Tags Posts tagged with "Taxes"

Taxes

Town board decides not to renew contract with current owner due to violating tax laws

The Grateful Paw Cat Shelter is located on Deposit Road in East Northport. File photo by Victoria Espinoza

By Victoria Espinoza

Huntington residents rallied behind the Grateful Paw Cat Shelter, of East Northport, this week after the Huntington Town Board announced it was evicting the shelter for failing to notify the board it had lost its 501(c)(3) not-for-profit in 2015.

Town Attorney Cindy Mangano addressed the public before the speakers began at the board meeting Tuesday, June 13, summarizing how the shelter, run by the League for Animal Protection and served exclusively by volunteers had taken this turn. She said the shelter was notified April 20 by the town to evacuate their Deposit Road establishment within 90 days due to losing their nonprofit status and violating federal and state law.

“In April, everybody here knows it’s time to file your tax returns or seek an extension,” Mangano said. “Charitable not-for-profit organizations must do the same thing. Earlier this year my office sat with Debbie Larkin, the president of LAP, and we were in the process of drafting a new agreement when we learned that a resident had incurred a penalty from the IRS for claiming a tax deduction for a donation to LAP.”

“I’m a cat lover, but five years without a filing, and it was known and the town was not told. I personally don’t have confidence in the league anymore to go forward when they knew the situation existed.”
— Frank Petrone

Mangano said the shelter had actually lost its not-for-profit status in 2015, but never advised the town, which was a breach in their original contractual agreement with the town. According to the town attorney, the LAP lost its charitable status because they did not file paperwork in time with the IRS and the New York State Attorney General’s Charities Bureau office.

“When this came to my attention I scheduled a meeting with Ms. Larkin,” Mangano said. “She told us she knew but she failed to advise us of this fact. So I cannot in counsel to this board advise the board to enter into a new agreement with an organization that as we speak has violated its agreement with the town and is in violation of federal and state laws.”

Residents flocked to the podium to defend the shelter and its contribution to the Huntington community.

“I’m here today to appeal to the town’s decision,” Sharlene Turner, who has adopted many cats from the shelter, said. “Please give the league a renewed opportunity to prove itself.”

Turner suggested setting up strict guidelines and rules moving forward. She commended the dedication of the volunteer staff for providing a safe and warm environment for the animals.

“All volunteers know each cat by name,” she said. “They know their personalities and the relationship a cat has with every other friend in the shelter.

Donna Fitzhugh has been a volunteer at the shelter since 1989.

“I have volunteered over 3,000 hours,” she said. “As you can tell I love working with LAP and volunteering my time and energy to this very worthy organization that has been serving this community for over 43 years. Yes we screwed up, something happened, and we want to rectify this — we do not want to leave. We want to stay and serve the residents of the Town of Huntington.”

Haley Shore, an 11-year-old who donned cat ears at the meeting, said she’s been volunteering at the shelter for about seven years.

“When I heard the news Huntington was going to possibly close the shelter, I was devastated,” she said. “The shelter has become my second home. But this is not about me, it’s about the shelter and all the innocent cats. What are they supposed to do without all of their dedicated and loyal volunteers? For some of these cats this has been the only home they’ve ever known. The cats can’t talk, so we have to be their voices.”

Haley also brought a petition signed by many friends and neighbors.

Several of the volunteers asked the board what would happen to the cats if the shelter closed its doors. According to the town, two other shelters have offered to take over including The Little Shelter in Elwood. However volunteers argued they don’t offer the same amount of health services for animals as the Grateful Paw staff does.

“Yes we screwed up, something happened, and we want to rectify this — we do not want to leave.”
—Donna Fitzhugh

Supervisor Frank Petrone (D) assured the audience that all of the cats living at the shelter now would continue to be cared for, and the shelter would continue with its no-kill policy. However despite the pleas of many residents, he said he had great concerns moving forward with LAP.

“Animals will not be harmed,” Petrone said at the meeting. “I’m a cat lover, but five years without a filing, and it was known and the town was not told. I personally don’t have confidence in the league anymore to go forward when they knew the situation existed.”

