Video: Mullen says Village of Pelham likely to exceed state tax cap with 6.7% rise due to commuter, downtown revenue losses

Editor’s note: This letter and video were provided by the Village of Pelham.

Dear neighbors,

I hope you and your families are well.

As I’m sure you’ve seen, the Village has released its Tentative Budget for the coming year projecting an increased tax levy of 6.71%, which would exceed New York State’s Tax Cap. The Village Board of Trustees is now going line by line through the budget so the overall numbers will change, but we are likely to end up in that ballpark. We are experiencing unprecedented losses in our non-property tax revenue streams, many of which are dependent on activity generated by downtown shoppers and commuters. We anticipate additional losses of over $400,000 next year, as it will take time for the region to return to normal levels of activity. For the last 12 months, we’ve scaled back on nearly every service the Village provides, in an effort to mitigate the impact to our cash reserves. As necessary as these cuts have been, they are simply not sustainable for much longer. With vaccinations rolling out and better economic times on the horizon, I believe that now is the time to plan our path to recovery.

I’m releasing the video below while the budget is still in its tentative form so that you have a better understanding of what that recovery needs to look like in the next few years. You can watch the video here.

In the video, I’ll walk you through what this means for your tax bill, why these numbers are what they are, and what we’re hoping to accomplish with this adjustment.  I encourage you to take the time to watch it. It also contains a good amount of positive news as we move into the back half of the pandemic.  We’re holding a public hearing on the Tentative Budget on April 13th. If you have any questions or comments, please join us directly on Zoom at 8:00 p.m. I look forward to seeing you.

Thank you for your time, and please continue to stay safe and stay healthy.