Peekskill Council Sets Hearing on Exceeding Tax Cap
The Peekskill Common Council has scheduled a public hearing for November 23 to consider possibly exceeding the state imposed tax levy cap in the 2016 budget.
The tentative $37.2 million budget released by Acting Peekskill City Manager Richard Leins calls for a 5.9% tax hike, an increase of $126 for the average single-family homeowner in the city.
Under the state’s guidelines, Peekskill’s tax levy for next year can only go up .0074%, or $180,000, from this year, which Leins maintained was a herculean task given the city’s rising obligations.
“It’s virtually impossible to stick to that paradigm without reducing services that residents are expecting,” Leins remarked during a hearing on the budget last week.
In the proposed budget, which must be adopted by December 1, Leins is recommending the city pay its current outstanding balance of $4,278,000 to the New York State Pension system, instead of its deferred obligation of $360,000 under a previously agreed upon repayment schedule.
Leins explained mortgage tax revenue was down in the city, along with $336,481 from property taxes based on tax certiorari challenges. Meanwhile, medical and Workmen’s Compensation costs combined are projected to increase by $373,000 next year.
Given its current financial condition, Leins said Peekskill would have to float a bond of approximately $10 million to fund several projects, including the Central Firehouse.
Leins is also suggesting hiring a code enforcement officer in the Building Department to replace an assistant building inspector position, along with a laborer in the Parks Department and administrative employee that would share time between the Assessor’s Office and the Personnel Office.
Newly reelected Mayor Frank Catalina said city officials needed to continue to encourage developers to invest in Peekskill.
“Development is the way to get out of the financial mess that we have and expanding the tax rolls,” he said. “We can’t tax our way out of this. Developers are good for the City of Peekskill.”
Several business owners in Peekskill said they were willing to absorb a tax hike to help further boost the city’s recent economic growth.
“I think this city is on the verge of something amazing and we have to support it,” said John Sharp, owner of five parcels in the city, who opposed extending meter parking in Peekskill to Saturdays.
“We could be the next big thing since sliced bread,” remarked Louie Lanza, owner of The Hudson Room. “We could be the sixth borough. We have to take advantage of the vibe that people want to come to Peekskill.”
The hearing on Monday, November 23 is set to begin at 7:30 p.m.
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/
