The Town of Thurman took out a BAN for $313,000.00 last year to fund the water project, this was done through Glens Falls National Bank. This BAN matured on May 31, 2018, which means the bank was to receive the full amount of the BAN by May 31,2018. The town paid the bank a total of $20,073.80 on May 31st. :
May 31, 2018- PAID TO BANK
TOTAL PAYMENT MADE- $20,073.80
This meant that there was still $300,000.00 still due on the BAN. To pay this the town was going to take out a Serial Bond for the amount of $300,000.00 and use that to pay off the bank. The Town would then make payments on this amount for 4 years.
When May 31, 2018 came, the town Supervisor told the then town Attorney that there may be a mistake on the percentage of taxable land that Warren County owned in the town. If they own more than 30%, then the town must get permission from the NYS Comptrollers Office to get a BAN or BOND. This is what triggered NYS Assemblyman Dan Stec to help us out by presenting a bill to the Legislation. This is called a Validating Act bill, which basically says that they will still allow the town of Thurman to get a BOND and over look the mistake. This is exactly what Dan Stec did. However, the NYS Legislation sessions end on June 20th. On this date, the bill for Thurman had made it up to the Rules Committee, it needed to pass there and then go onto the floor for a vote from the Assembly. It did not make it out of the Rules committee, it never even made it to the table to be voted on in that committee. The sessions are now finished for this year, unless special sessions are called. This still may happen, however, Dan Stec can not call a session, he has no control over that. So if and when a session is called, there is still no guarantee that our bill would make it to the floor. So that got us to the position that we are in now.
On May 31, 2018 the bank statement for the town's Consolidated Fund had a balance of $260,338.50. The town's Reserve, AKA as the Savings by the Supervisor, had $109,405.13. SO Here is the timeline to date starting on May 31, 2018:
May 31, 2018- defaulted on $300,000.00 BAN payment.
June 14, 2018- Letter written by Glens Falls National Bank notifying town of default.
June 20, 2018- Legislation ended without passing Validating Act Bill for Town of Thurman
June 21, 2018- Gail Seaman met with Cynthia Hyde. Glens Falls National Bank spoke to Cynthia, then to Gail Seaman by Cynthia Hyde's request about the default and the Legislation Bill failure.
June 22,2018- Town of Thurman's Municipal Savings Money Market account was frozen, also $200,000.00 from the Town of Thurman's Consolidated bank account was frozen, the town can not touch this money for any reason other than to pay back this debt.
An account freeze is an action taken by a bank or brokerage that prevents any transactions from occurring in the account. Typically, any open transactions will be canceled, and checks presented on a frozen account will not be honored.
The bank will not hold this money indefinitely, it will at some point, if they have not already, start adding compounded interest. This will cost the town much more.
June 29, 2018- Special Meeting called by Gail Seaman and Doug Needham. Resolution was passed to just pay the bank the $300,000.00 that it is owed and try to run the town on what is left and on any future revenue's, which will not be large amounts. This is only possible with strong cut backs and positions being dissolved. Elected officials pay will be put on hold until town debts are paid.
To be clear: THE $300,000.00 DEBT WILL BE PAID USING FUNDS THAT THE BANK HAS ALREADY FROZEN ON THE TOWN'S BANK ACCOUNTS. (There are posts on social media that seem to show that people do not understand this)
We just recently learned as well that the town Supervisor DID NOT pay the Warrensburg EMS their contracted $50,000.00. This must be paid first when any revenue comes in. Town Councilwoman Gail Seaman has spoken to the Warrensburg EMS and they have promised her they will continue to answer calls. For this we are to be very grateful, since legally, the town has defaulted on the contract with them, they are under no legal obligation to make runs out here.
At the last meeting when Gail Seaman was trying to answer someone's question, Mary Eddy kept yelling out "Did they send a bill?" referring to the Warrensburg EMS. Once again, the $50,000.00 payment due to the Warrensburg EMS is a contracted amount to be paid at the beginning of the year when all other contracts are paid, no bill is needed.
The bottom line is, three of our Town Board members are doing what needs to be done so our town can begin to heal. The only thing the town Supervisor and Board member Harris did was walk out like spoiled children and refuse to work with the board once again. There can be a difference of opinion without the Supervisor resorting to personal attacks. What would be more productive and helpful, would be for Supervisor Hyde to bring her own ideas to the table and have a civilized discussion. Answer questions that are being asked and try to work for all tax payers!!
Below are documents as well as links to the New York State Assembly webpage and the Validating Act Bill. Here you can see where the process stalled.