OWASCO - Owasco residents in beleaguered Sewer District No. 1 can breathe easier now that costs for that project will be halved. The town board has learned of additional grant money from the Federal Stimulus package now earmarked for the sewerline's restoration.

Town Supervisor John Klink said at Thursday afternoon's town board meeting that he had received a call last Friday from the Environmental Facilities Corporation informing the town that instead of a $412,000 grant the town expected to apply toward its $1,569,000 sewerline project, it would get twice as much - $825,000.

“That grant cuts the total in half,” Klink said, “with a very low interest loan on the remainder. Folks in Sewer District No. 1's costs will drop dramatically.”

Good news also came from state Sen. David Valesky's office Wednesday when Meghan Patterson, Valesky's director of constituent services, called with more money for a grant to update the town's water meter reading system. A $4,000 grant for the update from Assemblyman Brian Kolb last year is still good and $75,000 more is on its way. Klink said the town can apply for another $4,000, which would bring in a total of about $83,000 for the $225,000 system.

“You're in better shape than last year,” Rich Ward of Cuddy & Ward auditors, said in reviewing the town's annual audit. “Things have improved dramatically from three years ago, which was one of the worst audits I've gone through.”

Ward's report was much shorter than last year, with only two comments for improvement: preparation of financial statements and improvement needed in documenting travel expenses to New York City.

“There's a new regulation,” Ward said. “If an organization doesn't prepare its own financial statement, that's considered a weakness, but unless you had a CPA on your staff, it's difficult. I wouldn't be too concerned about it.”

The $300 per person advanced to individuals attending conferences in New York City is a town expense which should be documented with receipts at the end of the trip. Ward said this could be easily corrected.

He also suggested the town follow new Governmental Accounting Standards Board (GASB 34) guidelines, more commonly applied to the private sector. Non-compliance could result in higher interest on long-term debts and challenges in securing bonds.

Klink asked Ward to grade the town's performance. When Ward came up with a B+, Klink said, “I'll take it.”

In other news:

• John Klink and Joseph Wasileski were appointed to represent the town on the Owasco Lake Watershed Inspection Committee.

• The board approved the highway supervisor's delivery of several truckloads of mulch to Everest Park for a walking trail at the facility, available for the entire Owasco community.

• The board called for a May 14 public hearing on Local Law No. 2, 2009, to correct the table of dimensional requirements on side setbacks. It will take place at 7 p.m. at the town hall at 2 Bristol Ave.

• Another public hearing at 7 p.m. on May 14 will take place at the town hall on Local Law No. 3, 2009 to correct Local Law No. 1, 2007, on a date correction from 1985 to 1995.

• A workshop on considering a noise ordinance will be held from 3 to 4:30 p.m. on Tuesday, April 14 at the town hall.

Staff writer Kathleen Barran can be reached at 253-5311 ext.238 or kathleen.barran@lee.net