Smithtown to bust tax cap with 10.7% levy hike

Smithtown is proposing to pierce the state's tax cap with a 10.7% levy hike in a budget that prevents 46 employee layoffs and cuts to town services, officials said.

The $141.4 million budget hikes spending by 5.3%. In his budget note, Supervisor Ed Wehrheim said the town was facing a $7.1 million shortfall due to inflation, as well as increased costs for employee health care and retirement contributions. Liability insurance is projected to cost the town an additional $3.2 million in 2026. To stay within the state's 2% tax cap, the town would have only been allowed to increase the levy by $1.5 million, officials said.

“This is not a recommendation made lightly. It is, however, necessary to ensure that Smithtown can meet its obligations and continue providing high-quality services in a financially sustainable way,” Wehrheim wrote in the budget message.

Wehrheim, a Republican, is running for reelection on Nov. 4.

Wehrheim said in an interview he had “wrestled with the decision” to pierce the cap for a month. Ultimately, he said it would be “extremely difficult” to stay under the cap given the budgetary pressures.

Wehrheim said operating costs along with state mandates make it “unsustainable” to operate the town “unless you make super-severe cuts to stay under the cap, and I don’t believe the constituency here in Smithtown would agree with the type of cuts we’d have to make.”

To stay under the cap, Smithtown would have to eliminate 46 full-time jobs, representing 10% of full-time staff. That would trigger service cuts to senior programs, recreation and summer programs and youth bureau operations.  Horizons Counseling & Education, Smithtown's substance abuse treatment and prevention center, would see service cuts if the town doesn't pierce the cap, officials said. Also, the town would have to cut back on lifeguard hours at town beaches and pools, as well as leaf and brush pickup services.

Under the proposal, taxes on all town funds would increase 9% on the average home, or about $160.16 annually.

The salaries for elected town officials would rise roughly 4% across the board, according to the budget proposal. Town board members would see their salary increase 3.99%, from $91,789 to $95,451. Wehrheim would receive a 4% increase in salary, rising from $155,475 to $161,694. The town clerk's salary would increase from $88,249 to $91,779 under the proposed budget. Wehrheim said the increase was modeled after the town’s collective bargaining agreement with administrative guild unions.

A public hearing on the budget is scheduled for Nov. 4 at 2 p.m. at Town Hall.

“I really do believe that the residents will have a good understanding of where we’re at and why the increase is necessary,” Wehrheim said. “Smithtown provides some Grade-A services here ... there’s a lot of quality of life stuff the residents enjoy, and I’m relatively sure the majority of residents will understand that costs escalate to keep these services in place, and they’ll be amicable to doing it.”