Yonkers’ FY 2025 budget released; $1.46B total, $298.5M for schools; 5.51% property tax increase

Yonkers Mayor Mike Spano’s Fiscal Year 2025 Executive Budget proposal has been released and it includes $1.46 billion in operating funds, an increase of $327 million or 2.28% from the Fiscal Year 2024. There are no cuts to municipal services or the city’s active workforce. There is a record $298.5 million appropriation for the Board of Education, the largest-ever budgeted by the city. The 5.51% property tax increase exceeds the state’s tax increase cap of 2% or the rate of inflation, whichever is less.

“The city will continue to remain successful and we have a lot on the horizon, but to get there, we need to be fiscally responsible and reimagine how we navigate this cost-effective journey,” Spano said. “Together, despite the tight dollars, we will move forward by making the right financial decisions to benefit our taxpayers and our kids.”

 Spano described the budget as being “honest and lean, maintaining our workforce and services while reaffirming our commitment to education.”

Spano had made a number of recent trips to Albany to lobby state officials for more state aid for the city’s public schools. Spano reapportioned $5 million in Temporary Municipal Assistance Aid awarded by the state and directed it toward the school system.

The new budget reflects the school system losing $33 million in non-recurring aid that had been provided by the American Rescue Plan and Coronavirus Response and Relief Supplemental Appropriations Acts. As a result, according to the administration, the schools will need to restructure and consolidate to accommodate for an approximately 10% reduction in enrollment adding up to approximately 2,400 students, and a substantial increase in the number of special education students.

There is a 1% cut of $3.4 million in general fund departmental expenses, department debt services and special items, bringing those costs to a total of $375.8 million.

Spano’s office explained that with rising costs, an increased transfer of funds to the public school budget due to the state’s lack of funding, a $23 million increase in health care costs, and subdued housing-related activity as a result of high mortgage rates, the Executive Budget proposes the tax rate per thousand dollars of assessed value would increase by $48.73, which amounts to an increase in the tax rate of 5.51%.

It’s calculated that a typical one-to-three-family home at the median assessed value of $10,900 would see its annual property tax bill increase by $531. The budget does contain a newly formulated Senior Citizen Tax exemption, which raised the income exemption level, providing Yonkers seniors an approximate total of $2.4 million in savings on their property taxes. Seniors need to apply for the exemptions. Those with annual incomes of $50,000 or less can receive a 50% exemption. The exemption amount decreases to 5% for those with incomes of from $57,500 to a ceiling of $58,399.99.

The budget earmarks $59 million for capital improvements, $6 million for paving initiatives, $600,000 for flood mitigation efforts, $3 million for the Yonkers Greenway and $5 million for the new Cacace Justice Center Parking Garage.

“The administration continues to be efficient and conscientious of our fiscal challenges,” Spano said. “I hope that the 2025 Executive Budget is a basis for discussions and decisions. I ask our City Council members to continue to build upon the spirit of cooperation that has passed twelve consecutive bipartisan budgets during my time in office.”

The Yonkers City Council must adopt the budget by June 1 so it can take effect by the beginning of the new fiscal year on July 1.