St. Lawrence County fined by the state

By MARTHA ELLEN
TIMES STAFF WRITER
SATURDAY, FEBRUARY 18, 2012
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CANTON — St. Lawrence County has asked state Sen. Patricia A. Ritchie, R-Heuvelton, to intercede on its behalf to have the state reduce or rescind a fine imposed on the county for being a day late in paying a pension bill.

“When they had cash flow issues, we did not charge them interest,” Administrator Karen M. St. Hilaire said. “We’re very rarely late in paying our bills. They are consistently late to pay us.”

The state told the county last week that it was being fined $1,272 for failing to make a $6.1 million payment Feb. 1 to the state retirement system.

County Treasurer Kevin M. Felt said he thought he might be a week late in paying the pension bill but that enough property taxes had come in by Feb. 2 for him to make the payment.

Last summer, the state owed the county about $15 million. It is currently in arrears by about $7 million, Ms. St. Hilaire said.

The county borrowed $8.5 million last year to cover cash flow shortages. It has a monthly payroll of around $3 million and wanted to hold off on the pension payment until it was sure it could pay essential items, she said.

“We are every day trying to find enough money in the till to pay bills,” Ms. St. Hilaire said.

Mr. Felt said payments to the pension system a few years ago averaged $1.5 million to $2 million, but the state has increased the cost to rebuild the fund that was hurt when the stock market dropped.

“Obviously, the whole state is in disarray,” he said.

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