Board of Trustees

MEETING NOTICE Village of Scarsdale A Work Session of the Scarsdale Village Board of Trustees is scheduled for 6:00 PM on Tuesday, November 22, 2022. The meeting will be held in Rutherford Hall located on the 2nd Floor in Village Hall. Members of the public wishing to participate in the meeting can do so via online link at https://zoom.us/j/93183703358, or call into the meeting using 1-929-436-2866 and entering the Meeting ID 931 8370 3358.* Agenda 1. Consideration of new Property Tax Exemption Levels for Seniors and Persons with Disabilities 2. Budget Timeline CS: 11-17-22 E-MAIL: Journal News (Lohud) Scarsdale 10583 Scarsdale Hamlet Hub Scarsdale Inquirer The Daily Scarsdale cc: Lobby Bulletin Board *For a brief Zoom tutorial or to troubleshoot a problem, see here: https://support.zoom.us/hc/en- us/articles/205566129-Raise-Hand-In-Webinar. For other user questions, please visit the Zoom Help Center: https://support.zoom.us/hc/en-us.  To: Robert Cole, Village Manager MEMORANDUM From: Victoria Sirota, IAO, Village Assessor Assessor’s Office Date: November 15, 2022 Increased Income Levels for the Senior Citizens’ (RP 467) and Disabled Persons’ Exemptions (RP 459c) Please be advised that the NYS Legislature recently passed, and the Governor signed an amendment to the Low-Income Senior (RP 467) and Disabled Persons’ (RP 459c) Exemptions raising the income limits for qualifying property owners from $29,000 up to a maximum of $50,000 for a 50% exemption. These exemptions are applicable to general municipal County/Town, Village and School district taxes by local option. Each municipality has the option to increase the levels up to the maximum $50,000. The Westchester County Board of Legislators adopted this new law on October 6, 2022 (Local Law No. 459-2022 attached), whereby they opted to raise the income limits to the maximum of $50,000 for a 50% exemption with a sliding-scale to $58,400 for a 5% exemption (Refer to Exhibit 1 for current and proposed sliding scale). The County opted to adopt a provision for allowing residents to include unreimbursed medical expenses to reduce their gross income. Although not required by law, the Village has historically kept with the actions of the County Legislature with respect to adopting exemptions. This practice is prudent for ease of department record keeping as well as taxpayer simplicity. By way of background, Section 467 of the Real Property Tax Law provides for a partial exemption from real property taxation for residential real property owned by qualifying low-income senior citizens on a sliding scale basis. The law sets forth the definition of income which is based on gross income rather than taxable income. This exemption is applicable to general municipal County/Town, Village and School district taxes by local option. Section 459c of the Real Property Tax Law contains the same provisions and benefits as Section 467, though applicable to low-income disabled persons. The law sets forth how a disability shall be defined and what constitutes legitimate documents to determine eligibility. Currently, 21 residents are receiving benefits under the low-income senior program and 0 residents are receiving benefits under the low income, disabled property owner program. I have calculated and attached the potential tax impact to the Village (and School) should the maximum $50,000 income ceiling be adopted (Please refer to Exhibit 2 for the detailed analysis). Due to the limitations of available data, it is difficult to predict the tax implications with great accuracy. I respectfully suggest that the Town/Village Boards consider this legislation and act within the proposed timeline if they will choose to adopt the new exemption provisions for the implementation on the June 1, 2023, tentative assessment roll. Residents are typically notified of exemption related changes in January of each year. Proposed implementation timeline: • Work-session – Tuesday, November 8 or 15, 2022 • Public Hearing is set – Tuesday, November 22, 2022 • Public Hearing – Tuesday, December 13, 2022 • Adoption of Law – Tuesday, January 10, 2023 Should you have questions, concerns or require further information regarding this matter. Thank you in advance for your consideration. EXHIBIT 1 (SLIDING SCALE) Proposed Scale % of AV Current Scale % of AV Exempt Exempt Less than $50,000.00 50% Less than $29,000.00 50% $50,000.01 $50,999.99 45% $29,000.01 $29,999.99 45% $51,000.00 $51,999.99 40% $30,000.00 $30,999.99 40% $52,000.00 $52,999.99 35% $31,000.00 $31,999.99 35% $53,000.00 $53,899.99 30% $32,000.00 $32,899.99 30% $53,900.00 $54,799.99 25% $32,900.00 $33,799.99 25% $54,800.00 $55,699.99 20% $33,800.00 $34,699.99 20% $55,700.00 $56,599.99 15% $34,700.00 $35,599.99 15% $56,600.00 $57,499.99 10% $35,600.00 $36,499.99 10% $57,500.00 $58,399.99 5% $36,500.00 $37,399.99 5% Exhibit 2 Senior Exemption (467) - Estimated Impact on Taxes Prepared 10/12/2022, reviewed 11/8/2022 VILLAGE SCHOOL Current New limit Assessed New limit # Effected by Current Assessed Exempt Exemption Value Exempt Amount Exemption Limit Increase Value Exempt Amount (1) Increase Exempt (1) Increase 41800 - Aged CTS (2) 5 8,069,679 8,851,397 781,718 8,434,617 9,455,222 1,020,605 ORPTs Rpt #9 - Form 1040 income 58,400 or lower (3) 57 0 27,238,250 27,238,250 0 27,339,371 27,339,371 62 8,069,679 36,089,647 28,019,968 (C) 8,434,617 36,794,593 28,359,976 (C) Village School Total Number of Parcels (2021 AR, 2022 TAX ROLL) 5,946 Equalization