Updated: Northport Approves 5.92% Budget Increase

Declare bankruptcy. Cut staff. Cut salaries. Unincorporate. Lessen the fund balance. Lessen the fire department’s fund balance. Eliminate special events.

These were some of the suggestions by community members to the Board of Trustees Tuesday during a public hearing for the tentative budget that was released Dec. 22.

In the end, the board made no changes before unanimously approving the $12.66 million budget for the 2011-12 fiscal year that begins March 1.  It will result in an increase in the property tax rate of 5.92%. That translates to about $122 more for the average home assessed at $4,000.

“It’s always difficult to balance my desire to keep taxes as low as possible but still be fiscally responsible,” Mayor George Doll said prior to commencement of the hearing.

He noted that the board and village staff began methodically working on the budget many months ago under the direction of Finance Commissioner and Deputy Mayor Henry Tobin and that the departmental spending amounts have all been kept at the same level as last year or lower.

“Unfortunately, health insurance and New York State pension contributions have increased severely, and our obligation to this increase represents at least 2.5 of this budget.”

He noted that public safety has long been the biggest consumer of tax dollars, “but now the costs of employee benefits has surpassed even that.”

The budget will increase by $333,910, from $12,329,989 this year to $12,663,899 next year. The property tax levy will increase by 6.56%, or $667,300, going up from $9,181,760 this year to $9,849,060 next.

The biggest portion of the budget, or 24.41 percent, will go to the costs of employee benefits, including health insurance and retirement pensions. That figure increased from $2,407,306 this year to $3,010,077 next, which is a 25% increase or $602,771.

The portion of the budget for public safety, which includes police, building inspection, traffic control and dispatcher salaries, is 24.45. That figure went from $2,891,948 to $3,096,397, which reflects an increase of 7 percent or $204,449.

Residents at the meeting expressed their frustration with continued tax increases.

“As an incorporated village, why can’t we go in to bankruptcy protection and force them to renegotiate their contracts?” asked village resident Tom DeMaio, who said his village taxes alone are more than $7,000.

Trustee Tom Kehoe said it’s questionable whether municipalities can file bankruptcy and whether it would be valid anyway. “And our finances are not in the position where we have to file bankruptcy. We’re not a destitute village,” Trustee Tom Kehoe said.

“As long as you keep passing on the expenses,” DeMaio said.

Kehoe asked him what he would do in the board’s position.

DeMaio said he would renegotiate with the unions. “And you don’t negotiate with your back to the wall,” DeMaio said.

“We did renegotiate the police contract and got two zeroes," Kehoe said. "Zero increase this year and next. And the Local 342 contract, which incorporates almost all of our highway and street workers, is on the table. Right now it’s being negotiated. We’re playing hardball in contract negotiations and in any area we do have control.”

Village Treasurer Elissa T. Iannicello said she disagreed with the tactic of declaring bankruptcy.

“You’re asking for the village to be fiscally irresponsible. What the village has been doing is financially responsible by maintaining credit balancing expenses and revenue and what you’re suggesting is ruining their credit rating.”

DeMaio also directed a question to Northport Village Police Chief Rick Bruckenthal, who was at the meeting to give his department’s regular report, regarding whether he would be willing to take a 5 percent pay cut as new Governor Andrew Cuomo announced he will do.

Bruckenthal said that he has not had a pay increase since at least 2004.

“You’re making more than the governor,” DeMaio said.

“I don’t believe that I am,” Bruckenthal said.

Governor Andrew Cuomo’s salary is $179,500. The pay cut will reduce his salary to just over $170,000. Northport Patch will update this article when Bruckenthal's current salary is verified. (A previous version of this article stated his salary was just over $160,000. Northport Patch now believes that's incorrect.)

Trustee Kehoe interrupted the exchange saying that isn’t a proper way to negotiate.

Mayor Doll said he would talk to Bruckenthal about that issue later.

Resident Dave Owen asked about a fire department emergency fund balance that is over $880,000.

“Are we expecting a total complete disaster?” he asked.

Tobin said that account is not funded by taxes. “That’s the building and emergency equipment fund,” Tobin said. “It’s the money that comes from Huntington and Asharoken for the fire districts. That can be used to pay off bonds for the firehouse. We are looking to buy a new ambulance to replace an aging one. Those expenses will come out of this.”

Owen asked why the budget includes a transfer out of the general fund to that fund of $76,000.

“You’re still going to transfer that, even though you have $880,000 in there? We’re trying to save a little bit of money here and $76,000 is not chicken feed. Can you tell me why you can’t reduce the taxes for $76,000?”

Tobin said that money was intended for an expenditure in the 2010 budget but had not yet been spent.

Iannicello said that the amount of that fund is actually closer to $600,000 currently because two debt service payments had been made since November.  

In any case, she said, if that $76,000 is not spent on the item for which it was budgeted, it should go to the department’s unreserved, undesignated fund balance not back in to the general fund.

Resident John Green said that if the town and school and county only have a 1.6 percent increase, he thinks the village has to do more in the way of spending. And, he added, the governor has said he wants a 2% increase in municipal budgets limits. “That’s a lot less than 5.92 percent,” he said.

