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Suffolk Prepared for Unwanted Visitors Hanna and Ike

  Suffolk County Executive Steve Levy and emergency preparedness officials met at the county’s Emergency Operations Center (EOC) in Yaphank Friday to announce final preparations for Tropical Storm Hanna and how much the first major storm in nine years will impact the region, Saturday into Sunday.

  “Our emergency preparedness efforts began five days in advance of the expected storm, and as we saw very recently in the Gulf Coast, that level of lead time makes a significant difference in preparing for and reacting to severe weather,” said Levy.

  Mr. Levy's detailed steps in the county’s 120-hour advance timeline included:
• Notification by e-mail and phone to the county’s 300 CERT (Community Emergency Response Team) volunteers that they may be called into action;
• Notification to approximately 100 county employees who are shelter volunteers that they may be called into action if shelters need to be opened;
• Telephone contact with special-needs persons on the JEEP (Joint Emergency Evacuation Program) residing in flood-prone areas;
• Coordination with towns and the American Red Cross to identify a shelter in each of the ten towns, if needed;
• Regular and early briefings for towns, villages and first responders.

  The EOC began early stages of activation late Friday, with full staffing by 7 a.m. Saturday to be prepared for the day-long torrential rain and winds. The EOC will remain operational until 7 a.m. Sunday, coordinating over 40 workstations from the county, towns, villages, utilities and emergency responders.

  "Remember, this is a severe tropical storm," Mr. Levy said, urging residents who live in low-lying and flood prone areas to monitor the storm and listen for updates. Shelters open in two Suffolk locations at 10 a.m. on Saturday: Southampton High School, 141 Narrow Lane Southampton and Seneca Jr. High School, Main Street Holbrook. However, officials noted that residents should not report to a shelter unless and until instructed.

  While the rain is expected to become heavier later Saturday afternoon, the amount of wind will depend on exactly where Hanna's center crosses Long Island.

  The County Executive reminded residents to use 911 only for life-threatening emergencies, not for general information. Residents with non-emergency situations can use the SCPD non-emergency number 852-COPS (852-2677) or the Suffolk County Fire, Rescue and Emergency Services line at 852-4900.

  “The effects of these weather systems can often be devastating,” Mr. Levy said, “but with the right preparation we can mitigate damage before it occurs. Suffolk County will continue to be proactive in its dealings with potential disasters, taking all precautions possible in the interest of the safety of our residents.”

Town Board Reviews Audited Fund Balances

 Unlike its neighbour to the East, the Town Board of Southampton has no problem facing the municipality's financial health front and forward. The Board addressed a troubling condition at its work session on 15 August when the independent auditing firm, Albrecht, Viggiano, Zureck & Company, conveyed the 2007 financial statements and reported on the balances of the Town’s major funds.

 This disclosure also enabled the new Town Comptroller Steve Brautigam to present his findings and recommendations concerning substantial deficits in certain operating accounts that accumulated from 2004 through 2007.

 In a 24 July memorandum to the Board, Mr. Brautigam noted that a number of funds with deficits at year end 2007 began with negative balances and "have progressively worsened. Calling the negative balances and the 2007 audit the town's "red flag", Mr. Brautigam warned that if this course is not reversed, the Town "will start to have grave financial problems."

 He explained that the majority of the cumulative negative fund balances are IOU’s to the General Fund, covering losses in the Police and Highway Part-Town Funds and the Waste Management Enterprise Fund. This constraint of the General Fund, he stressed, "can affect the cash flow of the Town.”

Mr. Brautigam, who has been with the Town since March of this year, has worked diligently with Supervisor Linda Kabot and Deputy Supervisor/Town Management Services Administrator Richard Blowes to get accurate balances for each of the Town’s operating funds and to formulate corrective action plans for those in deficit or experiencing substantial losses.

• The Police Fund deficit grew from $4 million to over $4.5 million by end of 2007.

• The Highway Fund deficit grew to $669,567 by the same year's.

• The Waste Management Enterprise Fund deficit grew to over $2 million at end of 2007.

 Totaling about $7.2 Million, the deficits mounted as monies were loaned from the Town’s General Fund to cover operating costs for police, highway, and waste management services from 2004 through 2007. Mr. Brautigam said that over the next few years, police and highway taxes will need to be raised to repay the difference to the Town’s General Fund.

 Starting in 2009, the Town will need to chart a new course on how to handle transfer station operations for self-haulers, said Supervisor Kabot. “Such expenses are supposed to be paid for by user-fees, rather than property taxes or the General Fund balance which belongs to the taxpayers,” she added.

 In addition to the deficits present in the areas noted above, the auditors disclosed that the Town has negative fund balances in certain special districts, including the Hampton Bays Water District (approximately $215,000 as of December 31, 2007). Year End deficits in lesser amounts are also present in the Hampton Bays Public Parking District, Bridgehampton Public Parking District, Noyac Fire Protection District, and Bay Point Fire Protection District.

 The General Fund balance at end of 2007 was $16,657,517. After the prior town administration set forth budgeted appropriations in the 2008 Operating Budget and Tax Warrant on November 30, 2007, the General Fund balance was substantially reduced. That was due to meeting the local requirement to set-aside a Tax Stabilization and Contingency Reserve Fund in the amount of $4 million.

 Approximately $1.5 million in surplus was then used to artificially reduce the tax levy for 2008 for the General Fund and $4.6 million was set aside for Capital Program. In addition, $2 million was allocated to the Town’s Affordable Housing Opportunity Bank. The unreserved General Fund balance is approximately $4.5 million on paper at the present time. However, there is a limited amount of cash surplus on-hand since approximately $7.2 Million is owed to the General Fund and “promissory notes” are due from the police, highway, and other funds.

 The Town has ten funds that are in deficit and/or with substantial operating losses as of December 31, 2007. The 2008 adopted Operating Budget and Tax Warrant set forth by the prior Town Supervisor did not address these financial losses and may further compound the situation due to structural deficits in budgetary allocations for employee benefits, severance pay, overtime, contractual and increased costs such as electric, gas and fuel oil.

 The Town’s 2008 independent audit will not be completed until mid-2009. However, according to Supervisor Kabot, steps must be taken now to reign in 2008 expenses. She stressed that she is "committed to steering the Town toward greater fiscal well-being." This includes implementing deficit reduction plans to address the present negative fund balances that have operated for the last four years in three of the town's departments.

 Other funds not yet identified in need of corrective action will be addressed in the upcoming 2009 budget process. Steps already have been taken to ensure that budgeted appropriations in the 2008 Annual Operating Budget are not exceeded by the Town’s departmental managers. The Town Board also will move to correct structural deficits for employee benefit expenses and, Ms. Kabot added, "other known costs that have resulted in artificially lowering the tax rate necessary to support government services for certain cost centers.”

 “We also need to wean off of the use of budgetary surplus as a ‘one-shot revenue’ to fund government operations," said the Town Supervisor. "Such stop-gap measures merely result in a tax hit in subsequent years when there is no continual source of surplus to soften the tax rate to the extent that taxpayers become accustomed.“

 Supervisor Kabot plans to review the 2007 audited figures for each cost center and the current status of the 2008 budget with each department head. State Law requires the Town Supervisor to file the 2009 budget with the Office of the Town Clerk by September 30. Following hearings in October, the Town Board will adopt the 2009 budget by November 20, with amendments if deemed appropriate.

The 2007 Audited Financial Statements are filed in the Office of the Town Clerk.


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