County may have to cover tax bill
Regulating district owes $900,000By MICHAEL ANICH, The Leader-Herald
JOHNSTOWN - Fulton County government next year may end up paying more than $900,000 in back taxes that the Hudson River-Black River Regulating District owes area school districts around the Great Sacandaga Lake.
Members of the county Board of Supervisors on Monday lamented the fact that paying the regulating district's taxes may put the county in the hole financially next year.
The figure was reported by board Chairman Jack Callery, who said state officials are working on the problem.
Northampton Supervisor Linda Kemper said she's concerned about the regulating district's back-tax situation.
The district owes roughly $1.2 million to six school districts - the Broadalbin-Perth, Hadley-Luzerne, Mayfield, Northville and Wells central school districts, as well as the Edinburg Common School District.
County Administrative Officer Jon Stead said Tuesday he wasn't sure yet if the county will have to pay the $900,000 the district owes the Fulton County school districts. He said the county may not know the answer for a couple of months.
"I think the legal opinion on that is still out," Stead said.
He said that normally, if a private property owner doesn't pay school taxes, the county must, by state law, pay the taxes. The county later pursues the delinquent taxes from the property owner. But Stead said he's not sure whether the county is responsible for a state public benefit corporation such as the regulating district.
Callery said the county received a letter Monday from Luke Bierman, general counsel from the state Comptroller's Office in Albany, regarding the regulating district's back taxes.
"They are addressing the situation," Callery said.
Bierman's letter to Callery stated, in part, "this office assisted the [regulating] district in the preparation of legislation that would provide the district with the authority to make temporary interfund loans between the Black River and Hudson River accounts. The authority would be similar to the authority presently granted to municipalities ..."
The attorney for the state added that regulating district representatives are working with the office of Gov. David Paterson to "finalize and ultimately introduce that legislation."
"Additionally, the [regulating] district has advised my office that district officials are consulting with bond counsel as we suggested," Bierman wrote.
On Oct. 13, the regulating district Board of Directors voted to defer payments of the district's 2009 taxes owed to the school districts. The decision followed a ruling by the U.S. Court of Appeals of the District of Columbia that changed the regulating district's ability to collect fees from various hydropower companies affected by the district's control of Great Sacandaga Lake water levels.
Gloversville 4th Ward Supervisor Anthony C. Buanno said he didn't like the county being responsible for the regulating district's taxes.
"I think there's something wrong here," Buanno said.
Guy Poulin of Northville, a public speaker at Monday's board meeting, said the county should be careful about tapping into reserves because next year may be another bad financial year.
Glenn LaFave, executive director of the regulating district, could not be reached for comment by press time today.
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ps1222
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12-03-09 12:18 PM
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To Preacher - why does managing the water level require the HRBRRD to own the land? They don't maintain the land now - the permit holders maintain that land. When they screw up the water level and do damage - who does the cleanup and pays for the ruined docks,etc -- the permit holders do! So - let them continue to manage the water level - and let the permit holders own (and continue to maintain the land) and now pay the taxes too. As in any water front property - you own a certain amount of the land under the water - but in this case, you should own the land out to the low water mark.
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Discobulous
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12-03-09 9:26 AM
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If this land is under water, nobody can see it, so how can you be sure it's really there?
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Preacher
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12-03-09 9:19 AM
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ps Not really. The Disrtict needs the ability to maintain shoreline in order to control water levels. It's just not as easy as you put it. They own the land under the water too. Where is the property line in you example when the lake level changes? A clear property line needs to be established above the mean water level and that is the high water level, which is the taking line. This is as I understand it anyway.
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bustercasey
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12-02-09 8:58 PM
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I don't think you all understand. This story is not about late tax payments. The County would get their money back. This story is about extortion for the benefit of Fulton County citizens. The Regulating District forces downstream power companies to pay them for releasing water so they can make profit, and the District in turn pays thousands of $$ of the power company's money to Fulton County schools in the form of school tax. Simple equation--it's welfare for school districts and Fulton County Citizens. The power companies are paying school bills we're not having to make up. If you want further proof that what I'm saying is true, just know that the Regulating District pays school taxes on land that's underwater.
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Discobulous
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12-02-09 7:00 PM
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If you got rid of all those HRBRRD dudes, Lanzi's would go broke at lunch time.
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laker88
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12-02-09 5:45 PM
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If you haven't seen it yet, take a drive down Bunker Hill Rd and check out the Hudson River "Palace"...a shining example of wasteful spending of taxpayers dollars...and now the county may have to pick up their tax bill....Fulton County continues the downward economic spiral...
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Patriot1
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12-02-09 4:43 PM
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ps1222 at 1:35PM -- you're exactly correct!
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ps1222
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12-02-09 4:32 PM
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The rulating district can absolutely still regulate the water level - that would be their only job.
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Preacher
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12-02-09 3:57 PM
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While I agree that the Regulating District must be responsible for paying the taxes it owes, the property cannot be owned by resident/permit holders. The purpose of the Regulating District was to develop dams and reservoirs to capture excess run-off to prevent flooding in the Hudson River and Black River basins, and to release the captured water gradually during periods of low river flow to maintain water quality in each river basin. This system was designed to reduce damage from spring storms and snowmelt, including disease and destruction of life and property, and to improve river navigation and public sanitation. This would not happen under private ownership.
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Makeitso
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12-02-09 2:52 PM
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I second the opinion of ps1222. I think this is a very legitimate solution to the tax problem as well as the many problems the combined counties and towns around the lake have been having with HRBRRD over the past several years. Both the mission and the value of HRBRRD are outdated. In today's harsh economic times, the State of New York should look to sell the land to the Permit Holders and to greatly reduce the mission, staff, budget and land owned by HRBRRD. This saves the State money which in essence helps us all! Governor Paterson - it's time to step up to the plate!
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ps1222
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12-02-09 1:35 PM
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Clearly the state needs to pay the bill. A simple solution to this mess : Why not sell or give the lakefront land to the permit holders and then they pay the taxes on the land. Then – get rid of most of the folks at the HRBRRD since they won’t have any permit system to run. Let the towns govern the lake front as far as rules. This will reduce the problems with the regulating district and the locals, it will reduce the number of state workers (helping the state in reductions) and it will ensure that the taxes get paid. This is how all other waterfront property is dealt with around the state, why does this lake have to be any different? Time to simplify and get the state out of the permit business
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Discobulous
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12-02-09 12:01 PM
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Don't pay it. Simple tell them, "I forgot."
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refman
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12-02-09 11:24 AM
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Maybe if all the delinquent taxes that we have read about lately, Dr. Kearney and the Hudson River-Black River, the taxes levied on struggling workers could afford to be a little less. With the economy the way it is every dollar counts. There is no excuse to even let these organizations get this far behind. They should be paying interest as well. Especially if you consider the money they probably earned in interest over time. If there is no penalty, they have no influence to not continue this process.
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