2012 Budget Proposal maintains services, holds line on taxes in two major funds

Petrone

Huntington, NY – Supervisor Frank P. Petrone today presented a proposed 2012 budget that cuts spending for the third consecutive year and holds the line on taxes in two of the three major funds while maintaining essential services despite a troubled economy and continued escalation of state-mandated costs.

The proposed $174 million operating budget represents a $10.3 million decrease from the 2011 budget. Additionally, the $10.1 million proposed capital budget represents an 18 percent decrease in spending from 2011, a year in which some capital projects were deferred and only $6.4 million in serial bonds were issued.

The only tax increase was proposed for the Highway Fund, the result of costs in 2011 due to the several major snowstorms and one tropical storm, Irene, that required plowing, street clearing, pothole repair and cutting and clearing of trees and debris from roadways and Town rights-of-way. This will result in a Highway Fund tax increase of approximately $12 per household.

“The challenge in developing Huntington’s 2012 Budget was to maintain services at a time when revenues are stagnant and fixed costs like employee pensions, health care and commodity and energy costs are increasing,” Supervisor Petrone noted in the budget summary. “The town’s economic health depends in part on municipal government providing services that create an environment that attracts and keeps businesses prospering and residents who want to continue to call Huntington their home. It is a daunting task, particularly for an administration committed to low taxes, and required setting priorities and making hard decisions.”

Among the key elements of the Supervisor’s 2012 proposal are:

• Maintaining all Town Services

• No wage increase for any Town employee

• A 10 percent employee contribution to health insurance costs, saving $1 million.

• Elimination of 10 vacant positions, saving $700,000.

• Reducing debt service by deferring certain capital projects

• Amortizing the increase in mandated pension costs, saving taxpayers $4.3 million in 2012

• Using $4.6 million of debt reserves to satisfy the remaining debt on the Resource Recovery Center

• The continued installation of energy efficient streetlights, that will save the Town approximately $400,000 annually that will be reinvested in the Town’s energy efficiency program

The wage freeze and health insurance contribution are the subject of ongoing discussions with labor unions representing Town employees. If the Town cannot obtain the necessary concessions from the unions, the Town will implement a layoff plan to achieve the budgeted savings of $1.044 million. The elimination of the 10 vacant positions will bring the Town’s authorized staffing to its lowest level since 1996. Additionally, elected officials and appointed officials will have their salaries frozen for the third consecutive year.

“Although the economy is showing signs of a slow recovery, finding ways to mitigate tax burdens on local residents must continue to be our priority,” Supervisor Petrone wrote in his message to the Town Board. “Huntington has been proactive in reducing expenses in a manner that maintains delivery of services, coupled with non-tax revenue enhancements that leverage existing assets to generate income through initiatives like the sale of advertising on HART buses and subscriptions to Advanced Geographic Information Services tools via the Internet.’

He added,  “While reducing overall costs, the Town remains committed to achieving its strategic goals. We are investing in information technology systems, including a redesigned website that will improve transparency, offer new on-line Town services and extend accessibility to the public.  The system upgrade began in 2011 and is scheduled for completion in 2012 and will increase the productivity of the Town as well.

“I pledge that Huntington will continue to see that our parks are maintained, our ball fields are ready for play, our Senior Center continues to serve healthy meals to a growing elderly population, and that our Division of Youth welcomes thousands of children with open arms to our award winning programs.  Likewise, Huntington will continue to invest millions of dollars annually in the maintenance and repair of our roads and drainage infrastructure and continue to provide the high level of municipal services on which our residents depend and expect.  Huntington will finish the projects currently in design or under construction, and will continuously reevaluate priorities and view potential projects through a cost-benefit lens intended to ensure that the impact of debt service on future operating budgets remains at its historically low current level.”

The Town Board scheduled a public hearing on the budget proposal for Oct. 11 at 6 p.m.

In other action, the Town Board:

– amended Town Code  to prohibit conversion of one-family dwellings to two-family, unless one of the units is owner-occupied.

– amended Town Code to make it a misdemeanor for anyone convicted of illegal use of recreational vehicles. The Board also scheduled an Oct. 11 public hearing on a proposed amendment to Town Code that would limit the operation of recreational vehicles on private property and the hours they could be operated within 200 feet of a dwelling.

– authorized the Supervisor to sign any necessary agreements involved in the revised plans to construct a Veterans Community Center in Northport and the apply to the Department of Housing and Urban Development for federal funds that might be available for the project.

– authorized the execution of a contract of sale and appropriated funding necessary for the acquisition of a one-acre portion of the Rohberg property in Ft. Salonga for use as passive parkland. The acquisition will also provide a small parking area to access trails into the Makamah Nature Preserve that adjoin the Jerome Ambro Memorial Wetlands Preserve and the Fuchs Pond Preserve. The estimated $350,000 cost of the acquisition will come from the EOSPA Reserve Fund.

– approved the sale of 0.26 sanitary flow credits from the Town Density Rights Bank to the Station Sports Family Fun Center being constructed on Depot Road in Huntington Station. The sale price is yet to be determined. The Town currently holds 10 unrestricted credits in the Density Rights Bank.

– designated Nov. 26 as Small Business Saturday in the Town Huntington.

– appointed Mark McAteer as chair of the Public Art Advisory Board, appointed Janine Seifert as a member and reappointed Ed McEvoy as a member.