Key Issues

A recent audit by the Office of the New York State Comptroller (OSC), released August 1, 2025, uncovered significant failures in Pound Ridge’s procurement and financial review practices. Read and download the audit report here. The audit covered January 2022 through November 2023 and identified the following critical concerns:

• Noncompliance with Procurement Laws and Board Policies
  Town officials failed to follow proper procedures when procuring goods and services, raising the risk of excessive spending and reduced accountability. The Comptroller states in Key Findings: "As a result, officials cannot support that all goods and services were procured in the most cost-effective manner, which may have resulted in higher operational costs that would be passed onto taxpayers.”
• Over $745,000 in Purchases Without Competitive Bidding
  These unbid purchases bypassed requirements meant to protect taxpayer dollars and ensure cost-effective spending.
• $299,176 in Payments Not Properly Audited
  These payments, many made with Town credit cards, lacked proper board review or approval.
• 226 Credit Card Charges With No Receipts
  A total of $54,359 in undocumented charges were made by department heads, creating serious gaps in transparency and recordkeeping.
• Town Credit Cards Widely Distributed
  Eleven department heads were issued town credit cards in 2020 with insufficient oversight mechanisms in place
•  OSC Disputed the Supervisor’s Claim of No Fraud
  Despite assurances from the Town Supervisor, the OSC clarified that its findings do not rule out fraud, theft, or professional misconduct.  In his July 15 response included in the report, Supervisor Hansan wrote, “We are pleased that the audit found no misuse, misappropriation, or fraudulent use of Town funds…” The OSC disputed the Supervisor Hansan's statement in a “See Note 1” annotation that stated, “Therefore, these audit results cannot be used to conclude there is no fraud, theft or professional misconduct.” 
• Broader Pattern of Financial Mismanagement
  The OSC audit reflects issues previously flagged by the Town’s independent auditor, PKF O’Connor Davies, including late filings,poor capital project tracking, and co-mingled funds—none of which were not addressed in the OSC’s scope.

Residents Deserve to be Informed by the Town Board

Residents are encouraged to read and download the full OSC audit report and the required Corrective Action Plan due within 90 days here. They should also ask the Town to repost the PKFOD letters to management that were recently removed from the Town’s website. 

These accounting failures highlight the risks that arise when financial statements are more than three years late and oversight is absent. The Town Board should be forthright with this information since ultimately the risk from this is passed onto taxpayers. 

To rebuild trust and protect taxpayer dollars, the following steps must be taken immediately:

• Publicly Release All Audit-Related Documents
  Reinstate PKFOD management letters and commit to making all audits and responses publicly accessible on the Town’s website.
• Enforce Competitive Bidding and Transparent Purchasing
  Require documented bids for all purchases above the legal threshold and ensure full compliance with procurement policies.
• Implement Real-Time Financial Oversight
  Establish a standing Budget and Finance Committee to review expenditures, credit card use, and capital projects on a rolling basis.
• Limit and Monitor Credit Card Access
  Reduce the number of town-issued cards, implement strict receipt policies, and conduct monthly audits of credit card activity.
• Ensure Timely Audits and Corrective Action Plans
  Commit to on-time financial filings and transparent progress updates on the OSC’s Corrective Action Plan.
• Appoint Independent Oversight
  Engage an external compliance officer or audit consultant to ensure that recommendations are implemented and maintained.

• The Town Board has consistently filed annual financial statements and audits late for the last 8 years and has yet to submit the 2024 financials. The table here discloses the required filing dates and actual time to accomplish for all seven years since the Hansan administration came into office at the beginning of 2018.
• The Hansan administration has been late by an average of 17 months in providing audited financial statements and related legally required regulatory filings, with the 2020 filings peaking at being 27 months late. 
• The Town Board has been operating without timely, accurate audited financial statements—undermining regulatory compliance and a reliable budgeting process.
• Poor planning processes, miscommunication, and misrepresentation have  resulted in costly lawsuits.
• There has been a lack of transparency regarding the Transportation Enhancement Project (TEP Sidewalk project), including unclear State reimbursements.
• Public information about cost overruns on the TEP Project has been lacking—the Town’s original matching contribution more than doubled from approximately $370,000 to over $800,000 due to overruns coming in 122% over budget with no clear explanation to the taxpayers.

