The Village of Tarrytown has narrowed down its capital purchases for 2011-2012, which could add an additional $1.448 million to the Village's debt burden.
"This is a number I have cut back... I removed curb and sidewalk repairs (for 2011-2012), some equipment purchases and upgrades for security," Village Administrator Michael Blau said on Wednesday.
The amount is sizable chunk of what the Village is planning to spend on capital projects over the next six years. Through 2016, there is an estimated $6.134 million in purchases the Board of Trustees will have to decide on.
For 2011 and 2012, the majority of purchases are going to the Tarrytown Volunteer Fire Department.
The single largest item is a replacement for Conqueror Hook and Ladder's engine, which the Village estimates will cost up to $885,000.
Other Fire Department purchases added another $163,500 to the total. The sum will go to pay for generators for Consolidated and Washington Engine Companies, upgrades for the electrical systems in Phenix Hose and Riverside Hose firehouses, replacing the air conditioning system at the Main Street Fire House and replacing motors for Fire Boat 5.
After Fire Department purchases, $190,000 has been earmarked for milling and paving existing roads in the Village. The Department of Public Works is looking at $130,000 in equipment purchases that will replace a pickup truck, a dump truck, and convert a bucket truck into a flatbed vehicle. It will also cover the purchase of a trench box and a light tower with a generator.
The remaining $80,000 would be used to move the village over from the Munis software accounting system to a KVS software system. The new software integrates all aspects of finance operations, payroll and accounting, unlike the village's current system. KVS is rapidly becoming the norm in Westchester and the Village of Sleepy Hollow made a similar move last year.
The capital purchases, if approved by Trustees, would be paid for using Bond Anticipation Notes – a form of short-term borrowing at a low interest rate.
During Tuesday's discussion on the purchases, trustees noted that law forbids municipalities from using BANs for long-term borrowing. Within five years, the remaining amount owed has to be packaged into a long-term bond offering. It was a point that trustees soured on due to the differences in interest rates and what that would mean for increasing long-term debt over time.
"Why is there this five-year limit? It's hurting municipalities," Mayor Drew Fixell said. "The short-term rates are lower than the long term rates. It doesn't make sense."