SUFFERN – A review of the Village of Suffern’s adopted fiscal 2015-16 budget of $17.9 million by the state comptroller’s office finds that significant revenue and expenditure projections are “reasonable.”
The budget relies on a 16 percent property tax increase to finance the general fund balance deficiencies because there are no other sources to reduce the property tax levy, such as fund balance.
For 2013-14, there were unassigned fund deficits of some $2.4 million in the general fund, $1.2 million in the water fund and $1.7 million in the sewer fund.
Projected results for the water fund for 2014-15 show a surplus of about $209,000, which, along with a rate increase, could eventually eliminate that fund’s deficit, the auditors said.
Projects financial results for the sewer fund for 2014-15 show a deficit of about $111,000, which will further increase the fund’s deficit, they found.
The adopted budget increased sewer rates by five percent to generate future operating surpluses.
The village board did adopt a local law which allows it to override the tax levy limitation.
The auditors recommended the aboard amend the proposed 2015-16 budget of adopt a local law overriding the tax levy limit before adopting the proposed budget and to adopt a resolution to use the tax stabilization reserve to lessen the real property tax levy.
