Tentative Briarcliff Village Budget Projects Tax Increases

State-mandated increases in areas including workers' compensation and pension have made forming a village budget for 2013-14 that comes under the tax cap a daunting task, according to Briarcliff Manor Village Manager Philip Zegarelli.

"Personally, I think the 2 percent tax revenue cap is total phony baloney," he said, stating New York State has "done nothing" to alleviate village expenditures.

The village's tentative budget calls for $14,812,579 in appropriations, a 4.33 percent increase over the current fiscal year's budgeted spending.

Of that amount, Zegarelli told the Board of Trustees during an April 3 presentation that $10,188,427 would come from property taxes, an overall increase of 3.41 percent versus the 2012-13 fiscal year.

This is possible due to a carryover of 1.5 percent the village can use in its tax rate increase this year, which was not utilized in the prior budget cycle.

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"We have been very frugal these last couple of years," said Zegarelli. "The additional carryover is lost this year—that means next year, we could theoretically be what I call 'behind the eight ball.'"

The tax projections, taking into account equalization rate and assessed value calculations, show a 4 percent increase for Town of Ossining residents and 8.45 percent increase for Town of Mount Pleasant residents, according to Zegarelli.

The village does not project using any fund balance in the coming year, as Zegarelli maintains achieving an AA2 bond rating for the village was dependent on its reserves. The strong bond rating can help the village achieve favorable interest rates on capital projects.

"We are at approximately a 16 percent reserve level, which is good," he said.

Residents will also likely be looking at higher water rates in the coming year.

"This increase is a result of a new cost structure to our water system, repairs to the system and increasing operational costs," the village manager stated in his budget message to the board.

The village does not anticipate making any changes to its full-time employee count in 2013-14, Zegarelli said.

However, the village's Police Benevolent Association (PBA) and Civil Service Employees Union (CSEA) contracts have been unsettled since mid-2009, with salaries frozen for the affected employees.

But recently, "The PBA binding arbitration award has been handed out," Zegarelli said. Meanwhile, "the CSEA has issued its recommendations" to the village as well.

These items, and their possible effects on the budget, will be discussed at the Board of Trustees' Wednesday meeting, he said.

Going forward, Zegarelli said, "I do not see a major improvement in the economy the rest of this calendar year...One thing we have tried to do here is to cushion both the revenue side and the expenditure side to have what we call 'a soft landing.' You have a little extra here and there in case something bad happens."

View the April 3 budget presentation in full here.

The public hearing on the budget will continue Wednesday and the Board of Trustees must adopt a budget by May 1. Zegarelli anticipates action will be taken by April 23 or 30.