Campaign for Supervisor in Babylon turns to talk of taxes and borrowing by Carolyn James

Steve Bellone Democrat

Babylon Town Supervisor Steve Bellone announced early on in his campaign for reelection that he was not raising taxes this year. The announcement may have been good news to taxpayers, but it posed a big challenge to Bellone’s Republican opponent James McDonaugh who was already scratching to come up with issues against the popular Democrat.

"It’s kind of hard to campaign against that," said McDonaugh, a Lindenhurst attorney who ran unsuccessfully for the board two years ago. "But there are issues out there; it’s just a matter of getting people to focus in on them."

McDonaugh said he hasn’t lost hope of running a successful campaign and serving, however. He points to the political legacy of former Town Supervisor Arthur Pitts, a relatively unknown Democrat who only recently moved into Babylon when he ran against former Supervisor Tony Noto in 1987. At the time, Noto was considered a strong candidate for reelection. Despite that, and with the introduction to the campaign of Oak Beach Inn owner Robert Matheson, who waged a brutal battle against Noto’s reelection, Pitts—and the Democrats—were swept into office. "That’s my rallying cry," said McDonaugh: ‘Remember Arthur Pitts."

McDonaugh quickly adds, however, that there are real, but complicated issues out there that he hopes to be able to explain to a public between now and November. They are the same issues Republicans have raised almost every election season—taxes, debt, and the town’s fiscal future. But because they don’t have a direct impact today, says McDonaugh, it’s been difficult to capture the public’s interest about them.

James McDonaugh Republican

"The facts are clear," said McDonaugh. "We have more debt in this town per capita than any town on Long Island. And they (the Democrats) continue to raise money through bonding, which will only burden the taxpayer down the line."

Bellone counters that the Town has been reducing its debt every year, and that after struggling through some difficult financial years, the town’s fiscal house is in order, largely due to his leadership and that of his predecessor, Supervisor Richard Schaffer.

The most recent financial rating by Moody’s Investments for the town dated November, 2003, gives Babylon a BAA2 with a positive outlook. In its report, Moody’s said it expects the town’s financial operations to continue to improve with satisfactory reserves maintained and deficits in key operating funds eliminated. "While the town did not raise property taxes in fiscal, 2003, they were able to offset rising pension, health care and salary and wage costs with incremental revenues most significantly attributable to mortgage taxes, which sharply exceeded budget," the report noted.

Bellone described it this way: "We have made the tough decisions and done what has been in the best interest of the taxpayers."

There fact is that there is truth in the positions of both candidates.

From 1999 to 2003, the last year the state had final figures recorded, the Town has reduced its bonded indebtedness from $179,559,426 to $159,823,303. And, it’s debt per capita went from $885.43 to $754.62, but those figures also represent an increase in population from 202,793 to 211,792.

The next highest per capita debt level is in Brookhaven with $546.95. That town has a population of 448,248. (See chart page 8 for more details)

"What this means is that each person in Babylon is carrying more debt than any other resident in Suffolk County, and while that may not have a direct impact today, it is mortgaging our future and our children’s future," said McDonaugh

McDonaugh said the Democrats have, as a result, tried to raise revenue in other ways, significantly increasing the garbage rates and raising permits and fees. He pointed to a move several years ago, under Democrat Richard Schaffer, the town sold its leases on property it rents at Oak Beach, giving the town $5 million up front. "But that also eliminated the annual payments the town would receive for the next 25 years," said McDonaugh.

Bellone counters that the reason the Republican message has not captured the minds—and votes—of Babylon residents is because it’s been one of fear rather than facts.

"Every year the Republicans raise the same issues and they aren’t successful," said Bellone, who pointed to the improvements his administration has made to the Town’s parks and pools, as well as its commitment to roads, which Bellone described as the largest road improvement program in the Town’s history.

Statistics show that the Town completed 29.4 miles of road in 2002 spending $3.7 million. In 2003, that was increased to 60 miles of road at a cost of $4.1 million; in 2004, $9.8 million was spent on 89.7 miles of road. This year, the town projects to spend $11.1 million to complete 26.5 miles of road for a total of $28.8 million over four years.

McDonaugh pointed to the dependency the Town has on unfixed revenue sources such as mortgage taxes, saying they did not bode well for the taxpayers in years to come.

"Right now the town has the benefit of low mortgage rates, which have resulted in a tremendous financial boost to towns throughout Long Island who are reaping the revenue from building, construction and refinancing," said McDonaugh. "But at some point interest rates are going to go up and that is going to end and we are going to have to find a way to close that gap that is being created."

The Town’s tax rate represents 7.63 percent of the total property taxes.

Election day is Tuesday, November 8. Bellone is running on the Democratic, Independence, Conservative and Working Families lines. McDonaugh is running on the Republican line. Also running for the Town Board are incumbent Carol Quirk on the Democratic, Independence and Working Families Lines, Lindsay P. Henry on the Republican, Democratic, Independence and Conservative lines and Thomas A. Gargiulo on the Republican and Conservative lines. Gerard Kraft of Lindenhurst is running on the Working Families lines. Voters will be asked to select between Bellone and McDonaugh for Supervisor and to vote for two council candidates in the at-large election. The polls are open from 6 a.m. to 9 p.m.