Village of Hastings-on-Hudson Manager, Mary Beth Murphy presents the 2023-2024 Proposed Budget

VILLAGE OF HASTINGS-ON-HUDSON

PROPOSED 2023-2024 BUDGET

Click here to view Proposed 2023- 2024 Budget

March 7, 2023

Dear Mayor Armacost, Trustee Lopez, Trustee Fleisig, Trustee Lambert, and Trustee Drake:

Submitted herewith for Board of Trustees examination and consideration is the 2023-2024 Village Manager’s proposed General Fund budget for operations that totals $18,447,325. At this spending level, a tax rate of $5.695 is required, which when compared to the current year’s budget represents a -$0.30 tax rate decrease, reflecting a 5% decrease in the tax rate. The tax levy is increased by 1.91%. This levy is compliant with the state law that establishes the maximum tax levy that may be budgeted without the need to seek an override. A levy of $12,599,494 is the maximum allowable levy to remain compliant with the tax cap. The levy proposed in this budget is $12,305,581. That is $293,913 less than the allowable limit. The budget uses the net assessed values established by the Town of Greenburgh in the amount of $2,160,431,887. This reflects a growth of 6.8%. The operational budget does not include the grant funding the Village continues to aggressively pursue for many improvements to sustainability, parks, the downtown and other special projects to enhance the quality of life in the Village. It also does not include capital purchases such as vehicles, machinery, and park projects.

The budget was created over the last several months through a process involving input from all Village Departments, analysis of financial data from the current and prior fiscal years, discussions with department heads, the Village Treasurer, Deputy Treasurer and Village Clerk and input from consultants and service providers. The Village has seen a return to more normal expenses and revenues since the COVID-19 Pandemic.

The General Fund budget includes the Village funding of the cost of library operations in the amount of $1,004,444. The functional breakdown of the appropriations and revenues for the proposed Fiscal Year 2023-2024 budget is contained in a series of exhibits in the complete budget document. It contains an increase in both appropriations and revenues resulting in a balanced budget with a 5% decrease in the tax rate.

Revenues

The proposed budget offers a projection of what the Village can expect to receive from State, County, and locally generated revenues. Most revenue streams are at or above 2022-2023 levels. Mortgage tax revenue has been reduced slightly in recognition of higher interest rates slowing the robust real estate market we have seen for the last several years, however, this is more than offset by an increase in interest earnings on Village funds. Building Department revenues are anticipated to remain at present levels. Sales tax revenues are projected to grow to $2,300,000 fueled by a variety of factors including increased costs in various commodities.

The Village’s outside independent auditor has affirmed the Unassigned Fund Balance as of May 31, 2022 at $3,934,513, which equals 24.78% of the total General Fund expenditures for the current fiscal year. This remains in compliance with the Village’s Fund Balance Policy. The budget recommends a budgetary transfer from the fund balance to the operational budget of $375,000. This represents the principal and interest on the 2021 bonding for various Village improvements and capital equipment acquisitions which was thoughtfully timed to receive the advantage of favorable interest rates. It is anticipated that fund balance will be used for this purpose again in the next budget cycle to offset this increase in appropriations until a prior bond is fully paid in the 2025-2026 fiscal year.

Appropriations

The budget reflects an effort to analyze and project expenses and revenues on a realistic basis. The Village municipal employees are a dedicated group of hard-working men and women, many of whom have worked for the Village for many years with institutional knowledge that is invaluable. The budget is designed to provide them with the tools and resources that they need to perform their jobs well.

This budget maintains staffing at the current level in all departments and provides for new hiring to replace any separating or retiring employees. A part time bookkeeper is recommended to be added to the Finance Department. This year settlement of collective bargaining agreements with the two unions representing most full-time employees, the Police Benevolent Association and the Teamsters, propelled increased compensation levels for these employees who had been without a contract for several years. The Village had planned for these settlements with funds set aside for retroactive compensation. Forward looking budgeting in prior years has also permitted the Village to absorb the increased salaries for represented employees in this budget without an undesirable fiscal impact. Salary increases for non-represented employees have not been included in the budget. The Village has maintained a contingency line item in the General Fund budget in consideration of potential salary adjustments for these employees after the Board has had an opportunity for consideration and other unforeseen expenses.

There are moderate necessary increases in the appropriations for anticipated increased costs in electricity, fuel, insurance, and other necessities. The budget includes funding for continued catch basin restoration and cleaning and for engineering assistance for capital projects and engineering assessments both underway and anticipated. Based on our positive claims’ history, workers compensation insurance costs have decreased substantially.

Appreciation is extended to the Village department heads for their conscientious attention to the preparation of their operating budgets and especially to the Village Treasurer, Deputy Treasurer and Village Clerk for their tireless efforts throughout the budget process. The team looks forward to presenting this budget during scheduled budget work sessions and the public hearing to be scheduled for April 4, 2022. We look forward to the examination by the Board of Trustees leading up to the adoption of the budget in April.

Regards,