Town Board: Cuomo’s call for a tax hike cap troubles Town Board members

“There’s never been a higher sense of frustration than there is now.”

That’s how Town Supervisor Jim Dougherty on Tuesday described the sentiment among members of the East End Supervisors and Mayors Association of Governor Andrew Cuomo’s proposal for setting a two percent  cap on property tax increases across the state.

The cap would bar towns, villages, fire and school districts from collecting each year more than 102 percent of what had been collected in tax revenues the previous year. The law would go into effect in 2012 if it passes the New York State Assembly and is signed by the governor; it’s already passed the Senate. Shelter Island’s most recent town tax rate, set in late 2010, was up 2.5 percent over the 2009 rate.

“Those same wonderful folks who are giving us unfunded mandates are saying you can’t spend more than 102 percent of what you spent last year, and that’s a major battle that hasn’t been won yet,” Mr. Dougherty said at Tuesday’s Town Board work session.

Councilman Ed Brown added that the town has “an infrastructure to take care of. For the last two years, our roads have taken a beating and we tightened that budget up as tight as we can. Now all of a sudden we’re not going to have room to expand to take care of those roads.”

Councilwoman Chris Lewis commented, “Unfunded mandates are outrageous, for the schools and for the towns. Somebody waves their wand and says, ‘You have to do this,’ but doesn’t look at the repercussions. And their next big idea is ‘we’ll cap the property tax.’”

Councilman Glenn Waddington said, “A lot of times the town is already doing a more decent job of doing things cost effectively than when it’s mandated. … By having bigger government step in, I think it just increases our cost.”

The Cuomo proposal does include a procedure for piercing the cap, Mr. Dougherty said. It would require a public referendum, which could be scheduled only by a super-majority vote of the Town Board.

Also at Tuesday’s work session, the board:

• Heard Mr. Dougherty report that the town is expecting to receive $30,000 from New York State to maintain and repair six town landings at the following locations: Tarkettle Road, Thompson Road Northwest, Simpson Road West, Hager Road, Peconic Avenue North (at Crab Creek) and South Silver Beach Road East. The request for the funds was approved in October 2006.

The grant was approved by the State Senate Finance Committee on January 9, 2007. The work is still to be done, according to Mr. Dougherty, and the town is working with Senator Ken LaValle to be sure the town receives the money.

• Discussed a proposal from the mayor of Southampton Village for a Municipal Health Care Consortium to self-insure municipal workers. Mr. Brown suggested that $8,750 was too much for the town to spend in order to take part in a feasibility study. “There’s not enough justification to spend that money at this point,” Mr. Brown said. Mr. Waddington agreed. “I wasn’t really happy with their lumping us in with the five East End towns and expecting us to pay the same amount to enter into this study” when the other towns are larger.

Recent changes in state law allow municipalities to pool their workers and seek joint coverage for them in order to decrease health insurance costs.

• Discussed the causeway moratorium. The Town Board plans to set a March 18 hearing on a proposal to impose a new moratorium on building on the Ram Island causeways. Mr. Dougherty has suggested that the new moratorium should extend until July 31 to allow time to complete legislation and hearings on the proposed Causeway Overlay District and rules for causeway permits proposed for the wetlands code.

The current moratorium is set to expire March 31.

• The board reviewed requests to hold a wedding on Wades Beach on June 11, and for a triathlon on September 18.