Suffolk to vote on sewer reserve compromise

A compromise proposal that would dramatically scale back County Executive Steve Levy's plan to tap up to $300 million from Suffolk's sewer reserve fund is slated for an emergency legislative vote to help ease the county's $179 million budget hole.

A new proposal, set for a vote on Aug. 2, surfaced Monday at the energy and environment committee. It came after legislative budget analysts warned that surpluses beyond the $140 million needed to operate the sewer fund will last only three years.

Surpluses over that period would total $71.7 million -- far less than the $250 million to $300 million Levy projected over a decade, the analysts said.

Levy's proposal and a completing plan sponsored by Legis. Wayne Horsley (D-Babylon) were tabled so a compromise resolution, now being drafted, can be presented with a certificate of necessity that would allow it to come before the full legislature without going through committee.

"We don't agree with their estimate," said Eric Naughton, deputy county executive for finance, terming it overly conservative. "But we're willing to compromise."

"The fact is the county is facing financial stress and needs help in the next year or so," said Horsley.

Mark Smith, Levy's spokesman, said, "Everyone is going down the same track here."

Under the compromise, excess surpluses can be tapped this year and next, with 37.5 percent of the money -- $20.4 million -- going to help balance the budget. 62.5 percent or $34.6 million, would go for new sewers. Included is $2 million for grants for installation of new high-tech septic systems in areas unlikely to add sewers.

After two years, the legislature will get to review the policy and vote on whether to extend it. The new plan also calls for a panel of lawmakers, sewer professionals, planners and environmentalists to prioritize where new sewers will go.

The sewer assessment stabilization fund, financed by a part of quarter cent pine barrens sales tax, was created to keep property tax increases in the county's 22 sewer districts to 3 percent a year and help fund improvements.

Legislative budget analysts say the fund is at an all-time high, but the excess will last only until 2013. They project the fund's annual surplus will fall below $140 million by 2014 and be "nearly exhausted by 2024" by the needs of smaller districts.

Legis. Edward Romaine (R-Center Moriches) said he remained undecided on the compromise.

"This is a short-term fix for a long-term problem," he said, expressing concern that "in 10 or 12 years, we could destabilize the stabilization fund." But Presiding Officer William Lindsay (D-Holbrook) said he expects the compromise to pass because "we need the money."