Southold's $57M budget would dip into surplus funds to keep property taxes flat

Southold Supervisor Scott Russell has proposed a $56.8 million budget for 2024 that would freeze property taxes while maintaining services and programs.

The spending plan, released Oct. 3, reflects a nearly 2% increase over the current $55.7 million budget, but Russell said property taxes would remain flat through the use of surplus funding. The spending increase would be offset by tapping $1.9 million in reserves to balance the budget.

Budget documents show the estimated tax levy would remain at $40.4 million.

“Inflation is certainly as bad [as last year],” Russell said Oct. 6. “Hopefully we can reduce the burden and not be part of the inflationary problem but be part of the solution and provide some relief.”

This marks the third consecutive year the state comptroller's office capped property tax levy growth at 2%. A July report from the comptroller’s office calculated inflation at 6.26% for 2024, a slight decrease from 7.17% this year.

The budget adds four police officers, two dispatchers and a harbormaster to maintain current staffing levels. It will also fund soft body armor for officers and five police vehicles at an estimated cost of $45,000 per vehicle, Russell said.

It includes $1.9 million for road maintenance and $500,000 for highway department equipment. 

Funds are also earmarked for $30,000 in cybersecurity upgrades.

Environmental initiatives include a $60,000 standing partnership with the Peconic Estuary Partnership and new $100,000 allocation for a Coastal Resiliency Preparedness Action Plan that would be used to identify vulnerability from sea level rise, design and implement mitigation.

“It’s not going to cover the needs over the next few years given the enormity” of rising sea levels and climate change, Russell told fellow board members at an Oct. 3 meeting. He said it can serve as a springboard for the future to help leverage state and federal funding.

The budget marks the final presented by Russell, a Republican, after 18 years in office.

The town’s bond rating was recently upgraded to AAA by Moody’s Investor Services, which is the highest attainable rating a municipality can achieve. The rating is a measure of the town’s financial outlook and can impact how the town borrows money.

At the meeting, Russell’s colleagues acknowledged sound fiscal management over his tenure.

“I think you’ve left us in good shape,” Councilman Greg Doroski, a Democrat, said.

In addition to inflation, Russell attributed the increase in spending to rising employee benefit costs and warned that those will continue to strain the budget.

“I would caution the new town board to maintain the fiscal restraint and sound budgeting of previous boards,” the supervisor said.

The board is hosting internal budget review sessions with town departments through Oct. 17, and a hearing is expected in November.