Borrowing plan approved by council

The Glen Cove City Council voted unanimously on June 28 to approve its 2022 capital borrowing plan totaling nearly $5 million. The city will be reimbursed roughly $1.7 million in the form of federal, state and county grants for projects it undertakes.

Glen Cove will issue long-term bonds totaling $3.28 million and short-term bonds adding up to $1.67 million — $4.96 million in all. As part of long-term capital planning, each department presented its requirements for repairing and updating the city’s infrastructure — municipal buildings, residential streets, roadways, parks and beaches.

This year, the city also has access to American Rescue Plan Act funds, as a result of the coronavirus pandemic. This will allow it to do a little more without borrowing, including beautification at Glen Cove Creek, a new clubhouse for the Glen Cove Golf Course, and improvements at City Stadium Park and Morgan Park.

Councilwoman Marsha Silverman said that while she was happy that the borrowing plan passed, with interest rates rising, she would have liked to get things done sooner. “I’m disappointed that the borrow was delayed,” she said. “Last month it was on the agenda and it was tabled. I was against tabling it. We’re in a rising-interest-rate environment, and the longer we wait, now, when we borrow money, it’s more expensive.”

Silverman added that the city needed to borrow money tomaintain its infrastructure and needed services.

Mayor Pamela Panzenbeck and Councilwoman Danielle Fugazy Scagliola were also hesitant to table the borrowing plan last month. “The interest rates were rising, and we knew it at the time,” Fugazy Scagliola said.

“Our interest rate is higher now, and instead of using that money for programs, we’re using it for interest, because we delayed.”

Panzenbeck said she had wanted to get the plan done sooner. “We redid it to chop a million dollars to make people more comfortable with it,” she said.

But Councilman Kevin Maccarone supported tabling the plan, saying he believed it would ultimately save taxpayers money.

“We have high interest rates — and we also have to look ahead,” Maccarone said.

“When the economy is bad, our health care expenses go up a lot, and our pension contributions go up. If they go up in a bad market, 5 or 6 percent on a $6 or $7 million contribution amounts to a few hundred thousand dollars, and for every few hundred thousand dollars, our expenses go up, and we have to add that to taxpayers’ bills at the end of a year.”

Tabling the borrowing plan allowed it to be reduced. “We have a large elderly population, with retired people that are homeowners, living on a fixed income,” Maccarone said. “It’s easy to say all taxes are only going to go up, say 150 buck on your city tax, but for someone who’s on a fixed income, that $150 (is) two or three weeks’ worth of groceries.”

Fugazy Scagliola said she was happy about the way the funding would be divided. “You have to care about your first responders, your seniors,” she said, “and there are a lot of different, important pieces that have to go into this, and it has to be a balance.”

Fugazy Scagliola also said she was pleased that money was allocated to children’s programs and recreation, but also to the city stadium and golf course. “We’re going to put a substantial amount of money into the golf course, because it needs to be fixed,” she said. “I’m glad that the administration continues to look at it and look for ways to improve it.”

“In my lifetime, I don’t think there have been any major repairs,” Maccarone said of the golf course. “Since Covid, golf has become a much more popular sport. People want to be outside, looking for things to do.”