by Kathy Savolt -
At the February 10, 2025 Work Session of the Board of Trustees (BOT), Acting Treasurer Laura Vasami presented a list of 100 Capital Projects that need funding. The total breaks down to 8 completed projects, 87 projects underway and 5 proposed to be undertaken this fiscal year. See HERE.
Total project costs range from a few thousand to several million and total $23,983,408. Vasami proposed a funding plan that included issuing $13.6 million in bonds, utilizing $9.6 million in grant funding and taking $430,900 from the General Fund and Sewer Fund Reserves.
No Capital Budget
This was no surprise. As reported multiple times in The Mamaroneck Observer (see links below), the former administration, led by former Mayor Tom Murphy and former Manager Jerry Barberio, pushed through capital spending claiming “emergencies,” crumbling infrastructure, revenue generation and dire need - all without any information on the impact the spending would have on the Operating Budget which includes paying off the debt over time. Calls to create a Capital Budget were ignored and it seemed as if any department that submitted a request would receive funding. The BOT did not set any priorities or limits. Trustee Nora Lucas repeatedly questioned the spending and often voted no to criticism from her fellow (former) BOT members.
Debt up 40% already
During Murphy’s first full term in office (FY 2018-19), the total capital debt was $25.9 million, and the annual debt payment was $2.7 million. By FY 2022-23 (last audit available), the capital debt had increased 103% and the payment 19.5%. The current FY Budget (24-25) includes $3.336 million for debt payment, an increase of 40% over Murphy’s first full term.
Village Manager Kathleen Gill estimated that if the funding plan was implemented as presented, debt payments would increase by $250,000 - $450,000. This amount would severely hinder the operating budget for FY 25-26 and beyond.
Federal Grants in Jeopardy
If all this isn’t enough, there’s another wrinkle in the story. Many, if not most, of the grant funding comes from the Federal government. Some of it is direct and other funding is passed through New York State. Currently, there is a freeze on disbursing federal grants. Although it has been challenged in the courts and a “hold” was put on the freeze, the flow of grant monies has not restarted. Government grants are structured as reimbursable grants. Municipalities spend taxpayer money, complete the project, and later submit paperwork for reimbursement. Any completed or ongoing grant-funded projects would have to be funded by issuing debt if the grant funding is yanked. We were unable to compile an accurate list of federally funded projects prior to publication but all indications are the impact would be in the millions of dollars.
New Projects?
The list of 100 Capital Projects may not be all of them. During the meeting, it came to light that when the new Sprayground needed more space and was expanded, 2 beach volleyball courts were removed. Beach volleyball is a revenue source for the Village and Trustee Dan Kushnick mentioned new courts should be in place before the summer. Additionally, the playground in Harbor Island is reportedly in disrepair and needs replacement. This project was proposed in October 2023 as part of a $2.5 million overhaul of Harbor Island that was ultimately downsized to just the new Sprayground and a new bandshell.
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