As a result of the latest downgrade by Standard and Poors, Town Councilman Joseph G. Pinto, the Town Board’s liaison to the Comptroller’s Office, is already working to make changes that will have a positive effect on the future financial positions of the Town of Oyster Bay.
“In the two days since this news has come out, I have received many calls from residents, employees, and colleagues in government, who have expressed their encouragement with the understanding that this is a most difficult task at hand,” said Pinto. “I have received requests from fellow Town Board members and professionals who live in the Town of Oyster Bay offering assistance and have offered recommendations.
“This is a serious situation that we are facing, but I am confident that the town will survive and ultimately earn ratings that will be advantageous to residents, as they did for many years before the economic downturn,” Pinto continued. “In my opinion, we are in this position because of the spending of our resources throughout the years. Many projects, although beautiful and in some cases necessary, have hurt the financial outlook. I am recommending that a temporary hold be put on any new expenditure, as well as an evaluation of every proposed project where a contract has not yet been entered into by the Town.
“Also, in my opinion, other items which have been a major component of our problem has been reduced revenues and increased expenses,” he said. “Even though we are owed certain monies and ultimately will be in receipt of it, we will take a hard look at how we budget what could be characterized as uncertain revenue.”
Pinto added that as part of the recent efforts by the town to increase overall transparency, he has requested the Town Attorney’s Office to begin including budget items to any resolutions being presented for town board approval. This will give the board a clear picture of what monies remain in particular line items for that fiscal year prior to voting on resolutions related to expenses.
“I have written a memo to all town department heads, explaining the importance of maintaining a balanced budget, and asked that they include me on all future correspondence regarding their department’s finances,” he said.
The councilman added that he will also be seeking recommendations from his fellow Town Board members regarding how to make necessary adjustments to future budgets in an effort to reduce expenses, as all board members were recently assigned liaisons to various Town departments.
“We need to begin a practice whereby we tackle the
$775 million in debt that the Town has, and educate our residents that the other debt that is listed is for special districts and NOT town debt,” said Pinto. “One of the considerations the task force will review is to work toward not bonding more than 50 percent of the principal which will be coming off the books in a particular year.”
The councilman added that while all efforts of borrowing far less than is being paid off will be taken, so as to not increase the current debt balance, there may be instances or emergency scenarios that come up throughout the year that may make additional bonding necessary – such as the emergency closure and subsequent reconstruction of the Hicksville Parking Facility a few years back, or the current environmental concerns at Bethpage Community Park, or any other unforeseeable circumstances.
“Prospectively, I am going to work to examine projects that the town presently undertakes that may be able to be adjusted or possibly discontinued. For example, the town’s sidewalk program, which has been a benefit to our residents for many years, may be a luxury we can no longer live with,” he said. “I will examine similar such programs, to determine whether or not those type of programs are something the Town should consider reducing or eliminating.”
As the 90-day window of the task force moves along, the councilman noted that he will continue to seek assistance from individuals who want to help and who he believes could be beneficial, as well as make recommendations for additional members.
