To the average Southampton Town resident, trash is a topic given little thought. Many locals choose to bag their household waste and leave it on the corner of their properties for a private waste hauling company to pick up and cart away. Others participate in the town’s “green bag” system and bring their trash to one of the town’s four dumps, or waste stations. Once those trash bags travel down the chute or are thrown into the back of a truck, the Southampton Town resident’s role in disposing of their household waste is done.

For members of the town board, however, how best to manage the town’s waste is a subject of lively debate. Since last year, the board has explored the idea of privatizing waste management operations, or in other words hiring a private company to run the town’s trash disposal service. Privatization could be the key to lowering costs associated with the town program and ease its deficit. However, some members of the board are weary of the plan and believe privatization might fail to accomplish this goal.

In December of 2008, the town hired Cashin Associates, a business consulting firm, to conduct a comprehensive study on current operations of the town’s waste management system and the viability of hiring a private company to take over the reigns of this town service.

“Historically, the town has run its [waste management] operations as a traditional governmental service rather than as a business that must balance its costs and revenues. This approach, in conjunction with providing a high level of service for a relatively limited number of users, has contributed to operational inefficiencies and a general imbalance of income and expenditures within the Department,” wrote the consulting firm in its opening comments. At a work session held Friday, July 10, members of the board estimated the department’s deficit at around $2.8 million, but comptroller Tamara Wright added that this figure was based on unaudited financials. Kabot added that the town is waiting for the year end 2008 numbers, but said “waste management is in deficit condition.”

Based on Cashin’s analysis, around 11 to 14 percent of the town population use the town’s waste stations, however, councilman Chris Nuzzi argued these figures were debatable. Although the number of participating locals may be small, the costs savings are substantial for residents who take advantage of the program. Cashin estimated the average household paid $215 annually for disposal of their household trash at the town waste site. The average annual price for a private trash hauling company was estimated at $521. However, larger families who live farther from waste stations see only 17 percent savings compared to private hauling services.

In recent years, the town has experienced success with its green bag and bulk waste program. Cashin estimated this leg of the waste management program garners an annual revenue of around $819,000, while the expenditure for the green bag and bulk waste service is approximately $790,000. In addition to positive revenues for these particular services, the waste management department has also worked to cut down on expenses. Closing the Westhampton and Sag Harbor stations one day per week has helped lessen costs.

However, Cashin claims the amount of waste disposed at a town facility steadily decreased from 2004 through 2008. They pointed out that the department has almost 25 employees and over the next eight years will need to pay around $4,000,000 for new equipment and vehicles.

Based on their findings, Cashin advised the town to issue request for proposals, or RFPs, “to gauge vendor interest in taking over transfer station operations, handling transport and disposal of most of its solid waste stream.”

Cashin theorized the town could potentially save money by leasing or selling their equipment. The report added that based on prevailing New York State wages, a private contractor could potentially pay around 10 percent less than the town for labor and staffing.

“In recent years, Southampton had experienced a marked improvement in its overall solid waste management operations, including and especially control of labor costs, better tracking of expenses and interdepartmental charges, and phased upgrades to the North Sea Transfer station …,” the report determined. “[T]his study found that the town-run transport and private disposal of green bag and bulk waste currently costs the town approximately $141 [per ton]. This number is substantially higher than what most other Long Island municipalities pay for similar service. Therefore the major recommendation of this Privatization Study is the town of Southampton issue a request for proposals RFP.”

Both Nuzzi and town councilwoman Anna Throne-Holst were reluctant to entertain bids from private companies before the town receives fully completed and solid figures on the waste management’s financial status.

“I still have a lot of analysis to do,” contended comptroller Wright.

Throne-Holst held firm on waiting for the financials before deciding to privatize the waste management program.

“We are having this discussion without the numbers,” argued Throne-Holst, and it appeared the board was at an impasse again on the viability of privatization.

Popularity: 8% [?]

By Andrew Rudansky

 “Cost Cutting Mode,” is how Southampton Town Supervisor Linda Kabot describes the current state of the town, and cost cutting is just what was happening at Southampton Town Hall this past Tuesday, July 14.

“There is more work to be done, everyone has to tighten up the belt,” said Kabot. The board passed a resolution to amend the 2009 budget by a vote of five to zero. In total the board cut $1 million from their 2009 operating budget.

Across the board the town was looking to slash operating costs. Some of the budget cuts include a $2,500 decrease in microfilming from $5,000 to $2,500; a $50,000 decrease in legal fees from $1,050,000 to $1 million; a $27,000 decrease in vehicle purchase from $27,000 to $0; and a $100 decrease in land management photography from $100 to $0. However much of the money comes from the reduction, or in some cases freezing, of overtime pay, which may total over $500,000.

These cuts were the result of an operating budget that was structurally balanced on the assumption that mortgage tax revenues coming into the town would total in the neighborhood of around $7.5 million. This assumption was made on November 20, 2008 before the full gravity of the recent economic recession was fully realized.

