Ramapo Fails to Repay $2m Borrowed from Workers’ Compensation Fund—Also Defaults on $500k transferred from Ambulance and Lighting Districts

December 31, 2011 Back in September, apparently under cash-flow pressures, St. Lawrence and his board borrowed $2.5 million, most of it from the Workers’ Compensation Fund, most of it ($2m) going to bail out the Town’s General Fund. Today it was reported St. Lawrence said they will not meet the payback deadline, nor did he offer any assurance about repayment. He simply said they would revise the resolution that originally ordered the transfers.

On September 14, 2011, Resolution 2011-545 was read to the Board:
"The Supervisor has requested authorization to make the following budget loans:

1) $400,000 from the Lighting District to A Fund (without interest)

2) $100,000 from Ambulance District to Highway DB account (with interest)

3) $2,000,000 from Workers’ Compensation Fund to General Fund (with interest)

NOW, THEREFORE, BE IT RESOLVED by the Town Board of the Town of Ramapo that it hereby authorizes the above budget loans, said loans to be paid back prior to December 31, 2011, with interest where required." (emphasis added)

The resolution was moved by Pat Withers and seconded by Itzy Ullman. All board members and the Supervisor voted for the resolution.

December 30, 2011
On the regular Friday morning segment on WRCR, Supervisor St. Lawrence was asked the following questions by community activist Robert Romanowski:

Concerning the Resolution (2011-545)—

1) Have your repaid the loans?

2) When did you repay the loans?

3) How was the Town able to afford repaying the loans?

St. Lawrence responded "No" to the first question, and there were no specifics on when, or even if these debts are going to be repaid--just that the Resolution will be revised.

This invites a larger group of serious questions. Will these funds ever be repaid? Where will the $2.5 million come from? Is it legal to rewrite the terms of the obligation outlined in this resolution? If so, then what meaning is there to any of the Resolutions drafted and approved by this group? What is the cash-flow situation at Town right now?

And, ultimately, this kind of thing makes you ask, what kind of government do we have operating at Ramapo Town Hall?

Michael Castelluccio
Preserve Ramapo
www.PreserveRamapo.org 　

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