From the Desk of the Mayor

During the last year we have demonstrated a number of facts about the village budget. Through careful fiscal management, not only could we have a balanced budget, the first in six years, but we could actually have an honest surplus, one that resulted from proper budgeting and belt-tightening, not the result of borrowing.

Back in April 2003, we adopted a fiscally responsible pay-as-you-go approach to village finances and were able to go the entire year without borrowing at all. We gave the taxpayer a much needed rest from the cycle of borrowing that had been the dominant theme over the last ten years. Between 1993 and 2003, the village board borrowed over $30 million, an average of $3 million per year. They borrowed for capital (building projects) and noncapital (tax certiorari) items to artificially keep taxes low, but we and our children will pay it all back with interest over the next 20 years.

Borrowing is sometimes necessary as it is in all of our lives. No one pays for their home in cash and most people take out car loans or enter into leases to spread payments out over the life of the car. But borrowing must be done responsibly. We cannot put our debts on our children's shoulders or those of future village residents. As it is, our village taxpayers pay approximately $3 million per year and will do so for the next 20 years just paying back what we currently owe. Once again, none of it was incurred over this last year.

The budget hearing for the 2004-2005 budget will be held on April 14, 2004. I invite you all to attend and participate.

This year there are a number of significant pressures affecting the Village budget.

solid waste disposal (garbage) $250,000 increase

salaries $200,000 increase

health insurance $150,000 increase

loss of assessed valuation $200,000 increase

These are in addition to the day to day cost of living increases that affect each of us in our daily lives for such things as utilities, heating oil, etc. To put these numbers in perspective, each $100,000 increase represents approximately a 1percent tax increase.

I have proposed a budget for this next year that reduces the increase to 4.1 percent without affecting the services upon which we, as Mineola residents, rely.

In addition, we await word from Albany as to the surcharge we will be assessed for contribution to the state pension system. Currently there are two proposals before the legislature, one by State Comptroller Hevesi and the other by Governor Pataki. The Hevesi proposal would result in a $380,000 increase in the Village's contribution to the state pension system; the Pataki proposal would limit the increase to $130,000. Depending upon which surcharge proposal is adopted, the village would face an additional increase of up to 3.8 percent.

Naturally we are hoping that the Pataki proposal prevails and are working with Senator Balboni, Assemblywoman O'Connell, and Assemblyman DiNapoli to see that the Pataki proposal is adopted. The contribution to the state pension system is a state mandated item over which we have no control, but the consequences and impact to our budget are clear.

I look forward to working with the board of trustees throughout the budget process to ensure that the village continues to provide the services we expect. We must do so in a fiscally responsible manner as we cannot afford to return to the cycle of borrowing and debt.