House prices have fallen, which in turn has decreased the revenue from the mortgage tax. In the first half of the fiscal year only $2.5 million has come in from mortgage tax revenues, over $1 million less than projected. If this trend continues, which the town board believes it will, it would leave a $2 million shortfall in the general fund.

“We expected $7.5 million in mortgage tax,” said Kabot. “We are going to get $5.5 [million] if we are lucky,” she further explained that the Community Preservation Fund was hoping for $30 million in revenue from the two percent real estate transfer tax and would be “lucky to get $14 million.”

The amended 2009 budget includes a $342,265 cut from the general fund, $237,921 cut from the police fund and a $72,161 cut from the highway fund, among others. The board said the decision on budget cuts was made with input from various members of the different departments.

Councilwoman Sally Pope said “I appreciate having the extra time to consult with people in town hall.”

 “I know for myself and most of my colleagues, we spent the last two weeks, if not longer, spending time with various department heads working on this,” added councilwoman Anna Throne-Holst.

“This is one small step in the right direction,” Kabot said. “We need to move forward in 2010 with $2 million of further cuts…with personnel changes if need be.”

The budget cuts were followed by a slew of grant applications from various community organizations. Kabot believes these relatively small grant applications, while serving good causes, are part of the fiscal problem Southampton Town faces. Despite her concerns most of these grants, including a $1,000 human services grant for a basketball program and a $1,000 special events interfund transfer for a church block party in Riverside, were passed unanimously. Kabot said that in 2010 the town would consider putting a hold on these small grant applications.

“Every year [grant seekers] ask for more pie, and there is no more pie,” said Kabot.

Popularity: 5% [?]

Southampton Town Supervisor Linda Kabot announced on Friday, June 19, that the town will hire a new external auditing firm, Nawrocki Smith, LLP, and is ending a five-year relationship with AVZ, or Albrecht, Viggiano and Zureck.
“I and other members of the town board have been calling for a second opinion . . . but what we really meant was a transitioning to a new auditing team,” explained Kabot of the new hire.
AVZ worked as the town’s external auditors during the years, from 2004 to 2007, when several errors occurred within the town’s capital fund, causing an overstatement of the town’s general fund by around $8 million. When completing their audits for the town, AVZ failed to notice discrepancies in the general fund and the capitol fund.
Last week, FTI consulting was brought in to begin a forensic audit of the town’s reconciliation of the capital fund. According to Kabot, FTI was hired to validate the information already gathered by the town’s financial team.
Nawrocki Smith, a Melville based firm, first interviewed with the town regarding the reconciliation of the capital fund. Both Kabot and town comptroller Tamara Wright said they were impressed with Nawrocki Smith’s qualifications, but opted to hire Manhattan based FTI consulting for the forensic audit of the capital fund. FTI consulting, however, isn’t an auditing firm and cannot certify financial statements for the town.
This Monday, Nawrocki and Smith started the audits for the 2008 financial statements with AVZ helping during the transitional period. One of Nawrocki Smith’s chief duties at the moment is to restate the 2008 year end financial conditions – to reflect the reconciliation of the capital fund.
Wright said Nawrocki Smith and FTI consulting predict they will finish the restatement of the 2008 financial reports and the certification of the capital fund database by July. She added that it is imperative for the two firms to work cooperatively in order to finish these projects.
Kabot added that East Hampton Town recently retained the services of Nawrocki Smith as their transitional external auditor. She said the transition to a new auditing firm was based on recommendations made by Wright, the town services administrator Richard Blowes and the town attorney Dan Adams.
The town is also in the midst of wrapping up an audit of the Community Preservation Fund, but because of state law the town was required to hire an additional auditing firm – BST advisers – to complete this audit.
Councilwoman Anna Throne-Holst thanked Wright for her part in bringing in the new auditing firm.
“It hasn’t been easy piecing together this puzzle and trying to keep everyone doing what they are supposed to be doing . . . There is a real thought process here that will bring the history in order and certify this history,” said Throne-Holst.

Popularity: 4% [?]

The Sag Harbor Express sits down with the new Southampton Town Comptroller, Tamara Wright, to discuss her background in finance, the state of the town’s finances and why she loves accounting.

What is your background in finance?

I have a masters degree in accounting, or a masters of accountancy. My first job was working for a liberal arts college, Guilford in North Carolina, as an assistant comptroller. After that I worked for [the professional services firm] Price Waterhouse, before their merger with Coopers and Lybrand, for six years.

I detect a slight Southern accent. Where did you grow up?

I grew up in North Carolina and Virginia. I did my masters at Virginia Tech and then I moved to New York City to work for Price Waterhouse.

What did you do at Price Waterhouse?

I was in the management consulting division. At that time there weren’t industry specialties. I worked in a number of different industries, but my area of expertise was in financial management and strategic planning. Now things are organized in such a way where you might be an expert in the financial sector or the manufacturing sector, or you might be an expert in government.

