The council voted to unanimously pass the budget without much discussion Nov. 25. The plan cuts the homestead tax rate to about 10 percent, despite a 2 percent increase in the overall size of the budget. City Manager Todd Venning’s chief of staff, Mike Neppl, says the final budget is largely unchanged from the plan Venning proposed in October.
“The goals for this budget were to lower the homestead tax rate for the sixth straight year, and continue the city’s infrastructure program. We’ve allocated $140 million to infrastructure improvements citywide," says Neppl. "And of course, we allocated significant funding for quality of life and parks programs. We are getting ready to open the new Delano Hitch Aquatic Center next Memorial Day Weekend, so our budget reflects the anticipated opening.”
The city won an $8 million state grant for the aquatic center earlier this year.
Neppl says the main change in the final budget dealt with pay raises for Mayor Torrance Harvey and the city council. Under the initial plan, Harvey would have seen his salary increase from $15,000 to $25,000, with similar increases for councilmembers and councilmembers at large. Instead, Harvey’s pay will increase to $22,500. The two councilmembers-at-large will each be paid $20,000, while the other councilmembers will receive $17,000.
Before the vote, residents like Michele Basch urged the council to consider any raises carefully.
“I actually haven’t heard from people who oppose it. I have heard people saying that it’s a little high," said Basch. "You all do a hard job, and you do a good job, but I’d like to know the details and make sure that we take into consideration this is one of the poorest cities in the Hudson Valley, and we can’t have higher wages than other wealthy areas.”
Neppl maintains the new wages are in line or lower than that those in other cities. Before voting, Councilmember-at-Large Robert McLymore said he isn’t personally looking for a pay raise, but thinks it’s important to recognize the work of his fellow councilmembers.
“I am voting 'yes' because I see the hard work that each councilperson on this council does. This is nonstop," says McLymore. "So it’s not about the money, and I don’t want anybody in the community to think it’s about the money.”
The budget also includes a 28 percent pay increase for police sergeants and lieutenants. Neppl says these raises have helped the Newburgh Police Department remain almost fully staffed. The council discussed two officer vacancies, and agreed to upgrade one of those positions to lieutenant.
“Right now our investigative division does not have a lieutenant, we only have sergeants," said Chief Brandon Rola. "And keep in mind, this is an increase from an officer to a lieutenant — this is an increase in salary. Next year, as time goes on, we can further discuss adding another officer.”
The budget also pays for a full year of ambulance services from Empress EMS.
Neppl says this budget is the last one subject to review from New York State Comptroller Tom DiNapoli after more than a decade. The comptroller’s office flagged multiple items, including the use of about $3.2 million in fund balance to close budget gaps. It also warned that the city may be overestimating its water and sewer revenue and underestimating the cost of police overtime. Neppl dismissed the critiques, saying they’re often the same every year, and that the city has accommodated them in previous budgets.
Earlier this year, Venning announced the state comptroller’s office had granted Newburgh an overall fiscal stress score of “0” (the best score possible) for the fifth year in a row. Moody’s Investor Services also upgraded the city’s credit rating from A3 to A1.
“Being fiscally solvent and having a perfect fiscal stress score allows us to implement the city council initiatives related to economic development and infrastructure that will bring jobs and housing stock to the city and, over time, reverse those environmental stressors," said Venning.
The new budget takes effect January 1.
