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CORTLANDT MANOR, N.Y. Despite millions in lost revenue and new mandates, the Town of Cortlandt will increase spending by only 1.4 percent, according to town Supervisor Linda Puglisis proposed 2012 budget.
New state tax cap legislation, which caps the tax levy at 2 percent, can be overridden by municipal governments. Many have already begun drafting override measures to avoid breaching the 2 percent levy, which results in municipalities being forced to put any amount over 2 percent into a reserve budget.
I dont want to do that, said Puglisi about the override measure, I want to abide by the law to benefit the taxpayers.
The town will increase the tax rate on the average assessed homeowner in unincorporated Cortlandt 2.2 percent, or about $36.90 per year, for an average annual total of $1,643. For the average assessed homeowner in the Village of Buchanan, the tax rate will increase 3.8 percent, or $6.40 per year, to an average annual bill of $171. For the average assessed homeowner in the Village of Croton, the tax rate will increase 4.5 percent, or $10.91 per year, for a total of $204 annually.
Lost revenue and additional costs came from a number of sources during the 2011 fiscal year. Puglisi placed damage and recovery efforts from Tropical Storm Irene at about $120,000. The town also has to make $450,000 in additional contributions to the New York State pension system, and budgeted $336,000 for rising health insurance costs.
The town lost $185,000 in revenue through tax certioraris. Tax certioraris are a process initiated by homeowners or commercial property owners, to challenge their property tax assessment. These are often settled in small claims court, known as Small Claims Assessment Review.
The decreasing value of the tax roll has also affected mortgage tax revenue, which has fallen steadily since 2008, from an all-time high of nearly $2.5 million in annual revenue, to its current level of just over $1 million in annual revenue. The town has also lost sales tax revenue since 2008, falling from about $4 million in 2008, to just under $3.5 million in 2011.
The total proposed budget is just under $36.5 million. To meet these new mandates we receive, at the local level sharing services is one of the ways we do this, said Puglisi. She cited sharing police services with Westchester County Police and New York State Police as one way the town shares services.
Town employees, including elected officials, will take a 1.5 percent pay increase this year. Town employees and elected officials did not take a pay increase in the 2011 fiscal year. The town also cited gasoline, fuel and supply costs as driving up the budget.
The towns credit rating remains strong, rated AA by Moodys. There is $15 million in the towns various reserve funds.
There will be a public hearing on the proposed budget December 5, at 7:30 p.m., and budget workshops leading up to the public hearing. The budget must be adopted by December 20.
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