Peekskill comptroller says city is 'on track' after Q2 review despite several revenue shortfalls

Comptroller Tony Tracy told the Peekskill City Council the city is "on track right now with our projections to meet the budgeting goals" set last November and that the current Q2 projections no longer rely on a planned $350,000 draw from appropriated fund balance. Tracy said some revenue lines are weaker than anticipated while several expense categories came in under budget, producing an overall near-balanced projection.

Tracy detailed the shortfalls: interest and penalties on tax bills are projecting about $354,000 less than budgeted because the in rem tax-collection process has been extended; sales tax is about $350,000 below plan; and dispensary sales tax is projecting roughly $390,000 under budget because new dispensaries are not yet operating at expected levels. She also cited smaller declines in building-permit revenue and moving-violation receipts.

Council members pressed Tracy on employee-benefit projections and in rem timing. Tracy said the health-insurance line covers roughly 400 policies for employees and retirees and that a projected 12% premium increase did not materialize this year: "The family plans basically had no increase at all," she said, noting that the city still expects upward pressure on premiums for the 2026 budget. On older receivables, Tracy said the legal process extensions may delay penalty and interest revenue into next year but that some property owners have made payment arrangements when the process begins.

The council asked for the full 1,500-line differences and Tracy said staff will present a resolution next meeting to formalize related budget adjustments and bond-authority items.