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Merrick Life • Bellmore Life • Freeport-Baldwin Leader • Wantagh-Seaford Citizen

Dear Freeport taxpayer:
As my administration finishes its third year in office, I present to you my third budget covering fiscal years 2012-2013. When we took office in April 2009, we were confronted with daunting economic concerns and challenges. 
   
The prior administration’s years of out-of-control spending, significantly increasing debt and questionable bonding methods, coupled with a deep recession, bordering on a depression, had to be corrected.
   
Initially, we requested that the New York State Comptroller’s Office review the prior administration’s fiscal practices. While the audit took several months to complete, the report contained some very disturbing information regarding the fiscal policies and day-to-day management practices employed by previous administrations.
   
As disappointing as it is for all of us to receive this news, it was not unexpected. Prior to the release of the comptroller’s audit, we immediately began to develop and initiate a plan of action to address the deteriorated state of the village’s financial structure, a gaping hole that left Freeport with the largest debt of any village in New York State.
   
A series of corrective actions were soon put in place that included a way to cut spending and eliminate the past practice of using special-purpose bonds to pay for operating cost overruns. Admittedly, these were difficult decisions. However, in these tough economic times, everyone is being asked to do more with less. 
   
Government is no exception.
   
Fortunately, over the past two-plus years, by changing the course of how business was being conducted in Freeport, signs have emerged that we are headed in the right direction.
   
In a day and age where municipalities, states, and even nations are facing default or near default credit ratings, Freeport’s financial position has strengthened, enabling the hiring of more police officers, preventing layoffs, and making possible a program of road improvements and other infrastructure projects.
   
Encouragingly, twice in the past several months, Moody’s awarded the Village of Freeport an A1 bond rating, citing the village’s improved budgetary practices and systems implemented by the new administration, while also indicating it expects Freeport’s operating results to stabilize in fiscal 2011 and 2012.
   
And out of 23 recommendations cited in the comptroller’s report to help Freeport more effectively manage its future operations, nine have already been completed and the remaining 14 are in the process of being addressed. 
   
Among those actions – eliminating the past practice of overestimating revenue and underestimating expenditures in my administration’s first budget covering fiscal 2010-2011 – has resulted in a structurally sound and legally balanced budget and served as a catalyst behind Freeport’s ability to significantly reduce its overall debt for the first time in many years.
   
As in past years, I asked my fiscal team to review and scrutinize each department for ways to save money and reduce expenses. Each department was told that its budget would be frozen in place and that all discretionary spending must cease.
   
Undoubtedly, the people of Freeport deserve a zero increase budget, but to deliver such a budget would be irresponsible and against the oath of office that I took when I was sworn in as mayor. Economic mandates beyond my control have impacted the Village of Freeport.  New York State Pension costs continue to rise and we have been informed that while there will be large mandated increases in 2012, the projected increases in 2013 could be staggering.  The village also has certain contractual obligations that have to be met involving its hard working unions. Further, as a consequence of the current assessment system, the village cannot continue to bond funds to balance its budget, pay salaries, and pay for the day-to-day operations.
   
This year, and in the hope of lessening the tax burden on us all, the State of New York passed legislation to impose a tax cap on all municipalities (except New York City).  Freeport cannot raise its levy more than the lesser of two percent (2%) or the consumer price index.  So Freeport has to learn to do more with less.
   
In response to all of these factors, we have created a budget that is fiscally responsible, realistic and responsive to the bona fide needs of the good people of Freeport. The Hardwick team’s budget includes the following:

• Holds the line on all expenditures except for contractually-mandated increases and those necessary to restore fiscal stability;
• Reduces the village’s dependency on borrowing funds to balance its annual general fund budget;
• Continues to limit the village’s reliance on borrowing to pay for successful tax certiorari cases by increasing budget appropriations;
• Eliminates the village’s dependence on appropriating fund balance;
• Maintains a real $1.025 million budget contingency to assure year-end favorable results and continued improved fiscal responsibility;
• Establishes reserve accounts for future benefits payments;
• Allows the Village of Freeport to fund four new police officers to make our village safer – this, while services in other municipalities have declined;
• Includes anticipated savings to the village’s medical plans totaling over $500,000.

   
With the tax cap in place, this year’s levy increase is 2.08%, below the cap and in line with most municipalities within the state. This equals a tax rate of $59.9227 per $100 of assessed valuation, upon a total assessed valuation of $69,404,433. For the average one-family residential property, this represents an increase of approximately $12.75 per month. A zero percent increase now will only lead to double-digit increases and surpassing the tax cap in subsequent years.  
   
While it remains to be seen if further enforcement action might arise from the comptroller’s report concerning the activities of the prior administration, rest assured we will fully cooperate and assist any investigation that might occur and continue to deliver services that are prudent and cost-effective.
   
Please accept my best wishes for a healthy and prosperous 2012.  You can be sure that we’ll make village government even better and more responsive in 2012 and beyond.  Thank you for your well-placed trust and Happy New Year!

Sincerely, Andrew Hardwick