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Special districts: Big salaries, little oversight

BY SANDRA PEDDIE | sandra.peddie@newsday.com

December 16, 2007

Water Authority of Great Neck superintendent Robert Graziano, left, whose salary of $183,283 a year is higher than that of the governor of New York State, and whose district-funded vehicle is washed by district employees. (Newsday / Thomas A. Ferrara / Dick Yarwood)

Two laborers in the Oyster Bay sewer district, whose duties include "unskilled or semi-skilled manual tasks," each make an annual base salary of $101,000.

A recreation aide, who performs such tasks as organizing games, makes $47 an hour in the Fishers Island ferry district.

And a meter reader, a job that requires only a high school education, according to a Civil Service job description, in the Jericho water district made $93,772 last year -- nearly two and a half times the average earnings for meter readers statewide.

These are examples of pay for some employees of the scores of independent special districts on Long Island, according to payrolls and other records examined by Newsday. Along with high salaries and other benefits, the districts enjoy a high level of independence from oversight as to how they choose to spend their estimated $500 million in yearly tax receipts.

The records show there is little correlation between the level of compensation and the size of the district or authority or how significant its responsibilities. The many part-time commissioners elected to oversee the finances of many special districts themselves receive both salaries and medical insurance -- for attending meetings that frequently last less than an hour or two and that may include dinner or a golf outing.

Compared to private-sector salaries, government salaries overall on Long Island are significantly higher. Many of the special district salaries are even higher than what many other government jobs provide.

"Why is that?" said Nassau Tax Assessor Harvey Levinson. "Because they can get away with it. Basically, these districts have been running under the radar screen for the last 50 years. Most people don't even know they live in a water or garbage district."

Thomas Conoscenti, a New York University economist who specializes in public finance, added: "And most of those jobs are not accountable to anyone."

As some public officials in New York State and on Long Island have begun to scrutinize just what these districts do, criticism of their practices -- and even their existence -- has mounted. Special districts, which provide services ranging from sewers to water, are some of the literally hundreds of units of government on Long Island. While some districts have elected boards, they remain largely hidden from close public scrutiny because they are so small. Last Tuesday, more than 150 fire, sewer, garbage, park and water districts held elections that drew little voter interest; most of the races were uncontested.

Some, such as the Carle Place Water District, employ a handful of people; others, such as the Cathedral Gardens Water District and Syosset Sanitation District have boards, but no employees. Yet, the compensation given to commissioners and some employees frequently goes far beyond what is offered in county or state government, according to economists, researchers and Newsday's review of the records.

Payroll records show, for example, that Water Authority of Great Neck North Superintendent Robert Graziano makes $183,283 a year -- more than the governor of New York, who makes $179,000. The district's assistant superintendent is Graziano's son Gregory, who makes $95,700 a year. Gregory Graziano also drives a 2005 Dodge Durango, complete with a DVD player, paid for by the district.

The senior Graziano receives fully paid medical, dental, vision and pension benefits worth thousands more. He gets a 2005 Ford Crown Victoria, with gas and insurance paid for by the district and he received low-interest financing from the authority to buy a home.

On top of that, he is able to monitor security in the district and watch television on a 42-inch plasma TV, which records show was paid for by taxpayers, in his office. It was part of an $11,740 security system, but officials refused to specify the cost of the television.

Graziano is the highest-paid water superintendent on Long Island, supervising a staff of 27 people. The authority covers 7.5 miles and serves 31,400 people, according to officials.

"I think I'm underpaid," Graziano said.

Graziano said he deserved his pay because his job duties are "far greater than the average superintendent," doing such things as negotiating contracts, setting rates and discussing design issues with consulting engineers.

"It's not the amount of people," he said. "It's the responsibilities."

Critics disagree. "That's way out of line," said Martin Cantor, the director of the Long Island Economic and Social Policy Institute at Dowling College. He said some of the districts are small enough not to warrant full-time management.

For example, just six people work at Greater Atlantic Beach Reclamation, a sewer district in Atlantic Beach, according to Superintendent William Kelly. Last year, he made $117,607, plus benefits, according to payroll records. He also gets a 1998 Dodge Durango paid for by the district.

"The salary is what it is. It's not excessive," adding that he came up through the Civil Service system, accumulating raises during his 33 years on the job.