The Orange County, New York, Legislature on Dec. 7 unanimously passed a $122.5 million property tax levy for the coming year, $2 million less than this year.
County Executive Steve Neuhaus originally proposed that the tax levy stay flat, but more favorable projections about interest earnings afterward allowed for such a cut, according to a special Ways and Means Committee meeting in early November.
This is the third time that the county property tax levy has gone down during the Neuhaus administration; it decreased slightly in 2021 and was cut by $9.6 million last year.
“I have enjoyed working collaboratively with Chairwoman of the Legislature Katie Bonelli and the Legislature on this budget, which lowers taxes and is fiscally responsible,” Mr. Neuhaus said in a statement after the passage of the budget.
Ms. Bonelli said, “The 2024 budget will benefit our residents, lower taxes, and maintain our essential services. We will continue to find innovative ways to work with the county executive to strengthen Orange County finances.”
The total approved 2024 budget stands at close to $924 million, up by $26 million from the current year.
Sales and hotel taxes account for the largest chunk of county revenue in 2024 at almost 45 percent, followed by state and federal aid at about 20 percent and property taxes at about 15 percent.
Mr. Neuhaus told The Epoch Times in a previous interview that the growth of sales and hotel taxes as a direct result of economic development and tourism eases property tax burdens for county residents.
County sales tax revenue has grown by almost half since he took office and is estimated to be about $290 million in 2024; hotel taxes have more than doubled to more than $6 million since 2014.
Among neighboring counties in the Hudson Valley region, Orange County is most reliant on sales tax in balancing the budget, followed by Ulster and Dutchess counties, according to an analysis by accounting firm O’Conner Davis at a November Ways and Means Committee meeting.
The largest expense function for the county, at 27 percent in 2024, is human services, which primarily covers assistance to low-income families, seniors, and people with disabilities.
About half of the expenditure is covered by federal aid.
The second-most expensive county function is health services, including nursing home Valley View, which needs an estimated $11 million in its fund balance next year to cover the operating loss.
The county Legislature also passed a five-year capital plan proposed by Mr. Neuhaus on Dec. 7.
Major items include $32 million for a new building for the health and planning department, $22 million for new buses, $10 million for asbestos removal and demolition at Camp LaGuardia, $9 million for a runway extension at the county airport, and $7 million for infrastructure at the new IT department.
In 2024, the county plans to issue $58 million in new debts to finance big-ticket capital projects.
No money from the fund balance is used to balance the 2024 budget.
With an estimated surplus of $30 million for the current year, the county’s unassigned fund balance—money with no strings attached—was expected to be about $224 million at year-end, according to accounting firm O’Conner Davies at a Ways and Means Committee meeting.
