Paid in part
SILVER CREEK – Bills for the village of Silver Creek’s department of public works building purchase are coming due, but the village has yet to receive all of the FEMA funds to pay in full.
Village Treasurer Janet St. George reported to the board that the bond anticipation note (BAN) the village issued to purchase the old Bentges Distribution building for $750,000 is about to be rolled over. She recommended the board pay off some of the principal with a portion of the funds reimbursed to the village by the Federal Emergency Management Agency.
Mayor Nick Piccolo said the village has received $528,000 of the $750,000 from FEMA.
“After talking with Janice I am now recommending that we use $400,000 from the FEMA fund to pay toward this,” he said.
He added that he does not think the board should put the entire $528,000 toward the bill, just in case the rest is needed.
“It is good because it lowers our principal, but it also leaves us $128,000 in the FEMA fund in case we need it for other reasons,” Piccolo said.
BANs are short-term financing, which mature after five years, and after that long-term financing needs to be acquired, which may include interest.
The village purchased the DPW after the 2009 flood. Last year, after still not receiving the full amount used to relocate the DPW, the village hired a consultant to try to get the funding. Piccolo has said in the past that the village’s contingency budget has been depleted and that a tax increase is expected for the 2014-2015 budget year because of consent order projects at the sewer plant and FEMA funding not coming in as the BAN comes due.
“Have we heard from FEMA?” Trustee Warren Kelly asked.
Piccolo said he got a call from U.S. Senator Charles Schumer’s office about it, but has not received a call back.
St. George said she needed to know what the board wanted to do. The board decided to pay the $400,000 toward the BAN.
The board will next meet on March 17.