Frequently Asked Questions

That concern comes directly from the disclosure in the recent management letter written by the town’s independent auditors simultaneously with the issuance of the 2020 audited financial statements.  In that letter, the auditors noted that the TEP project, which was related to the sidewalks and street lamps in the business district, had an original contract amount of $1,562,671.  For the period to November 30, 2020, the amount completed and stored to date was $1,776,658, or an increase of 13.7% in the total contract amount.

The TEP project is the largest capital outlay managed by the current administration.  In addition to the cost overrun detailed in the auditor’s management letter, it also stated that there was no evidence of board and change order approval.  Whether that is indifference or incompetence hardly matters as both show a lackadaisical oversight by the board on taxpayer funds.  From a taxpayer standpoint, it is actually even worse than the 13.7% for the total project.  Some portion of the TEP project was funded by grants, although there has been no clear disclosure by the town on what the final grant amount was and when it was received.  Because grants are fixed amounts, any cost overruns go to the amount funded directly by taxpayers so that percentage will be above 13.7%.

This actual experience could be used to put a potential wastewater treatment plant into perspective if it were management by the current administration.  Assume for purposes of this example that the original contract would be $41 million and grants were obtained for 80% of that, putting taxpayer cost at $8.2 million.  For reasons described in the adjacent Q&A, both of those assumptions may be optimistic.  If the 13.7% actual experience with the TEP project were repeated, the total cost overrun would be $5.6 million.  That amount, however, would be fully absorbed by taxpayers and result in a cost 68% above what they expected.  Because this project would start out being 26 times larger than the TEP project that was fiscally mismanaged by this board, there would be a possibility the total project overrun would be above 13.7%.

The actual business and finance experience of the Pound Ridge Party candidates put them in a position to better manage capital projects.  For instance, Mr. McCown has overseen the building of hundreds of millions of dollars in new vessels and other multi-year capital asset projects that have come in at the original budget or at amounts consistent with approved change orders.           

First and foremost, there should be disclosure of what is currently going on as the public has a right to know about this and the taxpayer dollars now being spent on it.  This has been a matter that has been looked into for decades by different administrations.  If there were a clear and cost efficient solution, it would have been implemented long ago.  The current administration has ramped up the review of this matter and is believed to have spent a six-figure amount just on engineering studies.  In addition, it's clear to many that the $1.25 million purchase of 7 Old Pound Road in 2020 was made entirely for the sake of gaining a site for sewage processing.  This despite current leadership's indications that wastewater processing was only one of several pressing reasons for the purchase.  Creating a far-off-campus cross-country course for Fox Lane High School was one reason given and obviously that has not occurred.  

A detailed 2019 study by an engineering firm that has been used throughout estimated the overall cost would be $41 million.  In addition to the actual wastewater treatment plant, that includes the cost of piping to bring in fresh water.  The cost has presumably gone up since then just from the unusually high inflation over the last four years.  The cost overruns the current administration has had on capital projects also do not inspire confidence in their ability to manage to a budget.  The only cost estimate disclosed is inconsistent with the fact that the recently completed, 3-mile-long Katonah/Bedford Hills sewer district's total cost was $22 million.  It serves the hamlet of Bedford Hills, all of Katonah's three business districts, the Bedford Hills Correctional Facility and several housing complexes adjacent to the correctional facility and has a 500,000 gallons per day output capacity.  The 0.6-mile-long Pound Ridge system would serve just the business district and has a capacity of 60,000 gallons per day.  This adds up to about 1/8 the output capacity for twice the cost.  Further understanding is required of what makes up those striking differences.

With just some 47 commercial entities in the business district that represent a wide range in terms of usage of such a plant, it is apparent that they could not shoulder the full cost.  The oft-quoted answer to this massive infrastructure project is that the town will get grants to cover most of it.  But how realistic is it to think that either Albany or Washington will provide much funding for a project in a very affluent town because it wants to grow its business district?  The time has come for the board to disclose to residents where it is on this project.  Has the town applied for, or is in active discussions with grantors or sources of outside funding?  In what amount, and out of what amount total? What are the terms? Who is the funding agency? How far into the process is the town and what has been committed to going forward? 

A broader question is who will benefit if this project is actually implemented?  It’s apparent that it would remove certain costs and constraints in the business district that would allow it to grow.  But how much of the economic benefit flows on to residents? How seriously has the alternative of just bringing in fresh water that seemingly addresses many points been analyzed?  Some in town leadership ascribe to the view that what is good for the business district is always good for residents.  That bears detailed analysis to determine if it’s accurate or if it’s just a rationalization to justify spreading the project cost across the entire property tax base.  Any notion that a case can or should be made that such a plant would increase the value of all residences in town is nonsense.  While the business district is important and this would add to the quality of life in town, it represents real estate values that are a low single digit percent of the total real estate value of the town.  Beyond more of an alignment between time spent and underlying economic value, careful analysis by the board on the likely consequences is needed.  A wastewater treatment plant would inevitably lead to multi-family housing, which would have pronounced impact on the Pound Ridge that all of us know today.  All of these economic and quality of life factors need to be addressed by the board in an open and transparent forum.  Now is the time for the town to provide meaningful disclosure of where this project stands and to seek out the preferences of all residents.   

McCown Opening Statement

I thank the League of Women Voters for putting this candidate forum together.  It’s vital for residents to be as aware as possible of important local issues and this forum helps.  The Pound Ridge Party has a standing offer to the other candidates to join us in hosting an in-person town hall meeting at Conant Hall later this month.  That would also help increase awareness and we hope everyone will agree to a classic town hall meeting.  

My priorities for Pound Ridge are to ensure that the town is managed with competency, transparency and inclusiveness.  The multi-year absence of financial statements is depriving taxpayers of basic information vital to assessing the effectiveness and integrity of town governance.  A top priority is timely financial statements and full disclosure together with systematic and fact-based analysis, all needed to control the tax burden.  The unique, small town, rural nature that is the town’s history must be protected to ensure its future.  A lively business district that serves the community should be cultivated.  However, any and all efforts that seek to sacrifice the essential nature of Pound Ridge and/or that impact taxes should be immediately disclosed to residents in an open forum.  Less secrecy, more respect for taxpayer’s right to know is essential for good governance.  Pound Ridge residents deserve nothing less.

