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Forestville water debt looms large in Hanover

OBSERVER Photo by Rebecca Cuthbert Hanover officials discuss water system debt service billing for the proposed Forestville water district (that of the former village) and Hanover districts 3 and 4 at the town board meeting Monday. Pictured, from left: Councilman Louis Pelletter, Town Clerk Janine Salzman and Town Supervisor Todd Johnson.

HANOVER — The town of Hanover administration is learning that, again and again, it must pay the piper for someone else’s party.

Two months after the village of Forestville dissolved, officials are still figuring out how to absorb the former municipality and its obligations, while not overburdening tax payers. Now, the clock is ticking on the Forestville water system’s next debt service payment, as Hanover Town Clerk Janine Salzman pointed out at the town board workshop Monday.

“We can’t yet … charge for (operation and maintenance) and usage, but we need to (bill) for debt service,” she told board members.

(Until the involved water meters can be fixed, corrected or read properly, the town cannot charge for anything but debt service.)

The then-village of Forestville overhauled its water system in 2014, to the tune of $6 million. Of that, $2 million was paid by a grant, leaving a $4 million loan for water customers to pay off over the next 30 years. The agency holding that IOU is the NYS Environmental Facilities Corporation.

According to Dave McEntarfer, former village trustee, debt service payments amount to about $133,000 per year, split between about 300-400 water customers in the former village and in Hanover water districts 3 and 4.

At the Hanover Town Board workshop, Supervisor Todd Johnson asked if the water customers should be billed quarterly or semi-annually for the debt service.

“(If it’s quarterly), it comes out to $148.50,” said Councilman Bernard Feldmann Jr.

Officials agreed that spreading the debt service bills out quarterly would be the best option for customers, though those bills need to go out posthaste, since March is already at the door.

Salzman explained that per year, each water customer benefiting from those new lines must pay $594, which includes a portion to be put into a reserve account.

“The Environmental Facilities Corporation requires that 10 percent be put into a reserve account,” she said, which would be $54 per water customer per year. The remaining $540 goes toward the debt.

Town Attorney Jeffrey Passafaro remarked that water customers must understand that this next billing includes debt service only.

It was also brought up that these numbers are based on how many water customers there are now; if more water customers join the proposed Forestville district, or Hanover districts 3 and 4, the cost per customer per year will go down. If customers leave, the cost will increase for the remaining customers.

But, as is becoming a pattern, the complications don’t end with unreadable water meters, staggering debt or billing scrambles.

That account is already $50,000 in the hole.

“We’re starting out $50,000 in the red?” asked Deputy Supervisor Kevin O’Connell.

“Yes,” answered a small and sad chorus at the table.

Those unpaid bills, if they remain unpaid, will be added to those forgetful residents’ county tax bills at the end of the year.

At the regular meeting, which followed the workshop, officials approved a resolution to go ahead with the debt service billing.

The Hanover Town Board will meet again March 13 for a workshop at 6:30 p.m., directly followed by the regular meeting. Both are held in town hall, and both are open to the public.

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