In the face of recent reforms proposed by State Comptroller Thomas DiNapoli for local development corporations, Victor LDC director Kathy Rayburn isn’t at all concerned.
“My first reaction,” she said, “is that if there’s a lot of corruption or negative things going on, then it’s a good thing for them to be putting these controls in action. I’m comfortable with (the proposal) because we don’t have anything to hide and we’re not doing anything wrong.”
Citing an ongoing pattern of abuse, DiNapoli’s reforms would limit local governments’ use of LDCs and other private entities such as limited liability companies. They would also give the state comptroller authority to audit LDCs directly, rather than investigating the local governments they partner with.
“Time after time,” DiNapoli said, “our auditors uncovered LDCs being used to skirt the laws governing local government operations, and that’s costing taxpayers money.”
One such instance involves the use of an LLC by the city of Rochester to purchase the Fast Ferry — which ended up costing taxpayers nearly $20 million.
A 2009 DiNapoli audit also found that the Nyack Fire District used two LDCs to circumvent the competitive bidding process to construct a new firehouse. As a result, taxpayers could pay nearly $10 million more than voters authorized for a firehouse that will not be owned by the fire district.
“I’m trying to figure out what will be different with (these new proposals) than what is already happening,” questioned Rayburn.
Under the Public Authorities Reform Act established in 2009, LDCs are required to submit their budgets each year, along with bylaws and mission statements, for review by the State of New York Authorities Budget office.
“A full audit is also done every year by an independent agency,” Rayburn said, “and the results are a matter of public record at Victor Village Hall. Our budget is also posted on our website, victorldc.org.”
The Victor Local Development Corporation, established in 1999, receives annual funding from both the town and village totaling $84,460, with an additional $10,000 for events.
Victor Town Supervisor Jack Marren echoed Rayburn’s response.
“We have followed all the guidelines,” he said. “We have no problem with the proposals. Unfortunately there are a few out there that cast a black shadow on the rest.”
A copy of the report, “Municipal Use of Local Development Corporation and Other Private Entities” can be reviewed at www.osc.state.ny.us/localgov/pubs/research/ldcreport.pdf
In the face of recent reforms proposed by State Comptroller Thomas DiNapoli for local development corporations, Victor LDC director Kathy Rayburn isn’t at all concerned.
“My first reaction,” she said, “is that if there’s a lot of corruption or negative things going on, then it’s a good thing for them to be putting these controls in action. I’m comfortable with (the proposal) because we don’t have anything to hide and we’re not doing anything wrong.”
Citing an ongoing pattern of abuse, DiNapoli’s reforms would limit local governments’ use of LDCs and other private entities such as limited liability companies. They would also give the state comptroller authority to audit LDCs directly, rather than investigating the local governments they partner with.
“Time after time,” DiNapoli said, “our auditors uncovered LDCs being used to skirt the laws governing local government operations, and that’s costing taxpayers money.”
One such instance involves the use of an LLC by the city of Rochester to purchase the Fast Ferry — which ended up costing taxpayers nearly $20 million.
A 2009 DiNapoli audit also found that the Nyack Fire District used two LDCs to circumvent the competitive bidding process to construct a new firehouse. As a result, taxpayers could pay nearly $10 million more than voters authorized for a firehouse that will not be owned by the fire district.
“I’m trying to figure out what will be different with (these new proposals) than what is already happening,” questioned Rayburn.
Under the Public Authorities Reform Act established in 2009, LDCs are required to submit their budgets each year, along with bylaws and mission statements, for review by the State of New York Authorities Budget office.
“A full audit is also done every year by an independent agency,” Rayburn said, “and the results are a matter of public record at Victor Village Hall. Our budget is also posted on our website, victorldc.org.”
The Victor Local Development Corporation, established in 1999, receives annual funding from both the town and village totaling $84,460, with an additional $10,000 for events.
Victor Town Supervisor Jack Marren echoed Rayburn’s response.
“We have followed all the guidelines,” he said. “We have no problem with the proposals. Unfortunately there are a few out there that cast a black shadow on the rest.”
A copy of the report, “Municipal Use of Local Development Corporation and Other Private Entities” can be reviewed at www.osc.state.ny.us/localgov/pubs/research/ldcreport.pdf