Thank you.       

McCown Closing Statement

There are multiple local issues that voters should be aware of.  Not all were covered tonight and some that were didn’t get the attention they deserve.  Our website goes into many tangible issues that effect you and we are constantly adding examples on the FAQ tab.  I encourage you to visit www.poundridgeparty.com frequently.      

 Multiyear financial statement delay

 Unsupportable cuts in assessed value

 Inaction on the cannabis store issue 

 Undisclosed benefits to leadership

 Noncompliance with New York law

 Cost overruns on capital projects

 Non-disclosure of key actions taken

 Poor accounting and control practices

 Failure to look after town employees

 Ignoring preferences of the majority

The common thread connecting all those 10 issues is an incompetent, non-transparent board.  In important areas, this board has simply not been looking out for or serving the best interests of Pound Ridge residents and taxpayers.  It is time for a change.  We encourage you to vote for the Pound Ridge Party candidates.  Bring competency, transparency and inclusiveness to the leadership of the town we all love.  Thank you.     

Possible Q&A at 10/05/23 Pound Ridge Candidate Forum

 Why are financial statements important?

Providing current and accurate financial statements is the Board’s most basic duty to taxpayers.  Periodic financial reports provide an important tool to help organizations, whether it’s a for-profit business or a local government, both in managing their current operating budgets and in preparing future budgets.    Accurate and current financial information – that is independently verified each year by outside auditors – is a roadmap, without which it is not possible to understand the Town’s performance or financial condition and, therefore, manage in an efficient and effective way.  The multi-year absence of any financial statements is depriving residents and taxpayers of basic information, which they have a right to know.  Providing current and accurate financial statements is the board’s most basic duty to taxpayers.

 Who is responsible for the timing related to the release of financial statements?

Management that reports to the board is exclusively responsible for the preparation of all financial statements and any release of those financial statements.  In the case of unaudited financial statements, no other party is involved.  Board oversight would include an expectation that management provide monthly financial statements, both as an internal control tool and as a practice that will assist in preparing more detailed unaudited quarterly financial statements that will be disclosed to the public.  Those quarterly statements will be released within 45 days of the end of each quarter.  That quarterly process in turn will assist in a more timely release of audited annual financial statements that will occur within 90 days after the end of each year.  We will meet that by having the unaudited financial statements prepared and available for the auditors who we will schedule to come in by early February.       

 What is your commitment in terms of when audited annual financial statements will be available?

With respect to the annual audit, our goal will be to have the reports issued no later than 90 days after the end of each calendar year.  That is the same amount of time in which publicly held corporations are required to file their audited annual financial reports with the SEC.  All of us have had experience with public filings within those 90 days of entities much larger than the town.  Those entities do that by developing a schedule and putting in place the necessary resources to achieve that plan.  That would include a closing our books shortly after the end of the year and having the unaudited financial statements available for the auditors by early February.  The actual audit process is relatively short and it will allow us to release audited annual financial statements by the end of March.   

 What role do you believe unaudited financial statements play and when would you disclose them?

We intend to have unaudited financial statements available to residents within 45 days of the end of each quarter and make a discussion and analysis of them a regular board meeting topic.  We will also task management with preparing more summary monthly financial statements that will be used as an internal control tool and a practice that will assist in the more timely preparation of broader financial statements.  The more frequent use of financial statements will be consistent with a more analytical process for all decisions.  For any major initiative or investment of town funds, we will engage in a systematic and fact-based analysis that all of us have experienced in the corporate world.  A rigorous analytical review up-front actually makes for a quicker and more efficient overall process and will result over the long term in better outcomes on important issues.  The measure twice, cut once motto of good carpenters applies equally to financial planning.  When it comes to major capital expenditures, it is not enough to view something as being beneficial and then moving ahead without having critical path requirements and timing defined and the long-term financing assured.  Narrative getting ahead of analysis in any economic matter is never a good thing.

 When will the 2021 audited financial statement be released to the public?

At the meeting in late July when the auditors presented the 2020 audited financial statements, we were told that the schedule was for the outside auditors to come into the town house for a week in September to perform all of the field work related to the audit.  It was also stated that the plan was for the auditors to make a presentation to the board on the 2021 financial statements in October.  Based on what would be involved in the audit of a relatively small entity like the town, as long as the auditors were provided with unaudited financial statements before they began their field work, meeting that schedule should be easy.  Based on historical practice, when the auditors present to the board they have completed their audit.  Therefore, the audited financial statements for 2021 should be released to the public in October before the election.     

 What is your view on the 2020 audit management letter putting blame for a 2 year delay solely on town?

The auditors stated that they were prepared to begin the 2020 audit right after the beginning of the year, but that it wasn’t until December 2022 that the town said they were ready for the auditors to begin work.  That is a very long delay without any real reason given for the delay.  It goes without saying that the auditors are just laying out the facts, as the very focus of such management letters is to present what happened without any spin.  That they are pointing out that the long delay was at the behest of the town is also an indictment of the consistent spin the town was giving for the delay.  The excuses have ranged from COVID to several variants of throwing the auditors under the bus and implying the delay was entirely the fault of the audit firm.  

 Why did the town choose to delay the commencement of the 2020 audit by 2 years?

That is a question for which I do not have an answer.  While I’ve asked for the reasons behind the persistent delays many times, I’ve yet to get a cogent answer.  The only two recurring excuses have been COVID and an apparent health issue with someone at the auditing firm that has been involved with the town for some time.  But the former did not stop next door town Bedford, which uses the same auditing firm, from getting out its audits on time.  The latter also does not hold much water, as all auditing firms as a matter of practice rotate people that work on particular assignments and they are also well structured to cover any issues arising from health or other absences of their personnel.

 How would you summarize the points made by auditor in the 2020 audit management letter?

