(Editor's Note: The following is the Hicksville Water District's response to a report released by Nassau County Comptroller Howard Weitzman last month.)

The Board of Commissioners of the Hicksville Water District (HWD) wishes to clarify potential misconceptions regarding the funding and operation of said water district, in response to comments made in a report from Nassau County Comptroller Howard Weitzman.

The Hicksville Water District is ever vigilant in its mission of providing for a safe and abundant supply of potable water for our residents and taxpayers. "As residents of the District ourselves, we strive to provide services in the most efficient and cost effective manner, one that guards against overtaxing. The fact is our rates are below the national average, and for the 4th consecutive year, the HWD's conservative planning contained costs so that we did not have tax or rate increases," Hicksville Water District Commissioner Chairman Karl Schweitzer explained.

Funds are never accrued in the Hicksville Water District without design or purpose. In May 2003, the State of New York, Office of the State Comptroller Local Government Management Guide, Multi-Year Capital Plans made the following comment, "To ensure that the moneys are available when needed for capital purposes, local managers should consider establishing reserve funds."

HWD maintains capital reserve funds because they are dedicated for multiple purposes: Water treatment, planned repair, renovation and upgrading of district facilities and infrastructure, necessary additions and expansions, etc. Chairman Schweitzer notes, "With 48,000 customers, 15 wells, nearly 170 miles of water mains, 5 storage tanks, and 1,500 fire hydrants, projected repairs and day to day maintenance require both strategic advanced planning and funding. And then there is the need to be prepared for virtually any emergency or catastrophe."

The HWD has reviewed the recent report entitled, "Commissioner-Run Water Districts in Nassau County; 2007 Fund Balances" issued by the county comptroller dated Nov. 25, 2008. Commissioner Treasurer Nicholas Brigandi said, "We believe that this statistical analysis does not adequately review our capital plan or assess the needs of the people of our District. The implied allegation that the Board operates in a void or without supervision and communication is simply not true."

In actuality, the HWD Board submits proposed capital plans to the Town Boards of Oyster Bay and Hempstead every year. They review the current and proposed operating expenses, reserves and plans for those reserves. Commissioner Brigandi declares, "Any suggestion that we work outside of the town boards we report to, or that they do not exercise adequate oversight in the process, is ludicrous."

Further, the HWD adamantly rejects the suggestion that "unnecessary" accumulation of reserves has been the norm in Hicksville. The statistical analysis conducted does not reflect district needs in relation to operating budgets and reserves and is therefore meaningless without these considerations. Reserves and the need for capital reserves, have been clearly outlined by the New York State Office of the State Comptroller's Local Government Management Guide (April 2003) specifically stating,

"Legally established reserves can provide many benefits to municipalities and their citizens. Available moneys can be set aside to finance all or part of planned projects, thereby reducing the need to issue costly debt. Reserves can provide a degree of financial stability. In uncertain economic times, reserve funds may give managers options other than cutting services or raising taxes."

HWD's plans are of public record and include professional recommendations. The commissioners ensure that input from the district's engineering firm, an independent engineering firm, and its financial advisors are evaluated and articulated.

The plan calls for those budgetary appropriations set aside for capital projects, to be reduced in order to permit the budgetary appropriation to be shifted to pay long term debt payments that will be created by anticipated borrowing. In this way, the planned capital projects will not result in tax increases.

It could be argued that the HWD already has a plan in place to do what the county comptroller suggests. The district has found that its prior policies of funding capital projects through reserves and operating funds cannot meet its present needs. The district has always sought to avoid bonding so as not to burden the taxpayers with the associated interest and costs. The district has been forced to change that thought pattern by the capital needs of the district and water system.

Chairman Schweitzer noted, "We must make considerable improvements to our water system in the near future, and we assure all the members of our community that no one has imprudently amassed or set aside unnecessary reserves." This point is further backed by the NYS Office of the State Comptroller, Local Government and School Accountability, which states, "If adequate attention is not given to asset replacement and maintenance needs, what typically happens is that the local government operates in a crisis or emergency environment. This is not the most efficient or economical approach to replacing or preparing capita assets."

For more information, contact the Hicksville Water District's office at 4 Dean Street, Hicksville, NY 11801. Call 931-0184 or visit www.hicksvillewater.org.