CLICK HERE TO SEE 2008 TENTATIVE BUDGET
OCTOBER 1, 2007, FARMINGVILLE, NEW YORK - Brookhaven Town Supervisor Brian X. Foley today unveiled his 2008 tentative budget that freezes taxes and keeps the town’s spending increase at a level less than the rate of inflation, yet increases services for town residents in critical areas.
Supervisor Brian X. Foley, center, announced at a press conference Monday that his proposed 2008 Brookhaven Town budget freezes taxes and increases spending at less than the rate of inflation. At left is Highway Superintendent John Rouse; at right is Town Councilman Steve Fiore-Rosenfeld.
“The Town’s finances have completed their journey on the road to recovery,” said Supervisor Foley. “Deficits have been eliminated, spending has been controlled and a stable and sustainable tax rate has been frozen. We are on the ‘Path of Progress.’
“In the 2008 tentative budget we have made the tough choices necessary to put us on a new path, a Path of Progress where we find realistic and responsible ways to fund our reforms while controlling spending, resulting in a budget with spending that is below the rate of inflation.
“The 2008 tentative budget is a budget to be proud of. It not only embodies this administration’s philosophy of governing, it reflects the very real needs of each of the six Council Districts and advances their priorities in both operating and capital budgets.”
Supervisor Foley pointed out that his 2008 budget proposal brings spending under control and stabilizes the town tax rate at a level below that in 2003. The General Fund surplus is healthy due to spending controls and conservative revenue forecasting.
“It is a wonderful day when, as an elected official, you can 'show your work' and it amounts to a freeze on town general fund taxes,” said Councilman Steve Fiore-Rosenfeld. “Given the nosedive budgeting with horrible deficit spending that the new administration inherited, this is great news in Supervisor Foley's budget proposal. It’s good to be a part of a Town Board majority that is controlling spending and restoring the town’s financial stability and now has proposed freezing taxes.”
Supervisor Foley also pointed out that Brookhaven has the lowest percentage of taxes paid by residents for town services of all ten towns in Suffolk County, with only 12% of expenditures funded by taxes, while other towns average from 27% (Islip) to 71% (Southold). As a result, Supervisor Foley was able to freeze taxes and continue to enhance services.
Town residents, on average, will pay $134 in general fund town taxes next year.
The 2008 Tentative Budget freezes taxes at the 2007 levels in five funds--General Whole Town (A), General Part Town (B), General Whole Town Highway (DA), General Part Town Highway (DB), and Special Refuse & Recycling. The 2008 tentative tax rate in the Street Lighting (SL) District is a 10% reduction from the 2007 rate.
Strict spending controls were instituted, holding the line on expenditures while maintaining and improving services to taxpayers. Many of the financial failings of previous town administrations were outlined in detail in State Comptroller Thomas DiNapoli’s recently released audit of town internal operations. In the audit, Mr. DiNapoli was enthusiastic in his praise of the financial reforms enacted by the Foley administration and the 2008 budget continues that reform process.
The tight spending controls instituted in the first budget created by Supervisor Foley in 2007 are continued in his 2008 budget. In 2008, tentative expenditures are $176.4 million, a 2.3% increase, a rate of growth less than the rate of inflation, a strong statement of fiscal discipline.
The slowing growth of expenditures from 2007 to 2008 is due to cost savings achieved in competitive bidding of insurance; refunding of debt service made possible by all Street’s positive bond rating arising from the Foley administration’s tight fiscal controls; conservative budgeting of health benefits; filling only absolutely essential vacant positions; and a greater level of scrutiny of purchase requests and implementation of ServiceStat, which holds departments accountable for spending and overtime use.
Despite the tight spending controls instituted by the Foley administration, several important initiatives are funded in 2008.
The 2008 budget includes funding for the full staffing of the town’s new 451-TOWN Constituent Response System. A new six-person buildings and maintenance crew is created in Parks and that will both save taxpayer dollars and better maintain Town facilities. Most building maintenance and repair work is currently being done by outside vendors, which is costly and time consuming.
The town has also created a comprehensive Capital Program to save taxpayer dollars. The recommended capital program focuses on repairing treasured Town buildings that have been neglected, such as the old Town Hall in Patchogue, and the former Tax Receiver’s Building in Port Jefferson, and improving existing Town facilities.
“Pay-as-you-go” capital spending is recommended for a number of Parks and Street Lighting projects, which will save taxpayers over $1.5 million in interest costs.
Money was also saved through restructuring of town government. The restructuring of the Department of Aviation & Transportation is recommended. That will include eliminating four exempt positions and realigning the department’s functions in other Town departments. The town will also explore ways to close the revenue gap with the amphitheater, such as fostering public-private partnerships and seeking sponsorships of events.
The Foley budget very conservatively estimates revenues. The vast majority of revenues received by the Town (75% of 2008 tentative revenues) come from three sources, landfill fees, mortgage tax receipts and real property taxes.
For 2008, revenues for landfill fees are set at $85.5 million, just 1.7% over the 2007 estimated revenues of $84.3 million. For the mortgage tax revenues, 2008 tentative revenues are set at the 2007 adopted level of $26.5 million. This revenue stream has fallen dramatically over the last few years, in response to changes in the real estate market.
A total of 102 new positions was requested by departments in 2008,with a potential cost of $7.4 million annually (with benefits). Supervisor Foley decided the town’s taxpayers could not afford to add that much staff, and the town is doing more with less. Just 14 new positions are proposed.
“When we took office, it became clear immediately that major reforms of Brookhaven Town’s financial practices were desperately needed,” said Supervisor Foley. “We began those reforms right away and the 2008 budget is the next step on that Path of Progress.”
2008 Tentative Budget Summary
Office of the Supervisor
One Independence Hill • Farmingville • NY 11738 • Phone (631) 451-6955 • Fax (631) 451-6677