Politics & Government
Village Approves Last Minute Tax Hike
Despite presenting a budget a 2012-2013 with no spending increase in March, the Greenport Village Board adopted a budget with a 1.91 increase last night.
In a last minute move Monday evening, Greenport Mayor David Nyce attempted to amend the 2012-2013 budget to include a 3.41 spending hike but in the end the trustees approved a $2.8 million budget with a 1.91 tax levy increase.
As the trustees were about to vote on a resolution to accept the new budget, Nyce proposed creating a fund to help pay down the Mitchell Park and Marina debt. He proposed moving $634,000 from the Clark's Beach sale, 900,000 from the fund and adding a surplus of $33,000 from the 2012-2013 budget, which would be funded by an increase in real property taxes. The Mayor asked Treasurer Charlene Kagel to explain how the $33,000 would put the tax levy increase at 3.41 percent but still fall within the state's 2 percent tax cap levy due to complicated formula the state is using to calculate what expenses falls can be excluded from the tax cap.
Trustee David Murray asked the mayor how the board could do this since it had voted against piercing the tax cap.
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The mayor explained that the tax cap does not guarantee that taxes will stay under 2 percent.
"We voted down the legislation but we did not vote down raising the taxes 2 percent," Nyce said.
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Nyce said he thought the village needed to put that money aside to get ready for the looming debt payments. He said the village needed to create a reserve to address the Mitchell Park debt and help keep the village finances in order for future borrowing.
While agreeing with the Mayor that the Mithcell Park debt must be paid down, Trustee George Hubbard said the bottom line was that the board voted to stay within the 2 percent tax cap. The trustee said he understood the state allows for certain expenses that would be raise the tax levy over 2 percent, but still be considered within the 2 percent tax cap. He promised adding $15,000 to help defray the debt and keep the tax levy under 2 percent.
"They've heard 2 percent and that's all they hear," said Trustee Mary Bess Phillips.
She said the mayor's proposed 3.41 might be part of the formula, but village residents want to see spending kept with the tax cap.
After discussion, the board agreed to an $18,000 surplus earmarked to pay down village debt, which kept the tax levy increase to 1.91 percent. The village is expected to bring in $960,547 through tax appropriations this year.
Trustee Christine Kempner voted against the spending plan.
