The City of Troy, New York, "Where Henry Hudson Turned Around."

Friday, April 04, 2008


As many of you may have guessed, the proposal to settle Rensselaer's water debt shown in Tuesday's post was a deal that the Council would have approved in 2007. We set forth the entire deal in the thumbnails below (once you click on the thumbnail you may have to maximize the Window screen).

We haven't seen Councilman Brown's written proposal. According to news sources, the Brown deal would require a $1.1 million up-front payment, more than double that suggested by the Republican-controlled City Council.

The proposal acknowledges that the city of Rensselaer owes the city of Troy the principal amount of $2.15 million, accounting for unpaid water bills. After a settlement agreement has been made, Rensselaer will make a total payment of $1.1 million. - February 20, The Record

The quote also notes the principal amount owed is $2.15. Adding interest to that for any number of years will drive the total amount up owed closer to the $2.6 - $3 million mark.

The proposed agreement also indicates the Rensselaer will establish a dedicated water account and any excess water revenue that accrues in the water account, after operating expenses have been paid, will go to Troy to reduce the balance of the unpaid water bill.

More importantly, the proposal states that Rensselaer will keep current on the water payments that are due to Troy, plus it will make annual payments concerning past due water bill in the amount of $125,000 beginning March 15, 2009. - February 20, The Record

Both proposals have the same, basic structure: Upfront cash, structured payments, a mechanism ensuring current payments and forgiveness of some interest and penalties. Both proposals settle the debt. Details may differ.

Despite the Administration's recent attacks on Councilman Brown for "selling Troy down the river," it looks like the GOP was willing to do the same. The attacks on Brown, which we'll explore next week, are not about the deal. The attacks are about control. The Administration has failed to adjust to the change on the Council. Perhaps they are incapable of adjusting. How many rookie phenomenons have we seen, hitting .345 for the first half of a season? Then, the opposition adjusts and the rookie is back in the minors the following season. That's what is happening here. Until the Administration adjusts, they will be in the minors, watching the Council set the agenda.

Point is, lets get this done. At the very least, the two sides are (or were) talking. That's a long, overdue step. It will be budget time again and Troy will need the revenue.

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