Developing budgets for the coming fiscal year that avoid either hefty increases in taxes, or cuts in services, are proving to be a tough assignment for the villages this year. The administrators of Tarrytown, Irvington and Sleepy Hollow all voiced common concerns in describing the chores that they and their village boards are facing.

The decline in housing prices have spurred rising certiorari filings and homeowner grievances requesting that their homes be assessed for taxes at lower values. In Irvington, those challenges tripled last year, from a higher than usual figure of about 50 in 2008 to150 last year, according to Lawrence Schopfer, Irvington’s Administrator.

“We expect to lose at least 2% from our property assessment roles, and that translates directly to a 2% increase in tax rates, if all else were to remain equal,” Schopfer said.

However, other sources of revenues have also dropped and mandatory expenditures are rising, Schopfer explained. Mortgage tax revenues for the village have declined from a high of about $250,000 to less than $100,000. Sales tax revenue was trimmed by $100,000. At the same time, Schopfer said, the state retirement fund has sharply increased the amounts it requires from the villages.

Schopfer said a “preliminary, working budget” presented to the Irvington Board of Trustees early this year would require an approximate 7% village tax increase, were it not whittled down. The board, he said, was now working with individual departments to determine whether “savings of some sort that don’t involve cuts in service” can be found.

Tarrytown Village Administrator Michael Blau characterized the budget situation as the toughest he has confronted in many years as a village administrator. Along with lower revenues from mortgage and sales tax, the village faces an estimated drop of $450,000 because of successful property certiorari and property grievances, as well as having seen a large taxable property gone off the tax role because of its purchase by a non-profit organization. Assessable property over the last year in the village has dropped by nearly $1.8 million, he said.

Blau also noted the budget will reflect an added expenditure of $350,000 to meet the rise in mandated state retirement costs, along with “increases in our union contracts, health insurance premiums and everything else.”

“So everything seems to be on the negative side and nothing on the positive side when it comes to putting our budget together,” Blau said. “While cutting services is the last thing we want to do, everything and anything is on the table at this point.”

The litany was much the same when Sleepy Hollow Administrator Anthony Giaccio described the 2010-11 budget status for that village.

“We are dealing with the same problems, increased retirement contributions and lots of property grievances, “ he said.

While assessments have dropped, they are apparently not subtracting as much from tax revenue as in neighboring Tarrytown.

Giaccio noted currently there was “very little new development,” that would bolster property tax roles. However, he added, “if we can get something going with the GM site, it will be a huge boost for everyone in Sleepy Hollow.”

“We are curbing expenditures,” Giaccio said, noting he believed it was unlikely that services would be cut.

“We will consider not hiring for some vacant positions - as a last resort,” he said. “The Board is dedicated to holding the line, and keeping taxes down, so I think they will do whatever it takes to keep the tax rates as low as possible,”

All three villages must come up with tentative budgets no later than March 20 and hold a public hearing on their budgets by April 15. Completed budgets must be accepted by May 1.