Long Beach requests new $12M bond bill

Long Beach officials have asked the Assembly and Senate to pass a new bond bill that would let the city borrow $12 million to help pay off both its deficit and its debts from superstorm Sandy.

If state lawmakers pass the bill, either in a special session in the fall or a regular session beginning in January, it would help Long Beach correct a mistake that nixed a similar bill in June. State legislators passed the bill in June after Long Beach made a bond request to pay off its debts. The city was required to issue the bonds by June 30, but missed the deadline because of the short time frame, officials said.

A recent outside audit determined the city's operating deficit in fiscal year 2012 was $9.2 million.

Long Beach on Tuesday again made the request to Albany legislators. This time the bill would require the city to issue bonds by June 30, 2015, according to documents filed at City Hall.

City Manager Jack Schnirman said the deficit was a consequence of financial decisions made by previous Long Beach administrations.

"Tonight we renewed our request to finance the inherited deficit," Schnirman said after Tuesday night's City Council meeting.

The council approved the request, 4-0. Councilman John McLaughlin was not present.

The new state bills already have been issued by Assemb. Harvey Weisenberg (D-Long Beach) and state Sen. Dean Skelos (R-Rockville Centre), Long Beach officials said Tuesday.

The formal Long Beach request, known as a home rule message, is needed to move the process forward, city officials said.

Schnirman has said the failure to issue bonds this year won't immediately impact city finances. However, Long Beach could eliminate a yearly property tax surcharge of about $183 per household sooner if the city is allowed to borrow, he has said.

The home rule message approved by Long Beach stated that the bonds must be paid back over 10 years. The bonds will help "restore fiscal balance to the city of Long Beach," the message stated.