PV Budget Below Cap After Original Proposal
The allowable tax cap from the state was 1.8 percent, which Supervisor Sam Oliverio originally proposed busting. But the adjusted proposed Putnam Valley budget is now at a 1.72 percent tax levy increase, which is under the cap, Oliverio said. The overall budget is pegged for $13.3 million.
Oliverio said the town reduced its special legal line by $30,000. In past years, the town only spent between $15,000-$20,000. Oliverio originally planned to spend $40,000 in legal fees.
And if more money is needed, it would be pulled from the fund balance, Oliverio said. During a town board meeting Wednesday Oliverio said that auditors suggested the town pull money from the fund balance because there was more money in the reserves than the town needed.
“This way we’re not using fund balance to artificially lower taxes,” Oliverio said. “We would use (the fund balance) for a one time expense where it wouldn’t show up the following year so we should be fine.”
The special legal line doesn’t include the town legal counsel.
After it was revealed two weeks ago Putnam Valley could break the cap, Oliverio said he received complaints from residents. This will be the first time in four years the Putnam Valley budget will be tax cap compliant.
“We’re happy about that,” Oliverio said.
The town board will continue to review the budget the rest of the month into November.
