Despite the national economy experiencing the highest inflation rate in 40 years, Oyster Bay Town Supervisor Joseph Saladino today unveiled his 2023 Proposed Town Budget that continues to sustain the $1.3 million property tax cut approved by the Town Board for 2018 by implementing a plan that freezes property taxes for the fifth consecutive year. This tax freeze is once again possible thanks to the spending restraints, efficiencies and debt reduction initiatives put in place by the Town Board. Although the Town once faced a $44 million deficit, approximately $62.2 million are now in reserves as a result of five straight budget surpluses produced over the past five years.
Since 2017, the Town has received seven credit rating upgrades from independent globally-recognized financial firms. In awarding these increases, Moody’s Investor Service and Standard & Poor’s Global Ratings reported ‘continued improvements to the Town’s financial position’ while also crediting the Town Board for improved budget and cost cutting, stating that ‘governance is a key driver of this action.’ These credit rating upgrades save you – Town taxpayers – significant money each time the Town bonds for road repaving, sports field improvements and other critical infrastructure upgrades in our parks and facilities. While delivering these important upgrades for the community, this Town Board and my administration have also managed to reduce total Town debt by $187 million. We have achieved this success by prioritizing projects and watching the bottom line.
Supervisor Saladino stated, “Our Town Board continues to ensure fiscal stability while delivering the highest level of services to our residents. This balanced budget continues to build on our overall financial success – which has been recognized with seven credit rating upgrades from two independent Wall Street firms – while restricting new spending, freezing property taxes and making smart investments in our roadways.
IMPROVED FINANCES & BUDGET SURPLUSES
The Town Board and I have successfully turned around a government that once faced financial crisis. Together, we fully eliminated an operating deficit that had reached $44 million in the past and, in fact, turned that deficit into a $62.2 million surplus– all while cutting property taxes. Fiscal responsibility in government is essential to creating a better, stronger, more prosperous community for this and future generations. That is why the 2023 Proposed Budget again freezes property taxes and is steadfast in its commitment to protecting taxpayers while continuing initiatives that enhance the suburban quality of life in our Town. From investing in roadways, parks, pools, beaches and the environment to combatting zombie homes and blights, the Town Board is making our community a better place.
WALL STREET CREDIT RATING UPGRADES
The Town’s financial turnaround managed by my administration and the Town Board has been recognized on seven occasions with credit rating upgrades from two independent Wall Street firms. Less than two months ago, Moody’s Investor Service again upgraded the Town’s credit rating to “A1” from “A3” and Standard & Poor’s Global Ratings affirmed the “A+” credit rating assigned to the Town. These Wall Street firms have recognized our success in reducing debt by historic amounts, and even awarded upgrades during the COVID pandemic when most local governments were struggling financially.
Further independent evidence of our financial success is proven by the State Comptroller’s Office removing the Town of Oyster Bay from its 2020 fiscal stress monitoring list for the first time since the program’s inception in 2013. When the State Comptroller republished its stress monitoring list in September 2022, the Town was again not included due to our success in turning around Town finances.
CUTTING & FREEZING PROPERTY TAXES
The 2023 Proposed Budget continues to sustain the property tax cut approved by the Town Board in 2017 by implementing a plan that again freezes property taxes in 2023 for a fifth straight year. Accordingly, nearly $7.8 million will be back in the pockets of residents rather than in the coffers of government. This taxpayer savings is possible due to our debt reduction initiatives and internal controls which limit new spending.
The 2023 Proposed Budget is balanced and reflects 2.6% spending growth despite a new employee contract and inflation that reached 8.3% for the 12 months ending August 2022. Despite this record level of inflation, the Town Budget continues to constrain government spending that is under our control while delivering the important services our residents have come to expect and deserve.
RECORD BREAKING DEBT REDUCTION
The Town Board and I accelerated debt service payments and limited new borrowings for capital projects. Before this administration entered office, Town debt had reached a high of $763 million. My administration reduced that by $187 million, more than 20%, without raising taxes. This is the largest debt reduction initiative in the Town’s 365 year history. The 2023 Proposed Budget continues to pay down Town debt. As a result of the Town Board’s approach to debt reduction, 2023 debt service payments will be $14 million lower than in 2017 when I first took office, helping to alleviate pressure on the operating budget.
ECONOMIC RECOVERY & JOB CREATION
Data suggests the global economy is already in a moderate slowdown but the odds of a severe recession are climbing each day. Our Town Board is prepared to help residents find employment and sharpen their skills. Through our career center, the Town continues to offer free online resume and job skills services to help residents prepare for workforce re-entry. A group of professional experts offer free startup advice to small businesses. These services are also offered through a Mega Job Fair, offered free to all residents each October. My administration is committed to helping residents, especially those most in need during this current crisis, find meaningful employment opportunities.
To keep our local economy moving forward, the Town Board directed the Department of Planning & Development to begin digitizing building applications and accept credit card payments. We also reprioritized the workforce to process building applications at a faster pace. The Town continues to offer many same-day permits, and has eliminated red-tape for businesses to keep outdoor dining open throughout 2023.
This Town Board knows that anti-tax, pro-jobs policies are critical for the future of our economy. Those policies helped attract the corporate headquarters of 1-800-Flowers to Jericho, as well as a Home Depot final destination facility in Hicksville. Furthermore, our policies helped attract a new Amazon distribution facility and hundreds of jobs to Syosset. This facility is significant for our economy as it generates millions in recurring economic activity while bringing new life to a brownfield property that has sat dormant for more than three decades. Dream Car Restorations has found a new home in Plainview, and their automotive skills will soon be featured on The Discovery Channel.
To keep our downtowns vibrant and storefronts filled, the Town of Oyster Bay is investing money in downtown revitalization initiatives while supporting small businesses and non-profit organizations with Federal grant money. In Hicksville and Syosset downtown business districts, revitalization projects are getting underway to beautify the area, improve accessibility and advance pedestrian safety initiatives. Millions of dollars in private investment are also being made in Hicksville, where zoning laws now allow for the construction of new housing opportunities for young people, families and senior citizens near the Long Island Rail Road. Additionally, the Town of Oyster Bay is safeguarding local housing stability through the administration of Federal multi-million dollar Rental Assistance program, providing financial relief to renters and landlords that have been negatively impacted by the global Coronavirus pandemic.