIN T. McDERMOTT
ANGEL 1. F ALC6N
ANTHONY M. DEFAZIO.*.
JAMES P. HORAN".
LISA M. COBB
M. ELLEN O'SULLIVAN
MARINA O'NEILL
LEGAL ASSISTANTS:
AMY E. DECARLO
SANDRA A. OAKLEY
SARAH SALISBURY
CLOSING COORDINATOR:
MARIA L. JONES
(845) 298-2000
FAX (845) 298-2842
www.vsrp.com
e-mail: info@Vsrp.com
POUGHKEEPSIE OFFICE
276 MAIN STREET
POUGHKEEPSIE, NY 12601
(845)452-1046
'ALSO ADMITTED IN FLA.
"ALSO ADMITTED IN CONN.
"'ALSO ADMITTED IN NJ
....ALSO ADMITTED IN FL & MA
March 23,2011
Town Board, Town of Wappinger
20 Middlebush Road
Wappingers Falls, New York 12590
Attn: Hon. Christopher 1. Colsey, Supervisor
Re.: BondinglFinancing of Highway Department Equipment and Road Resurfacing
Recreation Department Equipment
Dear Chris and Board Members:
At the last Town Board meeting the Board members requested a report on the costs of financing
various pieces of equipment for the Highway Department and the Recreation Department. In
addition, the Board wanted a determination if Parkland Trust money could be used for the
purchase of maintenance equipment.
The simple answer to using Parkland Trust money to purchase maintenance equipment is - NO.
See the attached memo for details. The maintenance equipment for the Recreation Department
should be paid out of A fund. The equipment to be purchased is as follows:
HIGHWAY DEPARTMENT EQUIPMENT
ESTIMATED COST
Three dump trucks @ $135,000 each
$405,000
Vactor
$350,000
Three Pickup Trucks @ $35,000 each
$105,000
TOTAL
$860,000
March 23, 2011
Page 2 of2
The above referenced items have a period of probable usefulness of fifteen years each and
accordingly can be bonded over a period of fifteen years. As per Beth Ferguson of Capital
Markets Advisors, LLC, the estimated annual cost to bond all of the above items is $80,000.00
(see attached email from Beth Ferguson dated March 23,2011).
The estimated annual cost to finance $750,000 worth of road re-surfacing, bonded over fifteen
years is $70,000.00 annually (see attached Beth Ferguson email of March 23, 2011).
If the Board determines to allocate a portion of the Vactor costs to water and sewer districts, the
costs attributed to the water and sewer districts would be subject to 202-b proceedings, requiring
public hearings, public interest orders and bond resolutions for each district. The Board will
have to do a separate bond resolution for the Highway Department portion but the district
portions would be subject to the 202-b proceedings.
RECREATION DEPARTMENT:
The mower/tractor at $75,000 could be bonded over a fifteen year period at an estimated annual
cost of $7,700.00 (see Beth Ferguson email of March 23,2011 attached).
The Landpride tow-behind mower at $15,000 has an allowable bonding term of only five years
unless total costs, including soft costs exceed $15,000 in which case the bond can be financed
over ten years. The estimated annual cost to bond the tow-behind mower is $6,600.00 (see Beth
Ferguson email).
Very truly yours,
VERGILIS, StENGER, ROBERTS, DAVIS & DIAMOND, LLP
~ 1D.~/~f-
ALBERTP. ROBERTS
APR/af
Enclosures
cc: Hon. John C. Masterson, Town Clerk
Hon. Graham Foster - Highway Superintendent
Douglas E. Goodfriend, Esq.
Fredrick A wino
Beth Ferguson
0:\ Wappinger\Town Board\Highway Department\2011 Equipment Bonding\0323 1 1 Letter to Town Board.doc
Town Law S 277(4)(c) provides that, if a Planning Board finds that a proposed
subdivision presents a proper case for the establishment of a park, but such park "cannot be
properly located on such subdivision, . . . the planning board may require a sum of money in lieu
thereof. .,. Any monies required by the planning board in lieu of park, playground or other
recreational purposes. . . shall be deposited into a trust fund to be used by the town exclusively
for park, playground or other recreational purposes, including the acquisition of property."
