Understanding How Our Local Tax Dollars Are Spent
By Larry Thaul
On Tuesday, May 13th, the Larchmont-Mamaroneck Local Summit convened a panel of our municipal administrators at their final pre-summer event on the subject of how our local tax dollars are spent. Inside an hour the operating budgets were laid out per department and expense category by the municipalities. Kathleen Gill, Manager, Village of Mamaroneck (VOM), and Meredith Robson, Administrator, Town of Mamaroneck (TOM), each presented answers to questions posed by Local Summit board member and former Village of Larchmont mayor, Lorraine Walsh, who moderated the discussion. Unfortunately, a last-minute exigency arose, and the Village of Larchmont administrator could not attend.
Both empaneled officials reported that school budgets comprise the single largest item of spending from our total property taxes paid. Figures are: TOM 59%, VOM 55%.
Ms. Robson presented a TOM 2025 budget of $55.75M. The TOM has 128 full time employees, (triple that figure for part-time and seasonal employees.) In diminishing order, the cost centers in the TOM were employee benefits ($13.9M), public safety ($10M), public works ($6.6M), parks/recreation ($5.6M), home/community services ($4M), debt service ($4M), and health ($2.4M).
Ms. Gill showed a VOM tentative 2026 budget total of $49.43M and 162 full time budgeted positions. Major budget items were employee benefits (32%), public safety (24%), general government support (15%), debt service (11%), culture/recreation (7%), and home/community services (6%).
When asked about capital budget expenditures, both municipal administrators expressed their concerns over substantial increases to budgeted costs from the time of their approval – even for some projects approved only a couple of years ago. This when coupled with the vagaries of federal funding and its trickle down effect upon our receipt of state funding, has been some cause for concern over project completion. Gill said they must ask themselves whether they would be able to finance a project solely with tax revenue funds should a grant be denied or someday be rescinded by executive order. Robson stressed the need for multi-year planning for capital projects. She emphasized the coordinated effort between the town controller, engineer and the town board. The town has its own 5-year capital plan separate from but complementary to the town’s Comprehensive Plan. Public surveys are used to prioritize such projects such as the Hommocks pool and storm water management. Some projects may be subdivided into phases to be completed in segments as funds are available. Both Robson and Gill concurred that municipal ratings can be affected by completion of projects and adherence to budgets.
Manager Gill provided the example of flood mitigation whereby even if FEMA ultimately comes through with its pledged grants, it may be a couple of years until the money is made available. Congressman Latimer who was present at the meeting added that the uncertainty created by the federal government in potentially canceling approved projects can make governance more difficult and unpredictable.
Both administrators stressed the need for substantial reserve funds. The VOM keeps roughly 30% of its operating budget in reserve, while TOM keeps within a target range of 15-25% of its operating budget for reserves. This helps keep its AAA rating. Both municipalities must manage cash flow according to tax receipts and the lag in grant receipts. They both have restrictions on their own cash investments but achieve a little over 4% returns.
Gill posited that new sources of income via revenue and fees for VOM are being sought. For example, keep your eye out for public discussion about having a restaurant and/or seasonal food in Harbor Island.
There was evident synergy between Robson and Gill when asked if there are efforts to combine services where it is totally within their interests. Brine for icy streets purchased from New Rochelle and sewer cameras are examples of shared expenses achieving savings in scale.
The fair impact of taxes on certain subsections of our municipalities was raised by an attendee and both managers indicated the pains taken to ensure that the effects are not one-sided or demonstrably mis-weighted on any particular resident group or locale.
The Larchmont/Mamaroneck Local Summit is an informal community council that seeks to make a better life for the community by keeping it informed of major issues of concern. Join us for the next meeting which will be held in person at The Nautilus Restaurant, 1240 West Boston Post Road, Mamaroneck, NY 10543, on Tuesday, September 9th at 8:00 a.m. where we will hear from our local state legislators.
Visit us online: www.localsummitlm.org.
