Peekskill projects $760,000 surplus but flags sales‑tax and cannabis shortfalls

Peekskill’s comptroller presented a preliminary first‑quarter budget review to the Committee of the Whole, projecting a small year‑end surplus of about $760,000 while flagging several revenue and timing risks.

"We are currently projecting a small surplus of about $760,000 by year end," Comptroller Tony Tracy said, noting the projection reflects current receipts and staffing patterns. Tracy said the police department is understaffed — 56 on staff versus an authorized 62 — which has produced temporary salary savings but creates hiring and overtime timing issues. Tracy also identified a potential sales‑tax shortfall of roughly $400,000 and said cannabis tax projections remain uncertain because the city has limited historic data on the new revenue source.

Council members pressed staff on overtime trends and the timing of mortgage‑recording tax receipts; Tracy said the first mortgage‑recording check should arrive in June and cautioned that several lines (fire inspection fees, project management fees from partners, and bank interest) are subject to timing. City Manager Alexander and council members discussed asking the county for clarity about cannabis remittance mechanics; staff said the county receives state collections and forwards municipality shares, and that initial checks to the city have been small.

The presentation included a request that departments continue to control expenditures and noted the comptroller removed a planned $350,000 use of appropriated fund balance from the projection to preserve the projected surplus. Tracy and councilmembers agreed to continue building quarterly trend data and to return with updated estimates when more receipts are available.