Petrone said it’s not as easy as the shelter just refiling for not-for-profit status.

“These laws were broken,” he said. “So you’re telling us just go forward and let’s make it nice. Well it’s not that simple.”

No further decision was reached by the board at the meeting.

Superintendent Robert Banzer speaks about the three propositions on the ballot for next week’s budget vote at last Thursday’s board meeting. Photo by Victoria Espinoza

Northport-East Northport residents must support or deny three major proposals next week: a $161 million budget,  $2 million in capital improvements, and reducing the amount of board members from nine to seven.

The 2016-17 budget includes an American sign language elective at Northport High School, an elementary special education program and the purchase of a new school bus.

“This really emphasizes what this budget and what this school is all about,” Vice President David Badanes said at the May 5 meeting. “At the end of the day, it’s about students — there are students who are great in robotics, students who are great in music, students who are great in foreign languages. From A to Z, students in this district continue to shine.”

Northport proposes collecting $140.9 million in taxes, a 0.55 percent increase to the tax levy from last year’s budget, which will raise the average home’s taxes assessed at $3,800 an additional $56.40. This budget meets the state-mandated tax levy cap of 0.55 percent.

The second $2 million proposition on the ballot includes boiler replacements and a new gym ceiling at Northport Middle School, with funds taken from the 2008 general construction/electromechanical capital reserve and the 2012 capital reserve fund.

The district’s Athletic Facilities Citizens Advisory Committee first introduced many of the capital projects in a presentation led by trustee Regina Pisacani last December, after the committee conducted tours of the district’s facilities to see what improvements were needed.

Members of the United Taxpayers of Northport-East Northport presented a petition at a school board meeting last June, with more than 300 signatures, asking for the board size to go down by two members.

Armand D’Accordo, a member of the United Taxpayers of Northport-East Northport who presented the petition at that meeting, said he’s seen a number of issues with the current board size.

“I have gotten the sense at board meetings, both through watching and interacting, that it seems a bit dysfunctional, due to the makeup of how many members and how long they’ve been around,” D’Accordo said.

According to the district clerk’s office, if the proposition passes, it will go into effect in next year’s election. Trustees Pisacani, Donna McNaughton and Jennifer Thompson will all be up for re-election next year, and only one of the three seats would be open.

Board members have said they disagree with the proposal, arguing that a larger board size means more representation for the district.

“I’ve always liked the idea that the community has this degree of representation with nine members,” trustee Julia Binger said in a phone interview.

Trustee Lori McCue echoed her sentiment: “The downside for the community is a lack of representation,” McCue said in a phone interview. “I don’t feel this would benefit the community.”

The Northport-East Northport budget vote will be held from 6 a.m. to 9 p.m. next Tuesday, May 17 at Dickinson Avenue Elementary School, Fifth Avenue Elementary School and the William J. Brosnan Building.

By Elana Glowatz

Desperate times call for desperate budget measures.

For the first time in four years, a northern Suffolk County school district is taking aim at its tax levy cap, looking to bust through that state budget ceiling as more districts around New York do the same in tight times.

The New York State School Boards Association said the number of school districts seeking a supermajority of voter approval — 60 percent — to override their caps has doubled since last year. The group blames that trend on inflation.

tax-cap-graphicwThe state cap limits the amount a school district or municipality can increase its tax levy, which is the total amount collected in taxes, from budget to budget. While commonly referred to as a “2 percent tax cap,” it actually limits levy increases to 2 percent or the rate of inflation — whichever is lower — before certain excluded spending, like on capital projects and pension payments.

This year, the rate of inflation was calculated at just 0.12 percent and, after other calculations, the statewide average for an allowed tax levy increase will be 0.7 percent, according to NYSSBA.

“The quirks and vagaries of the cap formula mean it can fluctuate widely from year to year and district to district,” Executive Director Timothy G. Kremer said in a statement.

More school districts are feeling the pressure — a NYSSBA poll showed that 36 districts will ask voters to pass budgets that pop through their caps, double the number last year.