One of my first projects was for the New York City Fire Department. There had been a lawsuit against the city because the cost of the fee for fire inspections was exceeding the cost of completing the inspection itself. I developed a cost allocation model, [which meant] I had to figure out what it really cost [to do the inspection.] I had to watch how they inspected a how and how long it took them to do it.

I did a similar kind of job when they were building the World Financial Center. The city of New York and Olympia & York were my clients. They had a joint agreement with the Port Authority. They had four buildings, but when they were selling their first building they didn’t know how much it had cost them to build it. So I had to put on a hard hat and go out and see how they had built the building . . . see how much steel they had used.

Was that one of your favorite aspects of the job, to go out and see how these financial projects existed in the real world?

I think I have always loved learning new things and I have always been drawn to improving things, so management consulting was a really good place for me. I was able to learn a lot and develop different skills in financial planning, budgeting systems and improving financial functions. I learned how to make them more efficient and effective.

What else did you at Price Waterhouse?

I specialized in transfer pricing, financial planning, financial reorganization and financial records reconstruction, [among other things.] I did this across a number of sectors. Air Canada was one of my clients.

Mostly my work was involved in financial and strategic issues. The job really allowed me to develop my financial management skills.

I also did a little “tour of duty” developing continuing education classes in management consulting at the national office. I wrote a couple of courses and taught new managers. I taught them how to manage profitability. That experience gave me a whole other dimension into how adults learned. It really helped me as a manager to know how to educate adults and understand how they learn.

Where did your career take you after Price Waterhouse?

At Price I felt like I was a jack of all trades, but a master of none so I decided to work inside a company. I became interested in the financial sector and I ended up in the world of Wall Street. I left Price Waterhouse to work for Prudential Financial first as a risk analyst, then moved on to a variety of other roles, including business unit controller and budget officer, director of strategic and financial planning, and chief operating officer for the international business.

How long did you work for Prudential?

For 16 years. I did a lot of different things for them, but I thought I would only be there for a few years, then return to consulting. After that, I started my own consulting firm on the East End in 2006. Most of my consulting work was with not-for-profits and some start up ventures. I didn’t want to travel too far from home.

How did you become involved with Southampton Town?

Councilwoman Anna Throne-Holst knew me because our children went to school together. She knew that I had a financial background. In the spring of 2008 she asked if I would submit my resume [as an outside financial consultant] to the town since they were going through a financial transition after the resignation of Charlene Kagel and appointment of the new comptroller, Steven Brautigam. My resume made its way to Human Resources and then I received a call from [former deputy supervisor] Richard Blowes and interviewed with the Town Board.

What were your main responsibilities when you started consulting for the town in July 2008?

Mostly, I was involved in two things: looking at how to redeploy the town’s financial system so that it would provide better financial controls and better reporting; and then the other part was helping to re-establish and organize the comptrollers office.

When Charlene left, two senior people — the deputy comptroller and the senior auditor — left with her. Another person retired after working here for a very long time. The office manager transferred to the water district. The payroll officer was transferred to the parks department. By the time I got here in July, there were only two people who had been in the department at the beginning of 2008. The office was pretty decimated and Steve Brautigam was struggling because he didn’t have the staff. The first thing I focused on was recruiting individuals, working with the human resources department and Steven to rebuild the comptroller’s office.

You were recently named town comptroller. Why did you accept the position?

I think my appointment was the least disruptive to the town when it found itself in need of a new comptroller. There had been so much disruption here, and since I had been part of recruiting and training the new staff, it was a bit easier for me to step in. This is an appointed position [that runs concurrent with the supervisor’s term] and my appointment will end in December. I think it wasn’t going to be easy for the town to find someone who would want to work for only six months as the comptroller.

I was already here and working with the town. I understood what was happening at the town, so I made the full time commitment.

Originally, my work was only supposed to be a 90-day project. My plan had been to move back down to Virginia. I had agreed to do a mid-July to mid-October project; but, while I was in the midst of it, the project took on a life of its own.

You were part of the team of town financial officials who discovered significant problems in the funding of the town’s capital projects and the inaccurate tracking of these projects from 2003 through 2007. How did you make this discovery?

Well, it wasn’t like we had a sudden epiphany. It slowly revealed itself over time. In the beginning, as we were redeploying the town’s financial systems. We wanted to have the cash for the projects and wanted to allocate the necessary funding. There were a combination of projects. Some were almost complete and some were just about to be completed. We had to decide if we wanted to carry these projects forward. Those kind of questions lead us to not really being able to reconcile the funding.

We realized that the cash in the bank and the amount left to spend [for each project] wasn’t equal. We did know that there were bonds that hadn’t fully been issued, but we knew something else must be at play.

Where does the town’s corrective action plan stand?

I think it is fair to say that we are still working on it. It is still in progress and we don’t fully know project by project where we stand. We are just beginning to understand the over- and the under-funding. We had to go back all the way to 2002 and look at how much cash was in the bank, how the money was borrowed for each project and we had to develop a database [with all of this information].

Richard Blowes has been heading the effort to see what was actually happening with these projects. He is looking at what money was going out and what money was coming in.

