Sleepy Hollow rejects tax hike again

Sleepy Hollow voters on Tuesday overwhelmingly voted against a referendum seeking to authorize a nearly 82 percent increase in the village's property tax rate.

The village was asking to collect an additional $428,571 yearly from its more than 3,300 residents ­- nearly double what they pay now. If that plan had been approved, the owner of a $200,000 home would have paid approximately $316 more in property taxes in 2016.

With votes counted in all three precincts, unofficial tallies showed 543 votes (84.8 percent) against the referendum to only 92 votes (14.4 percent) in favor of the hike. Just 26.3 percent of registered voters cast a ballot.

Officials had planned to use the extra revenue to replenish the village's five-year capital fund - expected to be depleted by 2018 - and for road improvements.

A similar request failed last November by a 3 to 1 margin.

Officials say the money is needed to meet long-term expenses, such as buying squad cars, radios and other police department equipment; dump trucks, snowplows, salt spreaders, back hoes or mowers for public works; for maintenance at village hall including upgraded heating and cooling, and computer and phone systems; and road repairs, street and park improvements.

Over the next four years, officials anticipate the cost for replacing trucks at $200,000, police vehicles at $107,000, and long-needed flood control projects at $75,000. The village also cannot afford to repave its 22 miles of streets with state motor fuel tax revenues alone, which in 2014 was about $77,000, officials said.

The 2015 operating budget includes $1.4 million in expenditures. The village has around $2.1 million in reserves, of which roughly $970,000 is earmarked for water and sewer upgrades, according to officials.

Officials also are concerned about potential losses in state income tax and sales tax revenues.

Mike Tennis, a member of the village's advisory finance committee, urged residents to vote "no" again because he thinks the village should control its spending.

Tennis questioned the need for increasing spending on road repairs alone to $650,000 yearly or nearly $2.6 million during the next four years. The village has spent more than $1 million in motor fuel tax revenues in the last seven years or $150,000 yearly on roads, he has said.

Tennis says there are sufficient reserves for the village to double annual investments in roads to $300,000 a year starting in fiscal year 2016. He suggests the board consider a more modest tax increase for residents in 2017 to keep the road program going.