Brookhaven's projected $21M loss in landfill revenue prompts town to pierce tax cap
The Brookhaven landfill looking south near Horseblock Road in Yaphank on Aug. 8, 2023. Credit: Newsday/Steve Pfost
Brookhaven officials expect to pierce the state property tax cap for the first time next year as a steep decline in landfill revenue threatens to blow a $21 million hole in the town budget, Supervisor Dan Panico said.
Town taxes on the average home would go up $18 a month next year, or $216 for the full year, under a 2025 budget that would hike spending by 7%, from $337.4 million to $361.2 million, if it is approved in November by the town board.
Panico said town officials expect the tax hike will be more than the 2% allowed under the state tax cap. He did not give a percentage increase for the average tax bill.
Brookhaven is one of eight Suffolk County towns that plan to pierce the cap next year, said Babylon Supervisor Richard Schaffer, president of the Suffolk County Town Supervisors Association. Only Smithtown and Huntington do not plan to do so, he said.
Next year's Brookhaven budget will be the first as town officials begin a yearslong effort to close the 50-year-old municipal dump — one of the town's largest sources of revenue outside of property taxes.
The budget proposal, released Sept. 26, shows landfill revenue is expected to decline by 40.2% next year, from $53.5 million to $32 million.
Panico said he opted to raise taxes rather than make difficult cuts to town services, such as the town's parks and open space preservation programs.
"We budget conservatively. ... We don’t look to tax unless there is a need," he said. "I’m not going to decimate this town. I’m not going to stop preserving open space. I’m not going to let our parks go into disrepair. I'm going to be honest with our residents as to the costs of running, geographically, the largest town in the state of New York."
The landfill will stop taking waste from construction sites at the end of December, Panico said.
Construction and demolition debris, known as C-and-D, comprises more than 60% of the 1.1 million tons of waste buried annually at the landfill, town records show.
The landfill will close when it stops accepting ash from Long Island incinerators in 2028, when it is expected to run out of capacity, Panico said.
Town officials said last year they expected landfill revenue losses would be at least partly offset by revenue from new green energy projects, such as the Sunrise Wind wind-power project, which includes a 17.5-mile underground cable through Brookhaven. Sunrise Wind is expected to generate a total of $168 million for Brookhaven over the next 25 years, officials have said.
The seven-member town board will need five votes instead of four to pierce the tax cap. Brookhaven has not set a date for adopting a final budget plan.
Town board public hearings to discuss the budget and exceeding the tax cap will be held at 5 p.m. on Nov. 7 at Brookhaven Town Hall in Farmingville.
Councilman Jonathan Kornreich, the town's board's only Democrat, said he supported Panico's plan.
"I worked with the supervisor to reach agreement on a budget that takes care of our employees while maintaining core town services," he said in a text, adding the tax hike is a better option than trimming services. "I think we offer pretty good value for that money."
Ken Girardin, research director of the Empire Center for Public Policy, a conservative-leaning Albany think tank, said Brookhaven is among many towns across the state contemplating larger than normal tax hikes.
He said towns are facing a major revenue loss as the federal COVID-19 relief program, the American Rescue Plan, winds down. Long Island's 13 towns received a total of $262.8 million from ARPA, Newsday has reported; Brookhaven received $55 million.
"Everyone was on such a high from the ARPA dollars that even in places keeping their [tax] levies flat, if they were increasing [spending] at all, they were staying within the cap," Girardin said. "We definitely had a suspension of reality for awhile because there was free money from Washington."
Schaffer said it was a "difficult year" for preparing town budgets, adding all Suffolk towns, including Brookhaven and Babylon, are grappling with additional costs after state lawmakers approved a change in the state public employee pension system.
State Comptroller Thomas DiNapoli said earlier this year the change would increase the average employer's contribution to 16.5% of payroll next year, from 15.2%. He predicted the added cost to municipalities and school districts would be $377 million.
The change was meant to enhance benefits for more than 703,000 public workers hired after 2011, officials said.
Schaffer said he plans to ask lawmakers to exempt towns for some pension and employee insurance increases in future years.
"If we had those [exemptions], I believe most of us if not all of us would be able to stay under the cap," Schaffer said.
Brookhaven officials expect to pierce the state property tax cap for the first time next year as a steep decline in landfill revenue threatens to blow a $21 million hole in the town budget, Supervisor Dan Panico said.
