Lattingtown budget would increase tax levy

The Lattingtown Village board has approved a 2012-13 budget that will greatly exceed the state's 2 percent cap on tax levy increases, raising both the tax levy and tax rate 9 percent.

Before the board voted unanimously Wednesday night to grant itself an exemption from the cap and approve the budget, Mayor Clarence Michalis said exceeding the cap was necessary to maintain a reasonable surplus cushion after the village experienced a drop in assessment. No one spoke against exceeding the cap.

"We could live with the 2 percent cap," the mayor said, "but we try to have a cushion in case the assessment changes."

The budget totals $1,050,423, down 1.51 percent from $1,066,569 this year. The new tax levy will be $524,089 -- $32,000 more than the $491,895 allowed by the cap.

In a letter to taxpayers, Michalis wrote: "The village has always budgeted very conservatively and has tried to keep the tax rate constant for a few years rather than have it move up and down in response to major expenses or unanticipated revenue declines. The results of conservative budgeting have been to give us a surplus in past years which we use where possible to keep the tax rate the same for the following year."

He noted the tax rate had been stable for four years until 2010-11, when it increased from $13.50 to $18.50 per $100 of assessed value.

Michalis noted the total assessed value in the village has declined from $2,923,000 in 2009-10 to $2,481,000 this year.

"We are mindful of the New York State 2% tax cap," the mayor wrote. "To stay under the 2% cap we could raise our rate from 18.50 to 19.75" but that "leaves us with the possibility of very little surplus going into the following year" and that "could be imprudent for the future."

So the village board decided to raise the tax rate to $21.12 to provide "a more comfortable surplus going into next year" of $310,134, the lowest amount in at least five years, the mayor wrote.