The Mineola Board of Trustees introduced a prospective 2016-17 budget with a zero percent tax increase over the current budget.
The proposed $19.56 million budget represents a $41,349 increase over the $19.52 million for 2015-16. Mayor Scott Strauss said the most significant factor in enabling the minimal tax rise is the result of the host deals he and the village trustees have struck with the developers over the past several years.“Right now we will not have a tax increase due to the funds the village has received from developers,” Strauss said.
He said the village will receive $470,000 from two developers in various stages on four concurrent projects.
The zero percent increase tax levy is projected to generate revenues of $13,348,895 to support the budget.
After the meeting, Strauss said the village has received commitments of $9 million in lieu of amenities from Lalezarian Developers and Mill Creek residential trust.
Mill Creek has completed construction on its Modera apartment complex on Old Country Road and its nearby companion Hudson House Apartments for senior citizens. It is paying the village $1.7 million upfront to proceed with the conversion of part of the former Corpus Christi School into apartments.
Lalezarian Developers agreed to pay $3 million in lieu of amenities on the apartment complex it is completing construction on at 250 Old Country Road. Lalezarian also agreed to pay $3 million in lieu of amenities for the Village Green project it won approval for last year.
He said $2 million received from developers was used to renovate Mineola Memorial Park and construct a permanent performance stage in the park.
“We’re doing things other communities can only dream about,” Strauss said. “With all these funds coming in, it helps to reduce costs for the residents.”
With water usage in the village rising with increased population from the new apartment complexes, Strauss said the village plans to test the well on Emory Road, currently shut down due to contamination from an underground chemical “plume”, to determine whether it can be brought back online. He said resuscitation of the well would require construction of an air stripping station to remove contaminants from the water.
Revenues from developers under tax reduction agreements struck with the county Industrial Development Agency for Payment In Lieu of Taxes, known as PILOTs, will produce $226,094, up from $196,039.
Village attorney John Gibbons said under host benefit agreements struck with the village board, the village would receive 90 percent of tax revenues from the development of the Village Green and Corpus Christi apartment projects.
A reduction in tax appeals puts the budget for resolving tax certiorari cases at less than $300,000 in the tentative budget, Strauss said, enabling the village board to apply more money to other budgetary needs.
“We can do more maintenance and road work,” Strauss said.
He said the proposed budget includes a $50,000 increase for road maintenance in the village from $600,000 in the fiscal year.
Health and medical insurance costs for village employees will increase year-to-year by approximately $75,000, from $2.24 million to $2.31 million.
That helps to offset a year-to-year reduction of more than $25,000 in aid from the state Consolidated Street and Highway Improvement Program to $196,813.
The Mineola Fire Department budget will remain virtually unchanged, increasing $13,000 to $1.08 million in the 2016-17 fiscal year.
Water fund appropriations will also increase slightly year-to-year, from $2,473,558 to $2,490,851.
The proposed budget projects a significant year-to-year reduction in total debt service payments on village bonds from $1.05 million to $718,823. Strauss said that reduction results from paying off serial debt of $330,000 this year.
The village board will hold a public meeting on April 13.