The question has arisen whether such trust monies may be used for the purchase of
equipment to maintain existing parks, such as lawnmowers. In short, I have found no authority
which would support this use of funds and several opinions of the New York State Comptroller
which hold that such use of the funds would be improper.
The Commentary to the Statute cites to 1991 Op. St. 91-36 (1991), which provides that
trust fund monies may not be used for the operation or maintenance expenses of existing parks.
That opinion, in turn, cites 1988 Op. St. Compt. No. 88-21, which opines that the intent of the
provision, which was drafted by the Office of State Comptroller, was that "money in the trust
fund be used to acquire additional park land or to construct, rehabilitate or expand existing park
or recreation facilities to meet the needs generated by new subdivisions."
Cited therein is 1980 Op. St. Compt. No. 80-566, which-states that the statute was
"intended to assure that new or expanded park facilities will be acquired or provided for residents
of new developments (emphasis in original). The opinion continues: "Thus, we have stated that
moneys [sic] paid in lieu of park lands may not be used simply to pay for current operating
expenses of existing parks."
O:\Wappinger\Town Board\1-0PINIONS\3-22-11 memo insert re use pfparldand trust funds.doc
VSRP Mail-. Town of Wappinger Bonding Schedules
https://maiI.google.com/mail/?ui=2&ik=a784dabc9a&view=pt&sear...
Gr:1ail
b.,.(;... lllSk'
AI R <aroberts@vsrp.com>
Town of Wappinger Bonding Schedules
Beth Ferguson <bferguson@capmark.org> Wed, Mar 23, 2011 at 12:20 PM
To: AI R <aroberts@vsrp.com>, Chris Colsey <ccolsey@townofwappinger.us>
Attached are the revised schedules. I also faxed the letter over to AI's office with the numbers filled in.
Beth A. Ferguson
Vice President
Capital Markets Advisors, LLC
1075 Route 82, Suite 4 .
Hopewell Junction, NY 12533
Phone: 845-227-8678
Fax: 845-227-6154
4 attachments
-. - .
5ii?I Wappinger. Highway Issue Summary.XLS
'i::J 19K
~ Wappinger. Paving Issue Summary.XLS
tt=J 19K
~ Wappinger -.Mower Issue Summary.XLS
't:;:J 19K' .
~ Wappinger - Mower Attachment Issue Summary.XLS
'2::..1 17K
10f!
3/23/2011 12:53 PM
Town of Wappinger
$860,000
Issue Summary
Debt Service Schedule
Date
09/01/2011
09/01/2012 45,000.00 1.110% 32,040.50
09/0112013 45,000.00 1.550% 31,541.00
09/01/2014 50,000.00 1.990% 30,843.50
~/O 1~9l?________________19P..QO:PL__.______ .~.3_Q~__.__.___._ .. ...__J.~,8j8.50._ .
09/01/2016 50,000.00 2.860% 28,583.50
09/0112017 50,000,00 3.180% 27,153.50
09/0112018 50,000.00 3.520% 25,563.50
09/01/2019 50,000.00 3.840% 23,803.50
09/0112020 55,000.00 4.090% 21,883.50
09/01/2021 65,000.00 4.310% 19,634.00
09/01/2022 65,000.00 4.510% 16,832.50
09/01/2023 65,000.00 4.680% 13,901.00
09/01/2024 70,000.00 4.820% 10,859.00
09/01/2025 75,000.00 ___.._~:~9~._ __._..._._._.__7.!4.~?_:Q.0___.___ _____
09/01/2026 75,000.00 5.030% 3,772.50
Total 5860,000.00 5323,745.00
Principal
Coupon
Interest
Total P+I
77,040.50
76,541.00
80,843.50
_.._...__ .?~'_8~8.5Q
78,583.50
77,153.50
75,563.50
73,803.50
76,883.50
84,634.00
81,832.50
78,901.00
80,859.00
. .~~-,~~5:.QQ
78,772.50
51,183,745.00
Yield Statistics
.~ond Y~~P..o..I~~_________.____._._.._... .___.._______. ..._._._______.___________$?.!5_~0;.Q~
Avera~~!!~___ _____._ ._.__.__________..___.._________.__.~.71~:Y.~~.