[Current deputy supervisor] Bill Jones is going through each town board authorization because the resolutions tell you how much spending was approved for each project, and how that project was supposed to be funded.

This week our forensic auditing company will begin a project to review all of the data. They will help validate what we have collected to make sure the information is accurate and complete. We need this independent audit to make sure that we have identified everything. It should be complete in a month and then we will have full understanding of how each project stands. Then, the draft corrective action plan will be updated and completed.

What are some measures the town is taking to make sure this doesn’t happen again?

Certain new controls have been implemented, but improving the controls was a decision the town made before [discovering the errors in the capital fund.] It was through the process of improving [the town's finances] that we discovered the problem. I have to give the town credit, because they understood that they needed to improve their accounting for the capital projects almost a year ago. There was a recognition that there needed to be better accounting.

Now, each capital project has a cash account and a fund balance. It has an actual balance sheet. We are recording the funds received for each project, as well as for the spending. [Before, the funding for each project was coming from one fund, or “pool of money,” and the funding wasn't separated for each project.]

On a different note, what is it about finances that interests you? What do you love about finances?

I think when the financial function is performing effectively it provides information for good decision making. Accurate information is the corner stone of efficient and effectively running any kind of business, whether it be a municipality, private cooperation or a not-for-profit. You have to make good decisions. When a company fails the customers get hurt, and likewise when a municipality fails the taxpayers get hurt.

In my career I have enjoyed developing information that can be relied upon and helps management make good decisions.

Popularity: 4% [?]

When the “Dark Skies” legislation was first proposed by Southampton Town Councilwoman Nancy Graboski, it appeared to be praised by members of the public. Local citizen advisory groups, including the Sag Harbor CAC, had long asked the town for laws impeding light pollution to be put on the books.
Oddly enough, at the first public hearing held on Tuesday, the “Dark Skies” law was met with both outrage and congratulations from local residents.
Richard Warren, the village’s planning consultant, spoke against the draft law on behalf of the Southampton Business Alliance.
“This will incur significant costs for [residents] personally. I know from my own experience an electrician can cost $250 just to come to your house,” said Warren, who is the president of the alliance. He added that the legislation should apply to only new construction or a homeowner building a new addition. Warren believes the town should create incentives for people with pre-existing outdoor lighting to adopt “Dark Skies” lighting. In the current version of the law, all pre-existing outdoor lighting must be brought into compliance within 10 years of the legislation becoming effective.
Some supporters of the law, including a representative from the Group for the East End, suggested town residents be given only five years to become compliant.
Bob Schepps, president of the Southampton Chamber of Commerce, said the legislation would essentially over regulate town residents.
Assistant town attorney Joe Burke said the intent of the law was to reduce light pollution, to cut down on electricity waste and to prevent the glare or “sky glow” which can infringe on the night sky vista.
“We don’t regulate lighting at all right now,” reported supervisor Linda Kabot. “What Nancy is trying to do is put a comprehensive lighting code on the books.”
Graboski adjourned the hearing and carried it over to the June 23 town board meeting at 6 p.m.

Young Vets Get Benefits of Affordable Housing
In a previous Southampton Town board meeting, the resolution giving military veterans of Iraq and Afghanistan first priority on certain affordable housing properties received criticism from the public. Some said it was unfair to single out one particular group of veterans to benefit from the program, though councilman Christopher Nuzzi, who sponsored the legislation, said all income-eligible veterans are included in the general lottery. During Tuesday’s board meeting, however, town residents came out in support of the legislation.
“This law was inspired by several non-profit housing organizations looking to do something good for returning veterans. These young people who go off to war often have to delay a career,” said former town supervisor Patrick “Skip” Heaney, the current county economic development and workforce housing commissioner. Heaney added that the law piggybacks a similar one passed by the county.
“This is aimed at first time home buyers,” continued Heaney.
Daniel Stebbins, a 43-year-old veteran, said housing prices in the town are prohibitively expensive for young residents, forcing them to move elsewhere.
“It would be a shame if in 50 years, there were no vets here,” noted Stebbins.
The board passed the legislation becoming the first town within the county to do so.
“It is great to have Southampton be the model. We hope other towns will meld this into their own code,” remarked Kabot.

Town to Buy Pike Farm, Waiting for County
In a partnership with the county, the town plans to buy the development rights to a 7.4 acre farm on Sagg Main Street in Sagaponack, where the Pike Farm Stand operates. The rights will be purchased from the Peconic Land Trust for around $6.4 million. Suffolk County has promised to pay 70 percent of the purchase price.
“This is a community treasure — that is why you see the county stepping up to the plate,” said Kabot, but added that the purchase was contingent on the county partnership.
Mary Wilson, the town’s community preservation fund manager, wasn’t sure if the county’s recent plan to use their main open space funding source to abate county property taxes would affect the purchase of the development rights. During a later interview, county legislator Jay Schneiderman said open space projects are now on hold until the county votes on this legislation, which is expected to be up for a vote in the coming weeks.

