Board OKs Valley Stream village budget

Valley Stream residents will likely see their village tax bills increase by more than $100 next year, the result of the Board of Trustees’ approval of the 2012-13 budget on Monday night.

The tax hike is largely due to a drop in the value of commercial property in the village. After years of paying out large refunds for successful assessment challenges, village officials hired a consulting firm to revalue all commercial properties. Lower assessed values mean lower taxes, which will shift more of the tax burden to residents in the coming year.

Conversely, officials say they hope that the plan will mean the village no longer has to budget nearly $1 million a year to pay the refunds, and will eventually collect that much less in taxes.

The approved $34.7 million budget maintains all village services. It carries a 2.23 percent increase in the tax levy, which falls below the village’s tax cap. Treasurer Michael Fox said that the allowable tax levy increase is slightly higher than 2 percent because of an adjustment for increased retirement costs.

“Many villages voted to override the tax cap,” Mayor Ed Fare said, adding that Valley Stream did not because officials here believe in the intent of the new state law, which is to bring spending under control.

According to Fox, average homeowners will see their taxes rise between $130 and $155 next year. The total village tax bill will range from $2,100 to $2,450 for most home..

The village will use about $975,000 from its reserves for next year’s budget. That concerned resident Albert Green, who noted at Monday’s board meeting that in past years, the village has used less than a half-million dollars annually from its savings. “This one scares me a little bit,” Green said. “Next year xyou’re going to need another million dollars to cover that.”

Fox said he did not expect that to be the case, and noted there are some “one-shot” expenses and other items in the 2012-13 budget that won’t carry over to the following year. For example, he said, next year’s budget includes the final payment for accrued sick and vacation time, part of a 2010 retirement incentive for employees.

The new budget will take effect June 1.