A budget hearing on the City of Glen Cove proposed 2008 budget was held at the start of the Glen Cove City Council meeting of Tuesday, Oct. 9.

According to Mayor Ralph V. Suozzi, at this time, the estimated real estate tax increase for the coming year stands at 5.93 percent, with a tax rate increase of 1.86 percent, which, the mayor said, takes into account the increase in value of property in the city. The mayor added that this amount is in line with what it costs to run the government, but is slightly high because of the city's deficit financing. The proposed tax increase also takes into consideration the consolidation of Glen Cove's sewage system with Nassau County's Sewer and Storm Water Authority, a deal currently anticipated, but which still needs to be voted on by the Nassau County Legislature and the Glen Cove City Council. Without that arrangement, taxes would be higher than proposed.

Paul Meli, candidate for city council, questioned the practicality of having a public hearing on a document which residents had not seen until they walked through the door that evening. Mayor Suozzi remarked that there would be a question and answer session on Oct. 17, and that residents have time to study the document and bring forth any questions at that time. The public hearing, the mayor added, will remain open until the next city council meeting of Tuesday, Oct. 23, at which time the city council is scheduled to adopt the budget.

"But it's meaningless to hold a public hearing when the budget just came out," Mr. Meli continued. "You could have presented it in advance of the hearing, as we asked." He also asked if the city council would be in attendance at the Q and A session; Mike Norman said he would be late, but no other council members responded. He asked City Controller Sal Lombardi if the budget has been sent to the State Comptroller's office, and Mr. Lombardi said it had not, although an earlier draft had. Mayor Suozzi explained that since the city has requested deficit financing, the state will have oversight of the city's budget for 10 years.

Reggie Spinello, candidate for mayor, opened his remarks by stating that he had just received the budget, but had questions. He referenced a letter from the State Comptroller's office that stated the city has "overestimated revenues and underestimated expenses," something, said Mr. Spinello, the comptroller has repeatedly stated over the past number of years. Mr. Lombardi remarked that the city did not anticipate the closing of Photocircuits, the city's largest water customer, which explained the discrepancy in the estimation.

Mr. Spinello asked the state comptroller's opinion of recent past budgets. Mayor Suozzi acknowledged that the comptroller commented that the city had underestimated police overtime in 2006, and said he told the comptroller that Glen Cove experienced a horrific murder that year, as well as a vehicular incident at the Soundview Restaurant at which four Glen Cove men were run down, and that the city ran a yearlong drug investigation that year. "These were one time things, not likely to occur again," said Mayor Suozzi. On the question of water and sewer fund estimates, the mayor said that the comptroller's office was using "old information."

Bob Benazzi, candidate for mayor, asked Mayor Suozzi to explain once again the arrangement for the county to take over Glen Cove's sewer system. The mayor iterated that the sewer fund is a losing proposition, or "money pit," and has always been financed through the water fund. Without the agreement with the county, he said, the city would have to raise water rates, create a residential sewer tax, enforce commercial customers to pay their bills or perhaps create a sewer authority of its own. "The county does sewers much better than we can," the mayor added, and the county can leverage grant money, as it is so large an entity.

Mr. Benazzi questioned the mayor as to why the city's audit had been sent to the comptroller's office late, as the mayor, during the last campaign, criticized the former administration for doing the same thing. The mayor stated that the audit was just three months late, partly because the city had just hired new independent auditors in June.

Timothy O'Rourke also questioned the feasibility of creating a budget that included the proposed sale of the sewer service and asked the mayor if he had a contingency plan, should the takeover not happen. "Obviously," said Mayor Suozzi, "we would have to amend the budget" and the new budget would "probably [have close to a] 13 percent tax increase," or the city could have an additional $6 million deficit. When Mr. O'Rourke stated that the comptroller does not look favorably on budgets based on projected income, the mayor remarked that the city could not adopt two budgets at once and said he was doing the "best I can, and if there are fatal flaws, it won't pass." The state projects a deficit in the city of $10 million and the new city auditors have added $3 million to that figure. Mayor Suozzi said that if the city knew there would be a $13 million deficit, he would have asked for deficit financing for that number. When Mr. O'Rourke referenced the state comptroller's letter stating the city would have a shortfall for 2007 of $2.27 million, the mayor said that the comptroller had said not to include long term deficits, much of which the city is now "putting to bed."

Mayor Suozzi stated that he has asked the State Comptroller how Glen Cove is progressing, and was told that the city is doing very well and is on a good track. The mayor added that Moody's "negative outlook" that had been imposed on the city is due to be removed because of better budgeting and the deficit financing. "These people are professionals in finance," said the mayor, with no political agenda. They recognize and acknowledge that we are doing a good job."

Mr. Meli questioned the mayor on a city newsletter that was mailed to residents at the end of the week, saying he questioned Deputy Mayor Marilyn Brenner that morning as to whether the newsletter was paid for with taxpayer money and was told yes. He said he then asked "when it was prepared, who prepared it and how much it had cost." Ms. Brenner, he said, subsequently told him he would have to FOIL the information. Mr. Meli told the mayor he was not going to get into a discussion of whether this was a misuse of taxpayer funds for political purposes, but the mayor countered by saying past administrations sent out newsletters four times a year, and in color, as opposed to Mayor Suozzi's black and white brochure. Mr. Meli remarked that a newsletter could have been sent out prior to election season, as much of the news had happened months ago.

Residents will have a chance to voice opinions and ask questions on the proposed 2008 City of Glen Cove budget on Wednesday, Oct. 17 at 7 p.m. at a Q and A session, and again on Oct. 23 at the regular city council meeting. According to city hall, the budget will be posted on the city's website as soon as possible.