At last Tuesday’s Newburgh City Council meeting, the council voted to table for a later date the scheduling of a public hearing for a proposed law to override the state limit on property tax levies.

Under General Municipal Law 3-C, local municipalities are not allowed to levy real party taxes beyond two percent. The proposed law is discussed in subsection 5. Subsection 5 enables municipalities to establish budgets with a tax levy greater than the limit, only if there is “a local law to override such limit for such coming fiscal year.” This law can only be approved with at least 60 percent of the council voting in approval. In order to have the law, a legislative body must hold a public hearing. If a budget is adopted within the limit, the law will be reversed.

“It is recommended that you follow the process; that you put yourselves, as the local legislative body, in a position to give yourself room for the most options,” said Michelle Kelson, Corporation Counsel for the City Council, as she addressed the council. “The most options to provide the best interest for the City of Newburgh.”

The idea of even a public hearing on the law drew tension at the City Council meeting. Mayor Torrance Harvey explained he wanted to have the resolution tabled for after the presentation of the City Manager’s proposed budget for the 2020 fiscal year. “We cannot have a tax hike in our City of Newburgh,” said Councilwoman Karen Mejia. Mejia agreed with Harvey on the tabling but she is still open to the resolution.

“Delaying the procedural step then puts the city council at a disadvantage by having to accommodate these processes in a single meeting, and does not allow sufficient time for you to actually work on the budget,” emphasized Kelson in response.

During the public comment, many members of the public spoke out against the proposed hearing. “They’re going to come again and say ‘no tax hike, you can’t go over the tax cap,’” said Mejia, dismissing Kelson’s statement. “So that’s going to be another three hours of public comment, answers that we already got today.”

Comptroller Todd Venning presented on tax levy implications during the proposed budget presentation. This budget is Venning and City Manager Joe Donat’s first budget to be presented to the City Council.

The proposed tax levy for 2020 is $24.6 million. It is proposed that there will be a 9.1 percent increase in the tax rate or $1.79 per assessed value of a thousand dollars for the homestead. It is proposed that there is an 18.07 percent increase in the tax rate or $4.89 per assessed value of a thousand dollars for the non-homestead. For every $150,000 dollars of assessed value, it is proposed for homestead owners to pay 268 dollars more than last year. For non-homestead owners, it is proposed that they pay $726 more.

Real property tax revenue would increase $4.1 million from the 2019 budget.

“We’re going to work like hell to stay under that 2 percent tax cap,” said Harvey at the end of the meeting. “It’s going to take a lot of work and it’s going to take a lot of days and nights.”

In addition to the tax levy: cuts to the Fire Department, Police Department, and The Department of Public Works are up for contention on the proposed budget. The proposed budget also suggests a ten percent increase to metered water fees, and a six percent increase to sewer fees.

The 2020 budget hearing will be on November 12. The finalized budget for the 2020 fiscal year will be adopted on November 26.