By KEITH GRANT
Hennessy was not alone as about two dozen residents called on city officials to find ways to cut back on spending. The proposed nine percent hike follows several years of zero to minimal property tax increases in Long Beach, and as many residents pointed out, hits at a time when Nassau County is proposing a nearly 20 percent property tax increase and school taxes are increasing at greater rates than in years past.
The comments followed a budget presentation by city manager Harold Porr. The single greatest factor fueling the tax increase, he said, is the steep rise in the cost of city employee health care benefits.
"There has been a steady increase [in health benefits] over the years, but this year we see a dramatic increase," Porr said. The increase is about $1.5 million more than last year, accounting for a 7.5 percent increase in the budget by itself.
Sanitation fees are also increasing for the first time in several years, and the city is paying for a new police contract that includes retiree buyouts and salary raises. The "Public Safety" portion of the city's budget, Porr said, is by far the largest portion of the proposed budget. The city's police, fire, auxiliary, traffic and animal control departments will cost the city $14 million, almost one-third of the total budget.
Elsewhere in the budget, "General Government Support" accounts for nearly 20 percent of the budget, or $8.5 million. This includes funds for several city departments, including the council, city manager, corporation counsel, public works, municipal building maintenance and a small contingency fund, according to Porr.
Another $5.5 million-about 12.5 percent-supports what Porr called "quality of life issues," such as the Recreation Department, Beach Park, day care, youth and family services and performing arts. Most of this cost, however, Porr said is paid for by the fees brought in by these departments and services.
Several residents suggested ways that the city should look to reduce its expenditures and lessen the proposed tax increase. Some said the city ought to be looking at refinancing its debt at lower interest rates, which it has done with some of its debt in recent years.
Hennessy offered a multi-step proposal to erase the tax increase: eliminate proposed salary increases for exempt city employees ($268,448 savings, he alleges); reduce the city manager's salary by $20,000, bringing it to the level of County Executive Tom Suozzi; reducing city council salaries to $14,000 from more than $19,000, which they were increased to two years ago; eliminate the proposed "assistant city manager" position that is listed in place of the director of operations post being vacated by Gene Cammarato, saving $86,100; switch the city's medical insurance provider to save $786,400; and impose a five percent cut across the board in all departments but police and fire, saving another $600,000 Hennessy believes.
Hennessy and other residents also asked the council to hold off on its budget vote until the final day of the month in order to review any possible ways of cutting the budget. The council is currently scheduled to vote on the budget next Tuesday, May 28.
In his response to questions of the health care costs, Porr said that certain levels of employee health care coverage are negotiated as part of the collective bargaining agreement. The city, therefore, could not change these insurance carriers until the next round of negotiations, he said.
Resident John White asked pointedly where the city manager was proposing cuts, to which Porr said he wasn't.
"There are no cuts," Porr said. "We provided for the same services next year that are there today."
Michael Mulhall, a financial consultant who ran on the Republican ticket for county legislature last fall, charged, "I think we can do better" than this proposal.
Since Sept. 11, Mulhall said, the public has dealt with personal loss. "We now come to realize there are significant economic consequences surrounding this event," he said. Mulhall praised the city manager's presentation, calling it first-class and professional, but suggested, "Given the current climate, we need to take a further look at this."
The tax increase comes on the heels of
a less than half-percent tax hike in 2000,
followed by a 2.72 percent increase a year ago.
"Hindsight is 20/20," Porr said, but had the city raised taxes a little more in the last few years it may not face such a steep spike in taxes this year, he believes. But, Porr said, "It's always easier to look back, not forward."
Porr also pointed out that the city's fund balance has "evaporated" over the last couple of years, something that he said should be corrected.
"We need to develop or create a fund balance," Porr said. Also, the city's contingency fund is a minuscule $200,000, he said, about $400,000 lower than he'd like to see it.
"I think it's important to start thinking about what's going to happen next year when we begin this year's budget."
