May 31, 2023-Village Taxes

Re.  2023/2024 Village Taxes

Dear Residents,

Since 2012, when the 2% tax cap was enacted by NY State, the Village of Oyster Bay Cove has been at or below the permitted tax cap.  In prior years, when needed, the Village used surplus funds to stay within the tax cap.   This year, however, the Village Board deemed it necessary to approve a 9% increase to the Village Tax Levy.  Due to inflation, most of our expenses have increased well above the 2% cap and Village revenue has decreased.

Although our Village Police Department plays an important role, it should be noted that the costs of operating the Police Department comprises 75% of the Village Budget (before  fire expense which is taxed separately).  There are certain police contractual expenses that the Village has no control over.    In 2023, health insurance premiums increased by 15%.   This is a benefit to both active and retired officers of the Village.  Furthermore, the contribution to the Police Retirement Fund over the years has continued to increase.  The actual payment made to the retirement plan in 2022 was 26% higher than the 2020 contribution.  The contribution rates are determined by NY State based on their funding requirements every year.   The Village is in the midst of negotiating a new police contract with the PBA  and we will not know the full impact on 2023 and going forward until it is final.

Oyster Bay Cove has also experienced an increase in legal costs due to resident and social activist lawsuits.   The Village has won every lawsuit, but incurred added costs to do so.

The Village Tax Levy (excluding fire tax) in 2023/2024 is $3,642,130. The actual Village Tax Rate in 2023 will be 334.8497 per 100.  The tax rate is slightly higher than 9% because the Total Taxable  Assessed Value of the Village decreased.    For every $1 of Taxable Assessed Value there will be an increase of .324 to  the   Village tax portion of your  bill.  For example, if your home’s  value is  $1,000,000 and  did not change from the prior year, the Village Tax portion of your bill will be $324  higher this year  (1000*.324). 

 Please note your tax payments are due this year on Monday July 3, 2023, since July 1st is on a Saturday.
 

Sincerely,

Charles R. Goulding
Mayor