Huntington Bay Village passes budget but mayor grilled on reserve funds, use of credit card

At the Village of Huntington Bay meeting where the board last week approved a $2.34 million budget, residents also demanded to know why the village’s reserve funds dropped and questioned the mayor about his use of a village-issued credit card that one resident said raises "ethical" concerns.

The village board at its monthly meeting on May 8 voted 5-0 to adopt the spending plan, a week after the May 1 state deadline.

The budget raises property taxes by 1.9%; taxes will go up $68 a year for the average home. The village has 574 homes and a population of about 1,600,

The budget "fully funds the important items to protect the future of the village and the safety of the residents while keeping tax increases below the tax cap," Village Mayor Herb Morrow said at the May 8 meeting. Local government budgets face a 2% state tax-levy cap.

Morrow also made some cuts to the budget that includes reducing staff salaries by $22,000 and discontinuing use of a rental storage for a savings of nearly $8,000. The board also decided to reduce the number of road projects.

After residents on May 8 demanded to know why the budget was late, Morrow said he was waiting to see how much in consolidated highway improvement program, or CHIP, funding the state would allocate to the village. The village was allocated $55,000 from the program. 

Before the budget was voted on, residents also questioned why the village’s reserve funds dropped, from $407,377 in 2020 to $89,277 in 2022. 

The village landed on the state comptroller’s list of municipalities “susceptible to fiscal stress,” Newsday reported in March. Morrow told Newsday then that the reserve funds were used to cover road improvement costs and for the hiring of a new police officer.

Several residents referring to the Newsday story asked Morrow why he failed to mention that reserve funds also were used to pay legal fees for lawsuits the village filed against two residents and the Town of Huntington.

The $145,000 in legal fees were paid between 2020 and 2022, Morrow said Tuesday. They were incurred for lawsuits against two residents over the construction of docks and against Huntington over mooring rights. The mayor said Tuesday it was a "mistake" to not mention the legal fees to Newsday. 

Morrow said the board will do an analysis of the village's cash flow and expenditures from the fund balance. He said he will report back to residents, probably by the next board meeting, set for June 12. 

John Paci, who was sued by the village for allegedly not having the proper approvals for a dock he built on his property, questioned the reserve fund spending. 

Paci also asked the board to examine Morrow's village-issued credit card charges. Paci said at the May 8 meeting that Morrow inappropriately used the card at grocery stores, bars and restaurants, including some out of state, that he discovered through Freedom of Information Law requests he filed with the village.

Newsday on Friday filed a freedom of information request for village-issued credit card and bank statements.

“It’s an ethical concern that the mayor of Huntington Bay is spending our taxpayer dollars on alcohol, food and travel with no concern of our village tax dollars,” Paci said at the village meeting.

In response, Morrow said the board will conduct an internal review with the village administrator and the village attorney to address concerns raised by Paci.

Morrow said the village does not have a policy on credit card use but would implement one.