Proposed Solution: Restore Financial Integrity and Transparency

To address the Town’s chronic delays in financial reporting and lack of budget clarity, we propose a comprehensive Financial Accountability and Transparency Initiative:

1. Commit to Timely, Accurate Financial Audits

• Set a firm annual deadline for completing and publicly releasing audited financial statements.
• Ensure that the appropriate personnel and professional are involved to achieve timely audited financial statements.

2. Establish a Financial Oversight Committee

• Create a volunteer Finance and Audit Oversight Committee to review and advise on budgeting, grant reporting, and major project costs.
• Include financial professionals and community stakeholders to enhance accountability and confidence.

3. Improve Project Cost Transparency

• Require real-time cost tracking and quarterly public updates for all capital projects, starting with the proposed Water Project.
• Publish reimbursement status and grant conditions for all state- and federally-funded projects.

4. Enforce Accurate Representation in Grant Applications

• Develop a grant review checklist to ensure all submitted financial statements and projections are current and accurate before submission.
• Publicly disclose grant application content and underlying assumptions before submission.

5. Strengthen Internal Planning and Communication

• Conduct an internal audit of project planning processes and implement a standardized project management framework.
• Provide annual training for staff and board members on financial best practices, grant compliance, and risk management.

The PRDC’s recent Instagram post suggests that the Town’s tax levy has grown at less than 2% annually over the last eight years. The adopted budgets tell a very different story.

Since 2018, the tax levy has increased by more than 2% every single year. Under the Hansan administration, the compound annual growth rate (CAGR) over the full 8-year period was 2.84%, and over the last 4 years it climbed even higher, averaging 3.22% per year.

The table here, drawn directly from the Town’s adopted budgets, shows both the actual levy amounts and the annual percent increases.

It’s also important to note that the Town levy represents only about 14% of the total property tax paid by Pound Ridge residents. Roughly 70% comes from school district taxes, with the remainder going to Westchester County. When total property taxes are measured, the growth rates over the last 8 years—and especially the last 4 years—are even higher than the figures for the Town levy alone.

Yet the PRDC’s headline reads: “KEEPING TAXES IN CHECK!” and adds “HELD PROPERTY TAXES UNDER THE CAP SINCE 2018.”

Why make a claim that misleads residents, when the Town’s own adopted budgets clearly contradict it?

The Solution: Responsible Fiscal Management

Residents deserve more than slogans. They deserve leadership that:

• Acknowledges the true numbers instead of obscuring them.
• Controls spending to ensure taxpayer dollars are spent solely on essential needs for efficient town operations
• Commits to long-term financial planning to keep growth rates aligned with community needs—not just under a state cap.
• Restores transparency and trust by making financial information easily accessible and straightforward.

Keeping taxes truly “in check” requires more than staying under a cap—it requires responsible stewardship of every taxpayer dollar.

In June 2024, the Town Supervisor signed a grant application attesting that all town financials were completed, despite the 2022 and 2023 legally requested regulatory financial filings still being in arrears at that time. This misrepresentation could jeopardize the town’s financial standing if the grant is invalidated.

• At the March 19, 2024 Town Board meeting—three months before applying for the proposed Drinking Water Project grant—Town Board member Ali Boak stated, “Aquarion might not legally be allowed to provide water as they aren’t licensed in New York State.” Despite this, the grant application included an unconfirmed water supply estimate from Aquarion, with no formal contract and a projected cost at half of the company’s typical rate—likely leading to significant cost increases.
• An article from the CT Mirror on July 21, 2025 (also available on our Press page), explains that a proposed $2.4 billion sale of Aquarion to a nonprofit authority may lead to significant water rate increases, with some estimates suggesting potential rises of up to 65% over the next decade. Though officials claim that any necessary rate hikes are due to unavoidable infrastructure investments—not the acquisition itself—most parties agree that rates are expected to rise regardless, which would definitely affect any contract pricing for this proposed project.
• The Town Board initially voted by resolution to form the proposed Water District without input from business district property owners. In response, some of those owners petitioned for a referendum so they could vote on the proposal. While the measure ultimately passed, the Board’s first decision excluded the property owners’ voices.
• The current Town Board lacks a proven track record in managing complex projects or staying within budget. The Transportation Enhancement Project (TEP) experienced major overruns coming in over budget by 122%, with the town’s portion more than doubling—from $370,000 to over $800,000—placing an unexpected burden on taxpayers.
• The proposed Drinking Water Project is five times the size of the TEP project, yet no clear assurances have been given that the current board can manage it effectively or transparently.
• A history of poor planning, miscommunication, and misrepresentation has already led to a costly lawsuit against the town—raising further concerns about oversight and governance.

