Reeling from the loss of tax revenue from the Long Island Power Authority, the Port Jefferson Village Board adopted a 2011-12 budget that calls for an 8.29 percent rise in property taxes, a cut in jobs and a reduction in spending in several departments.

The new budget of $8,758,389 is 5.7 percent, or $472,549, more than the current budget of $8,285,840.

The average household would pay $64 more in annual property taxes for an average bill of $864, according to village treasurer Don Pearce.

Barring any last-minute changes, the new budget will be approved May 1 and go into effect June 1.

"It's a work in progress," said Mayor Margot Garant of the village's finances after a public hearing at Village Hall on Monday night. She later added, "I'm proud of our budget."

The loss of tax revenue from a reduced tax assessment on LIPA's power plant in Port Jefferson Harbor led to the tax increase, the job cuts and other cutbacks, officials said.

Last year, the utility paid the village $2.4 million in taxes -- nearly 30 percent of the village's budget.

On April 6, the village and LIPA agreed to reduce the tax assessment by 10 percent this year as a temporary solution to LIPA's long-term goal of reducing the assessment on its power plant by 90 percent. The assessment was reduced from $11,860,945 to $10,674,852 for the proposed 2011-12 budget.

Another $200,000 assessment reduction in the budget was due to residents' successful grievances of their property tax bills, officials said.

Trustee Leslea Snyder said the elimination of jobs, while fiscally prudent, was painful for the close-knit village government.

"We had to make some tough choices," she said.

The village is laying off a part-time recreation aide, a part-time building inspector, a part-time buildings department clerk, and a part-time custodian. The full-time positions of deputy clerk and master gardener were also eliminated.

At the public hearing Monday night, resident Don Pawluk, 64, questioned why the village spent $450,000 on code enforcement officers.

"They're creating their own little police force," he said after the hearing. Residents in need of law enforcement aid should call the Suffolk County Police Department, he said.

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