This article was updated on Nov. 19 at 7:05 p.m.
The city has unveiled a 2025 proposed budget that would increase the tax rate by 6.12 percent and also exceed the state-mandated property tax cap for the second time in three years.
The 2025 operating budget, which was presented by City Manager Greg Usry on Nov. 6, would be $49.3 million. The increase would result in an additional $312 per household in property taxes based on the average estimated home value of $1.98 million. Since the budget is not tax cap-compliant, it would require an override by the City Council.
The tax levy – or the number needed to be collected through property taxes – is proposed to increase next year by 4.3 percent, or $1.29 million. The amount being levied busts the cap by roughly $428,000.
The tax cap, signed into state law in 2011, establishes a limit on the annual growth of property taxes levied by local governments and school districts to 2 percent or the rate of inflation, whichever is lower. Usry explained that for the third consecutive year, the inflation rate stands at 3.3 percent, which is greater than the limit set by the state.
As a result, the city is looking to override the cap again after having done so in 2023.
About $296,000 would have to be cut out of the budget to lower the tax rate by 1 percent, according to a city budget fact sheet.
The proposed tax rate increase next year — equal to a 6.12 percent jump over the 2024 budget — is higher because Playland is returning to its long-held tax-exempt status as public parkland.
Though the park sits within the city of Rye, Playland is owned by Westchester County and has historically been exempt from the tax rolls.
The city revoked Playland’s tax-exempt status after private operator Standard Amusements took over management of the amusement park in 2022, arguing that the property had become a for-profit enterprise.
The county challenged the city’s ruling in court.
The park was first put on the tax rolls in the city’s 2023 budget. A lower court, however, reinstated the amusement park’s tax-exempt status — reducing the city’s assessed value and prompting the rate hike. Without the adjustment because of the Playland issue, Rye’s property tax increase would have been 4.22 percent for 2025.
“As a result of a recent legal settlement with the county regarding the ’24 tax roll, the property is again on the tax-exempt roll and will remain there until … a final settlement with the county or a decision by the appellate court,” said Usry.
City employee salaries and benefits make up 73 percent of the operating budget, which includes several new staff positions.
Among those are the addition of an administrative position with the city Department of Public Works to help manage the expanded workload now that the department is handling more projects itself.
“As we have brought more of that engineering work in house, there is a very obvious and apparent need for additional administrative support for Ryan [Coyne] and Eric [Kingsbury],” Usry said.
Additionally, the part-time city attorney position held by Kristen Wilson, which was turned into a full-time job in May, reduces the city’s legal budget by $190,000 next year, according to city officials.
Though there are no new positions for police or fire, Usry said staffing for those departments is expected to increase in the future.
The Rye Free Reading Room, which is subsidized by the city, requested $1.4 million for 2025 — 3 percent more than their 2024 funding. The city has decided to meet that full request in the proposed budget. There is also nearly $540,000 set aside for EMS services, reflecting staffing and supervision improvements.
Proposed capital investments include $700,000 for city vehicles, $500,000 for stormwater protection, $100,000 for pedestrian improvements, and $125,000 for building repairs. The budget reallocates tax money for roads, using state grants instead.
Other notable expenditures include $1.7 million toward vehicles and $150,000 for sewer maintenance.
The City Council agreed to set a public hearing on the proposed budget for Dec. 4 and is expected to approve the budget on Dec. 18. The council must legally adopt a budget on or before Dec. 31.