City Projects Tax Revenue Shortfall

Borrowing may be needed to cover the post-Sandy dip, comptroller says.

As many Long Beach business owners struggle to reopen their stores after Hurricane Sandy, the city is considering a borrowing plan to cover a projected shortfall in sales taxes and lower commercial property tax revenue for the current fiscal year, according to Comptroller Jeff Nogid.

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The City of Long Beach is working on projections that fall short of the $2.5 million in sales taxes in the $87.9-million 2012-13 budget, and the city may have to borrow to cover the loss, Nogid told Newsday. But the comptroller is unable to put an exact figure on the loss until the city knows the long-term reduction in sales, the assessed valuations of damaged properties and the amount of emergency funds it will receive.

Nogid said:

"We are looking at various projections . . . and we're adjusting our revenues down for the fiscal year.”
Hurricane Sandy arrived just months after the city declared a fiscal emergency and the City Council approved a three-year plan to close a $10-million deficit. The storm is estimated to cost the city more than $200 million in damages.

As many storm-ravaged business and home owners await any or adequate payouts from insurance companies, as well as loans, grants or other funding sources from state agencies and the Federal Emergency Management Agency, city officials hope to gain a significant portion of the $60 billion Sandy aid package that Congress passed last month. The amount is contingent upon how much the funds are already committed to areas impacted by the storm, including New York and New Jersey, and how the remainder will be split between various municipalities.

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joe February 20, 2013 at 05:18 PM
Lots of new trucks and cars added to the city fleet including several Ford SUVs going to the big shots in City Hall. Jack and Co are going crazy with the incoming FEMA money.
Jessica February 20, 2013 at 08:36 PM
The writing on the wall as soon as the FEMA money is gone they too will be gone, no accountability or transparency.
Hamburger February 21, 2013 at 06:49 AM
The sky is falling!
Elliot Zuckerman February 21, 2013 at 07:05 AM
Ned I will answer every question you have as soon as I get my foot out of my mouth,Not quite sure what the hell is going on but I think I will just read and not post as I seem to be wrong, I to am a tax paying resident and like everyone else I am now very unsure who is trying their best for us the people, I guess it just biz as usual here in LB. when I am wrong I will be the first to say it and I am saying it.
Long Beach Chuck February 21, 2013 at 05:33 PM
The City gets to share sales tax from the State. Fortunately we get to share in the entire county's financial access. The controller is simply no good at forecasting. Why should we expect to be solvent when Uncle Harvey is not so wise and keeps diving out gifts to keep the Democrats in power, So where is the Young Israel of Long Beach's new playground Harvey? He told me that he would retire when someone came along and promised to keep handing out the goodies.


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