‘Bread and butter’ of Valley Stream intact

The village Board of Trustees is close to finalizing the 2010-11 Valley Stream budget, and homeowners should see an average tax increase of about $90 next year.

The $33.16 million spending plan would preserve all village services. John Mastromarino, the village treasurer, said it is important to keep the parks open and well maintained, continue to offer a host of recreation opportunities, pick up the garbage and fix the streets. “These are really the bread-and-butter issues of being a resident in Valley Stream,” Mastromarino said. “The most services you get out of any government entity is the village.”

Mastromarino explained that the biggest challenge facing the village is declining revenues. At its peak, Valley Stream was collecting about $1.3 million a year in mortgage taxes. With the collapse of the housing market, that amount has been declining steadily, and village officials expect only about one-third that much revenue next year.

Falling interest rates have put a dent in the village’s investments. Four years ago, Valley Stream was earning about $1 million annually in interest, but next year, with rates at less than 1 percent, officials say they are looking to earn only $225,000. While the low interest rates are good for the village when it borrows money, Mastromarino said they are nonetheless costing Valley Stream hundreds of thousands of dollars each year.

“That’s a big part of our revenues,” he said of interest and the mortgage tax. “You take a hit like that and you’ve got to make it up somewhere.”

The village plans to use $464,000 from its “rainy day” fund, Mastromarino said, explaining that use of the fund is necessary in order to preserve services without dramatically increasing property taxes.

The village’s costs are also increasing. Deputy Treasurer Michael Fox said that pension expenses will be up about 70 percent next year. Health insurance costs are also rising, Fox explained, and extra money will have to be budgeted to pay tax certiorari settlements. The village will set aside $850,000 for court-ordered property tax refunds. The MTA payroll tax will also cost Valley Stream about $50,000.

The village court has been bringing in more money since several ticket fines were raised last year. Officials are expecting next year’s court revenue to be $1.675 million, an increase of $125,000 over the current year.

No new staff positions will be added in the village. The only change, Fox said, is in the status of an employee of the library, from part-time to full-time. All staffing levels for summer programs and services will be maintained. “We’re going to have the same amount of lifeguards and camp counselors and everything else that we normally have,” Fox said.

Capital budget

The village will bond between $1.9 million and $2 million for road improvements in the 2010-11 budget. Village Engineer Tony Cella said he has 15 roads totaling 1.9 miles slated for repair with that money.