Proposed Solution: Ensure Accountability and Due Diligence in Water District Planning and Grant Management

To address the serious concerns surrounding the proposed  Drinking Water Project grant application, financial integrity, and project oversight, we propose the following Drinking Water Project Accountability and Governance Reform Plan:

1. Establish a Temporary Independent Oversight Committee

• Form a Drinking Water Project Oversight Committee composed of residents with experience in municipal finance, engineering, and project management.
• Task the committee with reviewing the proposed Drinking Water Project grant application process, verifying financial representations, and overseeing next steps with full transparency.
• Reinstate the Economic Development Committee, which was suspended in early 2025, so it may advise the Town Board with vital feedback from the Business District stakeholders.

2. Conduct an Immediate Financial and Legal Compliance Audit

• Initiate a third-party review of the proposed Drinking Water Project grant application to assess legal and financial risk, particularly regarding the misstatement of completed audits and unconfirmed vendor contracts.
• Publicly disclose the findings and corrective measures, if needed, to maintain good standing with the state grant authority.

3. Require Verified Vendor Contracts and Cost Estimates

• Mandate that all future grant applications and capital projects be backed by formal vendor contracts and verified cost estimates prior to submission.
• Reassess Aquarion’s role, legal eligibility, and pricing to ensure accuracy and prevent future cost overruns.

4. Strengthen Capital Project Management Standards

• Adopt a project management framework for all large-scale infrastructure projects, requiring detailed planning, budgeting, and milestone tracking with public updates at each phase.
• Assign a qualified project manager or external consultant to oversee the proposed Drinking Water Project and report progress quarterly to the community.

5. Restore Financial Credibility with Transparent Reporting

• Commit to completing all outstanding regulatory filings and audits by a publicly stated deadline.
• Require the Town Board to submit a Corrective Action Plan for financial reporting and grant compliance, to be reviewed annually by an independent auditor.

6. Rebuild Public Trust through Communication and Accountability

• Hold public forums and Q&A sessions on the proposed Drinking Water Project to provide updates, address concerns, and gather feedback.
• Commit to truthfully representing all project information and grant terms going forward, with legal review before submission.

• The Town Board purchased a $1.25 million property, 5 years ago, intended to house a wastewater system, but it has yet to prove as a viable solution.
• Residents have received no updates on the project's progress and there has been no transparency regarding the work of the Water-Wastewater Task Force (WWTF).
• The public has not been informed of the total cost of engineering and related expenses incurred since 2018.
• In August 2023, the Town Board approved $24,000 for hole boring tests to begin that Fall 2023. Although the work was completed, no report on the results has been released—despite promises for a year-end 2023 update, later rescheduled for February 2024.
• At the May 7, 2024 Town Board meeting, the project engineer, Dan Rhodes publicly stated during the proposed Drinking Water Project grant discussion that (52:24 on the video) “Currently at this time you do not have a wastewater project that is viable.”  In just five seconds, Rhodes revealed that over $500,000 in engineering fees and $1.25 million (not including property tax revenue loss and $250,000 in net losses after taking into account rental income over the years) spent on this property have led to no usable outcome—leaving the town with an expensive asset it no longer needs. It’s no surprise the Board has avoided acknowledging this increasingly clear reality since there would be no reason to continue to own this property any longer. 

Proposed Solution: Restore Transparency and Accountability in the Wastewater Planning Process

To address the lack of transparency and stalled progress on the wastewater project, we propose a Wastewater Accountability and Public Disclosure Plan that ensures residents are informed, tax dollars are respected, and future planning is grounded in facts and community input.