It may be easier said than done: Since the cap was enacted, typically almost half of proposed school district budgets that have tried to bust through it have failed at the polls. That’s compared to budgets that only needed a simple majority of support, which have passed 99 percent of the time since the cap started.

In 2012, the first year for the cap in schools, five districts on Suffolk’s North Shore sought to override it, including Mount Sinai, Comsewogue, Three Village, Rocky Point and Middle Country. Only the latter two were approved, forcing the others to craft new budget proposals and hold a second vote.

Middle Country barely squeaked by, with 60.8 percent of the community approving that budget, and Comsewogue just missed its target, falling shy by only 33 votes.

Numbers from the school boards’ association that year showed that more Long Island school districts had tried to exceed their caps and more budgets had failed than in any other region in the state.

But four years later, Harborfields school district is taking a shot.

Officials there adopted a budget that would increase its tax levy 1.52 percent next year, adding full-day kindergarten, a new high school music elective and a BOCES cultural arts program, among others. Harborfields board member Hansen Lee was “optimistic” that at least 60 percent of the Harborfields community would approve the budget.

“We’re Harborfields; we always come together for the success of our kids and the greater good,” Lee said.

The school boards’ association speculated that more school districts than just Harborfields would have tried to pierce their levy caps if not for a statewide boost in aid — New York State’s own budget increased school aid almost $25 billion, with $3 billion of that going specifically to Long Island.

Now that New York school districts have settled into the cap, Long Islanders’ eyes are on Harborfields, to see whether it becomes an example of changing tides.

Next Tuesday, Harborfields will see if it has enough public support to go where few Long Island districts have ever gone before, above and beyond the tax levy cap.

Suffolk County Legislator Kevin McCaffrey, speaking, leads a press conference opposing County Executive Bellone’s water plan last Wednesday. Photo from Kevin McCaffrey

Suffolk Republicans said the county executive’s water quality plan stinks.

County Executive Steve Bellone (D) unrolled a proposal last week that would allow voters to decide whether or not they would pay an extra $1 per 1,000 gallons of water to address nitrogen pollution in drinking and surface water across the region. And while some environmentalists heralded the plan, Suffolk Republicans said it would be unfair to the taxpayer and cost more than what Bellone might lead residents to believe.

Suffolk County Legislator Kevin McCaffrey (R-Lindenhurst) joined with other members of the Republican Caucus last Wednesday at the county headquarters in Hauppauge to speak against Bellone’s proposal. Standing with him was Legislator Rob Trotta (R-Fort Salonga), who accused Bellone of using the water rate increase as a source of revenue to help balance the county’s $1.2 billion debt.

“This is yet another attempt by Steve Bellone to get into the pockets of taxpayers,” Trotta said. “It is a ploy to use water protection as a means of covering for his mismanagement of county finances.”      

His proposal would establish a water quality protection fee that would fund the conversion of homes from outdated septic systems to active treatment systems, the county executive said. He estimated the $1 surcharge would generate roughly $75 million in revenue each year to be solely dedicated to reducing nitrogen pollution — and still keep Suffolk County’s water rates nearly 40 percent lower than the national average.

The funds collected would be used in conjunction with other funding, such as from Gov. Andrew Cuomo’s (D) $383 million initiative to support clean water infrastructure.

Residents living in countless communities like Kings Park, which Trotta represents, have been on the county’s radar as locations in desperate need of a septic makeover. And while the county Republicans said they agreed that clean water must remain an important talking point in Suffolk, they argued that charging more for water might burden those residents already paying more for sewer upgrades.

“Residents in my district and districts around Suffolk County have been paying for a sewer district for over 30 years,” McCaffrey said. “The ‘Bellone Water Tax’ would make these residents pay for the same thing twice.”

Suffolk Legislator Leslie Kennedy (R-Nesconset) said residents would not enjoy equal benefits from the proposal and, therefore, she was against it outright.

“At this point I see this as nothing more than a tax increase on water usage for all,” Kennedy said. “Some may never see the benefit of sewers or nitrogen reduction cesspools in their lifetime.”