Such management letters are issued after all audits, but this one was unusual in both its length and the many concerns the auditors raised about the town’s accounting and control practices.  The auditors identified significant risks as including “management override of internal controls” and “improper revenue recognition due to fraud.”  They pointed out not submitting required information related to federal grants, no accounting manual, poor record keeping on 10 credit cards issued to employees, cost overruns on capital projects with no evidence of board approval and 10 adjusting journal entries totaling $1.6 million to the financial statements they were given.  A management letter in the private sector detailing as many concerns and issues as this letter did would have led to a detailed plan disclosed to all key constituents on how poor accounting and control practices will be remedied.  Such action is not apparent here and the board is as complacent on this as they have been on providing current financial statements.  I’ll send anyone the 50 page letter from the auditors if they send me an email requesting it. 

 Is it important for the town to obey law requiring annual filing with NYS Controllers Office?

Of course it is.  The US is a country of laws and nobody should have more respect for the Rule of Law than leaders of any governmental unit.  In addition to being wrong and against everything democracy stands for, it sets an incredibly bad example and invites non-compliance by residents on laws they don’t agree with.  Section 30 of the NY General Municipal Law requires Pound Ridge to file an annual financial report with the NYS Controller’s Office within 90 days of the end of each year.  To willfully not file such reports, the only characterization that can by made of the multiyear violations, is an actual misdemeanor crime.  The legislature thought this was important enough that they also included in the law a fine of $5 per day for each late day, payable personally by the Chief Financial Officer of the town.  In Pound Ridge, that is my opponent.  By my calculations, those late fees have accumulated to over $12,000 and are presently growing at $10 per day based on the failure to file reports for both 2021 and 2022.      

 Why has the town been up to four years late in making such annual filings with NYS Controller?

I can’t answer that.  I do know that it wasn’t too long ago earlier this year prior to filing the annual financial reports after completion of the 2019 and 2020 audits that the town was past due on four filings.  During that period, the fine stipulated in the law was growing at $20 per day.  Its worth understanding how far behind Pound Ridge is in these filings.  Because the data in the annual financial reports immediately goes into a database maintained by the NYS Controller’s Office that is readily accessible by anyone, the town’s relative performance can be ascertained.  Pound Ridge is behind every single town in Westchester County in these regulatory filings.  It is in the bottom 1.5% of filings of some one thousand municipalities throughout New York.  That is a distinction that is embarrassing for our town.

 As such annual filings don’t require audited financial statements, what is the reason for the delay?

The fact that these annual regulatory are not required to be based on audited financial statements, and that the large majority of them are based on unaudited financial statements, makes this particularly multiyear delay more unexplainable than the similar one for audits.  The reason for that is because it removes the key excuse the town has used for the latter.  In other words, this regulatory lapse is by definition solely attributable to the town.  While that is effectively the case with the audits also, at least there in theory they can still point fingers.  One reasonable conclusion is that there are items that would be in either set of financial statements that certain folks would prefer that are not disclosed to taxpayers.  

 What changes if any would you make in the format of the town’s next annual budget?

Up until last year the only comparisons to a new budget were what the budgeted amounts were for three previous years.  Such budget to budget comparisons are meaningless.  At my suggestion to compare to actual, last year the town compared the 2023 budget to 2022 year to date actual.  There should also be comparisons to the actual results of two additional full years.  In addition, expenses such as medical insurance and other items that have previously been grouped together should be broken down and included in the specific functional area that they apply to.  Similarly, revenue items like grants or user fees that in effect act as a contra-expense should also be broken down and included in the specific functional area.  These simple and straightforward changes in format would make the budget a better and more useful tool for external and internal audiences alike.  

 What is your view on property taxes and a potential revaluation?

A misleading rumor is being spread that I’ll implement a townwide revaluation.  That is false. We are not calling for a townwide revaluation.  The catalyst for my efforts before the town board in 2020/2021 was a detailed analysis that the parcels owned by the water utilities are worth 7 times what their present imputed value is on the tax rolls.  That was it.  If correct, the utilities should be paying significantly more each year in property taxes, which could translate into residents paying significantly less.  My only ask of the board is that they look into confirming my analysis.  The right next step would have been to hire an independent firm to review this analysis and render an unbiased opinion.  The current board has taken no steps and maintains that the only way the assessed value of the water utility parcels could ever be increased is through a townwide revaluation.  From discussions with various state and local officials, I now know that is not the case.  There are multiple ways the assessed value of those parcels could be raised without a townwide revaluation.  Such a process should be undertaken and done in a systematic and transparent manner, with the ultimate goal to reduce property taxes for each and every Pound Ridge resident.

 What do you think the role of the board should be related to property taxes?

The board has an oversight role in ensuring that the administration of property taxes is done fairly and equitably for all taxpayers in Pound Ridge.  The board does this through the Tax Assessor and the Board of Assessment Review, both of which have real estate subject matter expertise and awareness of relevant New York law.  Unfortunately, there have been several examples of the board intervening in matters and coming to decisions that are not supportable by the facts.  An egregious example is 15 adjacent parcels owned by Oceanus Navigation.  On 6/07/22, the board took action to reduce the assessed value of those parcels by 76.2%.  This had the effect of shifting $101K in property taxes previously paid each year by Oceanus over to Pound Ridge residents.  From the appraisal report (prepared for the town for its use in acquiring open space land and so limited to such purpose) and further research, there does not appear to be support for this action.  That this action was done behind closed doors and only recently came to light through a FOIL request make it even more egregious.  

 If the board gets involved in property tax situation, who should they consult?

The board’s involvement should be minimal.  When they get involved the first consultation should be with the tax assessor and the second should be with the Board of Assessment Review.  If the board has lost confidence in either, the focus should be on replacing.  Any overruling of either subject matter expert should be in an open and transparent manner with the specific reasons for taking that unusual action defined.  

 Is it right for board to make a property tax decision without consulting the tax assessor?

No, obviously not.  In the case of the Oceanus parcels, besides being a puzzling financial decision, it raises serious governance issues.  The tax assessor - our subject matter expert - was not involved in the decision and only became aware of it after the board's action.

 Should the board make a property tax decision without consulting Board of Assessment Review?

