Letter: Russell Floats 2.79 Percent Tax Increase in Preliminary Budget

This is a difficult economic climate for us all. While we are all optimistic for an economic recovery that is long overdue, the budget I present holds no such optimism. Revenue from all sources continues to decline. Assessment values, on the whole, have also declined. At the same time, the cost of doing business continues to climb. Increases in fuel cost, healthcare cost, and obligations to the New York State Retirement Systems, all combine to make the challenge of developing a budget to meet the needs of this community difficult, to say the least.

I am pleased to work with a Town Board that adheres to sound fiscal principles and I urge the board to continue to adhere to the principles of:

            1.         Pay-as-you-go approach to governing

            2.         Continue to reduce the payroll through attrition

            3.         Resist budgeting unrealistic revenue expectation

The budget I offer reflects those principles and I am confident that our fiscal outlook will remain strong if we continue our no-nonsense, straightforward approach to budgeting.

In the past, I have raised serious concerns over the substantial financial burden of the New York State Retirement System. These growing costs are all placed squarely on the shoulders of taxpayers. The taxpayers can take no more. The recently enacted 2% property tax cap is simplistic and does not address the need for real reform. The days of employees not contributing to their own retirement accounts needs to come to an end now. Further, there is a very real need for substantial reform to the policies, procedures and laws that govern public employee costs in this state.

Among the key features of this budget are:

•  Includes a total appropriation of $39,824,144 which will result in a tax increase of 2.79%.
•  Includes nearly $700,000 in new costs to the New York State Retirement System. This figure accounts for nearly 2.4 % of the total tax increase.

• Reflects a spending increase of only 1.32% over last year’s budget.
•  Adheres to the town board adopted policy of maintaining a fund balance equal to or greater than 10% of our general fund appropriations.

I would like to thank all of the department heads for their help in preparation of this budget.

I would like to especially thank Town Comptroller, John Cushman and Assistant Town Comptroller, Connie Solomon for their hard work, guidance and commitment to excellence in the preparation of the document.

- Scott Russell, Town of Southold Supervisor