The Babylon Village Board is reviewing a proposed $14.57 million budget for the 2025-2026 fiscal year. This amount represents a 10.91% increase, adding $1.43 million in additional spending compared to the 2024-2025 budget.

Village officials state that many of major drivers for the increase are largely outside of their control. The budget accounts for substantial hikes in general property, liability, and medical insurance costs. Liability insurance costs alone have risen by $190,000. Additional factors include salary increases for village employees and the first year of payments on a 2023 bond that funded projects such as bulkheading, pool repairs, new highway and sanitation trucks, fire department equipment and HVAC, and a golf course storage building.

If adopted, the budget necessitates a property tax levy that would exceed the limit set by the New York State property tax cap law. This law generally restricts the annual growth in the tax levy for local governments and school districts to the lesser of 2% or the rate of inflation , although certain exclusions can apply. Because recent inflation has exceeded 2%, the allowable growth factor for municipalities across the state is currently capped at 2%. To legally raise the tax levy above this calculated cap limit, the Village Board must pass a local law or resolution specifically overriding the cap, requiring approval from a supermajority of at least 60% of the board’s vote.

This proposed budget would mean a 9.88% increase in the property tax rate for homeowners. Property owners would pay an additional $1.70 per $100 of assessed value, an increase from $17.20 to $18.90. per $100 of assessed valuation. For a home assessed at $3,500, this represents an estimated annual village tax increase of $59.50. This follows on the heels of a tax cap-busting increase last year which saw rates go from $15.20 to $ $16.20 per $100, an increase of almost 6.6%.

Mayor Mary Adams acknowledged the budget’s size but defended it by highlighting the extensive services Babylon Village provides compared to other municipalities facing similar pressures. Village Treasurer Andrew Reichel assured residents that the board meticulously reviewed the budget to minimize the impact. “We made it as tight as we could,” Adams stated, thanking Reichel for his efforts. Trustee Tony Cardali added, “Everybody is feeling the crunch with insurance costs going up.”

The Village Board is scheduled to vote on the proposed budget, including the necessary tax cap override measure, during its meeting on Tuesday, April 22nd, at 8:00 p.m. at Village Hall, 153 W. Main St., Babylon.