Pompey board opens public hearing on tax-cap override and reviews budget risks, litigation

The Pompey Town Board opened a public hearing and moved to consider adoption of a local law to override the tax levy limit set by New York General Municipal Law 3-C, then spent the meeting's budget workshop reviewing preliminary numbers, fund balances and pending legal risks.

Jim, the staff member who presented the preliminary budget, said the document had been posted online and that few line items had changed since the prior workshop. He told the board the town's attorney retainer remains at $70,000 and identified two pending Article 78 matters that could affect town costs: the Heritage Hill appeal now before the appellate division and a separate Norwood Solar matter at the Supreme Court stage. "If the appeal goes on, then there will be significantly higher legal fees," said Dave, the town's legal adviser.

The discussion underscored several budget pressures the board said were largely out of its control: rising health-insurance and retirement costs, insurance and utility increases, and potential litigation. Presenters gave examples of health-insurance premiums for two recent hires: about $988 per month for a single plan and $2,581.98 per month for a family plan. Staff proposed using portions of the highway fund balance to smooth near-term increases in overtime and benefits costs.

Officials reported reserve levels and preliminary tax-rate estimates. Staff said the highway fund carried roughly $1.2 million in unexpended fund balance and the general fund showed about $634,000 as of Sept. 30. The board was given a working estimate that, excluding special districts, the 2025 tax rate was about $2.62 per $1,000 of assessed value and the preliminary projection for 2026 was about $2.89 per $1,000.

The workshop also reviewed one notice of claim filed by contractor J.J. Lane to preserve a right to sue over a disputed bill; staff said no lawsuit had been filed as of the meeting. In explaining the appellate process for Heritage Hill, Dave told the board that an appellate division could affirm, reverse, or remand and that either side could seek leave to the New York Court of Appeals but would not have an appeal as of right.

The board took routine procedural steps on the tax-cap measure: members voted by voice to open the public hearing, to consider adoption of the local law to override the tax levy limit, and to close the public hearing; speakers characterized the step as a routine, annual procedural action while final numbers are confirmed. A public hearing on the budget was scheduled for Nov. 5, followed by a meeting to adopt the budget the following week.

Why it matters: Officials said rising fixed costs and potential legal liabilities could force higher taxes or greater use of reserves; the board emphasized that fund balances are finite and that using them to reduce taxes this year raises pressure for larger increases in future years.