Babylon Town would cut taxes for 2nd year

Babylon is offering town residents a tax cut for the second consecutive year, according to the town's tentative 2012 budget.

General fund taxes would increase 9 percent in the proposed $137.2 million budget, but residential garbage taxes would drop 21 percent, with the other parts of the town tax bill -- highway, lighting and part town taxes -- holding steady. This would result in a 4.9 percent, or $3.8 million, overall town tax cut for residents.

For an average home valued at $305,600, general fund taxes will increase by $31 while garbage taxes will fall $85, with an overall town tax cut of about $55.

Town spokesman Tim Ruggeri said the general fund tax increase is due to the continuing decline in mortgage tax revenue, which he said has fallen from $13.7 million in 2006 to a projected $4.5 million in 2012.

He also blamed state pension contributions, which he said have increased by more than $2 million since 2009.

The garbage tax cut would result from dipping into the town's garbage surplus. The town no longer needs to raise money for capital projects such as the ashfill expansion, Ruggeri said, so the surplus could be used for reducing taxes. Contributing to the surplus, he said, is $2.5 million saved a year through rebidding on a commercial garbage contract and an extra $1.3 million a year in revenue as a result of a renegotiated residential garbage contract.

Republicans have criticized the Democrat-controlled town for the surplus, citing a 2009 state comptroller's audit that found the town was "overstating its need for garbage fees" and that not enough of the fund was being returned to taxpayers.

The town achieved last year's $4.3 million tax cut by using the surplus.

"Residents in the town of Babylon for two consecutive years now will be paying less in taxes to the town than they were the year before, and I think that's a remarkable record," said Town Supervisor Steve Bellone, a candidate for county executive. "It's based on 10 years of hard work of long-term planning, reducing the size of government and reducing debt."

The town must vote on the preliminary budget by Nov. 20. The town has not yet scheduled when the vote will take place or the date of the public hearing that must be held before the vote.