Tough Times Ahead for Village Government

According to Village Manager Al Gatta these are tough times for small municipalities like Scarsdale. In a presentation on the proposed 2013-14 Village Budget to the Scarsdale Board of Trustees and the community on February 27, 2013 Gatta emphasized the difficulties faced by the Village due to the economy and state priorities. Gatta told the group that Albany is targeting grants to larger cities while Villages like Scarsdale are being told to "tighten up" their budgets and provide the same or more services with the same amount (or less) of money. In this economic environment, municipal government is not a priority. He emphasized the importance of local decision-making and efficient local government in these challenging times.

Gatta and Village Treasurer Mary Lou McClure shared the numbers for the 2013-14 budget:

• Overall, the proposed budget is $50,639,599.
• The Village Board adopted to override of the 2% cap on property tax levy. This cap is misleading because it allows for numerous exemptions – in Scarsdale's case, growth factor and pension payments – always increase the cap. The tax rate increase is now 4.97% (down from an over 8% increase in the initial draft of the budget).
• The median assessed home will be taxed $282 more per year.
• The full year estimate includes expenses related to Hurricane Sandy – a 3.2% increase when comparing next year's budget to this year's estimate.

What's included:

• As we reported last week, the Village is considering the institution of a sewer usage fee, following the lead of a number of Westchester communities.. The average household fee would be approximately $60 per year and $360 per year for commercial establishments. The Village is faced with a $1, 647,000 shortfall in the budget (down from $2.8 million). Sales tax revenue did not grow at its anticipated rate and without local industry the Village has to find other means of balancing the budget. This fee would allow for Scarsdale to make up part of this shortfall and to make repairs to its antiquated sewer system.
• Reductions in police coverage – during bridge construction, Village residents requested additional police at the Popham/Garth intersection. However, now that the construction is almost finished, police presence at that intersection is no longer needed.
• An increase of over $20,000 in parking meter revenue (due partially to earlier start times at some meter locations).

In addition:

• Many of the Rivertowns are starting to share and merge services in order to reduce expenditures (the Mayor noted that Scarsdale and Hartsdale currently share fire departments).
• The Village had considered cutting its 4th of July fireworks, along with Teen Center services and the summer band concerts, but in light of resident feedback, decided against these austerity measures.
• The Village expects to recieve $675,000 from FEMA for Hurricane Sandy storm damage.
• Mr. Gatta advised Village department heads to level funding and keep the same level of services unless absolutely impossible. In total, their expenditures increased $633,000 or 2.4%, more than half of which is in the fire department, which has a number of senior level employees.
• The Village is considering a renovation of the water pump system, which would result in a decrease in fire insurance rates as fire insurance decreases with improved water pressure and availability of water.
• Overall, the budget has increased about 21% since 2008-2009, much of that increase coming from pension and healthcare costs.

Contributor Lindsay Dembner lives in Scarsdale. She is an English major turned lawyer currently pursuing employment in higher education and education nonprofits.