1. Publicly Release All Past Reports and Financials

• Immediately publish all engineering reports, studies, and test results related to the Old Pound Road property, including the 2023 hole boring analysis.
• Disclose the total cost of engineering and related consultant fees spent on wastewater planning since 2018.

2. Conduct a Public Audit and Independent Feasibility Review

• Initiate a third-party review of the wastewater project to assess the viability of the Old Pound Road site and evaluate the decision-making process to date.
• Require the Water-Wastewater Task Force (WWTF) to present findings and recommendations in a public forum.

3. Develop Clear Communication Protocols

• Require quarterly public updates from the WWTF and Town Board on the status of all water and wastewater initiatives.
• Create a centralized Wastewater Project Information Hub on the town website, housing all past and current reports, expenses, and decisions.
• Reinstate the Economic Development Committee, which was suspended in early 2025, so it may advise the Town Board and the WWTF with vital feedback from the Business District stakeholders.

4. Rebuild Community Trust Through Transparency

• Commit to no further spending or planning on wastewater infrastructure without public input, verified feasibility, and formal community engagement.
• Host a town hall meeting specifically dedicated to wastewater solutions, including alternatives and financial implications.

 7 Old Pound Road Purchase for Proposed Wastewater Treatment Deemed Unviable 

• The 7 Old Pound Road property was originally approved for purchase by the Town Board in 2020 as a site for a wastewater treatment facility, amongst other uses, to serve the Business District following a 2019 report by the consulting engineers, Lombardo Associates Inc., that identified the property as part of a number of sites as a possible location for a wastewater system.
• Shortly after the purchase, the Old Pound Committee was formed and identified a number of uses for this property including: Ability to extend “Recreation Path” to Old Pound Road; Opportunity to create nature trails; Business District wastewater (treated effluent) disposal; Soccer, Baseball, Softball Field(s); and, Community Center with Indoor Gymnasium.
• The Town Board approved leasing the house on the property several years after the purchase, incurring significant ongoing debt service, repairs and maintenance costs, and loss of property tax revenue, including a recent reduction in the monthly lease amount.
• According to the consulting engineering firm, Laberge  Group, recent findings from the 2023 hole boring testing determined that the property is not viable for wastewater infrastructure at the May 7, 2024 Town Board meeting during the discussion for the proposed drinking water grant application (52:24 on the video). This information was never officially shared with the public by the Town Board or the Water/Wastewater Task Force after promising a findings report in early 2024.
• Since the purchase of the property, the town has spent hundreds of thousands of dollars of taxpayers money on engineering costs with three different firms, including the two mentioned above, to determine if the property was suitable to support a wastewater treatment facility for the Business District.  
• Now that the Town Board’s wastewater plan for 7 Old Pound Road is no longer viable, no re-evaluation has been initiated with public input to explore whether or not it is still financially feasible to retain the property. 
• Despite this ongoing cost to taxpayers, the Town Board continues to move forward with a trail grant without this re-evaluation of alternative options or involvement from the  community.

$250,000 Trail Grant Feasibility 

• The Town Board received a $250,000 Trails grant a few years ago requiring a 20% matching contribution of $50,000 which is subject to final bids. 
• The grant must be ADA Compliant to meet the requirements which may have not been included in the original $250,000 estimate at the time of the grant application. As the project moves forward, taxpayers could face significantly higher costs beyond the initial $50,000 to meet ADA compliance requirements.
•  The Town Board then approved the acquire an easement on an adjacent lot to 7 Old Pound Road to connect to the Town Park. This property has environmental challenges and it may not be clear what the intended purpose was and/or any public input (e.g., forums).

Recreational Use Suggestions for the Property without a Re-evalution

• At the August 5th 2025 Town Board meeting, Town Board Member and Liaison to the Old Pound Road Committee, Ali Boak, announced that "The Old Town Road Committee met on Monday night, and I wanted to share  with the public that they're seriously exploring, putting a disc golf  course in on the old town property...they're also working on a butterfly garden" (1:00:03 on the video). While these ideas may eventually be presented to the community, they are being considered without any public re-evaluation of the property’s use or analysis of whether it is financially feasible to pursue such projects and sustain the ongoing costs of keeping 7 Old Pound Road.

