Pursuing Autonomy: Town Trustees Seek Separate Tax Line

It’s difficult for most people to understand exactly what the Town Trustees are, Southampton Town Supervisor Jay Schneiderman observed, as a protracted discussion between the Town Board, Trustee President Scott Horowitz and Assemblyman Fred W. Thiele Jr. wore on.

At issue during a special work session held March 17 was the proposed creation of a separate tax line for the oldest elected body, whose authority, the Dongan Patent, dates to colonial times.

The Trustees have authority over a variety of aspects of Southampton life — they regulate shellfishing and the use of wetlands, they’re stewards of water bodies and owners of bottomlands, and more. What they don’t have power over are varied aspects of their own budget.

In fact, according to Horowitz, there have been times throughout the years when town boards have threatened to de-fund the Trustees, leaving them unable to perform the services they do for the community.

The nexus for the work session discussion, Schneiderman said, focused on their ability to be an independent entity and increasing transparency through their own tax line — a tax line similar to that of a library or fire district.

The Trustees constitute a separate municipality but with their budget under the Town Board’s review and power to amend or even abolish, Schneiderman pointed out. “They’re kind of at the mercy of the Town Board,” he said. “So if one year we decide to de-fund them in the budget, they’re out of existence. But that’s something none of us wants to see.”

Providing a separate line for the Trustees’ operation would accurately reflect their true costs on a tax bill. “It’s not any increase,” Schneiderman assured. “We’re just showing it on a line.”

A distinct demarcation would allow the public to see how the Trustees were doing with holding the line on taxes, he said, adding, “Then when people vote, they would have a better knowledge if they are good financial stewards as well as environmental stewards.”

The town would need state authority to create the new tax line.

Thiele said he would carry enabling legislation to the State Assembly, following Town Board adoption of a “home rule” message indicating the town’s support of the initiative.

“Transparency and accountability are very important for any public board when you’re dealing with public money,” Horowitz asserted. In his fifth term, he said he’s been trying to lock down this dedicated line his entire tenure. It will be good for the community to see exactly what services the Trustees provide and what they cost, he said.

The goal of the discussion with Thiele was gaining the authority to begin the exercise entailed in unraveling Trustee expenses, delineating their costs and their revenues.

“You can go your own way. That’s what’s really at the core here,” Schneiderman said. “It’s not just being able to show accurately the true cost of the Trustees, but to have them function as an independent body. Right now it’s so interwoven that it’s hardly independent.”

The effort is not new. The Town Board and Trustees grappled with teasing out the elder body’s finances from the overall town fund before, and, said Schneiderman to Thiele, “You got caught in the middle of a battle” involving members of both boards. Now, the supervisor pointed out, there are new members on each.

“This is somewhat historic if we are able to achieve this. If we’re able to protect their existence, I think we’ve done a good thing,” he said.

“There is a history to this,” Thiele agreed. “I have no more entertaining task than going to Albany and trying to explain what it is the Trustees are, and the history. … It’s an education for a lot of people in Albany.”

There are two parts to achieving the separate line on the tax bill. First, state legislation provides the authority. Thiele and Senator Anthony Palumbo will handle that part. Next, Thiele said, comes implementation. That’s to be worked out between the two local entities.

“We give you the authority, and you figure it out,” Thiele said. “The authorization is fairly straightforward.”

There are two facets of budgeting where the Trustees would not have total autonomy: borrowing money, and the state-mandated cap on tax levy increases.

Under New York State Town Law, the Trustees prepare their own budget, including the tax levy needed. It’s submitted to the Town Board and attached to the town budget. With the new legislation adopted, the Town Board would not have the power to change the Trustees’ budget. That’s the essence of the autonomy the Trustees would have, Thiele explained.

The Trustees could increase their levy within the tax cap, but if they needed to exceed the cap, they’d have to get permission from the Town Board. Right now, all their expenditures have to be approved by the Town Board.

The separate line won’t give the Trustees the authority to borrow money. The full faith and credit is behind the bonds of a local government, and only one body at a time may do that, Thiele said. For any capital project that relates to the bonding of money they’d still have to go to the Town Board.

“If the Town Board and Trustees want to do this, Senator Palumbo and I will get the legislation passed,” Thiele said. Alluding to previous attempts stymied by politics and the state representatives’ desire to remain above the fray, he added, “To be clear, we’re Switzerland.”

Schneiderman and Horowitz are working on a “massive spreadsheet” delineating expenses, the supervisor reported. “It’s not hard, just time-consuming,” he said.

There has to be an agreement between the two boards on aspects beyond the budget, said Councilwoman Cynthia McNamara, who was recently appointed liaison to the Trustees. It could articulate the responsibilities for each of the two bodies, Councilman Rick Martel observed.

An agreement would be necessary to implement the authority given by the state, Thiele agreed. If, however, the bill seeking authority passes, but the two entities can’t reach an agreement, they’d be out of compliance with the law. It was suggested the two sets of officials hash out an agreement first, then pass a home rule message enabling Thiele to pursue legislation.

It wouldn’t take effect until the budget for 2024. “You have time,” he said.