Babylon Village taxes to rise nearly 10% in 'extremely challenging' budget

Babylon Village residents will see a nearly 10% hike in their taxes, an increase village officials blame primarily on higher insurance costs.

The $14.57 million 2025-26 budget, which takes effect June 1, marks a 10.91% increase in spending over the current budget of $13.14 million. The tax rate rises to $18.90 per $100 of assessed value, up from $17.20 per $100 of assessed value, or a 9.88% increase, which pierces the state tax cap. The current budget also pierced the cap with a tax hike of 6.1%, Village Treasurer Andrew Reichel said.

For homeowners, the increase translates to $85 for a $5,000 assessed valuation, he said.

“This budget was extremely challenging,” Mayor Mary Adams wrote in an email to Newsday. “[It] was worked on in an enormous capacity to keep the costs as low as we can while still providing all the services our Village residents enjoy."

Reichel said the biggest challenge was property and liability insurance, for which he said they are anticipating a 10% to 15% increase, or about $200,000. Employee medical insurance is also anticipated to increase by about $200,000, he said.

“The general process of the budget was difficult because these fixed costs, which we really have no control over, are increasing it seems more and more every year,” Reichel said. The village tries to offset the increases by increasing revenue in different areas such as through fees, he said.

The village is anticipating a $330,000 revenue increase for building inspections as a result of doubling building permit fees for both residential and commercial buildings, Reichel said. Babylon also estimates getting $150,000 for ambulance fees thanks to a new state law that requires insurance companies to directly pay ambulance providers for services.

For expenses, debt service payments are increasing this year, Reichel said, with about $160,000 in principal payments due for a 2023 bond for $2.8 million. The bond was for highway and sanitation trucks, pool renovations, a bulkheading project and a storage garage for the golf course that is expected to be built this year.

Other expenses include a $95,000 hike in building maintenance to make updates to Village Hall, Reichel said. The village is also planning to hire an assistant manager for its golf course, adding $51,000 to the budget, he said.

Some residents said while significant, the tax increase is a needed investment in services and infrastructure.

“The choice to not invest, the long-term consequences of that is greater than a 10% increase,” Jon Fro, 32, said. “Although it is a lot, I just feel relative to what you’re getting, it’s not the end of the world.”

Debra Euler, 58, said while she is sympathetic to things such as insurance increases, she wishes the village would allow residents more insight into tax hikes by livestreaming the budget hearing and offering a clearer explanation on its website.

“The stuff that they publish is very opaque,” she said, noting specifics on increased expenditures are not provided. “Not everyone can make their one meeting a year for the budget.”

By Denise M. Bonilla

denise.bonilla@newsday.comdenisebonilla

Denise Bonilla has worked at Newsday since 2003 and covers the Town of Babylon, including the villages of Lindenhurst and Amityville.