Southold’s proposed budget stays below tax cap, raises levy by $1.3M

Southold Town Supervisor Al Krupski unveiled a tentative 2027 budget Friday that stays under the state tax cap while increasing the property-tax levy by nearly $1.3 million.

The $65.94 million spending plan, revealed during a special meeting at Town Hall, is 2.79% larger than the adopted 2026 operating budget. It calls for collecting $46.22 million in property taxes, a 2.87% increase from this year.

The combined town tax rate would rise from $398.646 to $407.763 per $1,000 of assessed value, an increase of $9.117, or 2.29%. Tax bills will vary by location and assessment because residents pay different combinations of town, highway, solid-waste and outside-village taxes.

In a written message accompanying the proposal, Mr. Krupski said he was trying to balance service levels with the cost to taxpayers.

“As a resident, I want services delivered for the least amount of money,” he wrote. “If we expect families to live here in the future, working in this Town and building their lives here, we must control the size of government and its associated costs.”

Other Town Board members received the tentative proposal Friday morning and had not had an opportunity to fully review it, Councilwoman Jill Doherty said. No public comment was taken at the special meeting.

The Town Board had not seen the tentative proposal before Friday morning’s special meeting, and no public comment was taken. Councilwoman Jill Doherty, who joined by Zoom, said she had not had time to fully review the plan.

“It is not at all at pace with the cost of living, inflation, health care, salt and fuel,” Ms. Stevens said. “The hill got a lot steeper this year, and it was incredibly impressive, creative work to make this happen.”

The 2027 proposal is Mr. Krupski’s third tentative budget since he took office in January 2024. The town’s 2026 budget also stayed within the state tax cap. It followed the 2025 spending plan, which raised the levy 7.48% and pierced the cap.

His latest plan projects only a 0.59% increase in taxable assessed value townwide, according to a detailed breakdown of the proposed budget available on the Town of Southold website.

The Police Department remains the town’s largest operating expense, the plan shows. Its budget would rise to $11.03 million, about $408,000 above the adopted 2026 amount. The overall public-safety budget would increase to $13.35 million.

“The budget reflects our commitment to public safety by maintaining proper police staffing levels and providing officers with the necessary equipment and training,” Mr. Krupski wrote.

He added that previous budgets relied on federal American Rescue Plan Act money for recurring expenses, including police vehicles, and that those vehicles are now included in the 2027 proposal.

The town’s solid-waste district budget would rise 7.41%, to $5.67 million. Its tax levy would increase by about $106,700, or 5.44%.

The proposal also includes a three-year capital plan with $3.01 million in projects proposed for 2027. It includes $720,000 for road resurfacing, $750,000 for a Fishers Island highway facility, $283,000 for police vehicles, $250,000 for stormwater mitigation and $130,000 for a compost-site storage building. The plan anticipates $1.36 million in borrowing next year.

Mr. Krupski cited flat sales-tax projections, decreased mortgage-tax revenue, labor and fuel costs and inflation as budget pressures.

He also wrote that settlements of lawsuits inherited from the prior administration drained the town’s contingency fund in 2026.

The tentative plan includes a new full-time director of code enforcement, a position Mr. Krupski linked to community-housing initiatives and increased oversight of short-term rentals.

“Meaningful code changes are underway to support housing initiatives, but the control and regulation of short-term rentals require real oversight,” Mr. Krupski wrote. “These changes will benefit the safety of the tenants, reduce the burden on first responders, and address the quality of life of our residents.”

The town would continue to use $5.05 million in appropriated fund balance, the same amount used in the 2026 budget.

The board will hold budget work sessions Oct. 7, 8, 9, 13 and 14, from 8 a.m. to 4 p.m. at Town Hall. Residents may attend in person or on Zoom, though public comment will not be taken at those sessions.

Public hearings are set for Nov. 4 from 4 to 5 p.m. and 6 to 7 p.m. at Town Hall. The board could adopt a preliminary budget that night or at a later meeting.