City Council passes $65M spending plan

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In a 5-1 vote on Tuesday, the Glen Cove City Council passed the $65.4 million budget for 2025, which includes the first property tax increase in three years. Homeowners will see a 1.9 percent rise in their tax bill, roughly $55 more for homes assessed at $575,000 and $64 for homes valued at $1 million.
Mayor Pamela Panzenbeck defended the tax increase, citing a $279,000 increase in the tax levy that is necessary to cover the city’s growing expenses.
“As much as we do not want to raise taxes, at some point we have to,” Panzenbeck said, pointing to increases in pension contributions, health insurance and city contracts. “Just like in our homes, everything has gone up,” she added.
The city’s 2025 budget is $2 million larger than the current spending plan, an increase of 3.11 percent. It includes a hike of $577,000 in mandated contributions to the state’s local retirement system, and increases of $538,000 in full-time employee salaries and $515,000 in health care premiums. Part-time employee wages are also set to rise by $115,330, in city departments such as Emergency Medical Services, the Youth Bureau and the Senior Center.
Despite the rising costs, the budget anticipates reduced severance expenses and tax refunds, offsetting some of the increases.

Councilwoman Marsha Silverman, who voted against the budget, voiced skepticism about revenue projections, particularly the city’s continued reliance on expected payments from RXR Realty. The developer, which is constructing 346 luxury condos along the Garvies Point waterfront, had previously agreed to payments in lieu of taxes, but construction delays have led to a shortfall. Glen Cove officials had anticipated $1.14 million in PILOT revenue in 2024 and $1.17 million in 2025, but RXR has not made the payments, and there is no timeline for the completion of the condos.
“Several of the revenues just seem a little too optimistic,” Silverman said. “With the lack of income from PILOTs from the Garvies Point waterfront, I was hopeful that we could find other revenue streams to fill the gap, instead of just having new revenue streams that are really alternate forms of taxes.” She was referring to upcoming water surcharges and a contract with Pipelogix for the planned sewer lateral program, which, while not directly labeled as taxes, still places a financial burden on residents.
Silverman’s concerns were echoed by Councilman John Zozoro, who supported the budget but acknowledged being uneasy about two key revenue projections: an expected $700,000 in fees from the Bus Patrol stop-arm program, and $2.1 million in Building Department permits. Zozoro noted that other municipalities have seen mixed results from similar stop-arm programs, and building permit revenue can be unpredictable depending on development projects.
“We continue to look for additional revenue streams,” Panzenbeck said, adding that each year of her administration has presented budgetary challenges. “We’ve worked very hard to achieve a positive result, and we are going to continue to work with that energy. We never stop looking for additional revenue.”
One of the significant increases in the spending plan is a 2.9 percent boost in police salaries, bringing the total to $9.1 million, nearly $255,000 more than the current year. Pension contributions for the police are also set to rise by 15 percent, to $3.3 million, up from $2.9 million this year. The city anticipates a substantial increase in EMS ambulance billing revenue due to a higher volume of calls and a broader mix of services provided.
The shadow of RXR Realty’s delayed PILOT payments looms large over the spending plan. With a total loss of $2.32 million in expected payments for 2024 and 2025, the city faces a significant revenue gap that will be challenging to close without additional streams of income. Panzenbeck is hopeful that conservative revenue estimates and continued efforts to attract development will help the city navigate its fiscal challenges in the coming year.
City officials are pledging to monitor revenues closely in the new year, and make adjustments if needed. But as Silverman pointed out, “I cannot operate on hope. We need solid, reliable revenue streams, not overly optimistic ones.”