New Rochelle 2014 Proposed Budget Exceeds Tax Cap

Passing the proposed 2014 budget for New Rochelle will require overriding the state's tax cap legislation to maintain city services.

City Manager Charles Strome III sent the City Council a budget calling for a tax levy increase of 5.83 percent.

Strome said, under the state's tax cap, the city would only be able to increase the tax levy by 1.63 percent—or $872,000.

"That would barely cover the cost of health insurance imposed by the state," he said.

Strome said the proposed budget outlines the level of services the city needs to provide and what it costs to provide them.

"There is no way to meet the state tax cap without significant cuts to personnel and essential services," he said.

Strome called the 1.63 percent tax cap "ridiculously low."

The $872,000 in additional revenue the city would be allowed to raise would fall way short of what is needed to run the city, by about $2.2 million. 

"Once again, the state is imposing a tax cap and at the same time sending us a bill that eats up all the money that we could raise by staying within the limit," Strome said.

The proposed tax increase for the average homeowner is $207—about 1 percent of the total tax bill, he said.

One thing that is not in the budget yet is the possibility of the city getting permission from the Public Service Commission to spread the charge for rental of fire hydrants from United Water to all rate payers, including exempt properties.

The city got the state to OK the measure after the budget went to press.

Strome said, if the city is able to include the additional money from the rental fees, the tax levy increase would be reduced by about 2 percent.

"That would get it closer to the tax cap," he said.

Special meetings will be scheduled for the council to discuss the budget proposal. There will be a public hearing on the budget at 7:30 p.m. December 10.

The budget must be approved by the end of December. Strome said five of the seven council members must approve any budget that seeks to override the tax cap.