SCARSDALE, N.Y. – Scarsdale broke the state tax cap when its board of trustees unanimously passed a budget that hikes property taxes 4.8 percent Monday night.
“This year our budget will exceed the tax cap because we believe the level of services we’re going to provide, particularly in the capital area, are the level of services the community wants,” Bob Steves, the village’s newly elected mayor, has said. “We think that the main concern is that we match the services and the costs appropriately.”
Because the budget exceeds the cap on the total amount of taxes collected from property taxes, it required a supermajority, or five of the seven trustees, to pass. All seven voted in favor of the budget Monday.
Homeowners with an average assessed value of $23,750 will pay about $271.70 more in taxes in 2013-14. The village used $1.223 million of general fund balance to reduce the tax rate from 8.36 percent to 4.8 percent.
The 2013-14 tentative budget increases spending 4.5 percent from $48,445,129 in 2012-13 to $50,639,599. Salaries, health care, pensions, debt service and other employee benefits represent about 74.5 percent of the total plan. The village would spend $4,827,665 on pension costs, which is 9.9 percent higher than last year, but 117.5 percent higher than four years ago, according to the budget summary. There would also be a $410,000 increase in salaries and a $398,520 increase in health insurance.
The village tax bill accounts for 17.5 percent of the total property taxes. Taxes from the county make up about 18.2 percent and the school district is 64.1 percent.
Click here to sign up for Daily Voice's free daily emails and news alerts.