Letter to the Editor: Improving Sleepy Hollow's Usable Fund Balance

To the Editor:

At this week’s Sleepy Hollow Village Board meeting the Village auditors from O’Connor Davies, LLP congratulated the Village on strengthening their usable fund balance.

Last year’s Financial Audit Report prepared by O’Connor Davies, LLP reported for end of Fiscal year 2013 reported the usable fund balance (an emergency reserve) at $212,537, a dangerously low balance by municipal accounting standards. The Village relies on it’s usable funds as a reserve in cases of emergency or unforeseen expenses.

In addition, Moody’s bases the Villages credit rating on the health of its fund balance.

The prior administration left a usable fund balance of $1,394,000. Under the Wray administration, it’s continued decline, including over the past 3 years ; 2011 at $620,886, 2012 at $480,097 and 2013 at $212,537 is seen as an indication of management’s struggle to restore the financial health of the Village. Because of this continued decrease in the reserve our rating was changed by Moody’s from positive to negative, impacting the Village’s credit rating and borrowing rates.

On April 1, 2013 Trustee Wompa was made Chair of the Finance Committee. On April 2nd she attended a meeting with Trustee Stupel and the Village treasurer, at that meeting Trustee Stupel received a report she had requested showing properties with tax payments in arrears. “It was quite shocking to both Trustee Stupel and myself.” stated Wompa. “The figure we were looking at was approximately $1.4 million, this outstanding receivable was never reported to the board by the mayor and a collection process was obviously never discussed with the board.” “At that meeting I began to put a process in place to ensure collection of these monies owed to the Village.”

With her finance committee Trustee Wompa began the collection process, having the Village send letters to property owners and meeting with Village officials, including the Village assessor to clean up the older outdated records, errors and collect on taxes owed. After sending out collection letters, working on these reports and the public notices printed in the Journal news. Her efforts ended in The Village holding a tax lien sale in May 2014, which brought in close to $500,000. These funds were added to the usuable fund balance, which now stands at a much healthier $1,122,000. Over 50% of the increase in the Villages reserve fund came directly from this lien sale.

In light of the above efforts by Trustee Wompa, it was very disappointing that the mayor shamelessly attempted to attribute the success of the tax lien sale to his political running mate.

Karin Wompa