Lesko, Town Announce Five-Point Fiscal Plan

The Town of Brookhaven's financial advisor issued the three year financial plan to the town boards.

The plan conservatively projects the Town's General Fund status into 2011 and 2012, and affirms the need to implement Supervisor Lesko's five point fiscal plan to proactively address declining landfill revenues and mortgage tax receipts along with rising expenditures.

"The projections in the three year fiscal plan confirm what I said in the State of the Town Address. If the economy doesn't improve and revenues don't pick up, we predict that in 2011 we will be forced to violate our rainy-day fund policy and use an extra $17 million to $19 million of the Town's surplus to balance our budget," Supervisor Lesko said. "In the past few days, we finalized our mortgage tax receipts for 2009, which came in slightly higher than projected.  That's encouraging, and may mean our gap in 2011 is more like $17 million instead of $19 million, but in any event, we are still in jeopardy of violating the rainy day fund policy and must work together to implement the five point fiscal plan to ensure Brookhaven is fiscally sound for today and generations to come."

The Lesko-Walsh Administration is taking immediate steps to address the shortfall by implementing a recommendation of the Efficiency and Revenue Team, chaired by Louis Marcoccia, to conduct a top to bottom assessment on all capital projects and determine which projects are necessary this year (open space projects will not be delayed). According to the ER Team, if all of the projects were to proceed forward as budgeted, the Town would incur a $1.6 million cost in interest only in 2011 with a greater impact for 2012 as the principle becomes due.

"Although the 2010 spending is lower then 2009, the economic environment and pressures on our debt service cost is prompting this committee to take a second look at possibly delaying some of the budgeted projects," said Louis Marcoccia, Chair of the Efficiency and Revenue Team.

"By reviewing all capital spending now, the Efficiency and Revenue Team can assess which capital projects are necessary this year and which ones can wait. We have a responsibility to the taxpayer and we cannot waste any time," said Supervisor Lesko.

In 2009, Supervisor Lesko and the town board successfully addressed over $12 million in new deficits and balanced the 2009 budget. In 2010, the Lesko-Walsh Administration cut spending and balanced the 2010 budget without raising property taxes.

"The economic and fiscal changes that we see ahead of us must be met head on with all hands on deck.  It is this approach that will create sound efficiencies and maintain our world class services while protecting our property tax bottom line," said Deputy Supervisor Kathleen Walsh. 

The Lesko-Walsh Administration is already getting to work on the five point plan outlined in Supervisor Lesko's State of the Town. The plan includes: 1) Increasing landfill revenues; 2) Working with Cablevision to restructure the Town's payment schedule; 3) Working with CSEA partners to creatively save money; 4) Re-prioritizing the capital budget and delaying unnecessary projects; and 5) Implementing Efficiency and Revenue Team projects.  

Supervisor Lesko said, "The Efficiency and Revenue Team will ask the tough questions so that we can continue to cut spending and generate revenues."  The ER Team will be working with all Town Departments to identify financial opportunities, generate revenue, and reduce costs to save taxpayer dollars and at the same time maintain the quality of constituent services provided by Brookhaven Town. Supervisor Lesko looks forward to more recommendations from the ER Team in the coming weeks to achieve these goals.