Rate 2021 100.00% Taxable Assessed Value 2022 Taxes 9,016,748,427 9,038,422,458 Actual Levy Amount $44,655,005 $ 152,638,346 2022 Tax Rate (A) $4.952451 $ 16.887720 Total Taxable Assesssed Value w/Exemption 8,988,728,460 9,010,062,482 Estimated 2022 Tax Rate w/Exemption (B) $4.967889 $ 16.940875 Estimated Tax rate increase [(B) - (A)] $0.0154 $ 0.05316 % change in tax rate 0.3117% 0.3148% Typical (median) single-family residential assessment value 1,300,000 Mean (average) single-family residential assessment value 1,597,000 Median Non-Senior Annual Residential Tax Increase $20.07 $69.10 Average Non-Senior Annual Residential Tax Increase $24.65 $84.89 Total town-wide Tax Increase (B*C) $139,200.09 $480,442.82 Percent of 2022/23 Budget 0.001549% 0.005332% Assumptions utilized in the calculation: (1) The max $50,000 income limit is adopted for a 50% exemption with a sliding scale up to $58,400 for a 5% exemption (refer to Exhibit 1 for sliding scale). (2) 21 properties are currently receiving the senior exemption (RP 467) and 0 properties are receiving the individuals with d isabilities and low income (RP 459C) exemption. Five (5) properties will be effected by the new limit increase and will receive a 50% exemption. (3) Senior Income Level Report (Report #9) was utilized in this calculation. This report is provided by the NYS Department o f Taxation and Finance (DTF) and lists properties whose owners have Adjusted Gross Income (AGI) below the maximum income that could possibly qulify them for a senior citizen exemption. To be listed on the report, the owners would (1) be 65 years of age AND (2) have reported AGI below $58,400 on their 2021 inc ome tax return. Eligibility for the senior citizens exemption is based on a different definition of income that is more inclusive (Gross Income rather than taxable income) as well as a different tax year. Report #9 may not be inclusive of all properties with incomes under $58,400. If the state could not determine income for a particular property, the property would not be listed on the report. Coop properties that do not have a separate tax bill are not included in this report. (4) Due to the limitations described above, It is difficult to assess the tax implications with great accuracy.   Main Office 445 Hamilton Avenue White Plains, NY 10601 Phone 914.946.4777 Fax 914.946.6868  Mid-Hudson Office 200 Westage Business Center Fishkill, NY 12524 Phone 845.896.0120 MEMORANDUM  New York City Office 99 Madison Avenue, 8th Floor New York, NY 10016 TO: Mayor Jane E. Veron, Members of the Board of Trustees Phone 646.794.5747 Robert Cole, Village Manager Village of Scarsdale FROM: Keane & Beane, P.C. RE: Increase of Real Property Tax Exemption Income Limits - Senior Citizens and Disabled Persons DATE: November 18, 2022 We write to supplement the November 15, 2022 Memorandum from Village Assessor Victoria Sirota, IAO, regarding recent amendments to State and County law regarding the real property tax exemptions afforded to senior citizens (age 65 and older) and disabled persons of limited means, which are set forth in §467 of the New York Real Property Tax and §459-c of the New York Real Property Tax Law, respectively. Specifically, we write regarding the local law enacted by the County of Westchester (which is annexed to Ms. Sirota’s Memorandum), which, notably, not only raised the income limits for these exemptions, but further implemented an income deduction that may be claimed by those seeking these exemptions. This change allows property owners to subtract from their income “medical and prescription drug expenses actually paid which were not reimbursed or paid for by insurance” when applying for these exemptions. This deduction is recognized by RPTL §§459-c and 467 and may be utilized by local option. There is concern regarding the effective administration and implementation of the unreimbursed medical and prescription drug expense deduction. First, the scope of “medical and prescription drug expenses actually paid which were not reimbursed or paid for by insurance” is not defined or delineated in the RPTL. This lack of definition could give rise to disputes as to what unreimbursed expenses may or may not qualify. This income deduction mechanism will also place additional burden – in the form of exemption application review and auditing – upon the Assessor’s Office. In sum, implementation of this deduction may be unwieldy in its administration, produce uncertain results and invite challenges to exemption decision-making, where none currently exist in its absence. We understand that, historically, the Village has aligned its exemption qualifications with those recognized by the County. Because of the uncertainty surrounding the administration of the unreimbursed medical and prescription drug expense deduction, our office sought guidance from the Westchester County Tax Commissioner on the following three items: (1) Will the County undertake the function of the administration of the unreimbursed medical and prescription drug expense deduction adopted under County Law; (2) If not, must local municipalities administer the unreimbursed medical and prescription drug expense deduction on behalf of the County; and (3) If local municipalities must administer the unreimbursed medical and prescription drug expense deduction on behalf of the County, how may a local municipality administer this exemption effectively and with fidelity. As expected, we were advised by the Westchester