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The Westhampton Beach Village Board unanimously adopted its $8.9 million budget for 2009-10 during its monthly meeting last Thursday, April 2, a plan that carries a 4.2-percent decrease in spending and will raise village taxes by 1.9 percent.
Under the new spending plan, the property tax rate will increase from $2.40 to $2.44 per $1,000 of assessed value. That means a taxpayer whose home is assessed at $500,000 will pay approximately $1,220 in village property taxes next year, about $23 more than this year.
The village assessment, which is the projected value of all Westhampton Beach properties, has been reduced 1.79 percent from $2.94 billion to $2.89 billion.
Westhampton Beach Village Clerk Kathy McGinnis said that the Village Board is also anticipating reduced revenue from lower returns on village investments and a decline in anticipated mortgage tax revenues, money that is collected by the village each time a property is sold, next year.
The village expects to collect about $1.5 million in total revenues next year, a decrease of approximately $300,000, or 18.1 percent, from the current year. Village investments are expected to generate about $143,000 in revenue next year, about $40,000 less than this year, while mortgage tax revenues are expected to fall to $300,00 next year, a decline of about $125,000.
“We knew that some of our revenue was decreasing,” Ms. McGinnis said. “We asked department heads to reduce spending and they were all very cooperative.”
Overall spending will decrease by $395,000 next year, according to the adopted budget. The current budget totals $9.32 million.
Village officials explained that ongoing contract negotiations with the unions representing both the Westhampton Beach Police Department and Department of Public Works are not expected to impact the adopted budget, as an undisclosed amount of funding to cover potential salary increases already has been included in various lines of the spending plan.
The contracts that set the wages and working conditions for employees in both departments expire on May 31.
Mayor Conrad Teller said that contract negotiations with the Westhampton Beach Police Benevolent Association had recently begun though negations with the DPW have not yet started. Although it was too early to tell, the mayor said it is still possible for the village budget to increase again, depending on the salary increases that are finalized during contract negotiations.
“If it goes to arbitration, an award can be given higher than we expect,” Mayor Teller said. An arbitrator could be called in if both the police department and DPW are unable to reach a new agreement with the village.
Shortly before the budget’s adoption last week, village resident Harris Palmer approached the board to inquire about the state of spending in this year’s budget.
“We are just squeaking through,” Mayor Teller said.
Ms. McGinnis explained that to keep spending down, the village police department hired only one new police officer to replace three officers who are retiring this year. That decision should save the village about $100,000 next year, she said.
Ms. McGinnis also noted that the village has not spent all of the money in the current year’s budget that has been set aside for legal expenses. As of late March, the village still had approximately $100,000 of the $377,600 set aside for such expenses in the 2008-09 spending plan.
“We should be fine,” Ms. McGinnis said in response to Mr. Palmer’s question.
Before board members adopted the budget, Westhampton Beach resident Dean Speir had asked them to delay approving the spending plan until their April 22 work session. Mr. Speir, who writes a local blog, asked for the delay to give village residents more time to review the spending plan.
Even though Mayor Teller explained that board members have until May 1 to adopt the spending plan, board members signed off on the budget less than 10 minutes later. The next fiscal year for the village begins on July 1.
Bryan Finlayson on Apr 8, 2009