If not for Infrastructure, why not Open Space?

• Even though it was determined the proposed site is no longer viable for a wastewater system, the Town Board continues to use the $1.25 million–purchased property with its ongoing expenses, now solely for trails without evaluating whether maintaining the property remains financially feasible for this or any other use.
• With the site no longer serving this purpose, the Town Board should consider a Property Re-evaluation and Community Reuse Plan with community input before continuing to invest further into a property that may have no purpose.
• Past discussions about building a community center—both town-wide and specifically on this property—ultimately concluded that it was not financially possible yet.
• If walking trails are the only foreseeable use for the property, the Town’s Open Space Acquisitions Committee should consider acquiring the land and placing it under permanent conservation. This approach could help offset some of the financial burden on taxpayers. Otherwise, it raises the question: why is the Town Board authorizing substantial and seemingly arbitrary real estate purchases without a clear, long-term plan for public use? Taxpayers deserve transparency and strategic decision-making when public funds are at stake.

Proposed Solution: Re-evaluate and Repurpose the Old Pound Road Property with Community Input

To address the financial and planning implications of the Old Pound Road property being deemed unviable for wastewater infrastructure, we propose a Property Re-evaluation and Community Reuse Plan to ensure responsible stewardship, fiscal accountability, and alignment with community priorities.

1. Publicly Acknowledge the Property's Infeasibility for Wastewater Use

• Formally announce the engineer’s 2023 findings after evaluating the testing results that the site is not viable for a wastewater system.
• Provide residents with a summary of past expenditures related to engineering, maintenance, and related costs incurred since the property’s purchase.

2. Launch a Transparent Community Review Process

• Host public forums to gather input on the future of the 20-acre property, including potential uses, fiscal implications, and alignment with community goals.
• Present all options clearly—complete sale, partial subdivision, or retention with open space designation and trail development.

3. Evaluate All Viable Property Disposition Options

• Option A: Determine is there is any other financially viable use such as a community center, etc.
• Option B: Sell the entire 20-acre parcel, including the house, to recoup taxpayer investment and recover lost revenue from its tax-exempt status.
• Option C: Subdivide the parcel, sell the house to regain tax revenue, and preserve the remaining open space using Open Space funds, enabling continued pursuit of the ADA-Compliant Trails project if it fits with the open space environmental requirements.

4. Conduct a Fiscal and Legal Impact Assessment

• Assess the long-term cost of maintaining the property vs. potential revenue from a sale or subdivision.
• Review the implications of withdrawing from or proceeding with the ADA Trails grant based on community consensus.

5. Establish a Policy for Future Major Property Purchases

• Create a clear acquisition policy that requires:

1. Verified feasibility before purchase.
2. Defined public purpose.
3. Transparent public input and fiscal impact analysis.

In October 2021, the Pound Ridge Town Board made a secret, off-the-books decision not to “opt-out” of allowing a cannabis dispensary in town—without public notice, discussion, or inclusion on meeting agendas. A resident’s lawsuit challenging this action under New York’s Open Meetings Law (OML) was dismissed, but is now being appealed. This case was dismissed solely on a procedural technicality—the 4-month statute of limitations, which the court ruled had expired back in 2022 when residents were kept in the dark. It was not dismissed because the Town was found free of wrongdoing.

All adjoining Towns held public hearings and opted-out

• Here is a chart here of all the neighboring towns that opted-out. Bedford, Harrison, Lewisboro Mt. Kisco, New Castle, North Castle, North Salem, and Somers.

Concerns Raised

• Secret Deliberations – The Town Board reached a secret, off-the books decision on October 29, 2021 without holding a public meeting, violating the intent and requirements of the OML. The Supervisor notified the Supervisors and Mayors of adjoining towns, but never disclosed the decision to Pound Ridge residents. 
• No Public Notice – Residents were never informed of the opt-out deadline in Town Board minutes, or the Town’s website, or in 42 Supervisor newsletters sent out during 2021 with no mention of the Cannabis Law.
• Misinterpretation of the Law – The court dismissed the case based on procedural grounds, ignoring OML provisions that allow for declaratory judgment actions.
• Lack of Fair Review – The court failed to give the complaint the liberal reading required by law and substituted its own interpretation of the facts.
• Statute of Limitations Misapplied – The court started the clock before residents knew a decision had even been made.

