Village Cites Sandy, Snow Removal In Budget Increases

The $12.9 million 2013-14 Patchogue Village budget approved at Monday’s budget hearing at Patchogue Village Hall features a 3.69 percent tax increase that was discussed as being caused by a multitude of new expenses.

Patchogue Village Mayor Paul Pontieri said that the two-percent tax cap, which the board voted in February by a 4-1 vote for the option of piercing, would of allowed a $152,000 increase which was exceeded by $191,000.

Pontieri said that the assessed valuation of the Village has gone down this year partly as a result of several developments such as Tritec’s New Village at the Four Corners and the departure of the Clare Rose Inc. beverage company. At the February meeting, trustee Tom Ferb forewarned of this, and said that those properties will return to the Village’s books once the New Village development and condominiums at the former Clare Rose site are complete.

According to the budget document, the Village’s assessed valuation comes in around $52,187,968, which Village Treasurer Ronald Krawczyk said is down around $100,000 from last year.

The tax rate is $12.90 per $100 of assessed value, up from last year's $12.45. Krawczyk told Patch this will amount to an average of $68 per household or an increase of slightly less than $6. Pontieri said that single family homes will have a two-percent increase, two to three family homes will have a three-percent increase and a five-percent increase on homes with four plus families.

Krawczyk cited a number of increased expenses beyond the Village’s control, which include higher pension costs, $30,000 in increased medical expenses, $60,000 to the Community Development Agency to offset reductions of funds from US Housing and Urban Development Agency and $100,000 in snow removal cost that the Town of Brookhaven had reimbursed in the past but will no longer.

“We expended a half a million dollars in costs from [Superstorm] Sandy, and we’re expecting to get that back but it’s not in our budget,” Krawczyk said. He said that when the money for Sandy is reimbursed, that will go back into surplus.

Other increases included a one-percent increase on union contract and an increase in code enforcement.

Krawczyk said the Village’s surplus started at $3.5 million, $500,000 was used to reduce the tax increase and around $2.9 million is remaining. Krawczyk said that keeping the surplus was important in order for the Village to keep its bond rating, and that several other Villages on Long Island do not have a surplus. Krawczyk said the $2.9 million is around 26 percent of the Village’s revenues, and is considered a healthy surplus for the Village.

Trustee Gerard Crean inquired during the meeting asking why more surplus could not be used to offset the tax rate further. Krawczyk said that it may cause the Village to drop a rank in their bond rating.

“If we were to take an additional $200,000 out of our surplus so we are under that two-percent tax cap, very unlikely that it would cause an adjustment to our credit rating at all,” Crean said.

Krawczyk said that he did not want to be in a position where $200,000 is taken this year, when there is a possibility that $700,000 may need to come out next year.

Pontieri said that he was not willing to gamble with the surplus with the uncertainty of how much money will actually get reimbursed to the Village from Sandy damages. Pontieri also said that using the $500,000 already allotted was more than in previous years.

Crean said that while the full $700,000 of surplus he’s suggesting does not have to happen, that he feels the Village could reach a little deeper to offset costs.

Trustee Tom Ferb asked what the tax rate would be if that money were to be used, and Krawczyk said it would still be over three-percent.

Ultimately the budget passed as it was printed in a 5-1 vote, and as reported Monday was approved by trustees Joseph Keyes, Tom Ferb, Jack Krieger, Lori Devlin and William Hilton. Trustee Gerard Crean voted against.

The tax increase at Patchogue, while not the lowest reported thus far on Long Island, was discussed at Monday’s meeting as being lower than others. Bellport Village is reported in the April 4 issue of the Long Island Advance as having a 10 percent increase for its residents, while Old Field is reported by Three Village Patch as not having a tax increase. Babylon Village Patch is reporting a 9.7 percent increase for the Village it covers.

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Also Check Out:

Village Approves $12.9 Million Budget For 2013-2014

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