Village of Greenport hikes property taxes nearly 17%

The Village of Greenport has adopted a 2023-24 budget that raises property taxes nearly 17%, after the Village Board voted unanimously to pierce the 2% state budget cap.

The village is seeking to make up for a roughly $150,000 shortfall, board members said at a special budget meeting last month.

Since 2012, municipalities in New York state have been limited to raising tax levies by the lesser of the rate of inflation or 2%, with the provision that local governments can override the cap. 

Greenport’s tax increase represents a $3.50 hike per $100 of assessment, according to the budget posted on the village’s website. Since the taxable village portion is .70% of total assessed value of the property, annual taxes on a property assessed at $500,000 would rise by $122.50. For a house assessed at $250,000, the tax increase would be $61.25. 

Village treasurer Stephen Gaffga said at the April 28 special meeting that the money would “be filtered through” various funds. “We’re going to add it to our operating budgets for the road department, for Mitchell marina, for McCann’s, for our various parks in the village and to supplement some of our administrative costs, “ he said, “as well as enhancing some of our code enforcement and safety inspection to allow them to operate in a better manner.”

Newly elected Mayor Kevin Stuessi also noted at the meeting that the board intends to hire an economic administrator to work on grant writing. 

In response to a question from Trustee Mary Bess Phillips about the economic administrator’s specific goals, Mr. Stuessi said a complete job description would be forthcoming, adding that “my belief and hope is that the person will pay for themselves within the first six months of the job.”

The precise tax increase — 16.97% — comes during a year when school taxes are slated to rise by 9% —if the proposed school budget passes in Tuesday’s election. 

Trustee Patrick Brennan said the village has obligations it must meet and the only way to meet them — and move the village forward — is a tax hike. 

“My take on this is that we’ve just gone through a long period of low to no tax growth, certainly less than inflation, and this [been] has both a benefit and detriment,” he said.“ On an individual basis, it has been a benefit to have lower taxes, because it keeps their cost of living expenses down. But it’s detrimental to the village as a whole, by leaving the village underfunded. We can see that in deferred maintenance on our facilities.”

Mr. Brennan noted that the board needs the money because “we’ve also been challenged to attract key village staff, or retain staff.”

During an exit interview with The Suffolk Times on his last day on the job, former Greenport mayor George Hubbard Jr. touted keeping taxes low as one of his chief accomplishments. 

“Over the past eight years, in total, taxes only went up 6%,” he said at the time. “Like other places with the 2% tax cap, over the eight years we could have gone up 16% and it only went up 6%.”

Seemingly speaking directly to his fellow residents, Mr. Brennan said at last month’s meeting,  “We have a fiduciary responsibility to make sure this tax money is spent wisely.  I’d like to reassure you that we’ll try to be prudent and wise with this tax increase.”  

Ms. Phillips said in an interview after the meeting that the tax hike was necessary and would go to funding basic services such as regular garbage pickup at trash cans located downtown and in village parks and beaches as well as vital equipment for village employees, who are having to “beg to get equipment that they need to do their daily operations.” 

“I think the election spoke loud and clear that the village residents look to the board to provide the services they want,” Ms. Phillips said.

The increased tax rate will also help fund a $2-an-hour raise for all full-time village employees, passed under the previous village board. 

“We have to give them a livable [pay] rate,” Ms. Phillips said. 

Other considerations for raising taxes included handling “out of the blue” expenses that can’t be anticipated, such as the recent discovery of lead paint on the horses in the village carousel in Mitchell Park, which she said is expected to cost the village between $40,000 and $50,000 to ameliorate.   

Ms. Phillips said she knew the hike might come as a bit of a shock to some residents but noted that the double-digit increase is not unprecedented in Greenport  — citing an 18% property tax hike that was passed in 2007-2008 during former mayor David Nyce’s first year in office. 

Still, she said, the board recognizes the burden that’s being placed on residents. 

“The previous administration — when they presented the budget — they did leave some money on the table to keep the tax rate low,” she said, referring to the last mayor’s two terms in office. “In hindsight, maybe that wasn’t the best option.” 

Mr. Stuessi said at the meeting that the board is working on a capital plan to assess all the village’s assets, “as far as legally listing everything, building by building, and prioritizing [projects] … the Mitchell Park arena, the bulkhead,” he said.

He said he anticipated needing money to complete repairs in the waterfront park, which he prioritized as “highly critical.”

“There [are] a number of things that are highly critical, and Mitchell Park is a big one,” he said. “I walked the length of all the paving with our contractor, and there’s a number of areas where not only is the grout between the stones failing, but water has gotten underneath the stones and caused damage.”

In an interview this week, Mr. Stuessi said that “it’s important to note that over the last eight years we didn’t keep up with basic cost of living increases. 

“So, as everybody knows, inflation has been significant in a number of ways and our expenses across the board have gone up significantly.”