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“Because of the growth factor, the tax cap is more than 2 percent,” he said.
The Board of Trustees began budget discussions Wednesday night, with Blau discussing what next fiscal year's allowable increase in the tax levy, or the total amount raised by property taxes, would be. The state's 2 percent tax levy cap can be exceed based on a number of factors, including growth in the tax base. A 60 percent majority vote of the village board is needed to override the tax cap for one year.
Blau added that the village has carryover funds from the 2012-13 budget because trustees did not exceed the tax cap.
Tarrytown trustees adopted a $14 million budget for 2012-13 that raised the tax rate by 4.74 percent. They voted to override the tax cap even though they did not exceed it, saying the move was a precaution in case state officials changed the way the cap was calculated.
Tarrytown has seen a rise in its tax base in the past year, especially with the arrival of several new real estate developments like the Greystone-on-Hudson subdivision.
Blau said his staff would begin working on a preliminary budget that stayed within the tax cap. Trustees will then be presented with that budget and options for them to consider as the budget season goes on.
Trustees will vote on the 2013-14 budget in the spring after a public hearing.
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