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City Manager Charles Strome released the proposed budget, which represents a real estate tax levy increase of 1.79 percent, the maximum increase allowable under state law.
State mandates continue to plague the city, with employee salaries and health insurance costs continuing to rise under union contractual agreements. Despite that, pension costs are expected to decrease by nearly $1 million under the state comptroller’s Contribution Stabilization program. The tax levy portion of the proposed budget is $3 million less than last year’s spending plan.
“Fiscal recovery from the Great Recession has not yet stabilized,” Strome said. “The tax cap limits our ability to raise revenues to adequately fund much needed infrastructure improvements. Until there is greater economic growth, our fiscal position will continue to be challenged, particularly in the near future.”
According to city officials, the state imposed tax cap calculation is applied to the tax levy, not to the tax rate. The proposed tax increase for the average New Rochelle homeowner is $95, approximately one half of one percent of the total tax bill.
“The 1.79 percent increase to the tax levy equates to a tax rate increase of 2.9 percent, because our tax base fell by another $2.9 million this past year,” Strome noted.
The proposed budget includes a capitol improvement budget of nearly $6 million, much of which was funded through the “issuance of debt to finance the acquisition of Public Works and Parks vehicles, a fire tower ladder truck and storm drain, sanitary sewer and sidewalk repairs.”
Copies of the budget are available in the City Clerk’s office, at the New Rochelle Public Library and online. There will be budget review meetings this month and next, with a public hearing on Tuesday, Dec. 2 in advance of the formal adoption of the budget.
“We continue to live in a challenging economic time. A prudent and cautious approach to the budget will enable us to maintain our extraordinary level of service to our citizens,” Strome said. “This budget provides the framework for achieving that goal.”
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