VOL Final Budget Lands at 4.5% Tax Hike

by Judy Silberstein

(April 27, 2006) Larchmont's Village Board unanimously approved its 2006-2007 budget of $13,814,365, which boosts spending over last year by $573K and comes with a tax rate increase of 4.5%. With only minor changes between expenses or revenues in this final version and the last preliminary budget, the board has focused its recent deliberations on how much of the surplus to apply to lowering this year's tax rate increase.

The 2006-2007 increase represents a moderating of the relatively steep hikes seen in the past three budgets (see the above chart). Larchmont, and other municipalities continue to experience pressure from rising personnel costs; pension costs remain high, but they are no longer rising at dramatic rates. (See: Challenges for Larchmont Budgeteers.)

Board members struck a compromise between the highest ($250K) and lowest ($150K) figures they had been considering, and finally settled on $190K. "We were prudent with the surplus," said Trustee Marlene Kolbert, the first in line to comment before voting. "It brings [the budget] to a very reasonable tax rate, a quite respectable number" when compared to other municipalities and the schools. Larchmont's budget also "maintains the level of services that people have come to expect," she said. (See: Reduced School Budget Approved. The Village of Mamaroneck's 2006-2007 budget, also passed this Monday, sports a tax rate increase of 3.9%)

Larchmont's surplus, dollars unexpended at the end of the fiscal year, have fluctuated in recent years. Three years ago the surplus was at $2.5 million; it's currently at $1.85 million.

Trustee Mike Wiener also used the word "prudent" to describe the budget. He reiterated a theme heard often in the past few board meetings, "We need to work on our revenue." For example, he would like to have the Larchmont Building Department pay for itself by adjusting fees. Similarly, utility companies and others whose work rips up the street should cover more of the costs of proper repaving, he suggested.

Trustee Anne McAndrews thanked past boards for building up the surplus so it is available to smooth out the impacts of tax increases. She pointed out, "a budget is a guide for future spending, but it does not eliminate our quest for future savings." In particular, she will be looking for more cost effective approaches to vehicle acquisition. For example, would renting vehicles be cheaper than purchasing?

Mayor Liz Feld wrapped-up the budget discussion with a stress on future planning. "We're going to start doing some serious planning," she said. She called for a new detailed capital plan, and a budget plan that lays out projections for the next four years. In doing so, she expects to make greater use of the Village Budget Committee, which is being renamed as the Finance Committee and will probably meet year round instead of just during the budget season. "This is the best way to get a handle on our obligations," she concluded.

Other News:
  • The Larchmont Pet Parade is set for Saturday, May 6 (Check Community Calendar for registration form and other details.)

  • Cleanup has already begun at Constitution Park next to Village Hall. The Village Board and Parks and Trees Committee are planning to make further improvements.

  • Planning Commission Chair and long-term member Peter Gaito will serve for another three-year term along with Chris Verni, who is completing his first term. Nancy Petti, formerly an alternate, will come on as a regular commissioner, while Luce Burstein will step down to alternate status.

  • Bruce Cauley, currently a co-chair, is retiring from the Budget Committee.