Town Board Acknowledges Mishandling of Cannabis Decision

• At the October 22, 2023 Meeting, the resident who discovered what the Town Board had done requested that a public hearing should be scheduled to give residents an opportunity to voice their concerns.
• The Town Board held a Public Hearing on December 9, 2023.  Here are the responses taken from the actual minutes for the Town Board members:
  • Councilperson Paschkes apologized, stating that “the Town Board dropped the ball on the cannabis issue and that there should have been a public hearing and a referendum.” He emphasized that there was no conspiracy, as some speakers asserted or implied. Stating that residents’ concerns were valid, he said that the board should make every effort to find a way to revisit the decision regarding cannabis. 
  • Councilperson Briggs thanked residents for participating in the public hearing. She echoed Councilperson Paschkes’s remarks, as well as Mr. Peyton’s statement regarding the importance of cooperation. She also reiterated that there was no conspiracy. She expressed hope that there could be more listening, learning, and working together in the future. She also encouraged residents who would like to talk further to reach out.
  • Councilperson Boak apologized to the residents of Pound Ridge for not having realized that the cannabis issue was so controversial and divisive. She said that she is committed to exploring the possibility for a look-back and a referendum.
  • Councilperson Brand said she echoed other board members’ view that the board was remiss. She said that the board’s handling of the cannabis issue was her greatest regret in her time on the board.
  • The only Town Board member who did not apologize to the residents was Supervisor Hansan.

Why it Matters

When decisions of this magnitude are made without public input or notice, it undermines community trust and sets a dangerous precedent for closed-door governance. 

Residents’ right to decide was taken away by the Town Board. The fairest and inclusive approach would have been to place the issue on a referendum, allowing all residents to have a voice through a public vote.

Solution

• Commit to True Open Meetings Compliance – Ensure all discussions and decisions by a quorum are conducted publicly and documented in meeting minutes.
• Advance Public Notice – Post all significant agenda items and deadlines well in advance on the Town’s website and distribute through multiple communication channels.
• Transparent Decision-Making – For major policy decisions, hold dedicated public forums before any votes or consensus are reached.
• Accountability in Recordkeeping – Accurately record and publish all deliberations, votes, and outcomes in compliance with the OML.

• The Comprehensive Plan Update was initiated in 2019 but remains incomplete.
• The Town Board has not prioritized its completion or allocated funds to hire a land planning consultant to complete the process.
• The Comprehensive Plan is a critical foundational document for town planning and development that guides vital decisions on land use, infrastructure, housing, environmental protection, and long-term growth.

Proposed Solution: Complete and Activate the Comprehensive Plan Update

To address the stalled progress on the 2019 Comprehensive Plan Update, we propose a Comprehensive Planning Relaunch Initiative to complete the plan with transparency, community input, and a clear timeline.

1. Immediately Allocate Funding to Restart the Process

• Commit dedicated funding in the next budget cycle to hire an experienced planning consultant to complete the Comprehensive Plan Update.
• Use a competitive selection process to ensure the consultant has experience with community-driven planning in semi-rural towns like Pound Ridge.

2. Establish a Public Timeline and Process

• Publish a clear timeline with major milestones for community engagement, draft reviews, and final adoption.
• Create a project page on the town website with updates, documents, and opportunities for public feedback.

3. Engage Residents in a Transparent and Inclusive Process

• Host town-wide workshops and small-group forums to gather input on key planning issues such as land use, infrastructure, housing, and environmental protection.
• Ensure that the process is inclusive, with outreach to underrepresented voices, newer residents, and local business owners.

4. Align the Plan with Today’s Needs and Future Goals

• Update the plan to address current and emerging issues, including climate resilience, housing variety, and business district revitalization.
• Incorporate modern planning tools such as sustainability benchmarks, walkability assessments, and smart growth principles.

5. Make the Comprehensive Plan a Living Document after Adoption

• Include a framework for annual reviews and mid-term updates to ensure the plan remains relevant and actionable with an appointed committee.
• Require that all major development, zoning, and capital investment decisions reference the Comprehensive Plan moving forward.