Josh's $30 million plan
Supervisor's 2005 budget calls for 3.35% tax hike
By Tim Kelly

SOUTHOLD--Total town spending would top $30 million for the first time ever and property taxes would rise an average of 3.35% under the 2005 town budget Supervisor Josh Horton submitted last week.

The supervisor's spending outline would maintain the town government status quo with one obvious exception. Mr. Horton is requesting funds to add five new patrol officers to the town police force. Although the final budget vote won't take place until November, the Town Board this week informally agreed to hire the additional officers. (See separate story.)

The supervisor called for total spending of $30,518,652. That's up just over $1 million, or 3.54%, from the current budget. That figure includes some allocations, such as a part of the town highway department's budget, that are not charged to residents of the Village of Greenport. Villagers would see their town taxes fall by about 1.45%

In his budget message, the Conservative-Democratic supervisor said his spending plan "continues the programs and initiatives we've commenced with a stronger emphasis on further increasing public safety and pursuing proper maintenance of our aging roadways and drainage/stormwater runoff infrastructure."

He is suggesting spending $350,000 on highway and drainage improvements, $150,000 of that on Fishers Island.

Mr. Horton's proposal drew praise from Councilman John Romanelli, one of two members of the board's GOP minority. "Josh did a pretty good job," he said. "I think he put a really solid budget together." The town would be hard pressed to set a tax rate below that proposed by the supervisor, he added.

The supervisor's package calls for a 2.08% increase in the amount to be raised in taxes. That figure would go from $19,613,762 to $20,021,285, a difference of $407,523. Mr. Horton's modest tax rate increase is based in part on an anticipated 13.77% rise in general fund non-tax revenues, which he projects would increase by just under a half-million dollars to $4.1 million. In that, the supervisor foresees a substantial rise in mortgage tax receipts, from $1.5 million to $2.1 million next year.

But his anticipated fund balance, known also as the surplus, would increase 2.12% to $2.8 million. The fund balance can be carried over from one year to the next, or used to offset a tax-rate increase.

For those outside Greenport's incorporated area, the town tax rate would rise from $188.261 to $194.571 per $1,000 of assessed value. Greenport's rate would fall from $151.194 to $149.005 per $1,000.

The amount the town charges individual taxpayers depends in part on the growth, or lack thereof, in the town's tax base. Quoting the town's assessors, the supervisor's budget anticipated another 2.33% growth in overall assessment. As the building boom continued, Southold Town experienced an unprecedented expansion in its assessed value in the past two years, with that number now topping $100 million. That resulted in a larger pool of taxpayers, thereby spreading the burden and easing the individual impact.

In offering his first budget two years ago, Mr. Horton proposed a tax cut of .09%. The then-GOP Town Board majority called that figure unrealistic and said the supervisor had failed to include a $900,000 mandated hike in the town's contribution to its employees' retirement program. With that money added to the final budget, town taxes rose 7.1%.

Mr. Romanelli, who ran unsuccessfully against the supervisor a year ago but who is now one of his strongest supporters, said of Mr. Horton's budget preparations, "I think he's learned not to play those games. I hope so."

The supervisor's budget calls for a 3% raise for most elected officials, but with no increase in the supervisor's earnings, currently set at $63,736 annually. Councilman Romanelli said he believes that figure should be increased. The supervisor did call for a 16.39% hike for the highway superintendent, who would earn $86,940. The difference is roughly what the superintendent lost last year when his public works responsibilities were transferred to Jim McMahon.

"The Highway Superintendent's responsibilities and work load remained the same," the supervisor said earlier this week. "The salary should reflect that."

Last week the supervisor also released a capital budget, which serves as a guide to major spending projects usually financed through bonding. In addition to the drainage and road monies, it includes a $3,125,000 project to expand and improve the town waste collection and recycling facility in Cutchogue. The Town Board has yet to approve that spending.

The capital budget does not account for a new town animal shelter or a new Town Hall, both of which have been discussed but not yet funded. The supervisor said the town is committed to the shelter project, which is expected to commence next year.

The Town Board will hold its first budget work session next Tuesday.