City floats 2011-12 budget

Theofan says spending plan includes no tax increase, maintains services

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Long Beach City Manager Charles Theofan floated the 2011-12 budget on Tuesday, which is being touted as a spending plan that maintains services and includes no tax increases during tough economic times.

Theofan presented the $83.9 million budget — a $4.7 million increase over the current $79.2 million spending plan — to the City Council last Tuesday for review, and said that despite a rough economy “we have not only provided a proposed budget without a tax increase, but one that was achieved with no reduction in personnel and no cutbacks of city services.”

Theofan attributed most of the budget increase to contractual raises, as well as increases in payments to the state pension fund and rising medical insurance premiums, as well as a steep decline expected in mortgage taxes.

Theofan stated that the city would utilize a small portion of the city’s reserve fund to avert a tax increase, reducing the fund from $3.8 million to $2.8 million.

“In my professional opinion, a $2.8 million reserve fund leaves the City in a fiscally sound position moving forward,” he said in a statement.

“This administration is committed to ease the tax burden of families who are already trying to keep their heads above water. And with this budget, we once again come through to ease that burden.”

Although Theofan said the budget holds the line on taxes, he cited several challenges in the coming months, including ongoing labor negotiations with the police department and members of the paid fire department.

He said the city continues to reduce spending through consolidation and centralization across many departments while it seeks new revenues and alternative sources of funding for renovations to the recreation center and upgrades to the sewer treatment facility.

Theofan said the city’s property taxes account for only one-third of the average homeowner’s tax bill, while the remaining two-thirds of taxes are paid to the Long Beach School District and to Nassau County.

Last year, the current budget passed after the city council voted 3-2 for its approval. Under the current budget, the city’s property tax levy increased by 3.1 percent along with a property tax increase on the typical home in Long Beach ranging from $65 to $277.

A hearing on the proposed budget will take place at a regularly scheduled City Council meeting on Tuesday, May 17 with a second meeting set for May 24.

By law, the budget must be adopted by May 31. A copy of the proposal will be available at www.longbeachny.org and at the Long Beach Public Library on Thursday, April 21.

Check out next week’s issue of the Herald for expanded coverage.