PEEKSKILL, N.Y. — In order to cover the city's operating costs until it receives the tax revenue it is owed in April, the Peekskill Common Council voted Monday night to issue a $3 million tax anticipation note.
The city is owed $14.5 million in taxes that will not be collected until later this year, Mayor Mary Foster said. The city is in need of operating funds until that money rolls in, Foster said.
Costs such as a payment of $2.8 million to the city retirement fund in December and $1.2 million in capital improvements on the water towers at Forest View have been directly paid out of city funds, she said.
“We have been covering a lot of items out of our operating cash because right now that’s cheaper than issuing bonds on an interim basis during the year,” Foster said.
The city is also responsible for making school district payments, which has also put a financial strain on the city, Foster said.
“As we collect the school taxes in February, we start making payments to the school district in March and April, and we have to pay them the full amount of taxes in September whether we’ve collected it from everyone or not,” Foster said. “The amount of money we pay to the school district that we have not yet received is up $700,000.”
Unpaid city property taxes total about $900,000, she added.
The Common Council also voted to appoint several residents to city commissions:
• Board of Ethics: Jinelle Aguiar
• Historic and Landmarks Preservation Board: Ida Wiggins
• Planning Commission: Andrew Mavian
• Youth Board: Courtney Speights, Maria Pereira, Matilda Vanderpujie
• Zoning Board of Appeals: Mary Ellen McGurty, Reginald J. Johnson