Scarsdale 10583

This is the last article I’m going to write about the tax cap for a while I think. Much has been written about how it may affect our schools, but not about how it will affect our town. This is the last article for a while about the matter, I promise.

If you have been following the issue, Albany has voted to limit property tax increases to 2% or the rate of inflation, whichever is lower. Some say this will help small businesses in suburban areas and assist residents who may be suffering from ballooning property taxes. Opponents say that the cap deprives local municipalities of the power to decide how they raise and spend their money. Those against the cap contend that it will not help businesses and residents, but just lead to cuts in services and education.

According to one recent study, if the 2% cap is in place, due to the costs of pensions and healthcare mandates, Westchester County is already $11 million over the property tax increase. In the current Scarsdale Village 2011-2012 budget, expenditures went up just over 6% mainly due to health insurance and pension costs, debt servicing and an increase in assessment appeals.

Local governments like Scarsdale will now have to rely heavily on revenues from sales tax, mortgage taxes and investment income. With the state of the economy as it is there is little reason to believe those receipts will be strong any time soon.

Scarsdale residents can vote to override the tax cap on the school budget with a 60% supermajority. However, for the village budget, monies for police, fire, maintenance and town services are voted on by the Board of Trustees. A supermajority of the board- meaning 4 votes out of 7- would be needed to override the tax cap as well.

If that override doesn’t happen, the town may have to cut jobs, including those of police? Fees could rise, services will go down. But, your property tax will only go up 2%. Big win, right?

Alfred Gatta, the Scarsdale Village manager, has heard all of these concerns, probably more than anyone else in this town:

"If we have to stay within the 2% cap on the tax levy we'd likely have to reduce services and reduce some employees." He notes that a supermajority of the board can vote for an override. But Gatta says fears over the tax cap are probably hurting not helping matters.

"I want to avoid the anxiety that is out there. Everyone is worried and wants to form committees and studies to analyze what to do if the tax cap override doesn't pass. Although I understand that is a fear for every police officer and resident in this time, we do not have the time or money to research everything and have it explored. Let's take a deep breath and see how things come out.”

And Gatta is right. Going on about these matters may be divisive. Individually, one can take issue with each budget line item in the school or Village budget --- from playgrounds to the Mandarin teacher to employee salaries. One by one we can make a case that an item is inessential or too expensive, but taken as a whole, these things add to the overall quality of our community and make Scarsdale what it is.

When it’s time to vote on this issue, think broadly and think long term. That’s it. That’s all I’m going to write about it. Probably.

Jen Geller is a freelance journalist who has covered the economy and markets for over a decade at a major financial news outlet. She lives in Scarsdale with her husband and 2 children. Jen has yet to bake a successful batch of cookies.

Comments (5)

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written by Anonomous, August 06, 2011

It is easy, and sometimes popular, to assume that government spends our tax payer money frivolously. With regard to our flawed pension system and insurance costs (which is the majority of the increase) that fix needs to happen in Albany. We are very lucky to have a dedicated and conscientious professional staff in Scarsdale. Having reviewed nearly every line item in the village budget and listened to the debate of each department over each dollar spent- I do not believe that there is much fat to be trimmed without cutting services which we in Scarsdale have come to expect. If further cuts are needed, I expect that the trustees will be soliciting feedback from residents on what they are willing to live without. If you still have your doubts, go to the open village budget meetings and listen to the debate on police staffing, garbage pick-up, maintenance and repairs.

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written by NoBrainer, August 04, 2011

I'm am perpetually astonished (not really) how government continues to claim 6% increases as their normal right when private enterprise everywhere is cutting staff and costs and the economy is dead stalled. It's time to get rid of the lavish benefits and bring the public sector back to reality. We pay a mountain of taxes and it is well spent on our schools as they are outstanding. Our other services are outstanding as well but as a prior posted pointed out, we don't need an army of police to maintain order or an army of maintenance workers to keep our village clean. Putting a limit on tax increases seems childish but unfortunately there is no other way to prevent the public sector from spending other people's money.

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written by Hurrah for the Tax Cap, August 04, 2011

Getting unanimity or near-unanimity on the Village Board on any issue is not difficult. The board usually arrives at a consensus, and I suppose that will happen if the Board decides staying within the tax cap would require too drastic a cut in services or personnel. Our village operates, in my experience, on a fiscally responsible and conservative basis, and the village taxes are the lowest component of our property tax bill. The real battle will be in the school tax, and that's where the huge teacher salary/benefits burden will smack us in the face. That battle will not be pretty, but just as expenditure reduction has come to the federal and state government, so too must it come to the Scarsdale school budget. We simply can't continue on as before.

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written by Filly, August 04, 2011

Perhaps Scarsdale Village would be better off with certain services cut back. For example, we appear to have a policeman on duty full time ticketing cars parked at expired meters. Most of these cars are owned by Scarsdale Village residents, and I can't tell you how many times I've seen them return to their cars minutes after he has ticketed them, so clearly they would not have left their cars there for an extended period. I have deposited my own quarters in the meters of my neighbors hoping he wouldn't ticket the car and ruin someone's day, but he told me that he doesn't care - if it ever expired he has a right to ticket it and he just writes the tickets anyway. Perhaps Scarsdale Village residents would not miss the elimination of services like these?

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written by NewMath, August 04, 2011

"A supermajority of the board- meaning 4 votes out of 7- would be needed to override the tax cap as well." 4 out of 7 is a simple majority. Do we need 60% of the board to override the tax cap as well? If so, we'll need 5 out of 7 votes.

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