Audit: Budget mismanagement in Amityville

Over two years, Amityville's general fund -- used for day-to-day operations -- dropped from a $1.9 million surplus to a $600,000 deficit, as the village spent more than it took in on projects and services ranging from road repair to decorative street lighting, according to a state comptroller's audit.

The report released by Comptroller Thomas DiNapoli this week found that the village board "has not adopted realistic budgets, does not routinely monitor the budget, and has not taken appropriate actions to maintain the Village's financial stability."

Mayor Peter Imbert disputed some of the conclusions in a response letter dated March 22 and included in the audit. "Our financial decisions have been intentional and designed to keep the residents in their homes as opposed to driven out by high taxes merely to build up a fund balance surplus," he wrote.

The audit does not include "subsequent events" that have increased the fund balance, he wrote, without elaborating. Imbert was traveling this week and unavailable for comment.

Deputy Mayor Peter Casserly said the village has implemented "virtually all" procedural recommendations in the audit. While the general fund remains depleted, he said, "Things get done, things get repaired, and bills are paid." The village has not had to borrow money for operating expenses, he added.

The audit, which focused on 2009-10, describes sloppy record-keeping, cost overruns, projects begun without proper authorization and the apparent absence of a comprehensive plan to address the fiscal health of the village.

Trustees consistently underestimated the cost of key village services and expenses and used the general fund when revenues from taxes or other sources proved inadequate, the audit stated.

In 2008-10, for example, trustees budgeted $150,000 for road construction each year but spent more than $180,000 in 2008 and in 2009 and spent $257,506 in 2010.

Trustees budgeted $65,000 a year for repairs to the fire department's vehicle fleet in 2008 and 2009, but spent $112,780 in 2008 and $110,547 in 2009.

When anticipated state and county grant money to install decorative street lighting on Montauk Highway did not arrive in 2007, trustees borrowed $258,000 from the general fund to pay for part of the project. Some of the grant money still has not arrived, Casserly said. "They cite a problem with the fund balance, yet they contribute to it . . . If people like the state paid us, we wouldn't have a shortfall."

The village must submit a corrective action plan to the comptroller's office within 90 days.