No, obviously not.  In the case of the Oceanus parcels, the Board of Assessment Review like the tax assessor decided to not lower the assessed value of those parcels for two straight years.  Despite that, the board took it upon itself to lower the assessed value of those 15 parcels by 76.2%.  Besides being a puzzling financial decision, it raises serious governance issues.  The Board of Assessment Review – four people with property value knowledge picked by the board to handle appeals with taxpayers who disagree with a determination by the tax assessor – was not involved in the decision and only became aware of it after the board's action.

 Why was Oceanus parcels assessed value cut 76% on a 3-year-old appraisal restricted in its use?

I do not have an answer to that question, as the facts simply do not support that decision.  The appraisal it was based on was almost three years old and that along with its restricted use would have had it tossed out by any judge upon a simple motion.  Without that appraisal, there is no case.  Why the town settled for a ridiculous assessed value, bringing the property 40% below what it was assessed even prior to it being approved as subdivision, is way out of line with all the facts.  It is clear there is more information that needs to be disclosed on this.  

 Didn’t town offer of $4.6M for Oceanus parcels undercut board cutting assessed value to $1.1M?

Of course it did.  The strikingly different amounts related to the same exact property and the different events were close enough that changed market conditions couldn’t explain more than a sliver.  I could go on about the shortcomings in the appraisal itself that I got in a FOIL request, but I won’t.  Suffice to say it was one of the shoddiest valuations I’ve ever seen, and I’ve read hundreds in my career.  I believe anybody that spends as much time as I did with the appraisal would be similarly under-whelmed.  I’ll send the appraisal to anybody who sends me an email requesting it.              

 Why was Oceanus decision increasing resident taxes by $101,000/year done in executive session?

Because the board did not want people becoming aware of the action they took.  The effect of their action would only show up in the tax rolls the next year.  It was only through a comparison of tax rolls between the two years that the extent of what the board did became apparent.  Because the benefit of what they did would flow exclusively to someone who resides in another country and occasionally visits his property for a week or so each year, this unsupportable by the facts action actually negatively impact actual Pound Ridge residents by $101,000 per year.  That amount readily capitalizes to over $1 million.  When someone is doing something that they know won’t hold up to any real scrutiny, they do it in private behind closed doors.  

 What was the reason the town offer of $4.6M was not disclosed to the appraiser or to residents?

It’s quite clear that if the appraiser was advised that the town had recently offered $4.6M for the same property he was now valuing, it would make it difficult (read: impossible) for the appraiser to then say the same property is worth less than one quarter of that amount.  That was compounded by the fact that the appraisal was being prepared solely for the town for the sole purpose of acquiring open space land.  Because the town’s actual offer was to use the land for open space, it was a circular situation that proves itself.       

 Under what circumstances should board forgive 1% per month interest on late property tax payments?

Never.  Property taxes fund the large majority of the town’s budget.  Collecting all the property taxes that are due is a central element of fiscal management.  To achieve that, New York law is structured such that property taxes are a lien that come before anything else including mortgages.  I’ve become aware of a situation that I’m still seeking additional information under a FOIL request.  But from my research to date, it looks like there was a situation where a property owner didn’t pay any taxes for around ten years.  While that full amount was eventually paid, it doesn’t appear that it included the 1% per month interest mandated by New York law.  In that case, my calculations show that works out to a forgiveness of over $300,000.  That is not fair to taxpayers who pay on time or pay the interest penalties they are billed when they make late payments.

 Do you think a cannabis store in Pound Ridge is a good or bad idea?

The overriding point on the cannabis dispensary issue is that residents should have been canvassed in 2021 on a matter with such ramifications.  In the absence of that, the decision should have been to opt-out and to have not done that was poor governance on the part of the board.  In not taking any action, they missed the opportunity for the town to maintain control.  This matter has now been turned over to the actions of what the next cannabis entrepreneur wants to do.

 What do you think about the decision of the board in 2021 not to opt-out of allowing a cannabis store?

It was a poor decision.  That has nothing to do with the issue itself and everything to do with governance.  Something like that should never be done without significant local input.  Opting out would have allowed the town to maintain control and flexibility.  In the business world, good managers value optionality, which is the ability to do something without the obligation to do something.  Opting-out did that without any cost.  It’s unfortunate that the board elected not to avail itself of this cost-free option.  That would have given it the opportunity to analyze in detail the pros and cons of this issue with full transparency to residents.  If a decision was made to move ahead, the law was designed to make it easy to unwind the opt-out.

 When considering the impact of a cannabis store, what are the likely economic effects on the town?

The notion that such a business would be good economically needs to be carefully analyzed.  The available information suggests any sales tax benefit would be mitigated by an adverse impact on property values.  Only a portion of the sales tax goes to local governments.  In Westchester County that is split based on population among the towns selling cannabis, so the fiscal benefit to Pound Ridge is small.  A May 2021 study by a professor of economics at INSEAD showed that the prices of homes within .36 miles of a new dispensary in Washington state fell 3-4 percent when it opened.  Related to sales taxes, if you assume Westchester County will have the same per capita sales as Colorado now has, presumably a best case and one a decade out to match Colorado, the split would give Pound Ridge $58,000 per year.  That is barely one half of one percent of our budget expenditures, hardly a windfall.  It would also be exponentially less than even a sliver of a negative impact on some $2 billion of residential property values in Pound Ridge.  Obviously the Washington state study shows the impact on nearby homes will be much more than a sliver.        

 What role do you think potential sales tax revenue to the town should play in board decisions?

While it’s a factor, I certainly don’t see that the board should be driven by what they think their actions will do related to sales taxes.  We have a relatively small retail base to begin with.  The way sales tax is split within Westchester County means that changes in our local sales will have a fairly diluted impact on what we actually receive.  It’s our in place zoning regulations and other local rules and regulations that play a key role in making Pound Ridge the special place it is.  It’s not worth upending those in a quest for more sales tax revenue and that isn’t a role for the board.  The clearest example of that comes in the form of the cannabis store matter where a best case has it bringing in $58,000 in annual sales tax revenue for Pound Ridge.  Even though that is a situation involving a special excise tax that would be split among a smaller group of Westchester County towns, it is not moving the needle as much as people who haven’t done the numbers think.  The sales tax simply isn’t a great windfall.  

