A message from the Strategic Budget Advisory Committee.
There has been discussion of late in the public square about the Town of Cornwall’s current total debt level. Gaining a complete and accurate picture of the Town’s total debt and capital expenditure activity is a complex task – something that has recently engaged the Strategic Budget Advisory Committee (SBAC).
Public commentary has thus far focused upon one number – the Town’s total debt level of approximately $30 million. A singular focus on this one number, however, risks not understanding a bigger picture and, thereby, risks misinforming the general public. That bigger picture involves not just total debt, but such consequential issues as:
- strategic debt structure;
- debt and debt service capacity;
- governmental mandates regarding capital infrastructure improvements;
- external grant and subsidy incentives that support debt issuance; and
- capital improvement projects designed to benefit the overall community and enhance the quality of Town life.
Strategic Debt Structure
The totality of the Town’s debt consists of a strategically-structured portfolio of various debt instruments. This portfolio is made up of debt issues of various maturities and interest rates. It is structured to provide the Town with maximum flexibility in funding capital projects, while keeping debt service costs as affordable as possible.
As of this writing, the Town’s debt portfolio consists of:
- two long-term Environmental Facilities Corp. (an agency of New York State) bonds with maturities of 30 years;
- three municipal serial bonds with maturities of 8 years; and
- bond anticipation notes with maturities of 1 year.
The Environmental Facilities Corp. bonds were issued through the New York State agency that offers municipal governments attractive long-term financing for necessary improvements to their water and sewer infrastructure.
The municipal serial bonds provide longer-term financing for past capital projects.
The bond anticipation notes provide flexible, short-term financing for current and near-term capital projects, with the intent to refinance to longer-term bonds upon project completion.
The Town has been assisted in creating and managing this debt structure by advisors who specialize in municipal finance, and represent a firm that is a fiduciary – i.e. an entity that is required by law to give financial advice that is solely in the best interest of the client.
Debt and Debt Service Capacity
There are commonly-accepted metrics in municipal finance that assist in evaluating a Town’s financial ability to incur and service debt. These metrics primarily consist of the following financial statement ratios:
- debt to total revenues;
- debt to total liabilities;
- debt to net position;
- debt per capita;
- debt to the State’s statutory debt limit;
- operating cash flow to debt service; and
- net operating revenue to debt service.
These ratios will be constructed and evaluated upon the issuance of the Town’s 2025 audited financial statements.
Governmental Mandates Regarding Capital Infrastructure Improvements
The Town has been mandated to initiate capital-improvement projects, and thereby incur much of its current debt, through Consent Orders issued by the New York State Department of Environmental Conservation (DEC). In fact, all of the Environmental Facilities Corp. debt, and a portion of current short-term borrowings, have been mandated in this way. Failure to comply with DEC Consent Orders carries with it significant monetary fines. The Town effectively had no choice but to comply with these Orders and incur the related debt.
External Grant and Subsidy Incentives that Support Debt Issuance
The Town has successfully reduced the cost impact of its cumulative debt through the application and receipt of grants, that reduce the amount of debt required to complete capital projects, and through the receipt of subsidies, which reduce the cost of servicing its debt.
Capital Improvement Projects Designed to Benefit the Overall Community and Enhance the Quality of Town Life
An analysis of the Town’s debt cannot be divorced from the specific capital improvement projects that the debt has made possible. A number of capital projects have been undertaken in recent years that have been designed to provide wide-spread benefits to the community. They include:
- Laurel Crest Park improvements;
- Bridge Street bridge improvements;
- Continental Road, Taylor Road and Jackson Avenue culvert improvements;
- General sidewalk improvements;
- Firthcliffe, Firthcliffe Heights, and Beaver Dam sewer improvements;
- Hasbrook drainage improvements;
- general street lighting improvements.
The Committee will continue to consider all of these inter-related issues as it takes a comprehensive approach to assessing the Town’s current and future debt posture.
Where the Town’s Debt Is Allocated
As of December 31, 2025, the Town had approximately $30.15 million in outstanding bonds and bond anticipation notes (BANs). The chart illustrates how that debt is distributed among the General, Highway, Refuse, and Sewer funds, reflecting investments in essential infrastructure and capital improvement projects throughout the community.
General Fund Includes:
- Laurel Crest Park
- Street Lighting
- Historic Buildings
- Wayfinding NY Forward
- Riverlight Park – NY Forward
- Trucks and Equipment for Bldgs and Grounds
Highway Combined:
- Hasbrouck Drainage Program
- Taylor Rd. Culvert
- Curie Rd. Retaining Wall
- Jackson Ave Culvert
- Blvd. Bridge
- Sidewalks
- Bridge St.
- MS4 Mapping
- Trucks
- Equipment
Sewer
All Sewer districts
Refuse
Trucks and machinery
Sebastian Persico
Chair, SBAC
Please send any comments or questions to townclerk@cornwallny.gov