Residents Demand To Know Where Long Beach's Money Went
LONG BEACH, N.Y. (CBSNewYork) - Long Beach - the city by the sea, a tourist destination with majestic views - is in a fiscal mess.
Residents there are demanding to know where their money went.
"I think it's a corrupt situation," said Long Beach resident Abbe Sentnor. "They think it's Beverly Hills over here."
Long Beach was devastated in Superstorm Sandy, which destroyed the boardwalk. It has taken years, but the city, which has its own police, fire and recreation departments came back stronger than ever. Downtown Long Beach is bustling, and the city reported a $9 million surplus last year.
So why is it now broke?
Residents just learned the city has a more than $2 million budget gap after the city council voted down bond borrowing.
"The residents are asking where did all the money go?" CBS2's Jennifer McLogan asked Acting City Manager Michel Tangney.
"That is a very good question," he said.
Tangney attributes the fiscal woes to workers' pensions. Projected revenue from building permits didn't work out.
"Really overestimated revenues and underestimated expenses," Tangney said.
So the hard choices are these: A 12.3 percent tax increase, about $400 per household or cuts in essential services.
Bus service is already scaled back.
Many young couples thriving in Long Beach are now worried.
"We have a unique set of problems, and I don't know if we are doing a great job of handling them," said resident Adam Johnson.
"I think the state comptroller needs to come in and do a forensic audit to determine where all the money has gone and actually pay attention to these payouts," said Nassau County Legislator Denise Ford.
Ford wants the D.A. to look into what she calls a lack of paperwork for 57 employees who retired from or left their city jobs and are being financially compensated.
City council members will hold another budget hearing and then vote on May 16th. The vote will possibly raise taxes as much 12.5 percent next year. That would amount to about $400 per household.
Other moves under consideration: Curtailing services, or possibly commencing layoffs, CBS2's Jennifer McLogan reported.
