The increase comes despite townwide spending in the proposed budget being slashed $50,875.

The supervisor's budget cuts spending from $45,626,175 to $45,575,300 and increases the estimated tax rate per $1,000 of assessed value from $39.983 to $41.650. For properties with an assessed value of $50,000, that would be an increase of $83.35.

A $50,000 assessed value in Riverhead Town would translate to about a $450,000 market value, using the state's equalization rate.

The town is facing a 2008 budget deficit of about $2.7 million due to large, anticipated shortfalls in revenues such as mortgage tax receipts, planning and site plan fees, building department fees and justice court fees, according to Bill Rothaar, the town's finance administrator.

"Mortgage tax was down across the island, everybody had the same problem," Mr. Rothaar said.

In addition, he said the town is projecting that those same revenues would be about $2 million less in 2009 than what was anticipated in 2008.

Mr. Cardinale said his budget addresses this shortfall by increasing the tax levy by $1.5 million and by allocating $1.1 million the town expects to receive from the Riverhead Resorts developer in January. The $1.1 million comes as one of the conditions in the town's contract to sell 755 acres of town land formerly owned by the U.S. Navy to the potential resorts builder.

Mr. Cardinale said the town will receive $2 million from Riverhead Resorts in January, and will receive at least another $1 million in Dec. 2009, but that he only allocated $1.1 million of that amount to reduce taxes. He said he doesn't want to use up fund balance to offset taxes, because keeping a high fund balance improves the town's bond rating and leaves the town prepared in case of emergencies. The tentative budget also allocates $1.3 million from debt service fund balance.

The town's fund balance, which is money kept in reserve, is currently at about $12.8 million, Mr. Rothaar said.

One of the biggest -- and perhaps most controversial -- cost reductions in the proposed budget is the reduction of $750,000 to cover the cost of 10 police dispatchers whose positions would be eliminated.

Mr. Cardinale said county law indicates that the county budget is responsible for providing police dispatching services to the East End towns, and he intends to take advantage of that.

"It's completely unacceptable to me to have our taxpayers pay twice for that service," he said. Other police services, such as payroll, personnel and human resources also can be funded by the county, he said, although that is not proposed in this budget.

Mr. Cardinale said he will try to find jobs for the dispatchers, either in town government or by helping them to get transfers to the county.

The Civil Service Employees Association, the union that represents the dispatchers, has vowed to fight this proposal.

"How can the supervisor even think about cutting back on safety-sensitive positions when Riverhead is one of the fastest-growing towns in Suffolk County," said Matt Hattorff, the unit's president.

The dispatchers say statistics show the average response time in Riverhead is seven minutes on aided cases, such as medical emergencies. Mr. Cardinale said he will reconsider the move if it can be shown that response time will be worsened. He also said he would prefer if the county just reimbursed the town for the double payment, although he doubted that would happen.

The tentative budget also calls for no salary increases for all elected or appointed officials, department heads and other nonunion employees.

"I'm not getting a raise, no department heads will be getting a raise, we are holding all management and appointed people to no raise," Mr. Cardinale said.

The unionized employees' salaries account for about 75 percent of the total budget and the contracts of all three unions -- the Civil Service Employees Association, the Police Benevolent Association and the Superior Officers' Association have expired and are in negotiations for 2009, Mr. Cardinale said.

The proposed budget would also eliminate contingency budgets in individual departments, and eliminate five positions that are currently vacant, Mr. Cardinale said.

The townwide tax rate applies only to the general fund, highway fund and street lighting district -- the only tax bills paid by all town residents. Various other special town districts like water and sewer districts also exist, and the townwide tax rate generally amounts to only about 25 percent of the overall property tax bill.

The tentative budget by law must be presented by a town supervisor by Oct. 1. After that, the full Town Board can amend it and must hold a public hearing on what will then be called the preliminary budget by Oct. 21. The final budget must be adopted by the full Town Board by Nov. 20.

"I hope the Town Board's adopted budget reflects the frugality that this one does," Mr. Cardinale said.

tgannon@timesreview.com

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