 How much of a role do you think the board should play related to activity in the business district?

We want to have a vibrant business district.  The board should certainly listen to the Pound Ridge Business Association on suggestions that its members may have on actions the board could take to help.  Particular attention should be paid to what it could do to reduce any commercial property vacancies.  But its role beyond that is fairly limited.  The board isn’t elected to be a business or real estate speculator or developer.  As important as the business district is, it is only one aspect of resident’s experience of Pound Ridge.  In everything related to the board’s involvement with business district matters, my overriding focus will be in those things that are in the best interests of actual Pound Ridge residents.          

 What are your thoughts related to the open space acquisition fund?

I fully support the objectives and goals of the open space acquisition fund.  That said, it is not the only mechanism supporting the green spaces we have and cherish.  We have a framework of laws and zoning rules developed over decades that is the backbone responsible for that.  I would note that the fund balance is now approaching $5 million and no acquisitions have been made for over a decade.  This annual funding mechanism of almost $400,000 per year collectively added to residents property tax bills is also not the only method, as purchases can also be made using general fund balances or even a bond offering.  Considering all the facts, it seems a pause is in order for the automatic surtax.  Let’s see how the current funds are spent and give residents a break next year on their property tax payments.  This situation can be readily revisited as the facts warrant.

 Should the two town attorneys who work part time on retainer get medical and retirement benefits?

I don’t think so.  The town spends $167,000 annually on its legal retainers, which includes $60,000 annually on medical insurance and retirement benefits.   Paying benefits to someone on a part-time retainer is highly unusual.  We also believe that any legal services required by the town may be more efficiently sourced – certainly putting the work needed out to bid would be a prudent action.  Our slate includes Cynthia Shereda, who was until recently a senior lawyer at PepsiCo, the largest corporation based in Westchester County. She would be able to provide legal guidance for matters coming before the board and has significant experience hiring and managing outside counsel, when they are needed.  Both myself and Susan Lee have had significant experience in working with lawyers throughout their careers and have a keen awareness of the difference between business issues and legal issues and when counsel is needed.   We anticipate that savings from this and other current expenses – once we have done a thorough review of the budget – could be used to reduce property taxes for the approximately 2,000 residences in Pound Ridge.

 What are your views on a possible wastewater treatment plant servicing the business district?

This issue is getting lots of attention behind the scenes.  For instance, just a couple of months ago the board agreed to pay another $26,000 to an engineering firm that has been doing work on this project for years.  With engineering expenses so far no doubt in the six-figure range, its time for the board to tell residents where we are on this situation.  A detailed 2019 study by the same engineering firm pegged the overall cost at $41 million.  The cost has certainly gone up since then just from the unusually high inflation over the last four years.  On top of that, this board has a poor track record in terms of cost overruns on large capital projects.  The TEP project, a low single digit percent of the size of any wastewater treatment plant, had a double-digit percent cost overrun.  The oft-quoted answer to this massive infrastructure project is that we’ll get grants to cover most of it.  But how realistic is it to think that either Albany or Washington will provide much if any funding for a project in a very affluent town because some think it will help its business district grow?  The time has come for the board to disclose to residents where it is on this project and what has been or should be done.       

 Whose property taxes should be adjusted to pay for any wastewater treatment plant?

As this will only benefit the business district, any net cost should only be included in the assessed values of the properties that are linked to any such plant.  That’s not only an opinion but also a position consistent with New York law.  Any notion that a case can or should be made that such a plant would increase the value of all residences in town and therefore should be spread across the entire property tax base is nonsense.

 What are the pros and cons of a wastewater treatment plant servicing the business district?

Clearly having such a plant would benefit businesses in Scott’s Corners by removing both expenses and constraints that they have now.  However, with the impact that would have, careful analysis must be done of the likely consequences, both intended and unintended.  In particular, the impact it could have on other commercial development as well as potential multi-family housing needs to be studied.  Each of those could have a pronounced effect on the Pound Ridge that we all know today.  Among the unintended consequences would be the removal of one obstacle that many have observed has played a role in Albany not being able to mandate what type of housing is developed in Pound Ridge.  All of these factors would have to be addressed in an open and transparent forum before the board takes any action.   

 How do you describe your philosophy related to conserving and preserving PR’s environment?

I’ve been a full time resident of Pound Ridge for 26 years, and love its natural beauty and small-town feel.  As an avid biker, I suspect I’ve pedaled over all of our local roads.  When you do that, you develop a granular appreciation for how special Pound Ridge is.  I will work diligently to protect and enhance the framework of laws and regulations that preserve the bucolic community we have today.  I also have an appreciation for what constitutes meaningful environmental action that translates into policy change at the most appropriate governmental level.  My commitment to sound environmental policies is underscored in tangible examples during my operating career in container shipping.  I played a catalytic role decades ago in the switch of ship fuel, mandated by the International Maritime Organization which is the UN’s global ship regulator, away from 3.5% sulfur content residual fuel linked with 200,000 premature deaths annually to the ultra-low sulfur fuel used by ships today.  

 What is your view on the new leaf blower ordinance that went into effect this year?

This occupied an extraordinarily significant part of the board’s time over almost a year.  It seems to me that there are other issues that deserved more priority.  For instance, the board’s time would have been much better spent focused on getting the financial statement situation more up to date.  What came out of that process was an ordinance that really didn’t seem to do very much if you look at it systematically.  In other words, neither side was pleased with what the board finally came out on this.  Unfortunately this contentious issue has resulted in much divisiveness in our community.  Just last week the Record Review showed ten instances where neighbors reported on neighbors, with most cases the police finding no violations when they showed up.  I do not like the idea of diverting police attention to enforcing this ordinance.      

 How would you rate the process the board went through in coming up with leaf blower ordinance?

