Village lawmakers on Monday unanimously approved a $9.2 million budget for the 2024-25 fiscal year that includes a more than 7% tax increase following weeks of public work sessions and efforts by Scotia officials to mitigate the blow to taxpayers associated with work to upgrade municipal facilities and increases to certain employee benefits.
The approved spending plan includes $778,590 in new spending, an increase of 9.21% compared to the current spending plan of $8.4 million. A bulk of the new spending can be attributed to more than $365,000 in contractual medical and retirement benefits for village employees, including police and fire officials, as well as a $376,950 bond payment associated with ongoing work to upgrade municipal facilities.
Under the spending plan, the village’s tax levy, or amount of revenue raised by property taxes, is set to balloon 7.65% to $6.2 million. The tax rate in the village will grow to $16.23 per $1,000 of assessed property value.
A homeowner in the village with an assessed property value of $130,000 will see a tax increase of just over $140.
The approved budget caps off weeks of work by lawmakers to draft a spending plan for the upcoming fiscal year that begins on June 1 and actually represents a slight savings compared to a proposed spending plan unveiled last month.
Under a draft proposal released by Mayor David Bucciferro on March 27, the village’s tax levy would have increased by 9.54%, which would have increased the tax bill for the average resident with an assessed property value by more than $180.
But lawmakers agreed last week to utilize $325,000 in fund balance — $100,000 more than what was proposed in the original spending plan. Trustees also slashed stipends for elected officials and approved a reduced workers’ compensation insurance policy on top of an additional $15,000 in spending that was eliminated.
At one point, lawmakers asked department heads to find ways to reduce spending by 5%, though it was ultimately decided such a move would result in reduced services for residents.
The spending increase is not entirely surprising.
In 2022, residents approved a referendum to allow the village to borrow $13.8 million to improve aging municipal-owned facilities, including constructing a new firehouse and revamping the existing Village Hall and police station.
Some residents at the time raised concerns about the impact the project would have on taxpayers, but residents ultimately approved the project in a 440-369 vote. It was estimated the project would result in an annual tax increase of $193 for a home with an assessed value of $100,000 for the life of the bond.
Bucciferro has noted the first phase of the project is currently under budget, which would save taxpayers money in the longer run. The project’s second phase is expected to begin in early June.
Officials have discussed the need to develop a strategic plan that would examine ways to increase revenue and reexamine services in order to ensure funds are being used to the fullest extent possible, though work to develop such a plan has not yet started.