The City of Newburgh has proposed a budget of $110.6 million for the fiscal year 2025, representing a 2.3% increase over the previous year’s budget. The digital budget booklet is available on the city’s website, utilizing the ClearGov platform. The public will have a chance to comment during a public hearing scheduled for November 12, 2024.

City Manager Todd Venning presented the proposed budget at the city council meeting on October 15. The chief operating fund, or general fund, is set at $70.5 million for 2025. The proposed tax levy is $24.5 million, accounting for 35% of the budget, while non-property tax revenue is projected at $17.2 million, comprising 24% of the total budget.

The remaining enterprise funds, which cover water, sewer, and sanitation services, total $26.2 million. The sewer fund is budgeted at just over $11 million, the water fund at $9.2 million, and the sanitation fund at $6 million. Additionally, the self-insurance fund is set at $3.9 million.

Venning detailed the proposed expenses, which can be viewed in two ways. Salaries are budgeted at $23.9 million, and benefits at $21.4 million, together making up 64% of the overall budget. “It’s a solid number to be at. Personnel expenses can get out of control, but this budget does not propose any new positions,” Venning said.

When examining expenses by function, public safety remains the largest category, representing 50% of the budget, with a proposed allocation of $34.9 million. Venning noted that this percentage was previously 55%.

According to the budget presentation, the 2024 taxable assessed value for the city is just under $2 billion. Venning clarified that this figure excludes the value of wholly or partially exempt properties. The total assessed value stands at $2.7 billion, meaning roughly 26.8% of the value is exempt.

Venning also discussed tax levy implications, specifying that homestead properties include one- to three-family homes, while non-homestead properties encompass four or more family homes and converted condos. For 2025, the proposed homestead tax rate is $10.60 per $1,000 of assessed value, a decrease of 1.49%, while the non-homestead tax rate is $15.40, a 1.25% increase. These rates are subject to council approval.

Venning outlined several goals for the budget, including reducing the homestead tax rate for the sixth consecutive year, raising the property tax levy while staying under the cap, and finalizing the Police Superior Officers Association collective bargaining agreement, which will bring all employee bargaining units under contract through 2026.

Regarding enterprise funds, which support ongoing public services, Venning proposed a 15% increase in water rates, a 16.2% increase in sewer rates, and an 8% increase in sanitation rates to address post-pandemic inflation.

Venning noted that Moody’s has upgraded the city’s credit rating from A1 to A3 and awarded it the highest governance rating of “G1” for institutional structure and budget management. The New York State Comptroller’s Office has given the city a fiscal stress score of “0” for the past five years, making Newburgh one of only two cities in the state to achieve this rating. The Government Finance Officers Association recognized the city with the 2024 Distinguished Budget Presentation Award and a Certificate of Achievement for Excellence in Financial Reporting in 2022.

The budget process began in July with department requests, followed by submissions to the comptroller’s office in August. Workbooks were presented to the council in September, and public meetings were held over several weeks. The budget was publicly presented in October, with additional meetings scheduled for review. The council is expected to adopt the 2025 budget on November 25, either as proposed or with amendments.

According to a city press release, the FY2025 proposed budget continues Newburgh’s $140 million infrastructure improvement plan, increases public safety spending by 28% for police sergeants and lieutenants, and nearly doubles spending on quality of life and parks in preparation for the new Delano Hitch Aquatic Center, built at no direct cost to taxpayers thanks to state and federal funding.

Mayor Torrance Harvey expressed pride in the work of Venning and his team following the budget presentation.

A public hearing was held during the October 15 city council meeting, with no comments received. The local law allows for a property tax levy in excess of the limit. Corporation Counsel Michelle Kelson affirmed that the proposed budget does not exceed the tax cap.

The public will also have the opportunity to comment on proposed salary increases for council members at a public hearing on October 28. The proposed salary for the mayor is $25,000, while at-large council members would receive $22,500, and ward members would earn $20,000. Research indicates that these proposed increases align with salaries for similar local elected officials.

All budget documents and reports are available for public review on the city’s website. The next city council meeting is scheduled for October 28 at City Hall, 83 Broadway.