Peekskill projects higher 2025 revenue, including new dispensary sales tax, and plans to reduce use of fund balance

Tony, presenting revenue highlights, said staff built a 2025 revenue plan that anticipates roughly $4.5 million in additional receipts driven by steady sales‑tax growth, higher meter rates and parking fines, an increase in state aid and new revenues associated with cannabis dispensaries and pilot agreements. He said the city currently has one open dispensary and anticipates additional openings, projecting six dispensaries by the end of 2025 and conservatively estimating roughly $90,000 in sales tax per dispensary location for the next year.

Staff also flagged a notable policy change in fiscal presentation: the budget now shows employee health‑insurance contributions as a revenue line (about $1,000,000) rather than netting them against expenses. Tony said the city budgeted a smaller draw on fund balance for 2025—about $350,000 versus prior years that relied on $1.6M–$2.5M—due to fee increases, stronger departmental revenues and grant funding. Council asked for clarification on the flow and timing of dispensary sales‑tax receipts; staff said they expect sales tax remittances on a normal quarterly schedule and would provide details.