Peekskill City Manager Proposes Exceeding Tax Cap Again
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Peekskill City Manager Matthew Alexander is proposing the city exceed the state recommended tax cap for the second straight year in 2025.
Alexander’s tentative $55 million budget, which the Common Council reviewed Oct. 1, calls for a 4.65% tax increase. This year’s spending plan raised taxes 3.5%.
If the budget remains unchanged, the average single-family home in Peekskill, assessed at $9,684, would see an increase of $133 in city taxes ($11 per month) over this year.
“We had a challenging year in 2024,” Alexander said. “2024 tested the city’s mettle with a budget which held back on adding positions to see if a long-awaited end to inflationary pressures would materialize. The 2024 budget used our healthy fund balance to subsidize the punch that rising prices had on taxpaying people and businesses in the city. Over the past few years, we have seen inflationary pressure unlike ever before.”
In 2024, the city used $2.125 million from its unassigned fund balance to meet all financial obligations. For 2025, Alexander is proposing using $350,000 in restricted fund balance for tax stabilization and certioraris, leaving the city with about $2 million for a rainy day.
“If the Common Council approves the tentative budget, city management will continue to exercise extraordinary care in expenditures,” Alexander stated in his budget message. “The potential for using more of its fund balance is absolutely expected and the council should consider increasing the tax levy over the tax cap in this year or future years.”
For the second straight year, Alexander stated the city is bracing for double-digit increases in employee benefits for health insurance and pensions next year. He stated city officials are estimating a $2.7 million hike in benefits.
“In years past, we have left many positions unfilled. This year, we intend on bringing more employees on so we can serve a city with the fastest school district growth rate in Westchester County and second fastest in the entire Mid-Hudson region,” Alexander explained.
Alexander’s tentative spending plan contemplates adding six new positions and refilling seven positions that were lost to attrition. The city currently has about 207 full-time and 21 part-time staff, down from 268 in 2012. Four of the 13 positions slated to be funded next year are in the Police Department.
In the 2024 budget, $420,000 was included for overtime in the Police Department, but to date, overtime for the police is $996,000. For 2025, $760,000 is penciled in for overtime.
Police Chief Leo Dylewski told the council last week police received about 30,000 calls for service in 2024 and made 1,291 arrests. More than 3,160 traffic tickets have been issued this year and more than 13,900 parking tickets.
“Crime is up throughout the area,” Dylewski said.
With about a handful of dispensaries expected to be doing business in Peekskill in 2025, Alexander noted city officials are projecting to receive $550,000 in taxes from the sale of cannabis.
“The city must continue to find ways to reduce costs and attract new sources of revenues,” Alexander stated. “The city must also continue to support existing and new business survival and growth to expand the tax base to lighten to burden on residential taxpayers.”
According to New York State law, the Common Council has until Dec. 1 to adopt a budget or Alexander’s tentative spending plan becomes the 2025 budget by default.
Rick has more than 40 years’ experience covering local news in Westchester and Putnam counties, running the gamut from politics and crime to sports and human interest. He has been an editor at Examiner Media since 2012. Read more from Rick’s editor-author bio here. Read Rick’s work here: https://www.theexaminernews.com/author/pezzullo_rick-writer/