Popularity: 4% [?]

Southampton Town residents might soon see town employees whizzing down the streets of Southampton in electric Mini Cooper cars. Councilwoman Anna Throne-Holst, who drives a Mini Cooper herself, was first approached by the company, owned by the BMW group, to participate in their “Mini E” pilot program, allowing the town to test the endurance of the electric versions of these characteristically compact vehicles.
During a special board meeting on Friday, June 5, Throne-Holst informed the board that the Mini Cooper company offered the town the use of up to five electric cars for one year. The town in turn would pay a $120 annual lease for each car, but Throne-Holst added that the company would oversee the maintenance for the vehicles. According to the company, the cars travel between 100 to 150 miles on a single charge.
“If we participate as a municipality, we could add some cars to our fleet and [perhaps] take other cars off the road,” said Throne-Holst. “This will help us see how we can move this kind of technology forward.”
“Would [the company] give any consideration to loaning these five cars to cash strapped residents to do the same type of program?” countered Councilman Chris Nuzzi.
Throne-Holst explained that Mini Cooper is targeting municipalities to participate in this program because of the extensive liability insurance held by government bodies. If the town signs onto the project they will follow the lead of several other municipalities, including New York City, which added 10 “Mini E”s to their fleet in January.
“We shouldn’t do this as an advertisement for mini … This will help reduce our costs for this year,” said Throne-Holst, noting the cost savings associated with the project.
“We do have a few cars in our fleet used by various department heads that ought to be replaced. Some have 150,000 plus miles on them,” said Throne-Holst during a later interview. “This way we could put the ‘Mini E’s to use instead and delay the purchasing of new vehicles.”
She added that town comptroller Tamara Wright is going to conduct a cost savings analysis on the project. The town has a signed memorandum of understanding, said Throne-Holst, and she expects the cars will be delivered sometime this month.

Discussion of the Mini Cooper pilot program offered a much needed lighter note to a meeting dominated by discussion against a proposed piece of legislation coming out of Suffolk County. The county is looking to divert funds from the County Drinking Water Protection Program, which is one of the county’s main revenue sources for land preservation said legislator Jay Schneiderman, to use for property tax relief in the coming three years.
“This legislature determines that in assessing the difficult choices that must be made to maintain the county’s fiscal stability, this legislature cannot treat any program as a ’sacred cow,’” reported the county in a draft of the law.
According to town supervisor Linda Kabot, in 2007 county residents voted to continue using funds from this program for land purchases until 2030.
“This is ill advised and breaking faith with the voters. We stand in opposition,” declared Kabot.
“This program is the main way we purchase land,” reported Schneiderman. “We are one of the most vital areas for preservation in terms of critical habitat.”
The legislation would have a direct impact on the town’s purchasing power. Recently, the board has discussed focusing their CPF monies on debt repayment and the creation of a rainy day fund. Additional land purchases in the town will most likely have to be made in partnership with the county.
“If the county doesn’t have any money to buy land then it can’t partner with the town,” noted Schneiderman, during an interview.

Popularity: 4% [?]

Gospel Benefit

On Saturday, June 6 from 4:30 to 7 p.m. the Maidstone Club in East Hampton will host a gospel benefit for the Bridgehampton Child Care and Recreational Center. Making its first appearance on the East End, “Songs of Solomon,” the award-winning inspirational choral youth ensemble based in Harlem, will perform at the benefit. The world-renowned group, created and led by Chantel Renee Wright, herself an award-winning choral conductor from Chicago, has performed all over the United States and in South Africa. It was at the Gospel Music Workshop of America three years ago that Bonnie Cannon, Executive Director of the Bridgehampton Child Care Center, first heard them.

“They blew me away,” she says. “I knew right then that someday I’d get them out here.”

The high energy group, whose repertoire ranges from gospel and spirituals to jazz and classical music (they sang the Bach Magnificat in D at Carnegie Hall) has performed with such artists as Elton John, Gladys Knight, Earth Wind and Fire and Aretha Franklin.

Chairing the benefit is U.S. Congressman Tim Bishop, who served on the board of the Bridgehampton Child Care Center for five years and remains a member of the advisory board.

“The programs at the Center play a vital role in the lives of so many of our lower income and immigrant families,” he says. “The Center serves what is often an invisible population and I’m grateful to the Maidstone Club for supporting our mission.”

The Bridgehampton Child Care and Recreational Center was born out of tragedy in 1949 when a house fire killed the untended children of migrant farm workers. The shocked community rallied to found the first, community-based migrant child care center in the country. The Center continues to serve the less fortunate on the East End and offers after-school programs, a low cost summer camp, youth programs and adult development services such as ESL and GED. It also hosts Head Start for preschoolers from as far away as Montauk and Westhampton.

For reservations to hear “Songs of Solomon,” call 537-0616. There will also be cocktails, hors-d’oeuvres and a silent auction. Tickets are $150 per person. Seating is limited.