County Tax Commissioner that: (1) The County will not undertake the administration of the unreimbursed medical and prescription drug expense deduction; and (2) Individual municipalities (including the Village of Scarsdale) must administer the deduction on behalf of the County. Unfortunately, there is no formal guidance from the County (nor New York State) as to how individual municipalities are to administer the unreimbursed medical and prescription drug expense deduction. However, we were informed that it is within the discretion of the local assessor of each municipality to determine the best method by which to administer this deduction. Further, the local Assessor can require certain information be provided in order for the municipality to determine whether and to what extent the deduction applies. Accordingly, should the Village elect to recognize and adopt the unreimbursed medical and prescription drug deduction, we recommend that the Village take steps to standardize the process of administering the deduction. For example, forms can be developed and provided to residents seeking the deduction which detail what forms of “proof” are acceptable to the Village for the purposes of determining an individual’s eligibility for the unreimbursed medical and prescription drug expense deduction. Standardizing the process by which the Village will administer the deduction will benefit eligible residents. Residents will have guidance regarding what types of documentation will be acceptable to the Village in advance, which will assist in the efficient processing of applications so more residents can benefit from the deduction. Furthermore, standardizing the process will also assist staff and likely result in a reduction of staff time required for the review of applications. Finally, while standardizing the process by which the deduction is administered will not necessarily guarantee that individuals will not challenge the Village’s approval or denial of a particular deduction or deductions, it may act to assist the Village in uniformly processing the applications.  We are available to answer any questions regarding these exemptions and the unreimbursed medical and prescription. cc: Victoria Sirota, IAO 3940/004/4873-7625-2735v1  CALENDAR FOR 2023-2024 BUDGET Tuesday September 20, 2022, 6:00 PM • Pre-budget discussion on Recreation Fees & Charges Tuesday, October 11, 2022, 6:00 PM • Pre-budget discussion on Public Works Fleet Thursday, October 13, 2022, 11:00 AM (staff only) • Kick-off budget process for department heads. Friday, November 18, 2022 (staff only) • Department Heads to file FY 2023-2024 budget requests, including proposed Fees and Charges, as well as capital recommendations. Tuesday, November 22, 2022, 6:00 PM • Review of budget timeline and plan (traditionally held in December) November 30, 2022 – December 20, 2022 (staff only) • Staff budget discussions with Treasurer and Deputy Village Manager. Tuesday, December 6, 2022, 5:00 PM • Treasurer to meet with Village Board to discuss budget priorities, review of current year projections, major revenue budget projections, and budgets for fund level expenses. • Staff presentation: Budget goals, objectives, key performance indicators. • Review of Recreation Fees & Charges Tuesday, December 13, 2023, 5:00 PM – (Regular Village Board Meeting) • Discussion of capital projects (historically held late January) Tuesday, December 13, 2023, 8:00 PM – Regular Village Board Meeting • Scheduling of Public Hearing on Tax Cap Local Law. • Submit 2022 Town Budget estimates to Town Board. Tuesday, January 10, 2023, 8:00PM – Regular Village Board Meeting • Public Hearing on Tax Cap Local Law. Tuesday, January 17, 2023, 4:00 PM – 7:30 PM • Present First Pass budget review, including revenue and expenditure estimates, detailed review of budget requests, year-end projections, fund balance, and revenue/expenditure gap, including projected impact on property tax. • All department head presentations. Tuesday, January 24, 2023, 4:00 PM -7:30 PM (Regular Village Board Meeting) • Continuation of January 24, 2023, meeting agenda. • Review recommendations for Village-wide Fees & Charges schedule • Adoption of Tax Cap Local Law Tuesday, February 7, 2023, 5:00 PM • Continuation of discussion of capital projects Tuesday, February 14, 2023, 5:00 PM – 7:30 PM (Regular Village Board Meeting) • Second Pass budget review, including continued review of budget requests, year-end projections, and fund balance. Tuesday, February 14, 2023, 8:00 PM – During Regular Village Board Meeting • Adoption of both Recreation and Village-wide Fees & Charges Schedules. February 20, 2023, through February 25, 2023 – Scarsdale Schools Break • No Village Board budget meetings during this period Tuesday, February 28, 5:00 PM – 6:00 PM • Village Manager and Treasurer to discuss preliminary budget (both operating and capital) with Village organizations. Tuesday, March 14, 5:00 PM • Presentation of Tentative Budget during budget work session (must be filed by March 20th). Tuesday, March 14, 8:00 PM • Schedule Public Hearing on Tentative Budget for 3/28/23. Friday, March 24, 2023, 10 AM • League of Women Voters Consensus Meeting Tuesday, March 28, 2023, 8:00 PM – During Regular Village Board Meeting • Statutory public hearing on Tentative Budget (must be completed prior to April 15). Tuesday, April 25, 2023, 8:00 PM – During Regular Village Board Meeting • Board of Trustees to adopt budget (must be adopted prior to May 01)