SCOTIA — Scotia residents could see a property tax increase of more than 9% under a proposed $11.7 million operating budget put forward by village lawmakers for the upcoming fiscal year — a number that can largely be attributed to new debt payments associated with an ongoing facilities project.
The proposed spending plan released Wednesday includes just over $1.1 million in new appropriations across the village’s general operating, water and sewer funds for the 2024-25 fiscal year, and would preserve all existing services, including those pertaining to fire, police and public works.
But, the budget proposal would also far exceed the village’s property tax limit of 3.7% — a move officials have been expecting since voters in 2022 approved a $13.8 million bond referendum to build a new firehouse and revamp the existing Village Hall and police department building at the corner of Mohawk Avenue and North Ten Broeck Street.
“This community wanted a new firehouse and really saw the need for it,” said Trustee Heather Gray. “For several years, it was overlooked. The fire department, I know, is very happy about the new firehouse and how much it can offer this community and outside communities.”
General spending under the proposed budget would grow to just over $9.2 million, an increase of $802,333, or 9.4%, from the current spending level of $8.4 million. The general fund includes all major departments in the village. Water and sewer spending would increase to $986,440 and $1.5 million, respectively.
To cover the increased costs, village lawmakers are proposing increasing the tax levy to $6.3 million, a 9.79% uptick, or $564,412, compared to the current spending plan. The tax levy is the amount the village can collect from property taxes.
Lawmakers voted unanimously to adopt a local law overriding the state’s tax cap earlier this month. A tentative budget was not available at the time of the vote.
If the proposed budget is ultimately adopted, the village tax rate would balloon 9.49%, the equivalent of $1.43 per $1,000 of assessed property value, which would bring the tax rate to $16.55 for the 2024-25 fiscal year that begins June 1.
That would mean a property tax increase of $186.54 for a village resident with an assessed property value of $130,000.
A public hearing on the proposed spending plan will take place April 10 at 6:30 p.m. at Village Hall. Lawmakers are hoping to adopt a final spending plan by April 15.
Most of the new spending can be attributed to $365,677 increases to fringe benefits like retirement and medical benefits and a $376,950 bond payment related to ongoing work to improve village-owned facilities.
The increased benefit costs coupled with the bond payment account for $742,627 in new spending, according to a review of the proposal.
Mayor David Bucciferro said the proposed spending plan represents a “fair and conservative but comprehensive budget” and lauded department heads for limiting spending on portions of the budget officials had control over.
“I did very much try to keep the component of the budget that we had some level of control over to the minimum amount and still be able to keep all of our services,” Bucciferro said.
YEARS IN THE MAKING
Upgrading the village’s aging facilities was a frequent topic of discussion over the years as services expanded and staffing increased, but officials struggled to gain the support necessary to move forward with upgrades.
A bond referendum was soundly rejected by voters in 2004 and subsequent efforts failed to gain traction. The facilities proposal gained steam around the emergence of the coronavirus pandemic in 2020.
Voters ultimately approved the borrowing in 2022 by a margin of 440-369. The 809 total ballots cast represented a fraction of eligible voters despite numerous public informational sessions held in the lead up to the referendum that outlined the need for the project and implications to taxpayers over the next 25 years.
Town-hired engineers estimated the project would have an annual tax increase of $193 for a property with an assessed value of $100,000, which is in line with the cost increase
Debt associated with the facilities project represents a 6.54% increase to the tax levy under the proposed spending plan. If the project were removed, the village’s tax levy would only increase by 3.25%, according to a village analysis.
“I think it’s refreshing that the separation of the firehouse phase one project really kind of just landed where we expected. Right where we were planning on it being. It’s a cup of coffee a day,” said Trustee George Solotruck. “My taxes will go up by 180-some-odd-dollars for the year and that's exactly what I was expecting, so it’s important to understand that the hard work of our teams before has proved to come to reality regardless of the situation of the controllable portion of the budget.”
WHAT’S NEXT?
Still, lawmakers are hoping to find ways to curtail spending before adopting a final budget, and have requested department heads to find ways to reduce their operating budget by 5% in the coming days.
From there, lawmakers will assess the impacts of the reductions and determine whether to include the cuts in a final operating budget.
“In order for me to vote on a budget, I need to feel like we have gone through as exhaustive of a process as possible to figure out every possible way to minimize the impact on taxpayers. Every possible way,” said Trustee Keith Brown.
Trustee Justin Cook said he has concerns with the proposed tax increase and lawmakers must be mindful of the impact the increase would have on residents at a time of high inflation. He recommended officials work to develop a strategic plan that would include ways to increase revenue and reexamine services to ensure funds are being used to the fullest extent possible.
“We have to show leadership on this,” he said. “At the same time, we have to respect what people can afford.”