BY JEFF CHUDZINSKINorth Country This Week

MASSENA -- The Massena Town Council will likely bond to cover $5 million in trailing liabilities from the 2020 sale of the former Massena Memorial Hospital.

Board members approved an action that allows the town to bond for up to $5 million to cover the remaining pension liability, which has continued to plague the town with high interest rates.

The "home rule for state legislation" that was authorized by board members will now go before the state legislature, which could take four to five months to pass, according to Bellor.

Bellor said the town has few options aside from bonding to cover the debt due to the high interest rates on the existing debt.

“The existing debt and interest rate make it nearly impossible to pay down without bonding,” she said.

Despite passing a balanced budget for 2024 that did not exceed the tax cap, Bellor said the town has no fund balance to speak of due to the pension liability.

According to Bellor, anytime the town had a positive balance in the fund balance those funds were used to pay down the debt.

A settlement with St. Lawrence-Lewis BOCES for $1.6 million in relation to a long standing lawsuit over health insurance payments to Massena Memorial Hospital was also received last year but after lawyer fees and infrastructure repairs, those funds would barely make a dent, she said.

Board members previously attempted to bond to cover the pension contributions last May, however Town Attorney Eric Gustafson said the town was not at that point yet.

Gustafson said that the request for the state legislature to authorize the bond would significantly improve the town's capacity to borrow.

Attempts last year to pass a similar measure at the state level failed due to downstate representatives' votes to deny the move, saying other municipalities owed far more than Massena and should be able to bond to cover their debts. Bellor said information was relayed to town board members last year regarding the denial that suggested downstate officials felt the town should be able to pay off the existing debts without bonding to cover the trailing liabilities.

According to Gustafson, the town is able to bond for the outstanding liabilities, however if the legislature signs off on the home rule for state legislation, it would allow the town to borrow the $5 million and pay it back over a period of about 30 years.

Senator Dan Stec, who has played a large role in assisting Massena through the process over the last two years is continuing to lead the charge this year. 

“Senator Stec has been a tremendous help and will bring the resolution to the Senate again. Hopefully it will go through this time,” she said. 

That move would give the town more flexibility in borrowing in the future in the event of an emergency, Bellor said.

Though he is hopeful, Gustafson said the town needs to be ready to bond if the state fails to take action or denies the request.