The Town of Oyster Bay, N.Y. should fall under state oversight, a state assemblyman says.
Legislation introduced by Assemblyman Charles Lavine, D-Glen Cove, Thursday would empower New York State Comptroller Thomas DiNapoli to appoint a fiscal monitor to reject or accept budgets approved by the Oyster Bay Town Board.
S&P Global Ratings slashed Oyster Bay bonds two notches to junk-level BB-plus in late April citing weak financial management in recent years that led to negative fund balances including a $19 million operating deficit in the 2014 fiscal year.
"The appointment of a state monitor for the Town of Oyster Bay is necessary to ensure the fiscal stability, viability and integrity of a municipality that is in imminent danger," said Lavine in a statement. The Nassau County town has more than 290,000 residents. Part of the town is in Lavine's district.
Lavine noted that Oyster Bay is the only locality in New York State with a junk-level bond credit rating and criticized Town Supervisor John Venditto's plan for a task force, arguing that it would not have enough objectivity.
Venditto announced after the S&P downgrade that the task force would be comprised of himself, Town Comptroller Robert McEvoy, Town Finance Director Robert Darienzo, the town's accounting firm Albrecht, Viggiano, Zureck & Company PC and its financial adviser, Fiscal Advisors & Marketing Inc.
"Appointing this particular group to analyze this crisis is like naming a team of wolves to advise on best practices to protect sheep" said Lavine. "A fair and objective task force must be composed of individuals who will conduct their work in an unbiased and non-political manner, with neither the danger of nor the appearance of the slightest conflict of interest."
The Town of Oyster Bay press office did not immediately respond for comment on Lavine's proposal. A spokesman for DiNapoli said the office is aware of the legislation and is reviewing it.
Oyster Bay is the fourth largest township in New York.