Southampton
Dems Pick Candidates

On Friday evening, May 29, the Southampton Town Democratic Committee nominated its candidates for 2009 during their nomination convention at the Southampton Inn. Councilwoman Anna Throne-Holst, a Sag Harbor resident, was unanimously nominated for the position of Southampton Town Supervisor. The unity theme was echoed as incumbent councilwoman Sally Pope was nominated to run for a full term. Pope won a special election for her post last November. Bridget Fleming, a Noyac resident and attorney, was also selected to run for the open council seat. The Dems candidate for town highway superintendent is Alex Gregor of Hampton Bays who is the Southampton Town Independence leader.

Sitting Southampton Town Justices Deborah Kooperstein and Barbara Wilson were nominated to continue in their judicial roles. Selected as town trustee candidates by the Democrats were Southampton Town bayman and oyster farmer Bill Pell and Chris Garvey, a Hampton Bays resident and member of the Hampton Bays School Board.

Southampton Town

Board Honors EMS Staff

During last week’s Southampton Town Board meeting, held on Tuesday, May 26, supervisor Linda Kabot honored the town’s emergency medical service workers.

“These individuals truly embody the citizen service has been a cornerstone of our nation’s prosperity since the days of its founding,” said Kabot of the assembled group. “They are among the countless Americans who have stepped forward throughout history to assist others, and they have strengthened their communities in the process. EMS volunteers are a critical asset in every community. They provide care at the scene and on the way to the hospital, which dramatically improves survival and recovery rates.”

Kabot added that the town’s eight different EMS agencies responded to over 5,000 medical calls in 2008. The Sag Harbor Volunteer Ambulance responded to 620 calls last year, and Bridgehampton Volunteer Ambulance responded to 116.

From May 17 through May 23, the town celebrated EMS week, with the theme being “EMS: A Proud Partner of Your Community.” Initiated by President Richard Nixon in 1973, National Emergency Medical Services Week has been celebrated each year to recognize the accomplishments of those who dedicate themselves to saving others.

Hampton Bays

Video Game Tournament

Two Hampton Bays High School students have organized a Video Game Tournament to be held on Sunday, June 7. The event is open to anyone over the age of 13. In order to compete, participants under 18 must bring a signed permission slip from a parent or guardian. The evening is a fundraiser for the Hampton Bays High School Class of 2010, though a portion of the proceeds from the evening will be donated to a local hospital or charity, yet to be determined. The evening consists of three games: Halo 3 as a team and doubles, Super Smash Brothers Melee and Super Smash Brothers Brawl. Each game costs $4. The event will be held at the Hampton Bays Middle School and begins at 10 a.m. For more information call (631) 525-1825.

Peconic Bay

MTA Tax Exemption

New York State Assemblyman Fred Thiele, Jr., has introduced legislation that would exempt all employers within the towns of East Hampton, Southampton, Riverhead, Shelter Island, Southampton and Southold from the provisions of the 0.34 percent payroll tax recently enacted in the 12 county MTA (Metropolitan Transportation Authority) region, as part of the financial bailout of the MTA. Despite the increased taxes and fees in the MTA region, fares on the Long Island Railroad were still increased an average of 10 percent.

The payroll tax will raise an additional $1.5 billion in annual revenue for the MTA. The MTA region has a population of more than 13.1 million people. The Peconic Bay Region has a population of approximately 140,000 or about 1.1 percent of the region.

“The MTA is a bloated bureaucracy that has a demonstrated record of fiscal shortcomings,” Thiele stated. “To throw more money at the MTA without true reform is irresponsible. To increase taxes and fees during a period of deep recession is even more foolhardy. As for the Peconic Bay Region, our year-round residents get minimal service, at best, with just a few trains a day. Further, we already pay an additional [a portion of our] sales tax and a mortgage tax to subsidize the MTA. We will also pay the new fare hikes for their declining service.”

“It has been estimated that as part of the Volpe Study on improved rail/bus service for the East End that we already pay $40 million to $60 million more than we receive in service from the MTA on an annual basis,” continued Thiele. “In short, we pay way too much for way too little. The East End simply does not have the same level of NYC commuters, yet we pay the same as everyone else. The only fair solution is to exempt the East End from the new tax.”

Thiele stated that in addition, he will continue to pursue the option of the establishment of a Peconic Bay Regional Transportation Authority separate from the MTA to provide for the East End’s transportation needs.

NY State Assembly

Clean Act

A broad coalition spanning business, economic development, labor, and environmental groups called on the state last week to place a $5 billion Clean Water, Clean Air and Green Jobs Bond Act on the November 2009 ballot. New York State Assembly Environmental Conservation Committee Chair Robert Sweeney convened a hearing in Albany to discuss the merits of the draft legislation that would place the measure on the ballot.

State officials say the measure will invest in long-term improvements to waste water infrastructure, energy efficiency, transit, public health protection and economic development projects; and is expected to provide opportunities for “green-collar” jobs.

