Assemblyman Talks Tax Cap in Westhampton Beach

State Assemblyman Fred Thiele Jr. was on hand at the Westhampton Village Board work session on Wednesday night to explain to village trustees what the state’s new two-percent cap legislation means to the village.

The bottom line, said Thiele, is that under the new state law, the village’s tax levy rate must not exceed two percent or the rate of inflation — whichever is less.

With costs continuously on the increase, village board members say keeping to the two-percent tax levy is not going to be an easy task.

“I would believe it is going to force us to tighten up quite a bit,” said Mayor Conrad Teller.  “Eventually, I think it is going to effect routine repair jobs.”

For example, Teller said, instead of planning to do five repair jobs in a year as it typically does, the village might only look to do one or two.

One saving grace, however, said Teller is that currently, all union contracts in the village are up.

“All my contracts are open," said Teller. "I like that better because we will know up front how much money we got."

And a settlement with at least two of the unions is on the horizon, said Teller, who noted that negotiations are down to the point where the village is looking at exactly what they can and can’t afford.

“Are we supposed to all own a swimming pool and five vehicles or a second home while working for a municipality? It’s what you can afford,” said Teller.

Trustee Hank Tucker agrees that tightening will be needed, but he said that the village has always been on the prudent side when it comes to spending.

Tucker pointed out that the village’s latest budget, which was approved April, carried with it a tax levy of 2.6 percent.

The increase, for the most part, he said, accounted for increases in contractual salaries and health benefits.

“We are not too far off,” said Tucker.  “It will be challenging, but I think we will rise to the occasion.”

In thinking about meeting the state mandate, Tucker said he wants to ensure that the village’s services will not be cut in any way, but projects such as road repairs and sidewalk installation will have to be thought about twice.

One area where the village may be able to see savings is with its health plan. Prior to hearing from Thiele on Wednesday night, representatives from the East End Health Plan spoke with village trustees about onboarding the village.

Frank Perry and Martin Cahil of the East End Health Plan, which currently enrolls some 12 school districts in Suffolk County, said the district could see an annual savings of $60,000 if it were to change from its current plan to the East End Health Plan.

Teller said it is something that the village will have to contemplate.

“We have to determine the longevity of the plan,” said Teller, who said he content with the plan the village already has.