With a debt rising as high as $33 million, the Village of Mineola has found itself in need of addressing it. As of Jan. 7, 2004, had a total annual debt service expense of $2,970,778. But while there isn't much the village can do with its existing debt except pay it off, there is something that can be done about incurring future debt.

When Mayor Jack M. Martins took over as the village's chief executive officer in April 2003, he inherited a large debt in need of addressing. One of his primary concerns was to end past practices of borrowing money to pay for non-capital expenses, which accounted for almost 28 percent of the village's $33 million debt.

In addition, the mayor along with the board of trustees adopted a debt management plan, designed to establish a debt ceiling and a targeted goal for debt reduction.

Some residents have also recently suggested passing a law that would require the village board to put a referendum out to voters before borrowing large amounts of money.

Such a referendum occurred on Oct. 20, 1998, when the public approved a $3,994,000 for reconstruction and renovation of the Mineola Memorial Library, although the total cost of the library was $4,671,000.

However, the public did not vote when $4,663,000 was borrowed for the renovation of the Mineola Firehouse nor when over $500,000 was borrowed to construct the Wilson Park hockey rink.

In the case of the firehouse and the other projects the village borrowed money to undertake, the board used its authority to borrow money without public approval to ensure the safety of the village, which is perfectly within its rights.

Having residents bond for all expenses over a certain amount leads to a dilemma. If the expense is necessary to ensure the safety of the village, such as equipment for the emergency services like the fire department or water well rehabilitation, the village board cannot risk having such expenditures turned down in a vote. For example, when the village board approved $985,000 of borrowing in 2001, it was to replace fire truck pumpers from 1979. Expenses such as renovating the firehouse and purchasing new fire trucks was deemed necessary by the board so that the fire department could continue to provide the services residents have been accustomed to receiving.

There are also times when the village board must borrow money for unforseen expenses that may arise in order to provide services to the residents of the village. Such expenses could occur if the village needed to replace a street sweeper or a garbage truck.

However, with a $33 million debt, the only projects residents approved via a referendum were the projects to renovate the library and the pool.

At a public meeting earlier this month, Mineola Civic Association President Bill Urianek appeared before the village board expressing concern about the village's past practices of borrowing money without the approval or knowledge of the public.

Mr. Urianek also took exception to a past practice of transferring money borrowed for capital projects and transferring it into the General Fund of the budget. The 2001-2002 budget included a transfer of $537,401 into the General Fund. Of the $537,401, $151,000 came from money borrowed for the fire house project and $185,000 came from money borrowed from the library project.

"We need a law here that the people can judge what to do with the money and not be shifting it around," said Mr. Urianek.

Since Mayor Martins became mayor, the village hasn't borrowed any money and the mayor maintains that if it does, residents will know. Mayor Martins has also been outspoken against transferring money from capital funds to the General Fund, even though such a transfer was needed earlier this year to plug up a deficit in the General Fund as a result of the 2002-2003 budget.

"I'm not worried about this board. I'm worried about the next one that comes. This is something the board should think about. I think it's very important that we have the right to vote on our money and the way our money is being spent," Mr. Urianek said. "We need the control of our money."

Village attorney John Spellman said the village could not adopt a local law forcing the board to hold a referendum when it borrows money unless state law allows the village to do so. Mr. Spellman said the village can, however, adopt a policy by which the board will hold a public vote before significant amounts of money are borrowed.

When money is borrowed with a resolution from the board without a public vote, the public has 30 days to submit a petition containing signatures with at least 5 percent of the total electorate of the village to get a referendum.

Mayor Martins said he doesn't have any issue at all with hearing and referendums, which allow people to know how their money is being spent. "I wouldn't have it any other way," he said.

Mayor Martins finds it difficult to believe that millions of dollars were borrowed in the past in a conference room without input from the public.

The mayor believes the format the village currently uses to hold public meetings, which was instituted last April, whereby village board work sessions are held out in the public meeting room makes it possible for residents to know how their money is spent. "It would have been great if it would have been done 10 years ago," he said.

The Village of Mineola held a hearing last Wednesday in accordance with the allocation of Community Development Funds, which are federal funds that are distributed by the county.

The village will be applying for $550,000 to be used for the streetscape reconstruction of Jericho Turnpike between Mineola Boulevard and Willis Avenue; $100,000 for residential rehabilitation throughout the village; $200,000 for commercial rehabilitation for the construction of new building facades in the commercial areas in the village and $50,000 to be used by the building department for code enforcement. The total amount the village is asking for is $900,000.

