Peekskill Ponders Exceeding Tax Cap in ‘Scary’ Budget
The Peekskill Common Council continued to haggle last week over what Comptroller Ann Maestri labeled a “scary” proposed 2015 budget.
The council spent more than four hours during two separate work sessions debating the use of fund balance, dealing with state pension costs, getting a grip on much higher than anticipated fire department overtime and pondering exceeding the state mandated tax levy cap.
A final public hearing on the $53 million budget was scheduled for Monday night at City Hall. The budget must be adopted by December 1.
“This is a scary budget for next year because it doesn’t give us any flexibility,” Maestri told the council. “We’re heading in the wrong direction. We have to do a better job of managing our operations to meet our budget. The city needs to fund its core services.”
Peekskill Mayor Frank Catalina maintained the budget hinged on the hefty pension cost obligations the city was facing. Over the last three years, the city has deferred $2.5 million in pension expenses to the state. It is mandated to pay at least $267,000 next year but Catalina insisted the council take a chunk out of $729,000 more that was slated to be deferred.
After considering utilizing some fund balance to lower the pension costs, the council opted not to fund a few proposed positions in the budget and allocate about $150,000 to pay the state.
The council then turned its attention to the 2.26% tax levy cap, which the Democratic majority lobbied not to exceed, but Catalina and his two Republican colleagues contended was not sufficient to cover the city’s basic costs.
“I still think this is an irresponsible budget. We’re setting us up for failure,” Catalina said. “Nobody wants taxes. If I could cut taxes I would but I don’t think $200 to $300, which is 60 cents a day, will kill anybody.”
Councilman Vincent Vesce, who pointed out 40% of Peekskill’s residents were renters, explained an 8% tax increase would translate to about a $200 tax hike for the average property owner in the city.
“Is it better to stay under the tax cap and have the city continue to limp along or to raise taxes at an appropriate level where we can function effectively and increase our revenue?” Vesce commented. “What is the best thing for the taxpayers? There’s an immediate need we have here.”
Included in the current proposed budget is an increase in parking meters to $1 per hour and increases in water and sewer rates.
“I’m really committed to staying within the tax cap,” said Deputy Mayor Drew Claxton, echoing the sentiments of Councilman Darren Rigger. “I think it’s possible and I believe the taxpayers deserve it. I think we need to look at some cost cutting.”
The council was slated to vote on a resolution Monday night on whether to hold a public hearing on December 1to consider going over the tax cap, an action that could eliminate any tax rebate checks residents could receive from the state by Peekskill staying within the cap.
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/
