Sleepy Hollow board approves $983,727 tax levy, new municipal grocery tax and billing changes; renews liability insurance

The Sleepy Hollow Village Board approved a slate of budget and administrative measures at its meeting, including a $983,727 tax levy for fiscal 2026, adoption of a municipal grocery retailers/service occupation tax, a rewritten water and sewer billing ordinance to set static due dates, and the renewal of the village's liability insurance.

The board approved the fiscal-year 2026 tax levy ordinance, asking the county to collect $983,727, described by staff as a 2.9% increase over prior years and within the legal limit of 5% or CPI, whichever is lower. "So, you know, this is what our ask is," said the administrator, explaining the village requests a levy but the county determines actual collections. The motion was moved and approved by roll call.

Trustees also adopted a municipal grocery retailers/service occupation tax using the Department of Revenue's model ordinance that would allow the village to collect a 1% occupation tax on qualifying grocery and retail sales. A staff member summarized the choice to use the state model: "This ordinance is exactly what ... the Department of Revenue's model ordinance. It's exactly what they have asked for." Trustees noted the tax is not expected to generate a large revenue stream but that "every little bit helps." The board moved, seconded and approved the ordinance by roll call.

On utility billing, trustees approved an amendment to the village code that fixes billing and due dates (billing on the 8th of the month and payment due on the 4th or the next business day) and integrates the payment system with the village's software to reduce month-to-month date shifts. Staff explained the change will standardize customers' calendars and make late-fee application predictable.

The board also approved renewal of the village's liability insurance with Assured Partners (now part of Gallagher). Staff said the overall premium rose about 10% year over year and cyber coverage increased about 21% amid broader increases in municipal targeting; the police chief is working with the insurer on an audit item and a memorandum-of-understanding clause that underwriters flagged.

Votes at a glance • Accounts payable: $95,691.28 — motion moved by Eugene, approved by roll call. • Ordinance adopting municipal grocery retailers/service occupation tax (1%) — moved by Schlossberger; seconded by Thomas; approved by roll call (all in favor, no opposition). • Ordinance amending billing/collection of water and sewer charges (static billing/due dates) — moved by Kennelly; seconded by Schatzberger; approved by roll call (all in favor, no opposition). • Fiscal-year 2026 tax levy ordinance ($983,727) — moved by Hoff; seconded by Diatley; approved by roll call (all in favor, no opposition). • Liability insurance renewal — moved by Schatzberger; seconded; approved by roll call (all in favor, no opposition). • 2026 board meeting schedule — moved by Kennelly; seconded by D'Atley; approved by roll call.

Why it matters: The tax levy sets the village's formal request to the county for property-tax receipts in 2026; the grocery occupation tax creates a new local revenue tool (a 1% occupation tax on qualifying retail sales) and the billing-date change standardizes utility customer deadlines. The insurance renewal reflects rising municipal insurance costs and underwriting scrutiny of cyber risk and intergovernmental agreements.

The board said it will monitor receipts and program impacts and follow up at the finance committee meeting scheduled for Dec. 11. The board adjourned to a brief executive session with no further public-action items scheduled.