Delays in funding from FEMA and the state has put the Town of Schoharie in a money crunch.
Citing the delays, town board members last month imposed a spending limit on purchases that can be made without consent of the board.
Since the flood after Hurricane Irene, the town has paid out more than $621,000, the town's bookkeeper said at the May 23 meeting.
The town has received $232,000 in funds from its insurance company and a total of $327,000 in funding. The town has about $75,000 in unrestricted funds and other money but the town, she said, is basically $167,000 "in the hole."
The problem is that there have been delays in FEMA funding because FEMA keeps changing contact people and paperwork is getting lost, Supervisor Gene Milone said.
Another issue is that document reprocessing has cost the town $240,000 and is only partially covered by insurance.
To keep a check on spending, board members last month agreed to have all purchases of more than $100 pre-approved by the board.
There is no problem in cash flow in the highway or outside town accounts but just in the general fund, officials said, and once payments come in from FEMA and the state, the problem will be resolved.
"We're holding our own," Mr. Milone said.
The town could borrow the funds needed from the highway fund but Mr. Milone said, "Let's hope it doesn't come to that."
The town hall and highway building were heavily damaged in the flood.
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In other action, board members:
• Heard that paperwork has been submitted to FEMA for repairs on the covered bridge. The funding looks good, said highway Superintendent Dan Weideman.
Councilman Richard Sherman said a group is being formed to promote that area of the town which also includes the Tory Tavern, the Easter Egg Museum, the Carrot Barn and other attractions. The bridge is fine for its current use but he suggested a ban on motorized traffic. The bridge is covered by the town's liability insurance.
• Heard that Scho-Wright has ordered a new ambulance for $147,000 and expect to get it in six months.
Members hope to finance as little as possible. There is $42,500 in the town budget for the ambulance.
• Heard that the fracking moratorium has been given to the town planning board.
Mr. Milone said he wants to expedite the issue as quickly as possible and resolve the matter in less than a year.
• Heard that Scho-Wright will not incorporate with Central Bridge fire and ambulance squads.
Mr. Milone said it would be in the best interest of the Central Bridge squad, which is also buying a new ambulance, to separate the fire and ambulance squads so that the ambulance squad can be able to "soft bill" patients through their health insurance to maximize funding.