Rye City Council approved a 2012 budget by a margin of 6 yes votes to one no vote by Councilwoman Suzanna Keith who wanted to see an additional $354 thousand in spending cuts. As passed, the budget has a 2.92 percent tax rate increase; yielding an expected tax levy of more than $19.5 million.

The tax cap law applies to tax levy increases rather than the tax rate. City Comptroller Jean Gribbins explained municipalities can increase their annual levies by no more than 2 percent without an override vote, but they are allowed to raise the actual tax rate to make up a shortfall in tax monies collected due to decreased property valuations. Because of this, the adopted 2.92 percent tax rate increase is allowed under the new tax cap law. The value of all Rye property declined last year.

Though Councilwoman Keith went so far as to oppose the budget, others expressed they were voting yes in a spirit of compromise. 

Councilmembers Parker, Keith and Sack each proposed amendments to the budget that were ultimately defeated.

Councilwoman Paula Gamache said she would have been “most comfortable at 3.1 percent” for the tax rate increase because she thinks that is where the budget will ultimately level out, but agreed to the compromise nonetheless.

“The city can’t do this; one year is the limit. We’re voting to deteriorate the assets of Rye,” said Councilman Peter Jovanovich. “I hope we never again vote for a budget with no capital spending,”

To that end, the council has already agreed to hold a workshop on Saturday, January 28, 8:30 a.m. to noon. At that time, the council will begin the arduous job of figuring out how revenues can be raised, capital spending restored and service delivery redefined, even as mandated pension and health care payments continue to rise.

“We really have to look creatively, out of the box,” said Councilwoman Keith. “We need to have a community conversation about what is really important.”

 The adopted budget cuts department budgets for police, fire and sanitation by $20,000. 

City Comptroller Jean Gribbins also asked the council also to approve a resolution to override the state required 2 percent tax levy cap. There are 6 items in the budget that require state certifications, most related to sewer district projects, that may fluctuate from projected costs. 

“No one has certification about whether they’ve followed [state budget] procedures,” said Gribbins. “We’ll only find out if they come in and audit us; [approving an override] gives us some protection.

Gribbins said she is concerned that if the projections for those budgets vary more than projected. It could have an unanticipated affect on the tax levy rate. She said other municipalities had enacted overrides preemptively even though their budgets complied with the tax levy cap after the state recommended it as possible oversight.

“I’m not in favor of this,” said Councilman Sack. “We’re beneath the tax cap and this would be confusing.” 

“They admit submitting [a budget projection] before adopting is backward, but it’s the first time they are admitting that,” said Gribbins. “It’s New York State’s recommendation to do it [enact an override resolution].”

“I was on board until you said ‘and New York State recommends this’,” said Councilman Jovanovich. 

Ultimately, the council fell short of the supermajority required to pass the override.

Editor's note: Councilwoman Suzanna Keith says her dissenting vote was based not just on holding the line on cuts but "with the goal of putting Rye on a financially sustainable path for the long term by keeping the tax rate flat vs last year (0.97 percent)."