Rockville Centre residents may see 7% tax increase

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Rockville Centre’s tentative budget for the 2012-13 fiscal year would see the village tax rate increase by 6.97 percent.

The spending plan, prepared by Village Comptroller Michael Schussheim, would total $40.8 million, and would include a tax levy increase that more than doubles the state cap for the village.

According to Schussheim, rising taxes are unfortunate but necessary. “If we implement a tax rate increase below 6.97 percent, absent growth in other revenue areas, we may be forced to implement service reductions,” he explained. “Based on my discussions with residents of the village and business owners, I don’t believe there is any interest in service reductions.”

The tentative budget is $1.86 million larger than the current spending plan.

According to Schussheim, the proposed tax levy increase would be 5.8 percent.

The preliminary budget would need the support of at least three of the five members of the Board of Trustees to pass, because it exceeds the tax levy cap passed by the state last June. The allowable tax rate cap, which is based on a series of complex calculations, is 3.5 percent, and the tax levy cap is 2.37 percent, though the board can vote to override it.

“This is part of the problem with the tax cap,” said Trustee Ed Oppenheimer. “The governor has advertised that it’s 2 percent, but it confuses the taxpayer. It’s a sham foisted upon the public to call it that.”

Among the major factors driving the increase in taxes, Schussheim said, are the decline in the value of village property and the increase in village employees’ medical insurance premiums and pension contributions.

Though trustees have not yet decided whether to override the tax cap limit, they acknowledge the difficulty of the choice. Trustee Kevin Glynn said that while he is still undecided, he believes that any budget increase should be linked to the rate of inflation.

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