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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City Council Agenda for Feb. 19
Tonto Hertzberg February 19, 2013 at 02:25 PM
Remember in 2014 that the GOP voted NO on Sandy Relief and also want to kill FEMA off. You may not be able to vote against the GOP bastards that voted no but you CAN vote against their pals in the NY & NJ delegation like Pete King. Send those that you can vote against home and send the GOP back into the minority in Congress where they can not harm you. The GOP and the Tea party HATE NY & NJ............................they will do what they can to see you suffer more in the future.
Eddie February 19, 2013 at 02:31 PM
Anyone in City Hall consider a cut in spending? None of the City's required financial reports have been prepared for months, so how do we know if we have money or not? I see Long Beach is advertising for an Assistant Treasurer because Nogid, their Treasurer isn't a CPA, he's just another unqualified hack. A CPA is required for financial reporting. Another new $100,000 position I suppose.
Tonto Hertzberg February 19, 2013 at 02:53 PM
i went to Summer School for math. Does that mean I can not be the new Treasurer?
Nancy Mc. February 19, 2013 at 08:46 PM
Does this guy, Nogid, know what the hell is going on? More taxex, more borrowing. What about spending. Every time this city, this city council , has a money problem they tax or spend.
Nancy Mc. February 19, 2013 at 08:49 PM
Didn't the city just get $24.3 million from FEMA? Where is all that money going? Who is overseeing it? Where's the transparency? http://www.newsday.com/long-island/towns/long-beach-gets-first-fema-check-1.4251527
Jack February 19, 2013 at 09:28 PM
Hey Hoober Goober you are a socialist democrat party hack - you dummy. You are lying the GOP did not vote against Sandy FEMA relief. The GOP does not want a repeat of the failed stimulus plan shovel ready jobs scam. That money was stolen by municipal democratic unions for pension plans. No jobs were created. LB politicians will steal the FEMA rebuild money and use it for their cronies and union thugs. Go back to your Bolsheveik meeting.
Tonto Hertzberg February 19, 2013 at 09:42 PM
ALL 67 votes AGAINST the Sandy Relief Bill were by GOP rats. The ONLY reason why they ALL did not vote against it was the fact that GOP voters in NY & NJ made it CLEAR that they would vote out the entire NY& NJ GOP delegations in 2014 and send the GOP Congree into the minority. The lesson is that these GOP bastards HATE NY & NJ and want to kill FEMA and and FEMA Flood Insurance. ANY voter in LB that votes for the GOP is risking their future. Simple as that.
Tonto Hertzberg February 19, 2013 at 09:44 PM
Also, I am not a DEM and never have been. But I am not stupid either. When these GOP bastards targeted ME I took it personally. My advice? In 2014, vote out any GOP politician you can vote out. If you dont they WILL screw you.
Jessica February 19, 2013 at 09:59 PM
It's unbelievable that they want to borrow more money. The new administration has borrowed $16m since last year. With no new revenues how exactly will the city pay back all this debt? It's clear they are using the FEMA money to carry the city how long will that last? The ship is sinking sadly.. With no captain on board.
Samuel Graham February 20, 2013 at 02:45 AM
God bless long beach
Elliot Zuckerman February 20, 2013 at 06:32 AM
To all my friends here on Patch, the big questions really is what the hell is going on? we get fed money but where is it, I have seen new crews cleaning the streets and side walks all over LB, faces I have never seen before, Please do not get me wrong these crews are beyond nice and have done a great job cleaning up all the crap that has been laying around since the storm(not the big trucks removing house demo) but sweeping up just everyday stuff, with money so tight and things the way they are in LB why now is these crews around?, like most of the people that live around me we clean the sidewalks, we clean the nails and glass that is in the street in front of our homes, why is there more and more city workers now? also accountability have any of you seen the street repair done in the canals where they did some sort of work and ripped up the streets ( sewer work I assume), the new street are black top and so bad any real engineer would have not paid a dime and made this half ass work redone to spec, I know , work being done the way it should, I must be stupid to think that.... Check out I have the answers, lets just see what all you would have done to solve some issues,
Jessica February 20, 2013 at 10:09 AM
Read on http://longbeach.patch.com/groups/jimmy-hennessys-blog/p/is-lb-comptroller-nogid-nogood
kim k February 20, 2013 at 10:13 AM
Let us not forget the 2 patronage promotions on the police dept. We now have 9 lieutenants on a 70 member force. Larson and Cregeen were promoted in a secret ceremony just before the new year. Both will receive $10,000+ annual increase in salary for the rest of their careers. Add that to the payout and promotion made to Cernaski last year. That adds almost $40,000 annually to the PD payroll.
Ned Schneebly February 20, 2013 at 01:17 PM
Not just the new jobs in the PD, but all the new hires of friends and family after a self imposed "hiring freeze." Did the Dems complain that the PD was too "top heavy?" Now they hire 2 more un-needed lieutenants? Also, where is the auditor's report? It hasn't been produced because it confirms that there was no fiscal crisis. It was just a fiction created by the incoming administration to justify them doing whatever they wanted. Shame on anyone who fell for that BS.
Ned Schneebly February 20, 2013 at 01:23 PM
Mr. Zuckerman, you supported these guys and have said that Schnierman is the best City Manager we've had in a long time. Perhaps you caould speak to him to answer some of the questions we all have, many of which are detailed in your above post.. Also, please ask him to release the auditor's report. To the Patch, Herald, Newsday, etc. why aren't you guys all over this auditor's report isssue? Could it be because you all bought into the new admin's BS hook line and sinker and know you'll be embarrassed by the report's results?
Hamburger February 20, 2013 at 01:25 PM
All of this, on top of the squandering of the "rainy day fund", and now we have big problems on our hands
Tideline February 20, 2013 at 02:43 PM
Is LB heading toward Municipal Bankrupcty within 24 months ? Look for a Moodys Bond rating down grade soon.
Jessica February 20, 2013 at 03:25 PM
Too bad they couldn't appoint an oversight committee to oversee the finances and the hiring. Clearly thy are clueless.
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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