Terrible.  It looked to me like they came into this process having already made a decision.  There was a strong vocal group of a few dozen actively pushing this matter, with many calling for stronger restrictions.  As more people became aware of the issue, the dissent on the path the board was going down grew.  Despite multiple public hearings expressing concern, with a petition signed by more than 350 residents asking the board to not move ahead, it unanimously passed the ordinance.  When the ratio of known resident positions on a given issue is 10 to 1 and the board sides with the minority, that is by definition poor governance and something related to the democratic process has been lost.    

 Would you be in support of any changes related to the current leaf blower ordinance?

I think it may be worth revisiting now that it has been in effect for a season to see if it achieved the stated goals.  The exclusion of certain areas (the golf courses) as well as certain parties (the residents) would seem to raise basic questions related to discrimination and equity that go beyond the straightforward seasonal bans of other communities.  We should try to find a way to address concerns while removing elements that have been contentious and divided residents.  After a full airing of this issue, a case can be made that the best approach would be to put this issue in front of all residents in the form of an actual single-issue referendum.    

 What is your political party affiliation?

All of us are registered Democrats.  We formed the Pound Ridge Party when we became aware of the extent of fiscal mismanagement and recognized the need to bring competency and integrity to the town's stewardship.  We support the ideal that a local political party affiliation should encourage and embrace diverse points of view under the umbrella of shared goals.  We founded the Pound Ridge Party to promote inclusiveness and transparency.

 How would you describe yourself in terms of where you are on the political spectrum?

My views fit broadly within the socially liberal, fiscally conservative category.  I consider myself to be an independent thinker whose views on matters are driven by the facts as I see them.  The most fully aligned that I’ve been with the Democratic Party would be in the 1990’s when I was actively involved in the Democratic Leadership Council.  During that period I had the opportunity to meet President Clinton several times at DLC events, as it was his involvement in that organization that played a key role in his being elected.       

 What role do you think national party politics should play in the governing of Pound Ridge?

Very little.  Local matters dominate the issues that are confronting Pound Ridge residents today.  Most of those issues are not particularly partisan and don’t really fit into the blue versus red spectrums that tend to dominate national politics.    

 How does your experience and skills differentiate you from other candidates on the ballot?

There are common threads among everyone on the ballot and a key one is a shared desire to make Pound Ridge be as good as it can be for all its residents.  But desire alone is not sufficient to achieve that goal.  The foundation upon which everything rests is the administration of the business and fiscal affairs of the town.  With a budget in the $10 million per year range and dozens of employees, to direct that enterprise effectively requires individuals with real world experience.  All of the Pound Ridge Party candidates have strong capabilities and experience in areas that would be beneficial to the town.  We excel in looking at and analyzing issues in a systematic and transparent way and believe such an approach yields the best results.  We all have extensive direct experience related to the planning and implementation of major capital projects.  We are confident that our skills could be put to work for the benefit of all Pound Ridge residents if we are elected to the positions we seek.

 What do you think are the key attributes of a board that adheres to best governance practices?

I think the key attributes are competent analysis and full transparency of what you are doing and why you are doing it.  We believe in sound financial management.  That starts with the basics, i.e., getting our financial statements and related audits up to date.  We intend to have unaudited financial statements available to residents shortly after the end of each quarter and make a discussion and analysis of them a regular board meeting topic.  For any major initiative or investment of town funds, we will engage in a systematic and fact-based analysis.  A rigorous analytical review upfront actually makes for a quicker and more efficient review process and will result over the long term in better outcomes on important issues.  The measure twice, cut once motto of good carpenters applies equally to financial planning.  When it comes to major capital expenditures, it is not enough to view something as being beneficial and then moving ahead without having critical path requirements and timing defined and the long-term financing assured.  Narrative getting ahead of analysis in any economic matter is never a good thing.

 Why are you running?

I’m running to give back to the community I care about and that has meant so much to me and my family these last 26 years.  I embrace and want to preserve its bucolic beauty and small-town ethos.  I think there can be an even better future for Pound Ridge if we work together cooperatively.  At this stage in my life, I have the time available and the passion to make a positive difference in the Town Supervisor position.

 What makes Pound Ridge most special to you?

The natural beauty all around us.  We are a unique small town just an hour away from New York City.  Our focus will be on preserving and enhancing that uniqueness.  The best way to love, honor and protect Pound Ridge is to manage with competency, openness, respect and inclusiveness.    

 What is the role of the Town Supervisor?

The role of the supervisor is just that – to supervise all efforts integral to the health and well being of the town.  The supervisor must ensure the financial integrity of the town and provide current, transparent and timely financial statements easily accessible by all.  The supervisor must ensure that town employees are treated and compensated fairly.  The supervisor must seek out and be guided by the opinions of Pound Ridge residents when issues of importance to quality of life, real estate values, taxes and others are being considered.  The supervisor must respect the history of Pound Ridge that has created its semi-rural, small town character while responding to initiatives of change.  The supervisor, with the town board and committees, must preserve what the majority of residents value about their town and work to enhance areas residents agree add to life in Pound Ridge.

Following the recent completion of the 2020 audit, the town’s auditors issued a letter to the board with comments on the town’s accounting and control practices.  I obtained the letter in a FOIL request.  Such management letters are issued after all audits, but this one was unusual in both its length and the many concerns the auditors raised about the town’s accounting and control practices. Selected items in the management letter by page number along with the auditor’s statements in quotes are shown below:

 Page 9, identifying significant risks (“Management override of internal controls” and “Improper revenue recognition due to fraud”)

 Page 12, town solely responsible for two-year delay in starting audit (“Although the Town’s audit was scheduled to commence shortly after the December 31 year-end the timing was significantly delayed by the Town.”)

 Page 13, untimely submission to federal government on grants more than $750,000 (“The town did not submit the Data Collection Form and the reporting package for 2020 to the Federal Audit Clearinghouse by the due date.”)

 Page 14, lack of basic accounting manual outlining procedures (“The Finance Office does not have a formal accounting manual documenting the Town’s operating procedures.”)

 Page 14, poor record keeping on 10 town credit cards issued in 2020 (“Our testing of the months of March and December indicated that supporting documents for charges were not available and the claim forms did not have signatures for approval.”)

