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Residents press council as Peekskill prepares hearing to override New York tax cap
Summary
Comptroller Tony Tracy said the 2026 proposed levy exceeds the state tax cap (2.34% cap vs. 3.5% proposed levy). Public commenters questioned repeated overrides and timing of the public hearing; staff explained capital grants (DRI) are not for operations and pointed to rising insurance, pension and materials costs.
Comptroller Tony Tracy told the council the proposed 2026 levy in the budget before the city would exceed New York State's tax cap: the state's formula produced a 2.34% cap for Peekskill, while the proposed levy would amount to a 3.5% increase, an excess of approximately $232,178.
"So the levy is $20,723,327 and that is a 3.5% tax levy increase," Tracy said, noting the proposal would raise the tax rate from $307.11 per thousand to $316.25 per thousand and that the council was being asked to set a public hearing on a local law to override the cap.
During public comment Garrett Dowd asked why Peekskill has repeatedly overridden the cap in recent years despite receiving capital grants such as a $10 million DRI award. Dowd said that recurring overrides make it harder for residents on fixed budgets. City Manager Matthew Alexander responded: "The $10,000,000 DRI is not an operational grant. It's dedicated to particular projects... It's bricks and mortar work that will get done." He added rising material, insurance and pension costs — particularly police and fire pension increases — have driven the need to revisit the levy.
Council voted that evening to schedule a public hearing on the tax‑cap override; the hearing was set for Nov. 10 to allow further public comment as the council refines the budget.
