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City manager recommends 4.65% tax increase in tentative 2025 budget
Summary
The city manager presented the tentative 2025 budget recommending breaking the tax cap and a 4.65% property tax increase, citing rising health insurance costs and other pressures. The proposal includes cost-of-living adjustments, 13 hires and an approach to use ARPA funds in the fund balance.
The city manager presented the City of Peekskill’s tentative 2025 budget on Oct. 1, recommending that the council "break the tax cap again and raise taxes 4.65%." The proposal bundles standard cost-of-living and step increases, and includes 13 staffing requests — seven replacements and six new positions — to address service needs.
The manager told council the budget package includes the manager’s message, tax-rate calculations, the general fund, enterprise funds, departmental budgets, a capital plan and a proposed fee schedule. He cited recent double-digit increases in NYSHIP health insurance rates as a principal cost driver and said the city often learns exact health-rate changes after budgets are prepared. The tentative budget also proposes moving ARPA funds into fund balance to cover lost revenue and unexpected expenses and projects $550,000 in cannabis-dispensary tax receipts, estimating three to six dispensaries by 2025.
