Public hearing for 2021 tax levy limit set

AMENIA — After discussing next year’s tax levy limit, the Amenia Town Board scheduled a public hearing for a proposed local law to override the tax levy limit for the 2021 fiscal year at its meeting on Thursday, Sept. 17. That public hearing will be on Thursday, Oct. 15, at 7 p.m.

Once town Supervisor Victoria Perotti read aloud the resolution regarding the public hearing, Councilwoman Vicki Doyle asked if there was a particular set of expenses or loss of revenue that’s creating this shortfall in which the town can’t stay within the tax cap. The amount the town has for state aid this year is gong to be cut by 20%, Perotti replied, with no guarantee of that amount for next year. Mortgage receipts are expected to be down and with regard to the $91,000 in sales tax from the county the town received this year, Perotti said it won’t be getting that much next year.

“The only thing the county will be giving us is the $198,000 that they’re required to give us, we’re not going to be getting any extra,” she said.

In addition, regarding the water department, Perotti reported that the town needs to buy two generators and that she is currently getting estimates to determine “how much to get in the budget for this.”

The property tax cap, Perotti added, is usually 2% or the rate of inflation — currently 1.56% — so the town remain below that amount. Last year, she reported that the town’s tax levy was $1,693,906 — $183 under the tax cap that the town is allowed to carry over into next year. 

This year’s tax levy limit has been calculated at $1,797,929, indicating an increase of a little more than $100,000. Perotti said this means the town’s budget can only go up about $100,000, and that keeping the tax cap under 1.56% is going to be next to impossible without the town draining its fund balance, and the town needs a fund balance available for emergencies. 

Uncertain of what it will be facing in 2021 as far as COVID-19 is concerned, Perotti said the town has had a lot more expenses to try to keep everybody safe, including the purchase of a hand sanitizer dispenser for its three playgrounds. Moving forward, she said New York State is looking to increase the retirement rate and that the $9.8 million in federal aid the state has received so far was given to all the cities as well as every town and city with a population of 500,000 or more. She added the town of Amenia is hoping another stimulus package will come through for local governments. 

The state comptroller informed Perotti that the state has cut $2.9 billion in local assistance to towns, and with regard to the monies towns have been receiving so far, the state is looking at a 20% cut. Perotti told the board that, apart from its Community Development Block Grant projects, the town is not planning any major projects, adding that the board has to make sure it has the money to spend since the grants require towns spend the money first and then get reimbursed later.

Most years, most municipalities pass resolutions to exceed the state tax cap, just as a precautionary measure, and then if their budgets don’t do so they pass another resolution later on reversing the action.

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