The Republican Caucus is committed to fighting what they said was an unfair and unjust tax on Suffolk County residents and called on community leaders, elected officials and taxpayers to stand up for residents in Suffolk County and put an end to the Bellone Water Tax proposal.

But not everyone stood opposed to the water quality initiative. In an interview, George Hoffman of the Setauket Harbor Task Force said Bellone’s plan would benefit Suffolk County for decades to come. Working so closely with some of the county’s most coveted bodies of water, Hoffman said the county needed to act, and fast.

“It’s pretty clear that our harbors and bays are struggling. Until that’s addressed, there’s going to be nothing we can do as a harbor group to be better,” he said. “We can prevent runoffs, but we can’t prevent the seepage from the homes along the shore. What we like about the initiative is it puts water quality at the top of the agenda.”

Town Assessor Ron Devine, above, said the state abolished the March 1 deadline to apply for STAR exemption, meaning that residents won’t have to wait a full year to receive their exemptions. Photo by Giselle Barkley

The New York State Department of Taxation and Finance will see an influx in state school tax relief applications after the state revamps its STAR program.

The change affects new homeowners, buyers and those building a home in the Basic and Enhanced STAR Programs. Residents who changed their primary residence from last March onward, must apply to the program, through the NYS Department of Taxation and Finance, for an approved exemption. Long Islanders who started constructing their homes within the same time frame are affected, according to Town of Brookhaven Supervisor Ed Romaine (R) and Town Assessor Ron Devine.

Devine said residents who have the program up to the 2015-16 tax year will maintain their exemptions. According to Devine, “anyone who is in the system is in the system.” The town will also maintain its approximate 15,000 Enhanced STAR program holders. These holders will receive renewal letters this fall.

The Enhanced STAR program benefits senior citizens 65-years-old and exempts the first $65,300 of the home’s value from school taxes. The basic STAR program, however, is available for owner-occupied primary residences where the homeowners’ and their spouses’ income is less than $500,000. The program exempts $30,000 of the home’s value from school taxes.

According to Romaine, the change in the application process may only affect 3 to 5 percent of homes in the town. But the supervisor questioned if the NYS Department of Taxation and Finance bit off more than it could chew.

“My big concern is that if they’re not staffed, there’ll be a huge backlog of processing that will occur,” Romaine said during a meeting at town hall. “People won’t get their check on time, and it will put people who are either buying a house or building a house in severe disadvantage.”

But the NYS tax department said this change won’t be an issue. According to the department, it successfully processed 2.4 million tax returns after implementing the initial STAR registration program in 2013. The department typically receives around 150,000 applications annually.

The New York State Legislature passed the law earlier this year to change how towns enforce the program within the state. New York State Gov. Andrew Cuomo (D) called for the new application process for first-time homeowners and buyers in his 2017 Executive Budget. The budget was approved on April 1.

“The STAR exemption is the only property tax exemption funded by New York State,” the NYS tax department said in an email. “Therefore, it’s more appropriate and efficient for it to be administered by the state rather than by local assessors.”

According to the NYS tax department, residents can start applying through the department in the upcoming weeks by calling the department or visiting its website. Although residents once received credits on their income tax forms, holders receiving an exemption will get a check in the same amount as their STAR benefit.

For more information about the STAR program, residents can call the Town Assessor’s office at 631-451-6300. New homeowners can apply for STAR with the NYS Department of Taxation and Finance by calling 516-571-1500 or visiting its website at www.tax.ny.gov.

by -
0 2752
Port Jefferson Village Hall. File photo by Heidi Sutton

Village taxes will stay the same for Port Jefferson residents next year.

The board of trustees adopted a 2016-17 budget on Wednesday night that will not increase the property tax rate, despite the total spending plan going up about $300,000.

Next year’s $10.6 million budget will make up that difference largely through other revenues, such as an expected increase in mortgage taxes, which are paid to a local government when mortgages are recorded. Treasurer Dave Smollett said during a public hearing on April 13 that even estimating those other revenues conservatively, the village will be able to maintain all that it offers to residents.

“We are not going to compromise those services,” Smollett said.

