Mineola Mayor Jack M. Martins scheduled a meeting with Town of North Hempstead Supervisor Jon Kaiman for Monday, Nov. 22 to discuss the Village of Mineola getting some of the sales tax revenue that is distributed to the town from the county.
The mayor believes that the village is entitled to a portion of the sales tax revenue since it is generated in the Village of Mineol and that giving the sales tax revenue to the village would best serve the residents of Mineola since the village is the governmental entity that provides essential services to its residents.
Mayor Martins wrote a letter that was read into the record during the Town of North Hempstead's budget hearing requesting the town consider allocating sales tax revenue to the villages.
The Town of North Hempstead expects to get approximately $8.8 million in sales tax revenue from Nassau County. A parameter for allocating this money to the town is based on population. The Town of North Hempstead has approximately 220,000 residents of which 20,000 come from Mineola.
Martins said that although the Village of Mineola's population was figured into the formula that is getting the town $8.8 million in sales tax revenue, the village does not receive any portion of sales tax revenue from the Town of North Hempstead.
"Fairness would dictate that we would get our proportionate share. If we were counted in terms of the town getting that money from the county, they [the town] should have to spend that money here in the village," Mayor Martins said.
According to Martins, Mineola's "fair share" would amount to $700,000 to $750,000 in revenue the village is currently not receiving but is entitled to. "We generate the sales tax revenue, it's only fitting that the sales tax revenue that is attributable to us come back to us to allow us to reinvest it in the community," he said. "That's something I believe we're entitled to. More money has to be spent in this village than it is."
However, Mayor Martins and the residents of Mineola shouldn't expect Kaiman to hand over $700,000 of tax revenue. "He [Mayor Martins] is asking us to voluntarily donate our sales tax to the villages. It's not something I'm legally allowed to do," said Kaiman. "This is a funding source for towns."
According to the supervisor, the sales tax revenue goes into the general fund of the town's budget and is spent on all of the town's residents. "It's money that's dedicated to our general fund budget, which goes to all of our residents."
Kaiman also indicated the town would not be paying to pave village roads, although he said the town could enter into a municipal agreement with the Village of Mineola whereby the village would pay the town to pave roads instead of hiring a contractor, which he believes would save the village money.
"The mayor has asked if we could use a portion of our sales tax to pay for his roads. The answer is no. It's not something we can legitimately use our sales tax revenue for, nor are we allowed to just donate our money," Kaiman said.
Kaiman said the town is looking forward to working with Mayor Martins to provide the Village of Mineola resources. "I'm willing to dedicate several hundred thousand dollars over the next few years towards public projects in Mineola. That's what I'd like to work with the Mayor on. The hope is that there are projects in Mineola that are accessible to all residents, which would make it a legitimate expenditure on our part," the supervisor said.
In order for the town to pay for projects in Mineola, those projects would have to have a benefit for all town residents. This eliminates any improvements to village parks since Mineola's parks are "residents only."
There may not be much for the town to spend hundreds of thousands of dollars on in Mineola since the village government provides the services for its residents.