Southampton Town Board Notes: Board Discusses Taxation Equalization

John Wolham, a representative of the Office of Real Property Tax Services, appeared before the town board on Friday afternoon to discuss the ongoing taxation equalization issue in the Flanders/Riverside area. They spoke about options moving forward.

The goal, Throne-Holst said, “is to continue to explore ways to productively address equalization issues for Southampton Town taxpayers in the areas where school districts straddle Riverhead and Brookhaven.”

Friday’s discussion, she said, “really spoke to what the town can’t do under the law.”

“There’s a myth out there that we can put assessed value randomly in parts of town to bring our own kind of equalization rate," she said. "We can’t do that.”

Rolls must be submitted and approved, she said, and if not green lighted, an equalization rate will be put in place for the town.

“There’s a risk that it will hurt us,” Throne-Holst said, adding that a similar situation exists in Riverhead every year.

“History shows that in the last five years, Southampton has been hurt by the differences in the rolls and before that, Riverhead was hurt by them. The goal of this legislation is to put a safety net,” she said, adding that the legislation would trigger an equalization rate automatically if rolls fluctuate beyond a five-year average.

Town Gets High Marks

Moody’s Investors Service has assigned Southampton Town with an Aa1 rating, the second highest score available, for its $14.2 million public improvement, or serial, bonds.

The rating results in a 2.84 interest rate over 10 years. In addition, Moody’s gave the town an Aa1 rating on $133 million of outstanding parity rated long-term debt.

“Another rise in municipal interest rates over the past few weeks led me to expect a rate in excess of 3 percent,” Southampton Town Comptroller Tamara Wright said. “I am pleased at the confidence the market showed in the town of Southampton by offering to buy our bonds well below a 3 percent interest rate.”

Throne-Holst said Moody’s continues to view the town’s improving financial position “favorably” and Wright’s excellent work has been integral in the process.

Advocating for the 106th

Also at Friday’s town board meeting, Southampton Town Councilman Chris Nuzzi said that they went to Washington, D.C. last month to meet with government officials to stress the critical mission of the 106th Rescue Wing in the face of another potential base realignment and closure threat.

U.S Rep. Tim Bishop facilitated meetings with U.S. Reps. Steve Israel and Peter King,  U.S. Sen.Kirsten Gillibrand and others.

Also in the delegation were Friends of the 106th Chairman Mike Jacobs, Carolyn Fahey, representing county Executive Steve Levy, and Hank Beck, founder of GRIP, a predecessor to the Friends.

The Friends of the 106th Rescue Wing, located in Westhampton Beach, is a not-for-profit organization committed to offering support to members of the 106th and their families; encouraging community support and coordinating local events.

Mandatory Redemption Pitched

A proposal for mandatory redemption regarding Pine Barrens credits was also on the table at Friday’s town board work session. Town Planning and Development Administrator Jeff Murphree put forward a “short laundry list” of points that he believed should be put on the record.

Throne-Holst said she supports the proposed 15 percent mandatory redemption program.

“I think it’s an important next step in making sure the whole mission of the Pine Barrens Act continues to be validated and is protected,” she said.

The mandatory redemption would mean that when an applicant submits either a hardship or a density increase application in the core growth area, they would be required to redeem at least 15 percent of Pine Barrens credits as part of the exchange, with an eye toward continued protection of the core area.