Following the treasurer’s budget presentation, just before the board unanimously approved the spending plan, Mayor Margot Garant said she was pleased with the budget and was “looking forward to a good year.”

“I’m feeling very optimistic and confident,” she said.

Although the tax levy will increase slightly next year, the assessed value of the entire village has increased as well, keeping the property tax rate at the same level it is in the current budget cycle: $27.51 for every $100 of assessed value on a home.

by -
0 1210
Rocky Point school district will be spending half of its budget on the teachers, classes and programs, while spending the least amount on debt service and fund transfers.

By Giselle Barkley

Rocky Point school district will be spending half of its budget on the teachers, classes and programs, while spending the least amount on debt service and fund transfers.
Rocky Point school district will be spending half of its budget on the teachers, classes and programs, while spending the least amount on debt service and fund transfers.

Taxpayers in Rocky Point school district may see rebate checks from the government, thanks to Rocky Point school district’s 2016-17 budget proposal.

Rocky Point Superintendent of Schools Michael Ring held the final budget presentation on March 21, announcing that the district’s $80.6 million budget will help maintain the existing instructional, athletic and co-curricular programs, while also working to tackle improvements in the buildings and campuses, like fence and parking lot repairs, and increasing the number of cafeteria tables and cameras across the campus.

Although Ring said the district is confident it will receive money from the Gap Elimination Adjustment restoration, Rocky Point will currently receive $25.2 million in regular state aid, with the possibility of an increase, depending on the results of a vote to restore funds from the GEA. According to Ring, the district receives most of its revenue from tax levies. Residents will see an approximate 0.75 percent increase year over year in the tax levy in the district. Despite the increase, the district’s budget falls within the 0.12 percent tax cap. In light of the limited tax cap, the district only increased its budget by 2.34 percent.

“We believe that the budgets we have presented in previous years and [the one] we’re presenting this year are efficient and effective,” Ring said. “Efficient in that the level of expenditures is very conservative and within the tax cap, and effective because they continue to hold our programs together, both instructionally and co-curricular.”

Rocky Point’s instructional programs, which include courses for general and special education, make up around 50 percent of the district’s budget, followed by employee benefits, among other categories.

“I think this is a place to give every student an opportunity to succeed,” said Scott Reh, vice president of Rocky Point’s board of education.

The superintendent echoed Reh’s stance during the meeting regarding Rocky Point students.

“Success for our students is at the intersection of many roads, and these roads are the main components of our budget,” Ring said. “These many roads are represented by the breadth and depth of academic programs, instructional supports, and co-curricular opportunities we offer in order to allow each of our students to excel.”

Residents who are at least 18 years old and have lived in the school district for at least 30 days are eligible to vote. Community members can vote on the budget on Tuesday May 17, from 7 a.m. to 9 p.m. in the high school gymnasium. Community members can register to vote by calling the District Clerk, Patricia Jones, at 631-849-7243.

If the budget doesn’t pass, the district would have to cut around $360,000 from the proposal. Ring added that the board would also have to eliminate new additions to the budget and restrict the public’s use of various school facilities, to reduce the district’s expenditures. A contingency budget would still help the district fund new projects and maintain old programs.

“The Board of Education remained steadfast in its commitment to develop a financial plan that not only supported our district’s current educational and co-curricular offerings, but also provided for instructional enhancements geared toward further preparing today’s students to become tomorrow’s leaders,” President of Rocky Point Board of Education Susan Sullivan said. “The Board believes that the proposed budget not only meets this mission, but also supports our commitment to taxpayers by staying within the confines of the New York State tax cap.”

This version corrects information about the Rocky Point school district’s contingency budget.

A satellite view of the Steck-Philbin Landfill site that the County plans to repurpose in cooperation with the Suffolk County Landbank. Image from Suffolk County Landbank Corp.

The site of the former Steck-Philbin Landfill on Old Northport Road in Kings Park will finally receive an overdue facelift after 30 years of tax delinquency. The Suffolk County Landbank Corp., which is a not-for-profit entity that works with the county to redevelop tax-delinquent properties, issued a request for proposals to revitalize eight brownfields, including the one in Kings Park, in a press release from Suffolk County Executive Steve Bellone (D) in late January.

