The City of Long Beach has disclosed that it has uncovered $658,667 in unspent funds that were intended for community development programs between 2014 and 2018.
The federal funds come to the city through Nassau County, and are earmarked for such things as park improvements, roads and other city facilities.
The disclosure came at a recent City Council meeting, as the council was preparing to file for a new round of community development funds for the 48th year.
In the U.S., community development programs date back to the late 1960s, and are administered by the federal department of Housing and Urban Development. Funds from the federal government are distributed to local municipalities, and are used for housing and public- works projects and for expanding economic opportunities for low- and moderate-income residents.
The $658,667 was authorized by the county, but went unused. The City Council was unable to immediately explain why the money was not spent.
In an email to the Herald earlier this week, the city wrote, “This administration has uncovered $658,667 in unspent funds from the 41st through the 45th years of funding.”
In a statement earlier this week, City Manager Donna Gayden said, “We have worked diligently with Nassau County’s office of Community Development to identify funds unspent by previous administrations and ensure they are properly deployed to the benefit of our residents.
“As we restore the county’s confidence in our ability to effectively invest these funds,” Gayden continued, “we hope to see the allotment dedicated to Long Beach increase.”
Between 2014 and 2018 — the years the money went unspent — the city manager was Jack Schnirman.
In an unrelated matter, Long Beach in 2020 filed a $2.4 million lawsuit, alleging fraud, conspiracy and breach of duty, against Schnirman, who was then Nassau County comptroller, and Robert Agostisi, the city’s former acting city manager and counsel. The city alleged that the two had received overpayments when they left city employ. Schnirman repaid the city about $53,000. He was city manager from 2012 to 2018, when he was elected to the comptroller’s office. He did not seek re-election in November.
Attempts to reach Schnirman for comment were unsuccessful.
Of the disclosure at the City Council meeting, Councilman Roy Lester said, “Nobody was happy when they heard about it.”
James Hodge, a community activist and former board chairman of the Martin Luther King Center, said that repeated changes in city community development personnel had led to funds being unspent.
“As an advocate and a community representative,” Hodge said, “I ask that they do what needs to be done to fix this.”