Long Beach City Council gives $79M budget three thumbs-up

After some heated words were exchanged, the Long Beach City Council on Tuesday passed the city's proposed $79.2 million budget, which for typical homeowners will mean a property tax increase ranging from $64 to $277.

The budget is expected to raise the city's property tax levy by 3.1 percent, and the projected tax rate increase for the average homeowner is between 1.9 and 3.6 percent, depending on the state Legislature, "which has failed to act in a timely manner," City Manager Charles Theofan said.

Theofan explained that the rate increase will depend on whether the Legislature continues shifting taxes from commercial to residential property owners, and he estimated that the property tax increase would average $64 for a West End bungalow, $110 for a two-family home in the middle of town and $277 for waterfront homes and condos.

"This is a budget that maintains the present level of services," Theofan said, "but it's also a budget that reflects the lowest increase in expenditures between two fiscal years, so that this coming fiscal year we'll spend a mere 1.12 percent more than the previous year."

The budget features many cuts, particularly in overtime, he said, and department heads must do more with less.

Before the vote, however, Democrats Mike Fagen and Len Torres, who ultimately voted against the budget, handed Theofan and their fellow council members an amendment that suggested potential cost savings, including eliminating the Police Department's Marine Bureau and wage and grade increases for city employees.

"I consider this budget so flawed that we have to consider it a false budget that will endanger the fiscal safety of the city," Fagen said.

He explained that, since Long Beach waters are already patrolled by the Town of Hempstead, Nassau County and the U.S. Coast Guard, eliminating the Marine Bureau and reassigning its officers to patrol duties, and reducing the number of new police hires from six to three, along with other proposals for the Police Department, would help cut overtime costs and save the city some $400,000.

Theofan said that both the town and county have and will continue to cut units that patrol Long Beach waters, and that the LBPD's boats will be used less this year.

"Why are we exempt from that mindset?" Fagen asked, referring to the county and town's cutbacks.

Council President Tom Sofield replied, "Because we don't think we should cut services."

Fagen and Torres pointed to last year's financial statistics, which showed that the city brought in $67 million but spent $77 million, and insisted that the city has to cut spending.

Referring to areas in which the budget shows cuts, such as police overtime — to $450,000 from more than $1 million spent in recent years — Fagen argued that events like the fireworks show in July will likely require hundreds of thousands of dollars of overtime money. "What they're trying to do is present a streamlined budget, to look like there are cutbacks, but then they're just going to go over it," he said. "And that's going to put them in a deficit position, maybe by Labor Day, and the only way they're going to be able to plug those holes is by raising more taxes or bonding."

The Democrats' amendment also calls for wage and grade freezes for certain department heads. The budget includes an increase in salary for the director of transportation from $51,956 to $63,763, and an increase for the director of publicity from $53,798 to $63,044.

Theofan said that representatives of the Federal Transit Administration were in Long Beach last Friday for a three-year evaluation of the city's bus system. They gave it a nearly perfect grade, he said, and the FTA will reimburse the city for half of the director's salary. "So even though he's getting a raise, that's going to be a net savings to the city," Theofan said.

Theofan, Councilman John McLaughlin and council Vice President Mona Goodman said they had not seen the Democrats' amendment until Tuesday, and thought it was too late to act on any of its proposals. The council voted 3-2 not to adopt the amendment.

"Here we are in the 11th hour, and you've proposed amendments that are, at best, political rhetoric," Goodman said.

Resident Al Symons questioned the budgeting for the Beach Maintenance department. In the current spending plan, the department budgeted $50,000 for overtime, but as of April 12 it had spent approximately $300,000. In the new budget, Beach Maintenance requested $450,000 for overtime, but the city proposed $150,000.

"A department that cannot keep its overtime under control, within reason of what they're allowed, should be punished, not rewarded," Symons said. "... Beach Maintenance has run amok. They seem to have champagne taste and a beer wallet."

Sofield explained that in addition to Beach Maintenance's responsibilities on the beach, the department also worked on reconfiguring the beach entrances in the West End, installed new showers at Riverside Beach, repaired buildings at the police and recreation departments and put up holiday lights around town.

"The city asked them to do that," Sofield said. "If you looked at the cost to have someone from outside do those things, there's actually a savings." He added that overtime pay is reduced in this year's budget because many of those projects won't be needed.

Resident Karen Adamo picked up on the overtime theme, questioning the department heads' management efficiency and Beach Maintenance's extra projects. "They're not in the budget, so unless they're absolutely necessary, why is it OK for you to say 'do it' and give them carte blanche?" Adamo asked.

Sofield countered that those extra projects were necessary. "Rain coming through the ceiling of the police department ... is not an optional repair," he said. Adamo said that installing showers on the beach were unnecessary, but Sofield disagreed.

Adamo also asked why the city needs to increase the sanitation fee nearly 50 percent. To balance the sanitation budget, Sofield replied.

Sofield said that the general fund surplus is over $3 million. When Fagen asked why, given that surplus, the budget proposes a tax increase, Sofield replied that it is being kept as a rainy-day fund. "You need to save this money in case things get even worse," he said.

Comments about this story? JKellard@liherald.com or (516) 569-4000 ext. 213.