Valley Stream Village Budget 2024-2025: What you need to know

The Valley Stream board of trustees unanimously adopted its $45.3 million budget for the coming fiscal year at a public hearing on April 8. The 2024-2025 budget represents a $1.5 million increase from its current fiscal plan and is set to begin June 1.

How much more do homeowners pay?

While property values vary widely in the village, noted village treasurer Michael Fox, taxes for the average homeowner will rise by about $75, reflecting a 2.59 tax rate increase. That’s expected to raise $34.6 million, without legally piercing the 2 percent tax cap.

Fox mentioned that the tax increase is slightly above 2 percent, thanks to a carryover provision in state law. Put simply, because the village’s total property taxes were lower than the tax levy limit last year, the local government can carry over the lesser of either 1.5 percent of the prior year's levy limit or the difference between the actual levy and the limit.

Boost in salary and employee benefits

The budget also reveals a nearly across-the-board increase in personal service costs — which typically cover salaries and other personnel benefits for village employees. These salary bumps span administrative positions like the mayor’s office down to village departments like recreation.

Notably, a dramatic pay raise, totaling roughly $430,000, was allocated for employees in the village’s recycling and garbage collection services. There’s also a noticeable overall uptick of over half a million dollars in employee benefit expenditures. As to the reason for the rise, Fox chalks it up to a 7 percent increase in health insurance premiums, reflecting current market conditions.

Creditworthiness shows improvement

Fox also says the village is continuing its steady march toward improving its downgraded credit position. The village’s once-feted Aa credit rating in 2011 from Moody’s Investor Services sunk to its current Ba1 rating in 2019 — a level financial experts largely regard as an investment liability. Fox says the village plans to go out to bond next month and forecasts an imminent improvement, which as of press time, has come true. As of last Tuesday, the village’s rate climbed one notch higher from Ba1 to Baa2, which is regarded as an investment with moderate credit risk.

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