 Page 15, significant TEP project cost overruns and no evidence of board and change order approval (“The amount completed and stored to date was $1,776,658 which exceeded the original contract amount of $1,562,671, by $213,987 as noted on the vendor application number 8 for the period to November 30, 2020.)

 Page 30-31, ten adjusting journal entries to the general and highway funds totaling $1.6 million.  

A management letter in the private sector detailing as many concerns and issues as this letter did would have led to a detailed plan disclosed to all key constituents on how poor accounting and control practices will be remedied.  Such action is not apparent here and the board is as complacent on this as they have been on providing current financial statements.

The overriding point on the cannabis dispensary issue is that residents should have been canvassed in 2021 on a matter with such ramifications.  In the absence of that, the decision should have been to opt-out and to have not done that was poor governance on the part of the board.  In not taking any action, they missed the opportunity for the town to maintain control.  This matter has now been turned over to the actions of what the next cannabis entrepreneur wants to do.

The notion that such a business would be good economically needs to be analyzed.  The available information suggests any sales tax benefit may be mitigated by an adverse impact on property values.  Only a portion of the sales tax goes to local governments and in Westchester County that is split based on population so the fiscal benefit to Pound Ridge is unclear.  A May 2021 study by a professor of economics at INSEAD showed that the prices of homes within .36 miles of a new dispensary in Washington state fell 3-4 percent when it opened.

In the business world, good managers value optionality, which is the ability to do something without the obligation to do something.  Opting-out did that without any cost.  It’s unfortunate that the board elected not to avail itself of this cost-free option.  That would have given it the opportunity to analyze in detail the pros and cons of this issue with full transparency to residents.  If a decision was made to move ahead, the MRTA was designed to make it easy to unwind the opt-out.     

When New York passed the Marijuana Regulation & Taxation Act (MRTA) on March 31, 2021 legalizing consumption statewide, it gave local governments the ability to opt out of allowing retail sales in their communities by passing a local ordinance within nine months by December 31, 2021.  If a local government opted out, it retained the ability to easily rescind the ordinance at any point in the future.  However, if a local ordinance was not passed during those nine months, the town could not prevent local sales at retail stores that are in compliance with the MRTA.

The official opt-out list maintained by the NYS Office of Cannabis Management shows 845 municipalities have opted out and do not allow local sales.  That includes 39 towns in Westchester County.  Among the towns on the opt-out list are Bedford, Lewisboro, North Salem, New Castle, North Castle and Mount Kisco.  Pound Ridge is among a handful of Westchester County towns now allowing local sales, putting it in a category including Mount Vernon, New Rochelle and White Plains.

It is unclear why Town leadership chose not to maintain optionality on this subject by doing what the towns most similar to us did.  If there was a view by the Town Board that taking no action was the right thing to do and/or that it would be good for Pound Ridge, we do not know because there was no disclosure or discussion.  This subject is coming to the fore with rumors that a retail store selling marijuana will soon open and a call to the Town House has provided no clarification.  Residents are expressing concern.  In the absence of explanations, this would seem to be another case where the Board did not do what is in the interest of residents, similar to long overdue financial statements and questionable property tax adjustments.

That is false. We are not calling for a townwide revaluation.  The catalyst for Jock McCown's efforts before the Town Board in 2020/2021 was an analysis that the parcels owned by the water utilities are worth 7 times what their present imputed value is on the tax rolls.  If correct, the utilities should be paying significantly more each year in property taxes, which could translate into residents paying significantly less.  The right next step is to hire an independent firm to review this analysis and render an unbiased opinion.  The current Board has taken no steps and maintains that the only way the assessed value of the water utility parcels could ever be increased is through a townwide revaluation.  Jock McCown discussed this with various state and local officials, and he now knows that is not the case and that there are multiple ways the assessed value of those parcels could be raised without a townwide revaluation. Such a process should be undertaken and done in a systematic and transparent manner, with the ultimate goal to reduce property taxes for each and every Pound Ridge resident.

The multi-year absence of any financial statements is depriving residents and taxpayers of basic information, which they have a right to know.  Just recently, the Town posted the 2020 audit report on its website, which contains potentially troubling information regarding a significant deficiency in internal controls and a balance sheet showing a significant contraction in liquidity during 2020.  Nearby Bedford has its 2022 audit report posted on its website and we are more than two years behind them.  Providing current and accurate financial statements is the Board’s most basic duty to taxpayers.  Periodic financial reports provide an important tool to help organizations, whether it’s a for-profit business or a local government, both in managing their current operating budgets and in preparing future budgets.    Accurate and current financial information – that is independently verified each year by outside auditors – is a roadmap, without which it is not possible to understand the Town’s performance or financial condition and, therefore, manage in an efficient and effective way.

We believe in sound financial management.  That starts with the basics, i.e., getting our financial statements and related audits up to date.  We intend to have unaudited financial statements available to residents shortly after the end of each quarter and make a discussion and analysis of them a regular Board meeting topic.  With respect to the annual audit, our goal will be to have the reports issued no later than 90 days after the end of each calendar year.   For any major initiative or investment of Town funds, we will engage in a systematic and fact-based analysis that all of us have experienced in the corporate world.  A rigorous analytical review upfront actually makes for a quicker and more efficient

review process and will result over the long term in better outcomes on important issues.  The measure twice, cut once motto of good carpenters applies equally to financial planning.  When it comes to major capital expenditures, it is not enough to view something as being beneficial and then moving ahead without having critical path requirements and timing defined and the long-term financing assured.  Narrative getting ahead of analysis in any economic matter is never a good thing.

The Town spends $167K annually on its legal retainers, which includes $60K annually on medical insurance and retirement benefits.   Paying benefits to someone on a part-time retainer is highly unusual.  We also believe that any legal services required by the Town may be more efficiently sourced – certainly putting the work needed out to bid would be a prudent action.  Our slate includes Cynthia Shereda, who was until recently a senior lawyer at PepsiCo, the largest corporation based in Westchester County. She would be able to provide legal guidance for matters coming before the Board and has significant experience hiring and managing outside counsel, when they are needed.  Both Jock McCown and Susan Lee have had significant experience in working with lawyers throughout their careers and have a keen awareness of the difference between business issues and legal issues and when counsel is needed.   We anticipate that savings from this and other current expenses – once we have done a thorough review of the budget – could be used to reduce property taxes for the approximately 2,000 residences in Pound Ridge.

