As Budget Season Approaches, Even Lloyd Harbor Looks to Reduce Costs, Increase Income

As the Lloyd Harbor Village Board of Trustees prepares its 2010-11 fiscal year budget, it, like many other local municipalities, is looking for ways to cut spending and increase revenues.

"As we have begun to work on next year's budget, we are not only trying to hold and cut costs, we are also looking at various sources of revenue," said Mayor Leland Hairr at the board's most recent meeting held Tuesday, Feb. 23. "There are some discussion items that [Village Clerk] Eileen [Schulz] would like to bring up to you in terms of fees. Some haven't been adjusted in two or three decades or so and if you look at expenses incurred, they appear to be under funded."

Schulz recommended the board consider increasing fees for late payment of taxes, duplicate certificates of occupancy, alarm fees, among other items.

 "We charge $20 for duplicate [certificates of occupancy] and most other villages charge $50," she said, noting that she has worked for Lloyd Harbor for 15 years and the fee has been the same since she started. Also her office contacted East Hampton, Bellport, Greenport, Head of the Harbor and Nissequogue among others and all charge at least $50. "The current revenue from duplicate certificates is $3,500. If we had increased it to $50, it would have been $8,900."

"This is one of those items that never gets focused on, but it adds up," said Deputy Mayor Jean Thatcher.

Trustee Ralph Alfenito asked who is making the requests for duplicates and Schulz said it is generally title companies.

"Sometimes residents want it and we would do that for them for a nominal fee and charge for copy but title companies are the ones who request them the most," Schulz said.

The board approved the increased fee, 5-0. Trustees Hilary P. Rolih and William Burdo were absent.

It also unanimously approved a 100 percent increase on the administrative fee for late payment of taxes from $1 to $2, the maximum allowed by the state.

The trustees also pondered raising the maximum amount charged for parking violations in the village. Mayor Hairr indicated that he had directed the Village Attorney John Ritter to discuss the matter with Judge John Giblin, but Ritter said they had not yet connected.

Ritter did say that there are some violations for which the village must follow state law but parking is not one of them.

"Other violations are done on a pro-rated basis and we must charge what is stated in the vehicle and traffic law so if the state speeding law is $150 fine for a certain violation, the village must follow that," he said. "That is the case except for certain violations and parking is one of those that is exempted. Right now the local law goes from nothing to $100 and the judge has the discretion to set the fine for parking. If you want to go above that, because the local law establishes the fine, you would have to amend the local law."

He added that Justice Giblin told him he feels that the current $25 fine is not an adequate deterrent.

There is no parking anywhere in Lloyd Harbor Village and the speed limit is 35 miles per hour on all roads.

Mayor Hairr said he suggested that justices Giblin and Mike Brown work with Police Chief Charles Flynn to determine a more appropriate fine structure that would be a deterrent taking in to account how certain illegal parking is more hazardous than others.

"Particularly along the causeway," Mayor Hairr said, referring to the narrow strip of road that connects Lloyd Harbor to Lloyd Neck. "They feel it's got to be a more significant fine."

Chief Flynn said he would contact other villages to see what is charged elsewhere.

Ritter noted that, according to state law, illegal-parking tickets could be as high as $1,000. "That's at the board's discretion," he said. "You can have tiers for penalties, as well. If the causeway is a particular problem, you can have higher fines for that. Whereas incidental parking on an interior road might not be as egregious."

False alarm fees, charged when a resident's alarm goes off without reason, also have not changed in at least 15 years, Schulz said. Chief Flynn confirmed that two officers go out when a security alarm is set off. There is no charge for the first false alarm but the resident is charged $10 for the second alarm and $25 for the third and all those subsequent to that.

Chief Flynn said that he believes a $25 or $50 fee is charged when a household registers a new alarm system. Trustee Alfenito noted that "down south" residents are charged $25 annually per household alarm. "And everyone accepts that."

Ritter also recommended the board evaluate fees associated with the Planning Board, Zoning Board of Appeals and the building inspector. Mayor Hairr agreed that it is worth looking at and said he believed the last time those fees were looked at was 2002.

The board also pondered using the Town of Huntington's tree removal permit service rather than its own arborist, as it has been doing for many years.

"The arborist's fee is the fee we pay when people have trees they want removed," Schulz said. "Right now, [the arborist] charges $75 per hour with a minimum of two hours. Huntington charges $25 for a permit for five trees. That would defray the cost of the arborist."

Ritter said the arborist is strictly an expense. "We do not charge for tree-removal permits unless it's connected with construction, although the village does bear costs. So you are not offsetting this at all."

Schulz noted that to change this, a change must be made to the code so a new local law would need to be approved.

"It takes two sessions [of the Board of Trustees' meetings] to enact," he said. "It is introduced and then it is scheduled for a hearing. So we could introduce it at the March meeting and then schedule it for a public hearing at the April meeting."

The mayor also noted that the village planned to, in the upcoming fiscal year beginning June 1, forgo its previous usual method of obtaining large equipment.

"In lieu of going the route we had gone before, which was buying on a five-year lease agreement, which turns out to be more expensive, we will look at purchasing. That would be more like two percent instead of five," he said.

Schulz said currently the interest rate for leases is closer to seven percent.

"I spoke to our accountant and she thought it was a good idea," she said.

The mayor said the board is open to "any creative way" to reduce costs and increase revenues as the board and staff department heads continue working on the budget.

On a positive note, Mayor Hairr said that the village would see a tripling of revenue from the gross receipt tax, which has been increased from one percent of utilities and hardwired telephones to three percent. "It looks like we are currently receiving $32,000 or $33,000. Potentially, if [state lawmakers] approve the budget Wednesday, we'll be eligible for an additional $66,000. It's not a lot of money but everywhere we are stretching."

Schulz noted that the $33,000 amount was year-to-date. "So the total will be higher," she said.

Even better, the mayor said. "If they triple a higher number that will be even more and that will be good," he said.

He also noted that, because he was in Albany for the New York Conference of Mayors meeting Monday and Tuesday, he "camped out" at the office of State Senator Carl Marcellino (R-5th, Syosset) until he found out when a $200,000 multi-modal grant for state-required storm water control was going to be released.

"I found out that attorneys in the state Department of Transportation had been holding up the funds while they determined whether the grant had to be continued with the current administration. I was beside myself."

But, he said, he believes the funds were released Tuesday, Feb. 23. "So, I believe we'll get the final sign off soon and then we can prepare the specs to advertise for the construction bids," he said.

As for expenditures this year, the mayor said that Lloyd Harbor is "66 2/3 of the way through our fiscal year and, in general, we are under 67 percent for our expenditures."

The board plans to present its fiscal year 2010-2011 proposed budget at its March meeting.