Greenburgh Taxpayers Deserve Answers on $29 Million in Delayed Capital Projects and Potential IRS Penalties

(Greenburgh, NY) — Barry McGoey, Democratic candidate for Greenburgh Town Supervisor, expressed deep concern over reports that approximately $29 million in Town bond-funded capital projects remain uncompleted and are now subject to an arbitrage compliance review.

McGoey questioned why the matter was identified and disclosed by the Town Comptroller—rather than by the Town Supervisor’s office—and said residents deserve a full explanation of how the situation developed.

“Taxpayers were told these projects were important enough to borrow millions of dollars to fund them,” said McGoey. “If projects remained unfinished for years while bond proceeds sat unused, residents deserve to know why and what the financial consequences may be.”

McGoey criticized Town Supervisor Paul Feiner for exposing the Town to potentially significant financial and regulatory risks.

“While the outcome of the arbitrage review remains to be seen, Greenburgh should never have been put in a position where federal compliance issues are now under review because projects were not completed as planned,” McGoey said. “As the Town’s 35-year chief administrator and chief fiscal officer, Supervisor Feiner bears responsibility for ensuring that borrowed funds are properly managed and that taxpayers are not exposed to avoidable risks.”

Tax-exempt municipal bonds allow local governments to borrow at lower interest rates, but federal regulations require bond proceeds to be spent on eligible projects within certain timeframes. When projects are delayed and funds remain unspent for extended periods, municipalities may be required to rebate excess investment earnings to the federal government, incur professional and legal compliance costs, enter into corrective agreements with the IRS, and/or face additional scrutiny from federal regulators. In serious cases, violations can jeopardize the tax-exempt status of bond issuances, potentially increasing borrowing costs and creating significant financial exposure for taxpayers.

“The fact that the Town had to hire outside specialists to determine the extent of its exposure shows how serious this situation has become,” McGoey added. “Greenburgh residents deserve a full accounting of what happened, what it may cost them, and why this wasn’t addressed sooner. When millions of dollars sit unspent for years, it raises serious questions about planning, oversight, and financial management in the Supervisor’s office.”

Barry McGoey is the Democratic Party-endorsed candidate for Greenburgh Town Supervisor and is challenging incumbent Paul Feiner in the June 23 Democratic primary election.