Brookhaven Supervisor Lesko Looks to Cut Expenditures on Debt to 15 Percent

Town of Brookhaven Supervisor Mark Lesko proposed a new law that will limit debt to 15-percent of the Town's expenditures or revenues, ensuring the long-term stability of the Town's finances.

"You should only borrow money if you are able to pay it back," Lesko said in a statement this week.

In 2010, Brookhaven is spending almost 20-percent of its general Fund on debt.

"That is unsustainable," he added. "If we were within the 15-percent limit, we would save $6 million dollars this year alone. Today Brookhaven is facing a potential $19 million budget gap for 2011 and my administration is taking proactive steps to close this gap through spending cuts and other measures. A law limiting the amount of debt we can accumulate will ensure that Brookhaven spends within its means in good times and in bad." 

This plan also calls for the Commissioner of Finance to set a threshold for capital spending on June 1 of each year. The capital spending will be determined by the 15-percent debt management policy.

If the new law passes, debt service on capital spending must stay within the limit and any new project added to the capital plan after the budget passes cannot take place without a reduction for the same dollar amount unless there is a 2/3 majority of the Town Board, the Town said.

According to the proposed law, the Town has five years – until Dec. 31, 2015- to come into compliance with the new policy.

The public hearing will take place on May 18th at 6:30 pm.