“There are a lot of people really hurting and to add even just a couple hundred is just too much,” he said.

Mayor George Doll noted that it is ironic that Cuomo set 2 percent as a benchmark limit when 2.5 percent of the budget is going toward state-mandated items.

Green said that he has real concerns because the payments for pensions are just going to continue to escalate. “With no really end in sight,” he said. “Total assets in state pension fund are less than the projected liability by a significant number. So I think going forward, we have to plan for this and it has to be a larger portion of the budget.”

Tobin told him that the board’s hands are somewhat tied and they eliminated all they could. “In these times we know even a small increase is too much,” he said. “But we didn't replace someone who retired in highway; we eliminated seasonal workers and parks started to look shabby. We have looked at things you've suggested they aren't things we can really use.”

Green said that because of the costs associated with employees, residents are already sacrificing. He noted that capital outlays are the smallest portion of the budget. “By far,” he said.

The equipment and capital outlay accounts for 1% of the budget or $125,700.

“The roads in this town need renovation, upgrade, redesign and so on and so forth. I don’t see anything in this budget to deal with roads. The sewer pumping system needs a major renovation. We really have no choice. Services have to be cut.”

Kehoe asked him where he would cut.

He said he would go back to each department and cut personnel and sell assets.

Tobin said selling assets “is not something we can do or should do to meet budget requirements because it’s a one-time revenue and then distorts future budgets because we don’t have that recurring revenue.”

Former Mayor Pete Panarites, village resident and owner of the Sweet Shop on Main Street, said that he feels that the budget is unsustainable going forward as well and he, too, sees either 'unincorporation' or bankruptcy in the village’s future.

“I regret having to say that because I’ve lived here my whole life,” he said but added that cutting staff is not cut and dry. “The contractual limitations make it very difficult to cut a person, especially in the police department.”

Former Trustee Arlene Handel said she felt the village has been too generous for too long. She noted the low fees charged for the use of village parks and docks.

“I don't want us to ever be in position of profit making on the back of our parks but I do think there are some fees that could be instituted,” she said. “For instance, people love to get married in our parks. I know in some communities the fees can got from $100 to a couple of thousand dollars for the use of public space and its not unreasonable to have a reasonable fee for the use of the wedding. There is sometimes damage done to the parks from cars and villagers can't use parks while the wedding is going on.”

The mayor said the current fee is $100, which Handel said was reasonable.

She said that she is aware the village is increasing dock fees but that is only instituted at night.

Trustee Damon McMullen, also parks commissioner, said that the season has been extended. Docking will be allowed on weekends beginning in early May this year.

Handel said she has real concerns regarding the almost $800,000 bill for garbage collection and tipping fees.

“I think you should continue one recycling day but I think you should look at how it breaks down between residential and commercial,” she said. “Do you have figures on what we provide for businesses?”

Doll said that the village’s tipping fees could be much less if residents and businesses would recycle more. A lot of people just put garbage and bottles and cans in garbage and they weigh more,” he said.

Tobin noted that approximately 1/3 of village residents don’t recycle at all, according to highway department estimates.

Kehoe said he had noted most businesses on the north side of route 25A seem to use the regular garbage collection. “I have been doing some work on this, and I am agreeing with you,” he said. “My business is on the East Northport side of 25A and I pay $500 per month for carting service. “

Handel also asked the board to look in to how much is spent on special events in the community in terms of police overtime, which will decrease from this year to next, going from $251,157 to $251,097.

The amounts are:

• Memorial Day Parade: $1,193
• Northport High School PTSA Pre-Prom Party:  $1,462
• Northport Fire Department’s annual fair: $11,475
• Tuesday Family Fun Nights: $10,699
• Cow Harbor Day weekend: $17,486
• Pearl Harbor Day: $280
• Visiting Nurse Service Run: $360
• Fall Festival: $125
• Visiting Nurse Service Tree Lighting: $564
• The Northport Village Tree Lighting: $1,206

“That’s a considerable amount of money,” Doll said of the $44,850 total.

Handel agreed. “And obviously there are things that happen in our village that are important to the character and quality of the village, like cow Harbor Day. I would always say we can afford Cow Harbor Day unless it’s making money and therefore the organizers can pay."

But, she said she had heard that some businesses are doing very well on Family Fun Nights and that taxpayers shouldn’t have to pay for it.

“I cannot honestly say that $11,000 for Tuesday nights is a cost we should be bearing,” she said. “Many residents love those nights but there are some who wouldn’t go anywhere near Main Street at those times. I think this board is irresponsible in approving overtime on things that add to the village but aren’t necessary. Things are only going to get tougher and tougher. These things may seem little to you individually, but this would translate to park employees. I think you're more generous than you should be with taxpayer money; I haven't even gone into highway overtime; it might be small amounts but it goes to money that could be used for sidewalks and roads.”

"I certainly want our busineses to thrive and would hate for my comments to seem counter to that; but you guys are here to make hard choices and they're are only going to get harder."