Average Cou~__. .____._..____________.._._____~____._.________'_.__.. ___ _ ___ ___. . .. _4:~)98..s21:~
.!:'!et Inter~_g~st Q'!I.fL___
True Interest Co~t (TIC)
Bond YieId for Arbitrage Purposes
All Inclusive Cost (AlCL
___--'-____.______..__ ..__.____-_______ _ ___ _4.3 !08?~.2'~.
4.2532260%
.------~_._--_.__._.~. ~---
4.2406440%
____.._.__..___.'__n_ ..___
4.2532260%
IRS Form 8038
Net Interest Cost
_.._--------_.
Weighted Average Maturity
4.3108522%
-----.-- --.-....--.------., --....-
8.733 Years
File I Wappinger Sample Debt Service Scheduels.sf I Highway Issue Summary w I Issue Summary I 312312011 111:51 AM
Capital Markets Advisors, LLC
Independent Financial Advisors Page 1
Town of Wappinger
$750,000
Road Repaving
Debt Service Schedule
Date Principal Coupon Interest Total P+I
09/0112011
09/01/2012 40,000.00 1.1 10% 27,854.00 67,854.00
09/01/2013 40,000.00 1.550% 27,410.00 67,410.00
09/0112014 40,000.00 1.990% 26,790.00 66,790.00
_.Jl~/O !I~O 1 5 .___'!.51100.QQ..______.____.l.~3.Q~_._____._.._...__ . __ ~5.!~2~.QO_.._.._._. .__ ....___._.}9,9~~,QQ
09/0112016 45,000.00 2.860% 24,855.50 69,855.50
09/0112017 45,000.00 3.180% 23,568.50 68,568.50
09/0112018 45,000.00 3.520% 22,137.50 67,137.50
09/0112019 50,000.00 3.840% 20,553.50 70,553.50
09/0112020 50,000.00 4.090% 18,633.50 _~M3.3.50
09/01/2021 50,000.00 4.310% 16,588.50 66,588.50
09/01/2022 55,000.00 4.510% 14,433.50 69,433.50
09/01/2023 55,000.00 4.680% 11,953.00 66,953.00
09/01/2024 60,000.00 4.820% 9,379.00 69,379.00
09/01/2025_______._. 65,000.0.0__.__.. __.....____~~~~Q~.__.____..__.__6~1~?:'09__... ___._..._ .... . 7.l,487.~g.
09/01/2026 65,000.00 5.030% 3,269.50 68,269.50
Total 5750,000.00 5279,907.00 $1,029,907.00
Yield Statistics
Bond Year Dollars
Average Life
Average g()_~pon ___
______ $6,~}9:Q.Q
8.680 Years
-_._--~-_.. .---.-..------
4.2996467%
1'Iet In~~~~~!~(~I}fL_._ . ___..___ _.__.____._ ._.........___. ___.__ . _....________._______.______.___. . __. 4.2996467%
I!:lIe 1~!~S!fo~t(!'ICL....____.______.._______ _...... ,________m_. _, ..__,__.__________.__......__._____._._4}4!~.3}~'Y....
