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John J. Mills - District 13 July 19, 2007 LEGISLATOR MILLS STOPS ADMINISTRATION FROM RAIDING CAPITAL RESERVES OF SEWER DISTRICT 3 (County Hall – Buffalo, New York) County Executive Joel Giambra has requested that the Erie County Legislature lend money from the Sewer District 3 capital reserves to fund construction of a sanitary sewer to connect the soon to be constructed Frank Lloyd Wright Rowing Boathouse to the City of Buffalo's sewer system. The Boathouse, located on Buffalo's West Side, does not lie within Sewer District 3's service area. Sewer District 3 services parts of Orchard Park, Hamburg, Elma, Holland, Blasdell, Boston, and West Seneca and is funded by the ratepayers of those towns and villages. The resolution submitted by the County Executive did not provide any insight into the terms of repayment or the specifics of the loan. Erie County Legislature Minority Leader John J. Mills said "Sewer District 3 is not a bank. We are in the business of sewer management. We are not in the business of lending ratepayer money to private organizations." Legislator John Mills also serves as the Chairman of the Board of Managers for Sewer District 3 and he was adamantly opposed to this loan. He said "Sewer District 3 has a strong capital reserve account because it has been managed well. The customers of Sewer District 3, who are also my constituents, need to know that they can rely on those reserves when they are needed in the future." Sewer districts often use their reserves to fund repairs, pay for new pumping stations, purchase new pumps and equipment, and provide for expansion when it is necessary. Legislator Mills said "I don't want to see the customers of Sewer District 3 in a situation where they need an improvement to their infrastructure, but cannot afford it without borrowing. This is their money." Legislator Mills made his objections to this item very clear the morning it was expected to be voted on (July 12, 2007). In the morning Majority Caucus meeting, Mills told his colleagues that providing financing to a not-for-profit organization by raiding a sewer district's reserve account was "extremely inappropriate, and potentially illegal." Legislator Mills' colleagues seemed to agree, and asked the Department of Environment and Planning staff to meet with officials from the Budget Office to find another source for the funding. Later in the day, they were successful in doing so. "This was a sneaky attempt at grabbing a pot of money, and it was thwarted. The ratepayers of Sewer District 3 need to know that their sewer system is financially secure," said Legislator Mills. Back to District 13 Homepage