UPDATE: Rockland Lawmakers' 2 Tax Notes a 'Mess' Says Day

A new legal opinion provided to the Rockland County Legislature late Friday afternoon concludes that two resolutions voted on at last week’s meeting actually had enough votes to pass.

This means that the County can now move forward and issue tax anticipation notes totaling either $30 million or $60 million, Rockland County Legislature Chairman Alden H. Wolfe said in a prepared statement.

“We thank the County Attorney for his research and providing us with a cogent analysis on this issue,” Wolfe said. “We concur with his opinion.”

Tax anticipation notes are issued by the County as it awaits the collection of taxes levied for the fiscal year. The TANs, as they are called, provide the cash the County needs to pay for day-to-day operations, including county worker salaries and vendor services.

The Commissioner of Finance sought to borrow $60 million, which would provide cash flow for the entire year. Some Legislators were not comfortable with borrowing such a large amount and the vote was 10-5.

A compromise resolution was proposed for $30 million, which would cover the County for the next several months. The vote resulted in 9 voting in favor and 6 voting against.

It was originally believed that a super-majority of 12 votes was needed for the measures to pass, but the County Attorney has since opined that a simple majority was proper.

“It’s a shame that Chairman Alden Wolfe doesn’t know the rules and procedures of the Rockland County Legislature,” said County Executive Ed Day. “The borrowing of the $60 million Tax Anticipation Note has been approved. Additionally, because of the political circus created by Ramapo Legislator Ilan Schoenberger, the Legislature actually borrowed $30 million more than was needed. The Day Administration will correct the mess, in the best interest of the taxpayers.”

Wolfe responded:

The legal question at issue was a matter of New York State Law, not the “rules and procedures” of the County Legislature, which I can assure you I’m quite familiar with. When the vote was taken last week, all present - including the County Attorney, the Commissioner of Finance and senior members of the County Executive’s staff - were under the impression that a 2/3rd’s majority was required to approve the note, as is the case with bond issues. No one indicated anything to the contrary until three days later, when we received an opinion from the County Attorney.

The Legislature also doesn’t borrow money on its own. We authorize the sale of notes and bonds, which only happens after approval by the County Executive. In this instance, the County Executive’s office confirmed in writing that they would only approve the $60M note - last week, even before the certified resolutions were sent to his office. There was never any “mess” to clean up.

The end result is a positive one - we’ll have sufficient cash to meet our needs through 2016. And isn’t that what really matters?