_Bond Yi~!~.~r_~~jtr~~e..f~~~e.s_..u,__._.__ ._____u____._._...____u______.._._._._._____.... .__... _____ .. 4}406440'Y~
AI11ncl~iY..e.f.()~~_(AlC) .___ ____u ________.___.__.___. ..._.m______uu._. _ _'" . ........_ .._.. _. 4.2416329%
File I Wappinger Sample DebtServiceScheduels.sf jlssueSummaryw/15-yrtr I Road Repaving 13/23/2011 I 12:09 PM
Capital Markets Advisors, LLC
Independent Financial Advisors Page 1
Town of Wappinger
$75,000
Mower/Tractor
Debt Service Schedule
Date Principal Coupon Interest Total P+I
09/01/2011
09/01/2012 5,000.00 1.1 10% 2,648.50 7,648.50
09/01/2013 5,000.00 1.550% 2,593.00 7,593.00
09/01/2014 5,000.00 1.990% 2,515.50 7,515.50
09/01/2015 ' 5,000.00 2.530% 2,416.00 7,416.00
-o9iol/2016--.------'-s:ooo.oo--'------'2j'60O/"--.--'---f289:so----'----'----'i,289.50'
09/01/2017 5,000.00 3.180% 2,146.50 7,146.50
09/0112018 5,000.00 3.520% 1,987.50 6,987.50
09/01/2019 5,000.00 3.840% 1,811.50 6,811.50
09/01/2020 5,000.00 4.090% 1,619;50 6,619.50
09/01/2021 5,000.00 4.310% 1,415.00 6,415.00
09/01/2022 5,000.00 4.510% 1,199.50 6,199.50
09/01/2023 5,000.00 4.680% 974.00 5,974.00
09/01/2024 5,000.00 4.820% 740.00 5,740.00
_ 09/01/20~5 5,000.00 4.950% _____~.~Q<L.________._.. ,,___5.!'!2,~:99__
09/0112026 5,000.00 5.030% 251.50 5,251.50
Total 575,000.00 525,106.50 5100,106.50
Yield Statistics
Bond Year Dollars
Average Life
Average Cou~_,___
____________.____.___...J~_<!:9.0_
_____ 8.000'y~~~_
4.1844167%
.Net Inte~!..~g,lli!gL________.______,____.______.:....____.__._______._______...._ __ . __. _. ___ _, _____~:~8~~67%_
TruelnterestCost(T1C) .'.,. .'. - _ . . '. 4.1219737%
~~irX~iij'-f~~.ft.!~i_~~&.e)~rp~sE~=..c.~~~~~~=~~:=~~:_-.-.~~~~ = =:~~'._~===~~~.=.~=__==.:_=:.~=--_:~=:-:..-5.2Io~~Q%
~~Uncl~~iy-~~ostC~q. '''._.___.__ .c:._______._____.._..._._____.____._._____-'-. __ ____ _ _ __,_______ _ _ .4.}2J?l3?Yo
IRS Form 8038
Net Interest Cost
__,..________..~_..,..."..H _._.~_ 0___' . __.,._.___._.___.._
Weighted Average Maturity
4.1844]67%
8.000 Years
File I Wappinger Sample Debt Service Scheduels.sf I Issue Summary w/15-yrtr I MowerlTractor I 3123/2011 I 12:10 PM
Capital Markets Advisors, LLC
Independent Financial Advisors Page 1
Town of Wappinger
$15,000
Tractor Attachments
Debt Service Schedule
Date
09/01/2011
09/01/2012
09/01/2013
09/01/2014
09/01/2015
-_.._._-~--_._.
09/01/2016
Principal
Coupon
Interest
Total P+I
Total
3,000.00
3,000.00
3,000.00
3,000.00
3,000.00
SI5,000.00
1.110%
1.550%
1.990%
2.530%
2.860%
301.20 3,301.20
267.90 3,267.90
221.40 3,221.40
.__._____..!~:ZQ_...._____.. _ ___.____3) 61.:19,
85.80 3,085.80
51,038.00 . $16,038.00
Yield Statistics
Bond Year Dollars ..________.._____.___.__.____.._._._.__s.~~:Q~
_~verag~ Lif~._.____._____.__._________.. ._____~.QO_Q..Y.ear~.
t>verage g9E.~_. 2.3066667%
Net Inter~_g<?~!~.9_____
True Interes_~f<?_st (T~9.....__ ______._______
.Bond Yieldi.~.~bi!r.l!f;e Purposes
All Inclusive Cost (AlC)
2.3066667%
--------~--~_._.__._---,--~._,-~-------_.,~-_.~
2.2988572%
---.,-----
4.1024664%
2.2988572%
IRS Form 8038
Net Interest Cost
Weighted Average Maturity
2.3066667%
--~-,._--------
3.000 Years
File I Wappinger Sample Debt Service Scheduels.sf I Issue Summary wi 5-yr Ira I Traclor Anachments I 3/23/2011 I 1 :02 PM
Capital Markets Advisors, LLC
Independent Financial Advisors Page 1