“We are working to partner with the private sector to revitalize brownfields sites which have been blights on communities for nearly two decades,” Bellone said in the release.

A property is classified as a brownfield if there are complications in expansion or redevelopment based on the possible presence of pollutants or hazardous materials, according to the United States Environmental Protection Agency.

The site on Old Northport Road is still owned by Richard and Roslyn Steck of Steck & Philbin Development Co., though penalties and interest bring the total owed in property tax on the roughly 25 acres of land to nearly $1.5 million. The property has been tax delinquent since Steck-Philbin Development Co. was found to be using the site to dispose of waste that they did not have a permit for in 1986. It is located less than a half mile east of the Sunken Meadow Parkway and about a half mile west of Indian Head Road.

The former Steck-Philbin Landfill on Old Northport Road in Kings Park is one of the eight blighted brownfields that the Suffolk County Landbank requested proposals for repurposing. Image from Suffolk County Landbank Corp.
The former Steck-Philbin Landfill on Old Northport Road in Kings Park is one of the eight blighted brownfields that the Suffolk County Landbank requested proposals for repurposing. Image from Suffolk County Landbank Corp.

“This has been a long time coming and creating policies and procedures for the Landbank has been an arduous task, but I’m beginning to see a light at the end of the tunnel,” Suffolk County Legislator Tom Cilmi (R-Bay Shore) said in the release. Cilmi is a member of the board of the Landbank. “Hopefully, soon we’ll see the remediation of this and other properties, which benefits our environment. We’ll put the properties back on the tax rolls, which means millions of dollars of savings for taxpayers.”

The Suffolk County Landbank was established in 2013 after their application was approved by the New York State Empire State Development Corporation, according to the release.

“This program represents a tremendous opportunity that will help remediate these contaminated and blighted properties, transforming community burdens into community assets,” Acting Commissioner of the New York State Department of Environmental Conservation Basil Seggos said.

The property in Kings Park is next to the future location of a multisport complex being developed by Prospect Sports Partners LLC. The $33 million plan for the 44-acre site was approved in July 2015.

Some of the other brownfields included in the request for proposals include Hubbard Power and Light and a gas station on Brentwood Road in Bay Shore, Lawrence Junkyard in Islip and Liberty Industrial Finishing in Brentwood, among others. Cumulatively, the eight properties owe more than $11 million in delinquent taxes.

Proposals for the eight sites are due by March 18 and should be sent to the Suffolk County Landbank office on Veterans Memorial Highway in Hauppauge.

Diana Todaro speaks during the budget presentation at the board of education meeting on Wednesday night. Photo by Victoria Espinoza.

Budget season has come to the Harborfields Central School District, and residents could be in for a budget that pierces the tax levy cap.

At a Board of Education meeting on Wednesday night, Assistant Superintendent for Administration and Human Resources Francesco Ianni presented options the district has to choose from for the 2016-2017 budget, calling it an “evolving process.” Harborfields was given a small tax levy cap increase from the state, which means that the district may have to consider piercing the cap if they want to provide any new programs, or face a budget with no additions to stay within the cap.

“Approximately 17 percent of the annual budget that is coming from state aid, but that number is fluctuating everyday,” Ianni said at the meeting. “Reserve funds will account for about 7 percent, and 76 percent of the budget is coming from the community.”

The main concern with this year’s budget, Ianni said, is the .37 percent tax levy increase cap, which is limiting the district’s ability to even rollover last year’s budget. A rollover budget is the same budget as the year before.

The 2015-2016 budget was roughly $80 million, and if a rollover budget were used this year, the total would be approximately $81 million, with an increase of $1,159,907.

If the rollover budget passed, there would need to be a tax levy increase of .84 percent, according to the district, which is .47 percent more than what the state is mandating. If the district abides by the state tax levy increase cap, they will be $287,408 short of the rollover budget total.

Those variables leave the district with some options, Ianni said.