On 6/07/22, the Board took action to reduce the assessed value of 15 adjacent parcels owned by Oceanus Navigation by 76.2%.  This had the effect of shifting $101K in property taxes previously paid each year by Oceanus over to Pound Ridge residents.  From the appraisal report (prepared for the Town for its use in acquiring open space land and so limited to such purpose) and further research, there does not appear to be support for this action.  On its face, the resulting conclusion that the 13 adjacent parcels totaling 83 acres covered in the appraisal report (2 parcels were not covered but also had their assessed value reduced 76.2%) are worth just $1,130,000 or $13,614 per acre is highly questionable.  The reduction unwound a 2017 increase in the assessment when the single parcel was divided into 15 lots, and even reduced the assessed value of the 83 acres 44% below what it was as a single parcel before the 2017 increase.  The Board also agreed to refund two years of previously paid property taxes, or a total of $202K.  Pound Ridge itself paid only 13-14% or $27K of the refund, in proportionate share of property taxes.  Some 70% of the refund or $141K was paid directly by the Bedford Central School District in what was a net loss to it and our local school system.  Westchester County paid most of the remaining balance, but our library and fire department also had to contribute.  Apparently, there was litigation and a resulting settlement/.  It would be helpful to have all the facts supporting the Board action.  This matter only recently came to light based on a FOIL request, as the action occurred secretly in executive session.  Besides being a puzzling financial decision, it raises serious governance issues.  The tax assessor - our subject matter expert - was not involved in the decision and only became aware of it after the Board's action. 

We will need to make a thorough review of all revenue and expense items to understand what is possible without reducing services to our community.  For example, we understand that part-time Board members receive full medical insurance and retirement benefits at the same level available to full-time employees. This is unusual as part-time employees in general, and Board members in particular, rarely receive such benefits. That said, we think it makes sense to provide more detail to, and have an open discussion with, residents on what makes sense and is fair both for the Town Board, who are providing a great public service, and to community residents, who deserve to know all the facts.

We all have been full time residents of Pound Ridge for over 25 years, and we love its natural beauty and small-town feel.  All of us will work diligently to protect and enhance the framework of laws and regulations that preserve the bucolic community we have today.  Our commitment to sound environmental policies is underscored in tangible examples of work each of us has done during our careers.  Jock played a catalytic role decades ago in the switch of ship fuel away from 3.5% sulfur content residual fuel linked with 200,000 premature deaths annually to the ultra-low sulfur fuel used by ships today.  Cynthia is a board member of The Global Foundation for Ocean Exploration, a 501c3 organization focused on providing resources to the scientific community for the exploration, and ultimately protection of the critical ocean environment.  Susan is a long-term member of the National Garden Club Inc., the Federated Garden Club of NYS, and the Pound Ridge Garden Club, whose goals promote civic and environmental responsibility.  Susan always has and always will support those goals for Pound Ridge.

All of us are registered Democrats.  Our views fit broadly within the socially liberal, fiscally conservative category.  We formed the Pound Ridge Party when we became aware of the extent of fiscal mismanagement and recognized the need to bring competency and integrity to the town's stewardship.  We support the ideal that a local political party affiliation should encourage and embrace diverse points of view under the umbrella of shared goals.  We founded the Pound Ridge Party to promote inclusiveness and transparency.  

The administration of the Town's business and financial affairs is a prime responsibility of the Town Supervisor and Board.  One of our first orders of business would be to get the Town back on a regular cycle of disclosing annual financial statements and that means no later than March 31 for each preceding year in order to comply with New York law.  Because preparing financial statements is the responsibility of the Town itself, we would always intend to meet that requirement even if that means disclosing unaudited financial information.  However, a clear goal of ours and one we believe is attainable, is to have audited annual financial statements by that deadline.  To augment what would be more detailed annual financial statements, we also intend to disclose unaudited financial statements on a quarterly basis within 45 days of the end of each quarter.  These statements would be posted on the Town website and we would be available to address any questions residents may have related to those statements.  Actual financial statements are the metric by which performance is measured and we believe it is imperative that they be provided in a timely and transparent manner.

There are common threads among everyone on the ballot and a key one is a shared desire to make Pound Ridge be as good as it can be for all its residents.  But desire alone is not sufficient to achieve that goal.  The foundation upon which everything rests is the administration of the business and fiscal affairs of the Town.  With a budget in the $10 million per year range and dozens of employees, to direct that enterprise effectively requires individuals with real world experience.  All of the Pound Ridge Party candidates have strong capabilities and experience in areas that would be beneficial to the Town.  We excel in looking at and analyzing issues in a systematic and transparent way and believe such an approach yields the best results.  We all have extensive direct experience related to the planning and implementation of major capital projects.  We are confident that our skills could be put to work for the benefit of all Pound Ridge residents if we are elected to the positions we seek.  

Transparency is about being open and honest in all of your actions.  Organizations that adhere to this best practice disclose all relevant information so others can make informed decisions.  That information is important to both internal and external audiences.  Transparency helps employees feel like they are part of something bigger and in doing so makes them more a part of the organization and its vision - and united in our efforts to achieve our shared goals.  All of us have significant experience in corporate environments where we've seen firsthand the benefits of real transparency.  We would work to foster a culture of open lines of communication and sharing important information with both internal and external audiences.  When it comes to taxpayer's funds and how they are being spent, everything should be done in an open and transparent manner.

We are all running to give back to the community we care about and that has meant so much to each of us.  Each of us have 23 or more years of full-time residency in Pound Ridge and we know and love this Town.  We embrace and want to preserve its bucolic beauty and small-town ethos.  We think there can be an even better future for Pound Ridge if we work together cooperatively.  At this stage in our lives, we all have the time available and the passion to make a positive difference in the positions we seek.