Lloyd Harbor approves tax rate increase

Blaming the spike in successful tax grievance filings, Lloyd Harbor Village trustees have voted to approve a tax rate increase of 7.2 percent for the upcoming fiscal year, piercing the state-imposed 2 percent tax levy cap.

The $7,177,128 budget is a 6.26 percent increase over the current budget. Under the higher tax rate, the average homeowner will pay an additional $313 for the fiscal year beginning June 1.

"Because of reduced valuations on homes, the tax rate went higher," Mayor Leland Hairr said Wednesday. "That's the struggle, the difficulty we had to comply with the 2 percent tax cap."

The seven-member board approved the budget April 16 by a 6 to 0 vote. One board member was absent. In villages, the board approves the budget, unlike school district's where voters approve the spending plan.

Hairr said the board voted in February to override the state mandated cap in expectation of a revenue shortfall. More than 30 villages across Long Island have passed similar measures.

Hairr also said an increase in costs such as health insurance, pension plans, and workers' compensation also had an impact. He cited a 6.8 percent increase in employee benefit costs; a projected 7.4 percent increase in health insurance premiums; a 2.5 percent increase in contributions to the New York State Employees' pension plan and 14.5 percent to the police retirement system.

He said the board is negotiating its contract with the Lloyd Harbor Police Benevolent Association, which so far has agreed to a 2.5 percent increase instead of the 4 percent increase in each of the remaining two years of the contract. There will be salary freezes for the administrative staff at village hall, the justice court clerk, police chief and his assistant.

The budget also includes $160,588 in debt service for two bonds approved last year. The bonds were for paving projects, including the village's first major road renovation project, for West Neck Road.

Hairr said he appreciated each departments sharing in the sacrifice.

"I had been hopeful we would be able to control the cost even more but the reality was we were facing essentially mandated increases that we had no control over," Hairr said. "Like any mayor, I don't like to pass along tax increases."