POUGHKEEPSIE – Mayor Rob Rolison has released his preliminary City of Poughkeepsie 2022 budget that stays under the state property tax cap, lowers the tax rate, bolsters youth services and maintains other essential city services. The $103 million plan with a general fund appropriation of $66 million will now be scrutinized by the common council.
Rolison called his plan “A fiscally responsible budget that accomplishes key objectives while maintaining flexibility in anticipation of our continuing discussion and public engagement throughout the coming year.”
The city has been operating without reserves since at least 2009, making budgeting more difficult than for most municipalities, especially during a pandemic, the mayor noted.
The preliminary budget contains an overall tax levy increase of approximately $1 million or 1.8 percent, while the city’s homestead tax rate would drop from $12.51 to $11.51 per $1,000 of assessed value, a decrease of 7.75 percent, and the non-homestead rate would drop from $16.44 to $16.13 per $1,000 of assessed value, a 1.89 percent decrease.
This marks three consecutive budget cycles where sharply rising property values necessitate the city to lower the tax rate to keep taxes in check for residents and businesses. It’s also the fifth straight year the city would stay under the property tax cap.
Sewer rents and water rates would increase by an average of 3.35 percent, less than the current rate of inflation, but the city’s sanitation service would stay at the same rate.
The mayor’s proposed budget includes the following:
- A new Division of Youth Empowerment and Opportunity to nurture and focus on child development in the city — and to enhance the city’s partnerships with the Poughkeepsie Children’s Cabinet and Youth Opportunity Union.
- A $4 million commitment in investments to the city’s parks, a blueprint that includes rebuilding and replacing aging equipment and making major upgrades at these vital green and recreational spaces.
- The reconstruction of Pulaski Park Pool House and the rehabilitation of the Spratt Park Pool House
- Places some of the Federal American Rescue Plan Act (ARP) funds in various aspects of the budget, including parks, public safety, public works and youth services, and calls attention to the fact that some of those funds will be used as “revenue replacement” to help close the 2021 budget.
- Creates a $890,000 ARP funding line for programmatic, youth opportunities and other priorities as set by the common council.
- Details that many expense categories — such as personal services, employee benefits and utilities — will be higher next year, and highlights the fact that the most notable increase is the rise in required contributions to the New York State Retirement System for police and fire employees.
- Refers to renegotiations that will occur concerning the 2013 sales tax distribution agreement between the cities of Poughkeepsie and Beacon and Dutchess County.
- Announces that Councilman Chris Petsas of the First Ward is being asked to lead an effort to broaden services for the city’s senior citizens.
Rolison also said the city administration will conduct a mid-year analysis in June to consider what other measures might be needed to address the city’s revenues and expenses.
“I want to thank City Administrator Marc Nelson and Finance Commissioner Brian Martinez and their teams for the remarkable job they did in crafting a budget that addresses many of our immediate needs, while at the same time allowing for real flexibility throughout the coming year,” the mayor added.
