PEEKSKILL, N.Y. The common council adopted its 2012 city operating budget Monday night.
The councils proposed 2012 $35.9 million budget has a property tax levy increase of $334,000, as opposed to city manager Rick Finn's initial proposed increase, which was $128,000 higher. The change is 2.45 percent increase from the current year, down from the 3.4 percent that Finn's previous budget called for.
Mayor Mary Foster was unable to be at the meeting due to a business trip but had council member Marybeth McGowan read a statement on her behalf, saying she supported the budget.
"The common council and the staff have worked hard to reduce the tax levy increase in the originally proposed budget and cut that increase by 30 percent," Foster said.
While 2.45 percent increase exceeds the state mandated tax cap, the amount allowed is affected by both tax levies and PILOT programs, of which the city has many, Foster explained during last weeks council meeting.
She said roughly $5.5 million of city revenue is collected as payment in lieu of taxes, or PILOT payments, which are paid by certain businesses operating on city owned land, such as low income housing and senior living facilities. Funds also come from property tax levies from business and residential taxes.
According to her letter, read Monday night, Foster also said the budget would allow the city to provide essential services to residents and continue to drive economic development and job creation in the city.
McGowan said she believed allocating funds for a human resources director and a staff engineer for the public works department were good investments.
"I think that creates a healthier foundation to go through cost cutting procedures as we move forward," McGowan said.
The council voted 4-1 in favor of the budget, with both Foster and Council member Joe Schuder absent from the meeting. Council member Andrew Torres was the lone dissenting vote.
"I thought we could have done a better job," Torres said. "This is bare bones but I thought we could have gone further."
The 2012 adopted budget can be viewed on the city's website.
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