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A Few Clouds Long Beach to Skelos: Pass our bill!
City officials renew call for deficit financing to reduce taxes
Four months after state lawmakers killed a measure that would have allowed the city of Long Beach to issue up to $15 million in serial bonds to pay down a $10.25 million deficit over 10 years, city officials have renewed their call on Senate Majority Leader Dean Skelos to pass legislation in the hope of providing some relief for taxpayers.
On May 24, two days after the City Council adopted an $87.9 million budget for 2012-13, council members voted to submit a home rule request to the State Legislature seeking approval to issue the bonds. A 10-year payment plan, which included a 7.9 percent tax increase, was incorporated into the budget after city officials said they were given assurances that the legislation would pass.
The measure passed the Assembly, but the Republican-led Senate opted not to approve requests for such borrowing, saying that municipalities should focus more on cutting costs.
City officials say they are now forced to amend the budget by adding a 6.6 percent deficit-reduction surcharge for three years. The City Council was expected to vote on the measure, which would bring the total tax increase to 14.5 percent this year, at Wednesday’s meeting. It would raise taxes on the average home in the city, which has a value of just under $466,000, by $402, to $2,877.
If the Senate, however, passes the bill at its next legislative session in January — when residents will receive their second tax bill for the year — it would save them approximately $183 a year for three years, City Manager Jack Schnirman said.
“Now we’re back to the three-year [plan], because the 10-year doesn’t seem to be an option,” Schnirman said. “But we’re going to give the State Senate every amount of time to act. We’re calling on Skelos and the Senate to reconsider, and do what they’ve done for 43 other municipalities.
“What’s really important to point out is that what the City Council has to authorize this week doesn’t have to happen if the state acts,” Schnirman added. “We’re going to hold back from the tax bill as long as we can and give [the Senate] every opportunity to move forward. There’s ample time for them to do what they need to do and approve this routine measure.”
