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

Tuesday, July 08, 2008


The Troy City Council agreed 9-0 to an agreement that would end the water dispute with the City of Rensselaer. The full amount of the debt - minus approximately 200k - would be paid off in ten years. This include a $1,950,000 balance and $500,000 in interest/penalties.

The City of Rensselaer recently counter-offered: a $1,400,000 lump sum small, unmarked bills to be left in a breifcase in the bathroom of the train station.

Naturally, Mayor Tutunjian declined the offer.

“It will come as no surprise that this latest attempt by Rensselaer to shirk their outstanding debt is unacceptable to this office,” aid Tutunjian.

“If Rensselaer’s proposal of $1.45 million is intended to satisfy the entire debt, the proposal will not be accepted and we will move forward with our court action.”

After shirking his responsibility for 3.5 years (as did Mayor Pattison before him), Tutunjian wants 'all' the money owed.

Rensselaer Mayor Dan Dwyer's argument is twofold: the first explains a lot about the City of Rensselaer, the second is more interesting.

First: "Dwyer has repeatedly stated that he did not believe he was responsible for paying those fees because he was not in office at the time the bills were not paid...

He's F-----g kidding, right?

Second: ...and because there was no standing contract between the cities which outlined punishments for missing payments."

The second point is of interest. No contract, no penalties. Which leaves us with balance + interest.

Troy, or at least all Council members, seem to have agreed on accepting $2.1 million over ten years. One observant reader wants to know the present value of 2.1 million. That is, what would someone pay today for the opportunity to receive 2.1 million in ten years. The short answer is something in the neighborhood of $1,400,000. The calculations get complicated because of the periodic 175k payments over the course of those ten years.

Troy has the upperhand in this matter. Rensselaer owes us money. At trial, Rensselaer cannot deny they took water, contract or not. Rensselaer obviously has at least 1.4 million on hand and is willing to pay this amount now or after a judgment.

Does anyone get the feeling that Rensselaer is jerking Tutunjian around? Despite the upperhand, Troy's mayor is looking weaker and weaker, running to the press and complaining. Take all deals off the table and just go to court. Various deals offered have been fair.

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