Southampton budget to hold line on taxes

Southampton Town Supervisor Anna Throne-Holst's proposed $78 million 2013 budget will be able to hold the line on tax and budget costs because of sound fiscal policies in the past three years, she said.

Those policies led to a leaner staff and better interest rates on borrowing, she said during her budget message at a board meeting Tuesday night, even with double digit increases in pension and health care costs.

Southampton has the highest taxable assessed value -- about $5.5 billion -- of any town in Suffolk County, larger than even sprawling Brookhaven Town, due mostly to high home values. A slight uptick in revenue from mortgage taxes and building permit fees also helped boost the town's coffers.

"So, all in all, we are a leaner town government than we were three years ago, and we are a more efficient and a more effective one as well," Throne-Holst said in her budget address at Town Hall.

The town's Aa1 Moody's credit rating allowed refinancing of old debt, resulting in a $1.8 million savings, Throne-Holst noted.

The budget also includes a reorganization of departments, the supervisor added, including a centralized purchasing agent, and a new "pay as you go" fund for some equipment and vehicle purchases normally secured under capital improvement bonds. According to Throne-Holst, the town borrowed between $8 million and $10 million for capital projects in the past several years. The proposed budget allocates only $3 million for those items.

Cutting staff was a big part of cost reduction over the past year. About $1.75 million in savings from the 2012 budget to the proposed budget was due to a decrease in staff salaries, but there is still about $1 million in higher mandated health and pension costs.

At the meeting, the town board tabled a resolution that would raise the amount of money needed for reserves, from 10 percent to 20 percent of the total operating budget.

"It's a very hefty book, and I have to wade through it," Councilwoman Christine Scalera said.

The budget can be adopted as presented or altered by the town board. A public hearing will be held at 6 p.m. Oct. 23 at Town Hall, and others will follow as needed. Final budget adoption is scheduled for Nov. 20.