Village budget comes in under tax cap

After busting the tax cap last year, Valley Stream officials have no intention of doing the same again as they put the finishing touches on the 2014-15 village budget.

The proposed budget, which would increase spending by .81 percent to $35.7 million, will be presented to the public on April 8. All village programs and services would be maintained, and the average homeowner would see their annual tax bill go up by about $50.

The tax levy would rise by 1.43 percent, a fraction of a percent below the state-imposed limit. Village Treasurer Michael Fox said that the top directive from the Board of Trustees was creating a budget that did not exceed the cap.

Fox said that while many perceive the tax cap to be 2 percent, that is not the case when the rate of inflation is lower. Last year, the village’s tax levy rose by 4.75 percent, as the board chose to exceed the cap.

“We’ve made a lot of progress,” Mayor Ed Fare said. “Not only did we stay within the tax cap, we stayed within a lower tax cap.”

The proposed village budget will also be less reliant on reserves. After using about $800,000 from its savings to fund the current budget, the plan it to use only about $190,000 next year. Fare said another goal of the board was to reduce the village’s dependence on reserves.

The village is expecting about $625,000 in recreation fees next year, an increase of $50,000. Fare said that some new initiatives, like theater programs and rentals of space at the Community Center, are literally paying off. He also noted that registration at the pool has been on the rise in recent years.

Reduced workforce pays off

One of the reasons village officials say the budget is in better shape this year is because of a reduced workforce. There are four fewer full-time positions in the budget this year.

Late last year, the village offered a retirement incentive. Several of Valley Stream’s highest-paid employees took advantage of the deal, and that savings on salary and benefits will be reflected in the 2014-15 budget.

Job responsibilities were shifted so the work of those retirees could be absorbed by existing employees. “Overall I don’t think we’ve put any undo stress on anyone, or any one department,” Fox said.