Bond act supporters noted the long term benefits of investing in bonding funds. A recent study shows that a $1 billion investment in water and waste water infrastructure creates $3 billion in economic activity and supports up to 26,000 new jobs with an average salary of $50,000. Each $1 billion invested generates $82.4 million in state and local tax revenue.

“Even a conservative view of this bond act suggests that it would create over 100,000 new jobs for New Yorkers. These would be good-paying jobs in management, construction, and innovative industries,” said Jim Melius, administrator NYS Laborers Tri-Funds.

“The last Clean Water and Clean Air Bond Act, which passed in 1996, has been spent down yet the challenges of climate change continue to grow,” added Marcia Bystryn, president of the New York League of Conservation Voters. “The Clean Water, Clean Air & Green Jobs Bond Act of 2009 will help meet those challenges, while putting New Yorkers back to work and creating permanent taxpayer savings.” ?

Popularity: 7% [?]

In light of Southampton Town’s troubled finances and decreased revenues, supervisor Linda Kabot asked the town board to consider “lock boxing” money for the Community Preservation Fund (CPF). Kabot says the plan would allow the town to continue paying off the CPF’s annual debt without relying on the general fund to cover any shortfalls from decreases in transfer taxes, which is the CPF’s main revenue source.
“You would do this in your own home. If you had a mortgage and you lost your job, you would want a savings account to pay for your obligation,” explained Kabot. “We have a mortgage on the CPF program that is over $100 million.”
Over the past 10 years the town spent around $400 million on land purchases, continued Kabot, but only received $300 million in transfer tax revenue. The remainder of this expense was procured through bonding. This year the town will pay around $9 million towards the principal and interest on these bonds, though next year these payments will increase to roughly $10 million. Kabot said the town should be “judicious” when deciding whether to purchase a piece of property in the future as the town will most likely have to bond for future purchases.
“If we are getting $1 million a month in revenue that is $12 million for the year, minus $10 million which is spoken for for debt services, leaving us with $2 million if we are giving certain school districts and other eligible districts PILOTs [Payment In Lieu of Taxes],” explained Kabot. “If you’re going to be paying for land and you aren’t doing it on a pay as you go basis, you may be borrowing and that will increase your debt services.”
Based on recommendations made by former town comptroller Steve Brautigam, Kabot’s plan, which is in the form of a resolution, calls for the creation of a $1.2 million preliminary cushion fund. This money is already in CPF coffers and was transferred there at the end of 2008, when it was ascertained that the CPF fund paid too much into the town’s debt clearing fund.
CPF manager Mary Wilson said the second part of the resolution would “designate a portion of future monthly revenues” which would go into this rainy day or debt reserve fund. For the next six months of 2009, Brautigam proposed that $250,000 in CPF revenue be segregated for this fund. In 2010, the town would increase the allotted savings to $350,000 per month.
“The goal is to get up to a point where there is at least $11 million in this reserve fund or at least one year’s debt services,” said Wilson.
Current town comptroller Tamara Wright said the town’s projections of receiving around $1 million a month in revenue wasn’t conservative. She added that last month, the town received only slightly over $1 million, but in the prior months, received under $1 million.
“If we were planning conservatively, by my estimation, you would be almost $3 million short of being able to reserve adequately,” said Wright. “If the revenue streams stay where they are, paying for properties out of cash is going to be very difficult for the next 18 to 24 months.”
“The dilemma is that this is an unprecedented opportunity to stockpile open spaces at prices that aren’t going to stay at this level in our lifetime,” observed councilwoman Anna Throne-Holst. “We need to look at the bigger picture. It is estimated that for every $1 of land that is developed rather than preserved $1.30 is needed to provide services for the infrastructure that goes with that.”
Kabot said she hoped the board would come to a consensus vote at the next town board meeting on Tuesday, June 9.

Popularity: 5% [?]

For nearly five years, Noyac community members had been petitioning Southampton Town for a community center, and in November 2008, it looked like the hamlet was one step closer to getting their wish. Town supervisor Linda Kabot visited the Noyac Civic Council in late November and told the group the town was receptive to the idea of erecting a new center on a parcel of land adjacent to Trout Pond. The town had even scheduled funding for the project as part of the 2011 budget.

  Only five months have passed since the meeting, but in that time, a host of fiscal blunders in Southampton Town have come to light — leaving the town strapped for cash and unable to complete many of the projects it had hoped to accomplish, including a new Noyac Community Center.

  “There was great discussion on the board about the Noyac Center, about creating a brand new facility, but in these times it certainly doesn’t seem prudent,” deputy supervisor Bill Jones reported during an interview last week. “There is basically no surplus. The plan for capital projects for 2009 has slowed to a trickle unless there is a great need or if there is an issue of public safety.”

  Jones added that this bare bones approach to funding capital projects would likely continue through the next couple of years. Supervisor Kabot said the projects which will take precedence now include roadwork, necessary building improvements and drainage, while other projects like playground and community centers will be put on the back burner until the town’s coffers are healthy and plump once again.

