Long Beach's proposed 2020-21 budget calls for tightening of expenses and a tax increase

The City of Long Beach has seen the future, and it is not a pretty picture.

City Manager Donna Gayden late Monday night released Long Beach's proposed 2020--21 budget, which calls for a 2.87 decrease in the general fund, to $83.2 million. That translates to a 1.81 percent tax increase — the smallest in years. The tax increase will mean a $142.94 cent property tax increase to city homeowners per year. There will be no increase in water or sewer rates.

The City Manager is to present the proposed budget to the city council at a public hearing on May 5 and May 19.

Gayden said Long Beach ended fiscal 2019 with a general fund deficit of $6.6 million, the result of overestimates in revenues. "By this time next year, it is going to be worse," she said in a statement.

In her statement, Gayden said, "Just as the City did not get into this condition overnight, we will not be able to get out of it overnight either. Achieving fiscal solvency and rebuilding a General Fund Balance surplus will be a multi-year process. Accordingly, while this budget includes difficult workforce reductions, it also relies on borrowing in order to balance what I firmly believe are realistic budget projections. As proposed, this budget remains within the New York State tax cap."

At Tuesday night's City Council meeting, conducted online, Gayden noted that in previous years the city's budget was known as the "city manager's budget." But she said this year has been different because of the chaos caused by the coronavirus.

"But this year we worked with the city council," on the budget, Gayden said.

The city has already laid off 142 part-time, non-essential personnel. The proposed budget calls for a $2.9 million decrease in expenditures. The layoffs are projected to decrease salaries by $1.8 million,

Revenues are projected to decrease by roughly $5.1 million.

Gayden said the city will create a five-year plan to replace its general fund balance; develop month's financial reports and identify new sources of revenues.

Gayden said, " The city will continue with its efforts to enhance our resiliency, improve our infrastructure and increase our general quality of life, but the overarching priority over the next several years will be doing so while also streamlining and reimagining how the City provides these services. Getting the City back on sound financial footing will allow us to make the investments our community needs and deserves, resulting in a Long Beach we can all be proud of."

Gayden said she and council members were able to keep the proposed tax rate low by reducing revenues $5.1 million "to match what we've actually seen some come in over the last several years and expenditures were reduced by $2.9 million."

"This budget doesn't get Long Beach out of the hole it's in,' Gayden said. "It simply gets us to a place where we can begin moving in the right direction."

Asked if the city planned further layoffs, Gayden said, " We have had discussions with the City's unions. CSEA has offered concessions. The Paid Fire Fighters have made an offer that we need to analyze. The Police union has declined to offer concessions without negotiating a new contract. Meaningful concessions will need to be made by all in order to avoid finding ourselves in this same situation next year."

City Council president John Bendo, in response to an emailed question, said it will be "up to the state" as to whether the beaches will be open. He said the city will be preparing for the beaches to be open, but the ultimate decision will be the states.

Bendo said also the city council may ask the Garen City developer Engel Burman, the company planning to build condos and coops on the Superblock, to appear before the council just for informational purposes. The developer has received preliminary approval from the Nassau County Industrial Development Agency, which means only it may enter into discussions for tax breaks.