Jan 25, 2012 11:14 AM
The Southampton Town Board at a work session on Friday agreed to enhance the town’s Community Preservation Fund debt reserve policy, setting aside cash that will be used to make loan payments on money borrowed against future CPF revenues in the event that the fund, for some reason, dried up.
The discussion was prompted after the board late last month authorized the first stage of a $125 million CPF borrowing plan in order to aggressively purchase dwindling open space. The board approved the first part of the borrowing—$30 million—at its December 22 meeting. The plan is to borrow the entire $125 million over four years.
Board members discussed how much money should be set aside in a reserve account to cover the $30 million in borrowing, and in general how much money... more
The discussion was prompted after the board late last month authorized the first stage of a $125 million CPF borrowing plan in order to aggressively purchase dwindling open space. The board approved the first part of the borrowing—$30 million—at its December 22 meeting. The plan is to borrow the entire $125 million over four years.
Board members discussed how much money should be set aside in a reserve account to cover the $30 million in borrowing, and in general how much money... more
Where is the money to fund the debt reserve going to come from? The Principal from the loan? Surplus tax revenues? Reduced expenses/services? Looks like the taxpayers end up footing the bill anyway. Surpluses can be refunded to taxpayers, reduced expenses could also be passed along to the taxpayers. The CPF is supposed to be self-sustaining, ...more this is reaching beyond the CPF to pay for the CPF. Is this reserve going to be funded at the costs of other opportunities or expenditures? Is leaf pick up going to be cut in the name of the CPF...Are social services? Police? Schools?
As budgets get worse and deficits inflate politicians will use the cpf as a rainy day fund. It already happened in East Hampton, and just a matter of time before it happens in Southampton. I don't trust half ass politicians to borrow large amounts of money on behalf of taxpayers. Another words don't borrow money you don't have.
1. If you have property to preserve now but don't have the funds. Do you think the developers are going to wait?
2. because of the silly low interest rates
If that means some debt to be paid by the futrue real estate transactions of the "elite" that damned this place, so be it.
This is the best solution we have, to save what little is left from the whoremongers that overdeveloped paradise.
Doing this makes total sense.
The Town has BEEN borrowing against CPF since day 1 with no problems. The whole point of borrowing against it is to buy land now when it is cheaper AND available. Ten years from now properties that are perfectly suited for CPF may be developed or double/triple in price. I'd rather have us buy it now and be done with it.
CPF revenues increased the ...more most in Southampton out of all the 5 eastern towns this past year. We all know that even in this economic downturn the rich still are trading homes left and right. The great thing about CPF is even when the market stinks, it brings in money because there will always be someone who wants to sell and always someone who wants to buy in the hamptons.
The fund that is being setup is a worst-case-scenario/catastrophy fund. The odds are it ever being needed are miniscule. The only way the Town would need to dip into it is if buying/selling of properties completley dried up. We have survived the worst of the housing market and revenues have been solid.
As for Cheif's comment about CPF being raided - it's illegal. Could it be done? Sure, but you can't prevent people from being criminals. Don't vote crooks in office and you don't have to worry about it.
And as for Real World - what the heck are you talking about? 'if you had planners that had a clue on what they were doing you wouldn't need CPF". Please explain how having "planners that know what they are doing" would accomplish what CPF has accomplished?
To think that ALL taxpayers do not pay for this is flat out wrong. When you take ANY property off the tax rolls, by definition, the remaining parcels on the tax rolls have to pay more. That is a best case scenerio providing the municipality and schools keep their revenue needed the same. As we all know, they need more money every year. The CPF ...more properties purchased do not contribute, the extra burden goes on the remaining parcels of land. Simple division. I am not necessarily against it, but please realize that we all pay.
Nature, socialism doesn't work. Government can't prevent everything.
2. Transfering development rights was done - remember the Pine Barrens Act? The "problem" with TDR's is you have to transfer the development somewhere. After all of the TDR's that came out of Pine Barrens there aren't many places that would be acceptable to be receiving sites.
3. The Town has done plenty of upzoning but upzoning ...more is almost always challenged legally and the property owner has the upper hand due to "property rights".
4. By "acreage limitations" I'm guessing you mean only allowing x amount of a lot to be developed. We have that - CR 120 zoning for instance, but I'll refer you to # 3 why we don't have it everywhere.
5. Tax Deffered Land Donation is much better handled by the Development Rights program used for ag lands
6. Common Sense Zoning (we have that)
I never said that "all taxpayers do not pay for this". I was only arguing that borrowing against future revenue to buy now is the smart decision.
As for your "tax rolls" arguement, that has been proven wrong time and time again by a multititude of studies. If you did your research you would learn that a standard subdivision actually costs MORE in services than it pays in taxes. That's why commercial development is so important because it pays way more in taxes than it uses. (Of course there are examples in the Hamptons that go against this, like Ira Rennert's castle). School taxes go up - but that's because residents VOTE for it. Don't like it? Get the majority to vote no. Having open space near your home raises your property value (this is a fact). Would you rather have an unoticable bump in property taxes or a noticeable bump in the value of your home?
Oh, and of course none of the above covers the fact that simple planning does not and can not preserve large swathes of land outright. All of your suggestions require some sort of development of the lands.
To answer "Auntof9", yes, the interesting is paid by the CPF fund.
With all the 5 acre zoning, preserved land, and unbuildable lots there isnt a heck of a lot large parcels left. The town of Southampton and Suffolk County have no right fiscally of buying open space. They have billions coming in the way of pension liabilities. Everythings not ok around ...more here
Alwasy has been, always will be. Construction is a SHORT TERM job solution. Service, is not.
We are not talking about emininent domain - we are talking about active and willing sellers. The people selling their properties to the Town are people who believe in preserving open space, preserving the bucolic atmosphere that makes the Hamptons such a ...more desireable place to live in. There are dozens of examples of property owners who could have sold their lots for more but instead sold their land to the Town for eternal preservation.
Don't like it? Offer the sellers a bigger check - the Town can only offer market value.
Why does Suffolk County and the Town of Southampton "have no right fiscally of buying open space"? Who is going to "buy" this open space? And the CPF legislation, in fact, GIVES the Town the RIGHT to do this. Pension liabilities have nothing to do with a 2% transfer tax happily paid by the millionares who trade homes for fun.