Mineola, NY - In bipartisan fashion, Nassau County Executive Thomas R. Suozzi, the County's State Senate delegation and the County Legislature today achieved consensus regarding a package that will create a Nassau County Sewer and Storm Water Finance Authority (NCSSWFA) and provide $25 million in yearly benefit to the County's General Fund. Specifically, the five-part plan establishes the NCSSWFA to consolidate the County's antiquated patchwork of sewer districts capitalizes on available refinance savings and produces new, recurring revenues to relieve County budget pressures.

"This agreement fulfills three important objectives - creation of the sewer and storm water authority, $25 million in recurring benefit to Nassau County, and protection of important county services," said Executive Suozzi. "We appreciate the bipartisan effort demonstrated here and we know we can continue to count on the State Senate and Assembly to support the interests of Nassau County residents."

Senate Deputy Majority Leader Dean G. Skelos (R-C, Rockville Centre) said, "I am very pleased that we have successfully reached a compromise that will both preserve important public services and protect taxpayers. This package captures the best that the Sewer and Storm Water Authority had to offer local taxpayers, while allowing the County to generate the revenues needed to advance its path toward fiscal recovery. I applaud everyone involved for their work to develop a viable, bipartisan solution that will help the County rebuild a strong, fiscally-responsible foundation for the future."

"I am pleased that by working together, the Assembly, Senate, and County have reached a conceptual agreement on the creation of a Nassau Sewer and Storm Water Authority, which meets the County's financial needs and helps property taxpayer," added Assemblyman Thomas DiNapoli. "At this time, my staff and I are reviewing the specifics of the legislation, and I anticipate successful resolution of this issue."

NIFA Chairman Frank Zarb said, "I commend Nassau County's State and local elected leaders for forging the bipartisan plan presented today. Senator Skelos, County Executive Suozzi and County Legislative Leaders Judy Jacobs and Peter Schmitt worked in good faith and achieved a compromise that gets the County the $25 million annual general fund benefit it needs while addressing other important public policy goals. It was not easy to reach this compromise, and I compliment these leaders for persevering despite the many challenges they faced. It is now time to look ahead and finish the work of fiscal recovery."

Upon passage of the requisite "home rule" message by the County Legislature, the State Senate will vote upon the package during its scheduled special session on September 16th. Presiding Officer Judy Jacobs said, "The art of governance often involves compromise. This compromise is for the betterment of Nassau County residents." Minority Leader Peter Schmitt said, "We are pleased to be part of a compromise solution that addresses the long-term fiscal health of the County as well as eliminating certain aspects of the Authority that we found objectionable."

The bill will be available for consideration by the State Assembly pending its return to Albany. Under terms of the agreement, the legislation will enable the consolidation of Nassau County's 27 sewage collection and three disposal districts. Through refinancing and available federal interest rate subsidies, the NCSSWFA will save the County nearly $6 million in debt service payments each year. Further, substantial savings will accrue from the consolidation and, when coupled with existing sewer district surplus funds, freeze sewer rates through 2007, prepare the County for implementation of costly future federal storm water regulations and provide for forthcoming sewer and storm water capital construction projects.

To ensure that the County achieves its Multi-Year Financial Plan objectives, the legislation authorizes the adoption of two additional revenue-generating measures: (1) a $250 filing fee for commercial tax certiorari petitions (there will be no fee for residential homeowners' tax certiorari petitions) and (2) an increase in the existing Vehicle Use Tax assessed on all motor vehicles registrations.

Annually, Nassau County is burdened by approximately 20,000 tax certiorari petitions for commercial properties. Upon passage of this State enabling statute and adoption of a new local law, such filings will be subject to a $250 fee - producing $5 million in new, recurring revenue for the County. The State legislation expressly dedicates this filing charge to paying real property tax refund debt and other obligations.

Also, the package includes legislation requiring commercial property owners to refund to their tenants any portion of these tax overpayments that were paid by the tenants and recovered through the certiorari process. If a commercial property owner is unable to locate its former tenant, these funds will become the property of the County, subject to the tenant's right to reclaim this money in the future. As with the tax certiorari filing fee, all revenues achieved by the County under this legislation must be used to pay outstanding tax refund debts.

State law permits counties to impose a Vehicle Use Tax for the registration of commercial and passenger vehicles. Pursuant to this package, the County will possess the authority to raise this registration fee to $15 per year (from $5 or $10 depending on its weight) for all passenger vehicles. This measure will mirror that effective in New York City and provide the County with an additional $10 million.

Recognizing the Senate and Assembly's actions during the State Budget process, the final component of this $25 million equation is derived from the State Legislature's passage of a new law allowing an Off-Track Betting (OTB) Teletheater to operate in Nassau County. According to OTB projections, the teletheater will provide the County with roughly $3 million in new revenues during 2004 - a figure that is expected to rise in subsequent years.

Building upon the efforts of Nassau's State Senators and Assemblymembers to solve the County's fiscal crisis and their record of bipartisan cooperation with County Executive Suozzi, State pension fund reform legislation enacted last spring will provide Nassau County with $38 million in budget relief during 2003 and 2004. When the Senate returns for its special session on September 16th, it will also consider a budget bill - previously passed by the Assembly and supported by Governor Pataki - that will forgive $15.3 million in State Medicaid advance payments to the County.