  As 2009 approaches the mid-year mark, it seems the Town of Southampton is experiencing a perfect storm of financial troubles. The town continues to reconcile the hidden I.O.U.s from the capital fund to the general fund from 2004 through 2006, but is also burdened by $19 million in authorized — but unissued — bonds, which must be issued at some point. In order for Southampton to go out to bond, the financial statements of the town must be completely accurate, which is only possible after the town’s financial records are fully reconciled. In addition to these worries, the town is also facing a $2 million revenue shortfall from mortgage taxes and the possibility of decreased property assessments for the next tax year, both of which are due to the ailing economy.

  In town hall, expense cuts have already been implemented across the board. The town has enacted a hiring freeze and is looking closely at part-time positions, said Jones. He added that the town hasn’t ruled out a lag payroll, in which employee wages for certain days work are deferred until employment is terminated. The supervisor has also frozen each department’s contingency fund.

  “Her [Kabot’s] message there is don’t overspend,” explained Jones. “There is no safety net.”

  Of the loss in mortgage tax revenue, Kabot said, “The taxpayer cannot absorb the difference. We must cut the expense side of the balance sheet.”

  In these situations, Kabot added that trimming spending could possibly translate to personnel cuts.

  Financial consultant Tamara Wright, who was recently appointed to the position of town comptroller, noted that decreases in revenue streams is a problem municipalities across the nation are grappling with, but unlike other municipalities Southampton Town must issue $19 million worth of authorized but unissued bonds. Both Kabot and Jones, however, noted that the town can ill afford to issue these bonds all at once. Jones said if the town issued all of the bonds and increased the tax rate up to the 5 percent tax rate cap, almost 4.4 percent of the tax increase would be set aside to pay off these bonds. Furthermore, the remaining .6 percent wouldn’t cover the expenses associated with running town hall or the town.

  “If we were to borrow all of that money in September 2009, it is like a mortgage. At some point in 2010 we would have to pay the principal on it,” explained Jones. “No way and no how would that 4.4 percent solve the problem because the town still has to continue operating into the next year.”

  Kabot remarked that it was the town’s duty to issue these bonds, which had been signed off on by previous town board administrations, and said the taxpayers will most likely have to pay back this debt over the next 30 years.

  For now, the town is focusing its efforts on reconciling the I.O.U.s from the capital fund to the tune of $10 million, of which $8.7 million is owed to the general fund.

  “We are looking at the transactions to see what was spent and then we have to analyze what was supposed to be spent in terms of budgets and authorized spending,” said Wright, who added that she has poured over thousands of resolutions for the 175 accounts, dating back to 2002, which need to be reconciled down to every penny spent. Kabot predicts the town will have a full analysis of the actual spending by Monday, June 1.

  According to Jones, the town will have certified financial reports for the audit of the 2008 budget by August. Jones expects the New York State Comptroller to come in at the end of the summer, or early fall, to conduct a risk analysis, which he predicts will prompt a full blown state audit of the town.

  In terms of the capital fund debacle, it is still unclear exactly where the fault lies, though former comptroller Charlene Kagel admitted she knew of the problem in 2007.

  Of any future legal actions, Kabot said, “It would be premature to assign culpability [right now.]”

Popularity: 7% [?]

From Albany to Southampton Town, municipal finances are in dire straits and with available funds shrinking by the second, it is rare to find a piece of legislation that stimulates a local economy and costs the government next to nothing.

The town board has successfully struck this balance by passing legislation to allow outdoor dining in the hamlets of Bridgehampton and Water Mill. It’s already popular in Southampton and Sag Harbor villages and is bringing welcome life to Main Street in the evening. We commend council members Nancy Graboski and Chris Nuzzi for hitting the streets and actually listening to the suggestions of local business owners, who say their business abounds from setting up outdoor seating.

Often times, town decisions are made behind the desk and local officials rarely learn of the exact effect their verdicts have unless it is brought to their attention at town board meetings or at local Citizen Advisory Committee gatherings. Graboski, in particular, shows true initiative for learning how the town decisions can impact the daily lives of town residents and visitors. When lobbying the town to pass Dark Skies legislation, Graboski visited various lampposts throughout the town, including one in front of the Whaling Museum in Sag Harbor, to see how lighting, which reduces glare, benefited local neighborhoods. This past Saturday, Graboski was outside on the streets of Southampton taking pictures of outdoor dining, seeing the town’s future plans in action.

Like the endless outdoor cafes found on the ancient streets of Europe, outdoor seating in our area will invite both tourists and locals to sit down and share a cup of coffee, glass of wine or spring for an entire meal. Not only does it promote restaurant patronage, but it adds to the communal and open feeling of the streets, giving them a much needed shot of life. 

We also would like to encourage more outdoor dining venues on Sag Harbor’s streets. Sag Harbor is a vibrant and exciting place to be on summer evenings, largely because of the establishments that do serve customers on the street — we can only see this as a good thing, both for owners of Main Street establishments and their customers who are looking for a little R&R during these troubled economic times.

Popularity: 7% [?]