Levy announces sewer construction plan

Suffolk County Executive Steve Levy on Friday unveiled a $300-million proposal to spur construction of new sewers, help cover a spike in state pension costs and replenish the county's rainy day fund.

The proposal would be funded by the quarter-cent sales tax earmarked for environmental protection, including land purchases and a fund meant to stabilize sewer taxes. Levy would keep $140 million in the stabilization fund and allow the expected surplus -- $40 million in 2012 and $25 million to $30 million annually in later years -- to provide money for new sewer projects and to help county finances.

Under Levy's proposal, 62.5 percent of the additional money would go to help pay for new sewers in downtown areas, commercial hubs and blighted communities. That money also would fund a credit of up to $2,500 for homeowners who want to upgrade home sewer systems. The remaining 37.5 percent would be diverted for use in the county's rainy day fund, reducing pension costs and paying off debt.

"For years we have talked the talk about sewers," Levy said at a news conference in Hauppauge, surrounded by business leaders and environmentalists. "But now we've found a way to make it work."

Legis. Wayne Horsley (D-Babylon), chairman of the economic development committee, called Levy's proposal "shortsighted," however, and a raid on the county's existing sewer fund.

Levy accused Horsley of "fear-mongering" and said the county's original promise to keep sewer taxes from rising by more than 3 percent a year remains in effect.

Administration officials say the funding is becoming available because the county this year will pay off its bonds for its Southwest Sewer District and other sewer projects.The cost of Southwest, along with major cutbacks in federal and state sewer aid, have kept the county from embarking on new sewer construction, needed to spur economic growth and prevent pollution. About 30 percent of the county has sewer service