Two Babylon Town officials leaving Bellone administration

by Carolyn James

Douglas Jacob

Doug Jacob, Babylon Town’s embattled finance director, is leaving to take a position with a private school in Manhattan. Jacob, who has been with the town for more than ten years, ushered the town through some of its most tumultuous financial challenges with solid support from former Supervisor Richard Schaffer and Supervisor Steve Bellone under whom he has served. He has also been highly criticized by the state on some of his financial methods, and by residents, business owners and Babylon Town Councilman Lindsay Henry who believe he’s worked for a decade to hide a failing town financial picture.

"As far as I am concerned, it’s good riddance," said Henry upon hearing the news of Jacob’s impending departure. "My only concern is that he is a rat running from a sinking ship."

Both Bellone and Jacob did not return phone calls for comment on the move.

During Jacob’s tenure, the town was also hit with major lawsuits against its commercial garbage district, a lawsuit that cost the town millions of dollars in legal fees and anticipated revenues. All of that took its toll on the Town’s finances. While Bellone maintains the town is now on track and has a sound financial future, Henry and others continue to question the truthfulness of that claim. Their concerns were heightened last month when Fitch Investors changed the Town’s financial outlook from positive to stable.

Debbie Pfeiffer

"This administration ran on a platform that "things were looking up in Babylon," said an angry Henry upon hearing of Fitch’s move. "It is clear now that this was just a political slogan and meant nothing and we continue to face dire financial circumstances in Babylon that will have an impact on us and our children."

However, according to Jessalyn Moro, a director at Fitch, the new outlook is not a downgrade in the Town’s bond rating, which would translate into higher interest rates on borrowing. It is an outlook based on the fact that the Town had indicated it would have its 2002 audit complete by October, but missed that date.

"Babylon continues to have a BBB+, and we still feel that the town’s position is improving," said Moro, "but the numbers that are available are based on a 2001 audit and this is the second year in a row that the audit has been late, so that raises some questions about the timeliness of the numbers that are prepared and the process."

To some extent, tardiness is expected this year, said Moro and in fact, other municipalities throughout the country are behind. That is due, largely to new regulations requiring municipalities to list accrued time for employees in their annual budgets. Prior to this regulation, called GATSBY 34, those costs were listed in the budgets for the years in which they were actually paid out.

"Add to that the fact that Babylon has a new auditor this year and it is understandable why they are late," said Moro.

The audit is not late according to legal standards and Jacob has applied for an extension from the state, which was approved said Bellone.

Bellone acknowledged that both factors accounted for the delay and said he expects to have the audit complete by the end of the year. "And we are confident that those numbers will be favorable for the Town," he said.

Moro said the Town will get another review when it goes out to borrow and Bellone said he expects that to be some time in January.

As for Henry’s criticism, Bellone said it was a continued pattern of Henry’s of speaking out on issues which he does not understand.

"The Town’s financial picture has shown an improvement over the past two years and will show another improvement with this audit," said a confident Bellone. "He (Henry) has no concept of what he is talking about."

"Actions speak louder than words," said Henry. "From what I can see things are bad and getting worse. Let’s just hope that Steve (Bellone) brings in someone to replace Jacob who has some integrity and credibility."

Also leaving the administration as it heads into its second term is Debbie Pfeiffer, the Town's public information office. Pfeiffer was hired in February, 2002 and has served in that capacity since then. She said last week that she was advised by the administration that she will not be reappointed in January.

"I may continue in some consulting capacity but that is not firm," said Pfeiffer, who has young children at home, said she was surprised by Bellone's decision. "I look at it as an opportunity to scale back my work, spend more time with my family and explore some new opportunities."

She added that Bellone said only that he was looking to take the department in a new direction.

Prior to coming to the Town, Pfeiffer worked as a vice president with Brad O'Hearn Associates, a public relations firm.

Bellone had not announced his decision on replacements for the officials at deadline.