A budget within the tax levy would be $81,346,454, the district said. This would require the district to not only refuse any new mandates or potential additions like full-day kindergarten, but also to cut costs.

But if the district decided to pierce the tax cap, Ianni presented several different budgetary routes the district could take. One is what he described as the simple rollover budget, which would require less than .5 percent of an increase in the tax cap and bring the total budget to $81,633,862.

“But, what if we add some mandates?” Ianni asked during the presentation.

The district presented a potential budget that included mandates like an additional librarian, AIS teacher and an English as a New Language teacher, which would bring the budget to $81,833,862 and a tax levy increase of 1.17 percent.

Ianni said the third possible scenario is the most costly because of additions like $600,000 for full-day kindergarten, $20,000 for a teacher’s assistant testing room and anywhere from $100,000 to $150,00 for a BOCES cultural arts program. The total here brings the budget to about $82.6 million, and would bring the tax levy cap to 2.57 percent.

Ianni said the district has not made any decisions yet as to which budget they would pursue, and would continue to discuss options at various workshops and community forums over the coming weeks.

The next upcoming budget meeting was scheduled for March 5 at 9 a.m.

by -
0 1401
Smithtown Town Hall. File photo by Rachel Shapiro

Smithtown’s 2016 preliminary budget proposal called for a small increase in taxes despite some spending cuts, but officials said they anticipated no layoffs because of it.

The $101 million budget, if approved, would reduce the amount of money the town spends by about 3.4 percent when compared to this year’s budget, the preliminary proposal said. An average Smithtown home assessed at $5,500 would see an increase of roughly $18.01 in annual taxes, or $1,271.25 in total, the budget said.

As for the town’s tax levy, the budget pegged it at $55.49 million, which was more than last year’s $55.04 million levy.

In his budget message, Smithtown Supervisor Pat Vecchio (R) said the town was building on an initiative started in 2015 in a five-year capital plan that targets strategic infrastructure upgrades.

“[The budget] substantially moves the town to a structurally balanced budget that does not reduce resident services,” Vecchio said. “It recognizes the initiatives started in 2015 of replacing only essentially needed positions as employees retire or otherwise leave the employ of the town.”

Last year, the town used more than $5 million of surplus funding to balance the budget. But this year, the town was able to use much less than that at $500,000. The use of surplus funding to balance the budget was one of the key reasons Councilmen Bob Creighton (R) and Ed Wehrheim (R) voted against the proposal last year, but both officials told Times Beacon Record Newspapers last week that they were glad to see the town working to end that practice.

In regards to the town’s general fund, Vecchio said taxes increased by $31.62 for the average home without the use of surplus dollars, which he called a change from Smithtown’s past practices. Expenditures went down by nearly $1.1 million, or 2.5 percent, he said.

“The town continues a ‘pay as you go basis’ for repairs and separation pay for retiring workers,” the supervisor said. “Large capital expenditures have been reduced in the operating budget because they have been included in the 2015-19 capital program, which acquires long-term assets through borrowing instead of the use of current operating funds.”

The town was also able to meet the 2 percent tax cap with help from roughly $900,000 in health insurance and workers’ compensation increases, which a decrease in required state pension contributions help address, Town Comptroller Donald Musgnug said. Also included in the budget were longevity and step increases for nearly 30 Smithtown Administrative Guild and 375 Civil Service Employees Association union workers, he said.

Projects in line with the town’s five-year capital budget plan between 2015 and 2019 helped Smithtown save money in the 2016 preliminary budget, officials said, citing various savings that came as a result of them. The town’s LED streetlights project helped save $200,000 in utility costs, and taxes in the outside village fund decreased by $8.80.

The town also allocated savings of about $35,000 in the animal shelter supervisor’s salary to pay for trap, neuter and release services as well as the hiring of a part-time trainer to help train the eight dogs housed at the shelter, town officials said.

On the subject of Highway Department savings, Vecchio said $500,000 of surplus funds there was used to stabilize taxes. Funding was also increased in the town’s snow coffers by $2.14 per household assessed at $5,500 because of severe storms, which he said exhausted funding last year.

The Town Board must adopt the budget by Nov. 20.