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2025 Audit Show Ballooning Legal Fees; Public Authority’s Nanuet HQ Renovations Also Exceed Construction Estimates
A 2025 year-end financial audit of Rockland Green, along with a review of monthly minutes, and resolutions passed by its Board, reveals the taxpayer-supported public authority has grossly underestimated the costs of constructing a new animal shelter and renovating its Nanuet headquarters. Since June, Rockland Green has voted to approve nearly an additional $1 million in spending to cover costs for the shelter construction and added nearly $200,000 to the construction costs for its main office.
The authority has also grossly underbudgeted and overspent on legal fees to defend at least three lawsuits, including a court fight to keep secret documents related to its selection of O’Connor Company, the winning bidder for the animal shelter in West Haverstraw.
According to the 2025 audit, Rockland Green budgeted $3.185 million for legal fees, but spent $5,4 million — about $2.25 million over its budget. Under-budgeting and over-spending on legal fees is nothing new for Rockland Green. In 2024, it spent about a million dollars more than it budgeted. In 2023, it over-spent $1.4 million in legal fees beyond what it budgeted.
Legal fees were also spent prosecuting a breach of contract claim against Hi-Tor, the entity that operated the County animal shelter for 60 years, and defending a counterclaim brought by Hi-Tor against Rockland Green for terminating its contract and retaining Hi-Tor’s possessions. That suit settled in 2025 with Rockland Green paying Hi-Tor $50,000, while receiving a $150,000 payment from Hi-Tor’s insurance carrier.
Rockland Green also fought in court unsuccessfully to prevent an injured first responder from suing for permanent injuries he sustained stemming from a fire at Rockland Green’s West Haverstraw Transfer Station, where it allegedly mishandled toxic chemicals.
Auditors BS&T Co. CPA LLC of Latham, NY wrote in its “discussion and analysis” that Rockland Green’s financial statements presented “fairly, in all material respects, the financial position of the Authority as of December 31, 2025,” and “the changes in its financial position and cash flows” were in accordance “with accounting principles generally accepted in the United States of America.”
Animal Shelter Cost Overruns
In less than one year, Rockland Green has authorized increases of nearly $1 million in “change orders” to cover increased or unexpected costs related to construction of its new animal shelter on Ecology Road in West Haverstraw. In Dec. 2024, Rockland Green awarded the $14,774,900 construction contract to O’Connor Company, a North Carolina contractor that had never built an animal shelter. O’Connor was not the low bidder and was chosen over several local contractors, including at least a few with animal shelter experience.
The $14.774 million contract with O’Connor has ballooned by $940,000 to $15.714 million, a 6.4 percent increase.
(RCBJ has sued Rockland Green over its refusal to comply with FOIL and produce unredacted copies of the bids and documents supporting its decision to choose O’Connor.)
Rockland Green purchased a vacant 14,000 square-foot warehouse on Ecology Road in West Haverstraw for $3.8 million with plans for convert it into a 28,000 square-foot shelter.
The $14.774 million contract with O’Connor has ballooned by $940,000 to $15.714 million, a 6.4 percent increase. The change orders vary widely in substance from upgrades to the electrical systems, HVAC systems, revisions to the drainage systems and foundation, and changes to the water and fire mains.
Rockland Green Headquarters Cost Overuns
The cost of the contract for renovations of Rockland Green’s headquarters building at 172 Main Street has also increased with change orders related to water supply lines, waste lines, waterproofing, plumbing and power circuits. The project includes a new first-floor lobby, an ADA-compliant entrance ramp, exterior brick facade painting, a new emergency exit ramp, a digital sign, an emergency generator, new interior finishes (flooring, walls, ceilings), and a kitchenette.
The contract increased from $4.3 million to $4,559,848, costing taxpayers an additional $250,000.
Rockland Green is no stranger to change orders. Its Materials Recovery Facility (MRF) in Hillburn required more than 175 “change orders” or increases to the bottom line. Change orders increased some contracts by 15 percent or more, and in one case by over $1 million.
Animal Management Charges
Taxpayer contributions to run the former Hi Tor shelter that Rockland Green took over also continue to rise by larger-than-expected increments. The “unit charges” for animal management – the amount collected through taxes — for 2025 was $2,067,000, an increase of $418,600, or 25.4 percent over 2024’s $1,648,400. The unit charges do not include repayment of interest or principal on the bond issued to finance construction of the shelter.
The bond is a 30-year “Special Obligation Bond” with a face value of $18 million that carries a 5.5 percent interest rate for about $9 million of the issue, and 6.25 percent for $9 million that matures in 2049 and 2054. According to the audit, interest and principal payments on the bond start in 2026.
According to the bond offering, Rockland Green expects a 5 percent annual increase in the shelter’s operating expenses but the costs of running and staffing the 28,000 square-foot facility will likely exceed those projections.
Debt & Cash Reserves
The audit shows Rockland Green has about $55 million in debt, stemming from the $18 million Special Obligation Bond related to the animal shelter, $27.44 million from the MRF, and about $1.8 million refinanced from earlier obligations. The Authority also carried on its books about $7.2 million in “unamortized bond premium” which represents the amount received in excess of the face value of the bonds. Bond premium stems from a issuer paying a higher than market interest rate on its bonds.
In restricted accounts, Rockland Green held $18.245 million reserved for construction projects, and about $5.6 million reserved to pay interest on the debt and as a fund set aside in the event of a default. In unrestricted assets, it held about $24 million in government money market funds and similar investment vehicles. Interest from these assets has been adequate to cover debt service on Rockland Green’s debt in 2025.
Additionally, Rockland Green carried on its books about $9.3 million in “deferred outflows” representing the excess of the purchase price of an asset over its fair value. Under accounting standards, the deferred outflow — the excess purchase price — has to amortized over time and reported as a deferred outflow. The audit does not specify which assets were included in that calculation.
Rockland Green’s operating budget for 2025 was $90.2 million, down from $92.9 million in 2024.
