PART V
“New N.Y. Government Reorganization and Citizen Empowerment Act” provides a new process for citizens to petition for a public vote on dissolving or consolidating local governments. In summary, “a petition needs to be signed by at least ten percent (10%) of the number of electors in that entity, or five thousand signatures — whichever is less, in each town, village or special district to be consolidated or dissolved
This article focuses on the “voter-initiated” dissolution process of dissolving a village, as a “board-initiated” process can avoid many of these bumps and bruises. (Note this same process also applies to towns and to special districts).
Having worked with the villages of Salem, Macedon, Port Henry and now Mastic Beach, Laberge Group has identified several challenges, and aligned them into the following three segments of the dissolution process: Pre-Referendum, the Creation of the Village Dissolution Plan, and the Transition/Implementation of the Plan.
“New N.Y. Government Reorganization and Citizen Empowerment Act” provides a new process for citizens to petition for a public vote on dissolving or consolidating local governments. In summary, “a petition needs to be signed by at least ten percent (10%) of the number of electors in that entity, or five thousand signatures — whichever is less, in each town, village or special district to be consolidated or dissolved
Once the petition is submitted, the process and mandatory timelines associated with dissolution begin. The petition must be verified within 10 days, and then the village has 30 days to call a meeting to set the date of the referendum to vote on dissolution. The vote has to be no less than 60 days and no more than 90 days from the date of the meeting. This is an incredibly tight timeline, and does not lend itself to a thorough review of the facts prior to a vote. Some communities are caught off guard
New York State Department of State (NYSDOS) Local Government Efficiency Program does provide expedited financial assistance through a Citizen Reorganization Empowerment Grant (CREG). This grant can be used to host informational meetings and to prepare a study, which outlines the facts, figures, and consequences of dissolution. Often these interim studies involve a quick review of:
municipal services; budgets; assets, debts, and obligations; staffing; and fiscal impacts of dissolution.
Bump: The perception that debt goes away
Often residents who push or vote for dissolution believe that their current debt and liabilities will be spread out over the entire town upon dissolution. Unfortunately, your debt goes with you. In fact, debt may go with you at the same interest rate regardless of whether or not the new government has a better bond rating. During the dissolution process, each loan and indebtedness obligation should be reviewed to see if it can be restructured. However, upon dissolution the former village will continue to pay any and all outstanding debts until gone.
While the law requires 10% to start the dissolution process, it requires at least 25% of voters to stop the dissolution. It is very difficult to muster the campaign to get 25% of the registered voters to sign a petition to call for a second vote within 45 days of the adoption of a dissolution plan. Should the petition be successful, a new timeline is set forth that begins with 10 days to verify and certify the petition, 30 days to call a meeting to set the referendum date, and a referendum that is not less than 60 days but not more than 90 days away. This new timeline often puts a severe crimp on the timeline set for dissolution, and if not planned for, will cause many challenges for the transition of the community leadership and services.
Part I
Part II
Part III
Part IV
Comments