Chester comptroller: Federal changes may affect local budgets

Chester comptroller Neil Meyer was an attendee of the recent Government Finance Officers Association Conference and he came back to town at the April 9 town board meeting with some challenging news.

The federal government is considering making big changes that will impact local and state governments, according to what he learned at the conference.

One item that is up for debate at the federal level is the tax-exempt status of local government bonds. The feds are considering removing the tax exemption, Meyer said, potentially adding a million dollars or more to the cost of a 30-year bond.

Furthermore, the change could disrupt the bonds market, making it difficult for any municipality to secure a bond. This could make it difficult for localities to invest in large-scale infrastructure projects.

The guest speaker at Meyer’s conference was State Comptroller Thomas DiNapoli. He said the federal government was considering cutting its 40 percent contribution to the annual state budget, which is currently being hammered out in Albany. If the feds make a significant cut in state funding, the state will hold a special session in September to sort things out, Meyer said.

The federal government has already passed a law to change how municipalities format their financial filings. The government wants it to be more like how companies report to the SEC. Meyer called this an unfunded mandate as Chester and other localities will have to buy software to accommodate the changes.

Lastly, Meyer said word is the federal government is considering lifting the tax exemption on .501C-3s, which are nonprofit groups with dedicated missions, such as charities.

Most of these items are still being debated on Capitol Hill and there is time to lobby lawmakers, Meyers noted.

Other news

• Supervisor Brandon Holdridge noted that the bid docs have been returned for the sidewalk/raised crosswalk project in Sugar Loaf. They should be made public by the April 23 town board meeting.

• He also confirmed that on May 6 from 6 to 8 p.m. at the senior center, the state DOT will hold an open house about changes to Route 17, including the closure of Exit 127 and improvements to Exit 126, as well as improvements to the 17M, Lehigh, Kings Highway intersection.

• Councilman Larry Dysinger noted that five candidates had been interviewed by the planning board for the three vacancies and one had been suggested as an appointment already. Later in the meeting the town board officially appointed Chris Steers to the planning board. Holdridge described him as “perhaps overqualified for the position.”

• Councilman Antonio Ardisana noted that 247 people showed up for the vote on the fire department bond upgrading the Trout Brook firehouse and other infrastructure in the fire district. It passed with more than 75 percent of the vote.

• The town board approved a purchase request from the Water Department of $4,000 for a listening device from Eastcom.

• The board approved Robert Smith as a temporary full-time employee to help with the film crew at SLPAC. The crew is putting in more hours than they had promised and the town is going to seek additional funds from the production.