Pleasantville Likely to Exceed Tax Cap for 2014-15 Village Budget
By Janine Bowen
Pleasantville village officials are prepared to exceed the state tax cap when the board votes on the municipality’s $13.8 million 2014-15 budget Monday night.
The spending plan would carry a tax levy increase of 1.9 percent, exceeding this year’s 1.48 percent ceiling. A majority of the five-member board must vote in favor of overriding the cap in order for the increase to be approved. To adhere to the cap, the village may only raise the amount generated through property taxes by about $106,000.
Village trustees are scheduled to vote at the board’s next meeting this Monday, Apr. 28 at 8 p.m. following a public hearing.
“We’re coming to the circumstance that we all knew would come, which is that the cap squeezes even tighter and at some point you can’t do what you need to do,” said Mayor Peter Scherer.
Scherer and the board noted that exceeding the cap would put the village in a better financial position for next year, when the state’s tax freeze proposal takes effect. Under the proposal, residents will receive a rebate from the state on any increase in taxes if the village budget remains under the cap for the 2015-16 fiscal year.
The current budget proposal uses $250,000 of the village’s $2.8 million fund balance but would require an additional $150,000 of fund balance to get in under the cap. Village trustees said they were uncomfortable with taking more money from fund balance because it would put the account below the recommended threshold of 20 percent of the operating budget.
“We’ll still be in a healthy position compared to lots of other places, but I don’t think Moody’s would look as favorably if our fund balance was less than 20 percent,” said Village Administrator Patricia Dwyer.
Board members were also worried that a fund balance under 20 percent would put the village in a difficult position if an unexpected event occurred, such as a weather-related disaster like Superstorm Sandy.
“I just feel like we’re so tight that if one thing goes wrong, we’re dead,” said Trustee Mindy Berard.
The board is also considering an alternative budget proposal, which would utilize $150,000 from fund balance, but would create a greater tax increase for residents. Under the proposal being considered, using $250,000 from reserves, the tax rate on the average assessed home in the village would rise by $1.63 per thousand. By using $150,000 from fund balance, the tax rate would increase by another 87 cents.
The village is currently looking into ways to generate more revenue to balance the budget, including changes to paid parking in lots and on the street. Suggestions included changing the rate from 25 cents per half hour to 25 cents per 20 minutes. In addition, there was discussion about eliminating meters and moving to an electronic pay and display method, which would accept credit and debit cards.
Trustees also noted that projects in the village currently in the works, such as the 68-unit Toll Brothers condominium complex on Washington Avenue, will grow Pleasantville’s tax base, although that project may take up to four years to be completed.
Pleasantville’s fiscal year starts June 1.
Adam has worked in the local news industry for the past two decades in Westchester County and the broader Hudson Valley. Read more from Adam’s author bio here.
