George Salem, Programs Director, Garden City Retired Men’s Club; Jim Olivo, Auditor, Village of Garden City; and Joe Leto, President, Garden City Retired Men’s Club Submitted by George M. Salem, Program Chairman

On January 25, the Retired Men’s Club was treated to a wide-ranging discussion of the finances of Garden City by Jim Olivo, Village Auditor. Few people have such a broad and deep comprehension of Garden City’s financial history and current issues. Jim has been auditor of our town for 28 years. “Auditor” is a non-descript title which masks the fact that Jim is in charge of all day-to-day financial management—from investments to debt management, to budgeting, tax assessments, accounts payable, accounting, etc., etc. He functions virtually as chief financial officer, although he reports to Village Chief Administrator Robert Schoelle.

Here are some of the key topics covered in his remarks and the Q&A:

The 2010/2011 budget is in the early phase of formulation. It will be finalized in early-April. Major challenges of the upcoming year are: 1) renegotiation of all the village employees’ contracts—police, fire and civil service; 2) a 2% reduction in tax collections as a result of successful appeals by residents of their tax obligations; 3) village departments are requesting an aggregate 10% increase in spending—grossly above reality; 4) surprisingly, recession-related tax collections from homeowners have scarcely declined because bank mortgage lenders have often paid the tax to avoid foreclosure sales and large principal losses; and 5) low return on investments in bank CDs. In sum, it will be difficult to hold the tax increases for the coming year to the 4%-6% range of the two prior years, but all efforts will be made to hold a middle single-digit percentage. Reluctantly, trustees may have to cut some village services, staff or capital plans to help balance the budget. While residents cannot express their budget views directly at February/March budget meetings, they can indirectly influence the deliberations through their POAs and their Trustees.

St. Paul’s Main Building — Mr. Olivo called the challenge and resolution of the controversy re preservation or demolition “the elephant in the room.” In order for the Board of Trustees to proceed with a referendum, five votes of the Board are required (not 4-4 with a tie-breaker by the mayor). It’s any one’s guess when and if a referendum will be held—and its outcome. Jim guessed a range of late-spring to autumn for clarification of this monster uncertainty.

A decline in home values does not dictate a decline in taxes unless there are unexpected revenue increases or expense reductions.

Will Garden City lose its “village” status? Effective (with a state law) March 15, a petition from 10% of the residents could start the process, which ultimately a majority of the residents would have to approve. While at first glance this appears to threaten our form of government, Mr. Olivo’s opinion is that Garden City residents would never vote for a plan which has major negatives and few positives—especially in the areas of reducing emergency services.

Recreation Budgets — Mr. Olivo stated that the village tennis program is financially sound, while the pool complex is under financial stress and needs more revenues. Membership at the pool has been declining.

In sum, the village is not currently facing a financial crisis, but there are major concerns. The members of our club were very impressed with Mr. Olivo’s presentation. It was a major learning experience. Garden City is fortunate to have such a first class officer handling finances.