WAPPINGERS FALLS – The Village of Wappingers Falls is preparing the 2024-2025 budget and the village treasurer admitted to a substantial deficit for the village, placing the blame for the budget woes on employees, retirees, and previous administrations. The village, according to Treasurer Lori Jiava, is operating on a $775,000 deficit. The bleak financial forecast was presented to the board of trustees and the community on April 17.
The budget includes contractual obligations that Jiava says are part of the village’s financial problems. One of the obligations according to Jiava is “Substantial raises for employees totaling more than our tax cap at approximately $126,000, and soaring health insurance costs, which have surged by an unexpected nine percent this year.” Jiava continued to blame the employees for the deficit. “The burden of health insurance costs, which is particularly noteworthy due to minimal employee contributions and the absence of contributions from retirees, is unsustainable.” The village spends nearly $1 million annually on health insurance coverage for retirees. Mid-Hudson News has learned that the police officers have been working without a contract for nearly 11 months.
Like many municipalities, the village has experienced an increased cost for ambulance service. The previous provider, Mobile Life, was acquired by Empress EMS after Mobile Life experienced substantial financial trouble. Jiava says that when Empress took over, the new agreement increased by $110,000, bringing the cost of ambulance service to $147,600, putting the village over the tax cap. Jiava did tell the public at the meeting that the village is in talks with Northern Dutchess Paramedics as a possible solution while noting that other ambulance service providers are also being interviewed.
The treasurer claims that staff turnover in the treasurer’s office recently created additional money problems for the village, including $365,000 in unfunded employee retirement benefits and $123,000 in unpaid utility bills. Contracts authorized by the new board and the employees included $65,000 in retroactive pay for employees, which remains unpaid. Jiava has been serving as the village treasurer since April, 2023.
Jiava also noted that the village received an invoice from the Arlington Fire District for plywood that was used by the Special Rescue Team, comprised of members of the Arlington, Poughkeepsie, and LaGrange fire departments for materials used following the Brick Row gas explosion. A recommendation was also made to charge Dutchess County for the work that village police and highway departments do before and after the annual Dutchess County St. Patrick’s Parade.
The treasurer has compiled a list of reasons for the budget woes in a letter to the community, available on the village website. To read the treasurer’s deficit explanation, click here.
