The Southold town board voted unanimously last night to adopt the $42.9 million 2016 budget, also adding $750,000 back to replenish the fund balance.
The board first discussed how much to add back at yesterday’s work session; the town was faced with an under the wire, last-minute request to take $250,000 from the town’s highway fund to repair roads socked hard by last winter’s brutal conditions.
Councilman Bob Ghosio raised some concerns about why so much needed to be added back if the board had only transferred $250,000 from the highway fund; the supervisor said the health of the town’s reserves was critical. Justice Louisa Evans said it was prudent to make the move this year rather than next, when financial conditions could change.
Russell said the $500,000 would be meant as a contingency fund — not meant to be used for asphalt. He said Highway Superintendent Vincent Orlando and the board would need to work on a long-term financial plan for road repairs.
Councilman Jim Dinizo supported adding even more funds, stating that the taxpayers would have to see an increase in taxes to support roads, the town’s most critical asset.
“I don’t like the idea of taking that money out and not replacing it the same year,” Dinizio said.
In the end, the board decided to add $250,000 to the part town budget, which covers the $250,000 taken to cover road repair costs, as well as adding $500,000 to the whole town’s general fund.
Adding the $750,000 will result in an overall increase of 3.85 percent in taxes, well under the state-mandated tax cap, Russell said. This year’s state mandated tax cap is 0.73 percent.
That increase in taxes will be offset by a reduction in the Article VII rptl line of the tax bill, Russell said; the decrease should offset the increase, he said.
The part town budget, Russell explained at last night’s town board meeting, covers the cost of running the town but excludes the Village of Greenport. Impact to taxpayers, said town comptroller John Cushman at yesterday’s work session, is expected to be minimal, just “a few” dollars. That number had not been calculated or released as of last night.
Russell said he was reluctant to “change the budget so substantially” after the proposed budget had been presented to the public, but faced with the last-minute need to repair roads, he said, “I don’t think the town board had a choice today.”