Town taxes on the average home would go up $18 a month next year, or $216 for the full year, under a 2025 budget that would hike spending by 7%, from $337.4 million to $361.2 million, if it is approved in November by the town board.
Panico said town officials expect the tax hike will be more than the 2% allowed under the state tax cap. He did not give a percentage increase for the average tax bill.
Brookhaven is one of eight Suffolk County towns that plan to pierce the cap next year, said Babylon Supervisor Richard Schaffer, president of the Suffolk County Town Supervisors Association. Only Smithtown and Huntington do not plan to do so, he said.
WHAT TO KNOW
- Brookhaven officials expect to pierce the state property tax cap for the first time next year.
- The town's proposed $361.2 million budget shows a 40.2% drop in landfill revenues next year as the facility stops taking construction and demolition debris.
- The landfill is expected to close in 2028 when it stops taking ash from local incinerators.
Next year's Brookhaven budget will be the first as town officials begin a yearslong effort to close the 50-year-old municipal dump — one of the town's largest sources of revenue outside of property taxes.
The budget proposal, released Sept. 26, shows landfill revenue is expected to decline by 40.2% next year, from $53.5 million to $32 million.
Panico said he opted to raise taxes rather than make difficult cuts to town services, such as the town's parks and open space preservation programs.
"We budget conservatively. ... We don’t look to tax unless there is a need," he said. "I’m not going to decimate this town. I’m not going to stop preserving open space. I’m not going to let our parks go into disrepair. I'm going to be honest with our residents as to the costs of running, geographically, the largest town in the state of New York."
The landfill will stop taking waste from construction sites at the end of December, Panico said.
Construction and demolition debris, known as C-and-D, comprises more than 60% of the 1.1 million tons of waste buried annually at the landfill, town records show.
The landfill will close when it stops accepting ash from Long Island incinerators in 2028, when it is expected to run out of capacity, Panico said.
Town officials said last year they expected landfill revenue losses would be at least partly offset by revenue from new green energy projects, such as the Sunrise Wind wind-power project, which includes a 17.5-mile underground cable through Brookhaven. Sunrise Wind is expected to generate a total of $168 million for Brookhaven over the next 25 years, officials have said.
The seven-member town board will need five votes instead of four to pierce the tax cap. Brookhaven has not set a date for adopting a final budget plan.
Town board public hearings to discuss the budget and exceeding the tax cap will be held at 5 p.m. on Nov. 7 at Brookhaven Town Hall in Farmingville.
Councilman Jonathan Kornreich, the town's board's only Democrat, said he supported Panico's plan.
"I worked with the supervisor to reach agreement on a budget that takes care of our employees while maintaining core town services," he said in a text, adding the tax hike is a better option than trimming services. "I think we offer pretty good value for that money."
Ken Girardin, research director of the Empire Center for Public Policy, a conservative-leaning Albany think tank, said Brookhaven is among many towns across the state contemplating larger than normal tax hikes.
He said towns are facing a major revenue loss as the federal COVID-19 relief program, the American Rescue Plan, winds down. Long Island's 13 towns received a total of $262.8 million from ARPA, Newsday has reported; Brookhaven received $55 million.
"Everyone was on such a high from the ARPA dollars that even in places keeping their [tax] levies flat, if they were increasing [spending] at all, they were staying within the cap," Girardin said. "We definitely had a suspension of reality for awhile because there was free money from Washington."
Schaffer said it was a "difficult year" for preparing town budgets, adding all Suffolk towns, including Brookhaven and Babylon, are grappling with additional costs after state lawmakers approved a change in the state public employee pension system.
State Comptroller Thomas DiNapoli said earlier this year the change would increase the average employer's contribution to 16.5% of payroll next year, from 15.2%. He predicted the added cost to municipalities and school districts would be $377 million.
The change was meant to enhance benefits for more than 703,000 public workers hired after 2011, officials said.
Schaffer said he plans to ask lawmakers to exempt towns for some pension and employee insurance increases in future years.
"If we had those [exemptions], I believe most of us if not all of us would be able to stay under the cap," Schaffer said.
Carl MacGowan is a Long Island native who covers Brookhaven Town after having previously covered Smithtown, Suffolk County courts and numerous spot news and feature stories over his 20-plus year career at Newsday.
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