The Mamaroneck Town Council will work toward finalizing a tentative budget that proposes a 4.8 percent property tax rate increase and exceeds the state’s allowable taxing limit.
If adopted, the 2017 tentative budget, submitted on Oct. 16, would mark the third time in six years the town has adopted a budget requiring an override of the New York state tax cap—state legislation setting a flexible threshold for property tax increases—since the cap’s inception in 2011
According to a budget memo from Town Administrator Steve Altieri and Comptroller Anthony Siligato, among the major factors contributing to the nearly 5 percent increase are rising costs of benefits for town employees, as well as significant debt issued for infrastructure projects.
Across budgets of both Westchester County and neighboring municipalities, the town will also see heavy increases in expenditures on health care costs, as well as workers’ compensation insurance; an increase mandated statewide.
With the need for major capital improvements, the rising cost of benefits—some of them mandated by New York state—and a reluctance to decrease services, Altieri said the cap will be consistently difficult to meet in the future.
“The tax cap is not sustainable in an environment where you’re going to have to address infrastructure that’s very, very, old, and there’s an expectation to maintain a certain service level,” Altieri said. “It’s going to be very difficult to [meet].”
Major capital projects funded by debt over the past several years include $3.95 million for the renovation of the Hommocks Ice Rink, $1.84 million for the conversion of the town’s streetlights to LEDs, and spending on the Fire Department. Capital infrastructure, however, are not exempt from the tax cap.
For the 2017 tentative budget, capital projects, a list of which were sent for review by the Town Council last week, include $3.2 million in infrastructure projects, $1.3 million in building improvements, a little more than $1 million for town vehicles and Information Technology improvements, for a total sum of $5.56 million.
All together, increases in debt issuance would account for a 31 percent rise from the 2016 budget in terms of debt expenses.
Employee benefits, the second-largest factor in increased expenses for the town, would rise by 12 percent from $8.4 million to $9.47 million if the current budget were adopted by the council as is.
While expenditures are on the rise for the town, offsetting those increases would be a projected 8.6 percent increase in town revenues spurred by the collection of back taxes and a modest increase in sales tax.
Aiding the town in any future debt increases will be the reinstatement of an AAA bond rating from the credit rating agency Moody’s after being downgraded to an AA1 rating last year due to what Moody described as less than desirable surplus levels.
According to the budget, among the factors for the agency’s reinstatement are the conservative revenue estimates and strong oversight of the town’s finances.
This rating, Altieri said, will allow the town to issue debt with the lowest possible interest rate, and therefore the lowest possible expense to the town.
Also in the town’s tentative budget is the introduction of one full-time additional staff position that would help oversee the town’s implementation of affordable housing.
One other position—a full-time position in the town comptroller’s office—will also be altered, but will not result in any additional expenses to the town’s salary budget, according to a budget overview. This altered position, which will split time between the town administrator’s office and the comptroller’s office, will be tasked with administering the employee benefits.
According to Altieri, the position was altered because of the increasingly complex nature of navigating employee benefits.
“It’s gotten more, and more, complicated,” he said. “There’s compliance with Affordable Care Act, workers’ compensation…. It’s a realization of the extensive work that’s needed.”
The Town Council will have until Dec. 20 to approve a final version of the budget.