Each year, the village puts an application for the federal Housing and Urban Development (HUD) funds, which are distributed to the communities in Nassau County.

Last year, the village was allocated about $300,000, $250,000 for streetscape renovation and $50,000 for code enforcement, of the $18 million HUD funds given to the county after applying for approximately $840,000. The village was left $550,000 short of the funds needed to complete the streetscape renovation project on Jericho Turnpike so the village is applying for that amount this year.

"It allows us to at least have some certainty that the money will be coming. I don't know whether we will get it all at once. We may not. It will be evaluated by the county and then they'll make the determination as to how much we will be allocated," said Mayor Jack M. Martins.

In the past, the village has been given stipends for residential rehabilitation and commercial rehabilitation. Last year, the village was not awarded stipends for those areas.

Last year, the village was allocated $50,000 for code enforcement and has asked for $50,000 again this year. Mayor Martins said it is not recommended that the money be used to hire additional personnel since there is no guarantee the village will receive this funding every year. The money could be used for equipment such as computers and software that will assist the building department. The building department will make recommendations on how the money will be spent.

The streetscape reconstruction of Jericho Turnpike between Mineola Boulevard and Willis Avenue will include both the northwest and southwest corners of Mineola Boulevard and Jericho Turnpike and Willis Avenue and Jericho Turnpike. The project calls for sidewalk pavers, lighting, garbage receptacles and benches. The project is expansion of what has been done on Main Street, Second Street and Mineola Boulevard.

Money allocated to the village is apparently being held up due to investigation of the county's office of economic development. Mayor Martins said he and the community development coordinator for the village Bob Hinck recently met with the new deputy county for economic development Patrick Duggan. "He did make it clear they would try to expedite those funds," the mayor said.

"We have a potential problem at the Nassau County Office of Housing and Intergovernmental Affairs arising out of that scandal. I think a lot of things came to a standstill," said Nassau County Legislator Richard Nicolello, whose district encompasses Mineola, alluding to the investigation of spending irregularities by the former deputy county executive for economic development.

Mineola Deputy Mayor Larry Werther believes the village should receive more than the $300,000 it was allocated last year. "I think that's unconscionable. I think it's up to us to let [Nassau County Executive] Mr. [Thomas] Suozzi know that we will hold him accountable," he said.

According to Legislator Nicolello, money dispersed to municipalities depends on large part on demographics.

The village held a hearing last Wednesday on the application of Nicholas Liakonis to move the Station Plaza Coffee Shop, located at 85 Mineola Boulevard, where he has operated for 25 years, around the corner to 206/208 Station Plaza North.

The new space will be larger providing for 84 seats whereas the current coffee shop provides for 61 seats. The hours for the store's operation would be Monday through Saturday, from 5 a.m. to 3 p.m.

The board approved the application unanimously.

Mayor Martins and the village board of trustees also voted unanimously to expand the minimum requirements for the senior citizen tax exemption on village taxes.

The previous local law homeowners of property to apply for a senior citizen tax exemption if the income of the owner or the combined owners of the property for the income tax year immediately preceding the date of the application did not exceed $21,500. With the amended law, passed by the board last Wednesday, senior citizen homeowners can make as much as $24,000 a year and still gain the benefit of the largest exemption. Senior citizen homeowners whose annual income is $32,400 or less will now be able to enjoy an exemption.

The state has given municipalities the authority to increase the ability for seniors to apply for an exemption. Mayor Martins said making seniors and young adults able to stay in the community is a priority.

Trustees Lou Santosus, Linda Fairgrieve and Larry Werther also spoke in favor of increasing the maximum income eligibility for seniors.

The new schedule is as follows:

Annual Income	Percentage Assessed Valuation
Exempt from Taxation
Less than $24,000	50 per centum
More than $24,000
but less than $25,000	45 per centum
More than $25,000
but less than $26,000	40 per centum
More than $26,000
but less than $27,000	35 per centum
More than $27,000
but less than $27,900	30 per centum
More than $27,900
but less than $28,800	25 per centum
More than $28,800
but less than $29,700	20 per centum
More than $29,700
but less than $30,600	15 per centum
More than $30,600
but less than $31,500	10 per centum
More than $31,500
but less than $32,400	5 per centum

Illegal Housing Fines on the Rise

The following information is from the Mineola Justice Court:

Year		Illegal Housing Fines	Other Building	Total
2000	$9,525	$13,130	$22,655
2001	$21,650	$37,586	$59,236
2002	$27,800	$20,585	$48,385
2003	$140,485	$43,980	$184,465