Putnam Valley 2013 Town Budget Carries 2.8% Tax Increase
After much discussion at two public hearings, the Putnam Valley Town Board voted to lower the budget-supporting appropriation from its fund balance from $100,000 to $25,000, resulting in a tax levy that exceeds the state-mandated tax cap by .8230 percent but preserves the fund balance for future use. By lowering the monies taken from the fund balance, the tax levy on the 2013 town budget went from the original estimate of 1.98 percent to 2.80 percent.
While school districts wishing to exceed the tax cap must obtain approval of at least 60 percent of the district’s voters, tax caps for counties, cities, towns, villages and special districts can be overridden by a vote of at least 60 percent of the local governing bodies. On Nov 8, the Town Board approved a local law allowing the town to exceed the mandated cap. The final decision on the amount to be used was postponed for decision at the Nov. 14 hearing.
Supervisor Robert Tendy urged board members to consider the reality of the financial situation in the world today and the need to be ready for future emergencies when deciding how much of the fund balance to use. Councilwomen Wendy Whetsel and Jacqueline Annabi supported using a $50,000 appropriation that would balance taxpayer needs with maintaining a healthy reserve.
Councilman Steven Mackay said he was “struggling with the two-percent cap imposed by Albany,” and perhaps the budget should be looked at more closely, while newly sworn-in Councilman Louis Luongo recused himself because of his prior involvement with the Fire Department and Assessor’s Office.
County Legislator and town resident, Sam Oliverio, reminded the Board of the years in the early 2000s when Putnam County used it’s fund balance to keep tax increases to 0 percent. “Then in 2006, 7, and 8, the increases were 17 percent, 28 percent and 11 percent, because we had depleted the fund balance. No one remembered the 0 percent.” He urged the town to keep as much of it’s fund balance in-tact as possible. “You never know when those bad times will hit.”
With no money from the fund balance, the tax levy increase would have been 3.1 percent. Town Director of Finance, Marianne DeSantis explained that, as an example, a house valued at $350,000 would incur a change of $5.59 per year in taxes for every $25,000 of fund balance used. Using $25,000 from the fund balance, as approved, will amount to an additional $16.77 per year for that house. Under this budget, the Town and Highway budget rate per thousand dollars of assessed value will increase from $4.16 to $4.45. Additional rates for each of the town’s 21 special districts vary according to that district.
Total appropriations for the Town and Highway budget, which affects all residents is $9,454,820. Expected revenues are $2,352,623 and fund balance to be used is $25,000, leaving a tax amount to be collected of $7,077,197.
By Barbara O’Hare
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.
