A Chautauqua County legislator discovered an error on a resolution passed last year that authorized a loan to the Northern Chautauqua Water District. Because of this, the legislature authorized an emergency resolution to correct the issue.

Meanwhile, the county executive didn’t think the new resolution was necessary as an emergency measure.

During the recent county legislature meeting, lawmakers voted 18-1 to “authorize and empower the county executive to advance to the district on an ‘as needed’ basis up to $5.4 million.” The money has to be repaid by Dec. 31, along with interest.

Legislator Lisa Vanstrom, R-West Ellicott, voted no.

According to the resolution, the loan is needed “due to the delay in receipt of grant funds.” The county previously loaned the money to the water district and no new money is being loaned with this new resolution.

The revised legislation was sponsored by both Legislature Chairman Pierre Chagnon, R-Ellery, and Legislator Fred Larson, D-Jamestown.

In January, the state Comptroller’s Office criticized Chautauqua County regarding the water district.

The report found that from February 2016 to May 2023, officials spent $5.2 million from the general fund for district operations and did not repay the general fund, as required. “The district did not have sufficient funds; and did not thoroughly review budget-to-actual reports and did not prepare cash flow analyses,” the report stated.

During the legislature’s recent meeting, Legislator Fred Larson, D-Jamestown, cited the state comptroller’s report. “The comptroller’s bottom line was in order for the county to legally provide interim financing to this district, state law requires a legislature resolution for each year that the district gets or retains county money and that each legislature resolution only authorize the interim financing for the fiscal year the money was advanced,” he said.

Larson noted that according to the Comptroller’s report, the county had loaned the district money in 2017 and in 2022 without the legislature’s authorization.

He noted that ever since the state comptroller’s report became public in January, he began researching previous resolutions connected to the water district and came across the errors. “Resolution 205-23, dealing with interim financing for this district, gave the county executive the authority to advance a maximum of $4 million to the district and erroneously set December 31, 2024 as the repayment date instead of December 31, 2023. … The (new) resolution correctly states, this county has advanced over $5.2 million,” he said.

Larson said he didn’t view the error as intentional. “Tonight this legislature can easily fix a multi-million dollar mistake. No muss, no fuss, no partisan attacks,” he said before the vote took place.

The next day, a press release was issued by County Executive PJ Wendel’s office.

In it, it stated that “the emergency resolution to increase the amount the county can advance to the district, as adopted Wednesday night, did not rise to the level of urgency presented.”

The press release continued, “As stated in the adopted resolution itself, the overage was caused solely by the unexpected delays in the receipt of grant funding. Issuance of a Bond Anticipation Notes for the repayment of the amount advanced plus interest is scheduled for early December.”

“We have already been actively working on corrective actions to address the findings of the Comptroller’s audit,” Wendel stated in the press release. “The advance of funds has been crucial for the expansion of the North Chautauqua County Water District. This investment supports necessary capital improvements and ensures that the district can continue to operate effectively.”

Wendel also felt the revised resolution should have been reviewed in committee meetings first. “In order to maintain transparency with our continued unity of effort, it would have been constructive for this resolution to be brought up in committee, and include the North Chautauqua County Water District Board in those conversations,” Wendel said. “Addressing such matters at the local level would ensure that all relevant stakeholders are involved early in the process.”

After Wendel’s press release was issued, Larson took offense. “This county executive had authority to advance $4 million. That does not include interest. He had no authority to extend $5.2 million of our county general tax dollars to this district. … Why he can’t admit that the chair of the legislature and I were trying to simply make what he did legal, I don’t know,” he said in a phone interview.

Larson felt Wendel should have just thanked the legislature instead of issuing a press release the next day. “When someone helps you correct your mistake, the nice thing to do is to simply say thank you. … This administration is more afraid of embarrassment than they are of facing the challenges of running this county property and legally,” he said.

Even though Wendel had his issues with the revised resolution, it appears he will sign it. “Nevertheless, I am pleased with the approval and am excited to see the expansion and continued success of this vital water district,” he said.