Possible Police Layoffs in Carmel

Although Carmel’s preliminary budget proposed by Town Supervisor Ken Schmitt called for an 8.7 percent tax increase without any layoffs, at the public hearing held on Thursday, Nov. 8 the discussion focused around the possible layoffs of three police officers and two highway department workers.

The staff reductions were listed in an October budget presentation as a possible solution (along with $700,000 in other cuts) to bringing the town within the state mandated two-percent property tax cap. The town would have to reduce its spending by $1.3 million in order to fall below the tax cap without using the town’s fund balance.

On Nov. 8  the meeting room was standing room only as local fire departments and law enforcement officers came out to show support for the vulnerable police personnel.

Councilman John Lupinacci and Comptroller Mary Ann Maxwell gave an in-depth explanation of the town’s dire fiscal health.

The town’s tendency to use its fund balance to minimize its burden on the taxpayers in the past has caused the fund balance to fall from $8.2 million in 2007 to 3.1 million in 2011. The drop caused Moody’s to give the town a negative outlook.

“The revision of the outlook reflects the trend of deteriorating fund balances and lower reserve levels,” Moody’s stated in its report. “The direction of the rating going forward will hinge upon management’s ability to stabilize the town’s finances.”

No money from the fund balance will be used to offset taxes in the 2013 budget. But according to Lupinacci that only half solves the problem. “With the current plan we are not adding to the fund balance either,” he said.

“Based on a preliminary look at this plan, unless revenues increase, the town would need to continue increasing taxes over the next few years in order to fund current staff levels and continue to provide the services currently offered,” Lupinacci said. “We have to find a balance between increasing taxes and providing services.”

Since 76 percent of the town’s budget is used toward personnel there are few places that the board can cut from that does not displace workers.

“Ladies and gentlemen we are damned if we do, damned if we don’t,” Lupinacci said candidly.  “If we lay off people we are damned. For as a many of you that are out there tonight, we have a tremendous amount of emails and phone calls coming in saying ‘you cannot raise taxes by nine percent.’”

Speaking on behalf of the police department as well as the highway department, 28 people came to the lectern to give their opinions.

PBA President Sgt. John Dearman was the first to speak and submitted to the town 3,400 signatures from residents, which were collected in two days’ time, who were against the reduction of the police force.

He reminded the board that in both 2010 and 2011 the town came to the PBA to ask for givebacks. “In 2010, they said they found the money and they did not need us to give back,” said Dearman. “Then in 2011 we had a handshake agreement that was dropped at the last minute when the town board changed its mind during an executive session.”

According to Dearman, the department responded to 24,530 calls in 2011. If the town forces the department to lay officers off it would be from the traffic unit and the newly established special conditions unit that in the past year has seized 12 vehicles and $20,000 in cash.

“When it comes to the police department you cannot just look at numbers on a spreadsheet,” Dearman said. “People’s safety and possibly their lives could be at risk.”

Chief Michael Johnson said that reducing the force would not only increase response times, it would endanger the police officers and the public.

The town board was also reminded that during Hurricane Sandy, it was the highway workers who were out there alongside with the emergency personnel to make sure the roads were safe.

Supervisor Ken Schmitt said that he was happy to hear so many people speak. “We want to hear what everyone has to say. It can help us put this budget together,” he said.

Lupinacci, who was the most vocal of the town board members during the meeting, pleaded with the public to offer solutions.

Gerald Adler, a Mahopac resident who is a deputy for the sheriff’s department, recommended approaching the county. “Instead of laying off police officers,” he said, “why don’t we go to the county and get back the money we are paying the sheriff’s department and give it to the Carmel PD?”

Carmel residents pay the same amount for sheriff’s services as towns such as Patterson and Putnam Valley do, even though the town does not utilize a patrol unit like the others do.

“That is something we are looking into,” said Councilman Jonathan Schneider. “But that will not be done by the Nov. 20 deadline.”

Other suggestions by the residents included increasing the town’s fees and having the town talk to the county about the over proportionate number of tax-exempt county-owned properties in Carmel as compared to other towns.

The town is currently in negotiations with unions CSEA-2010, Lieutenants-2010, IBT-2011, PBA -2012. It is also putting together an incentivized retirement package for officers who are old enough to retire or have enough length of service to retire as an alternative to having to layoff younger officers.

If the town moves forward with an 8.7 percent levy increase, homeowners would pay approximately $125 more in 2013.

The town will continue talking about the budget during its Wednesday, Nov. 14 meeting. The budget must be adopted by Tuesday, Nov. 20.