Mayoka: Town Economic Situation Worsening

Regardless of Huntington's AAA bond rating, the town's economic situation is getting progressively worse, according to Town Board Member Mark Mayoka.

"Deeply concerned" about the fiscal health of the town,  warned at a Town Board meeting July 12 that fund balances are being exhausted and long-term debt is escalating at an alarming rate. 

At the meeting, board members voted unanimously to authorize the comptroller to amend the 2011 operating budget and for the town and its special districts to implement "comprehensive townwide spending reductions." 

Mayoka said long-term debt intensified by more than $12 million and fund balances dropped by $16 million in 2010 alone.

"It is reprehensible to ignore short-term and long-term spending and debt issues of the Town of Huntington by hiding behind our AAA credit rating," said Mayoka before voting with other town board members authorizing the budget amendment. 

Citing strong financial management practices and conservative budgeting, Fitch assigned a AAA rating in June to Huntington's $9.88 million public improvement serial bonds for 2011.

But AAA bond ratings do not reflect actual financial conditions and are merely awards provided to those with quality reports, according to Mayoka. "The receipt of this AAA award for financial reporting should not be used to redirect attention away from our serious fiscal woes."

Mayoka said without $3 million in revenue from a sale of land in 2010 to the state, the town would have spent more money than it received.

"We should not rely on a one-time extraordinary item to balance the town budget," said Mayoka, also concerned with employee benefit costs which he said where underestimated by $2 million.

Without a proactive approach to spending, Mayoka said an unfair burden could be felt by future generations of Huntington residents.