During the April 19 State of the County address, Executive Steve Neuhaus presented a positive financial shape highlighted by booming sales taxes, reduced tax levy, and a growing fund balance.
If he was to name one financial woe, it is the policies and laws out of Albany that shift undue burdens to local taxpayers, Neuhaus said in his speech.
While touting a growing economy and thriving tourism, he also noted his administration’s work in preserving open lands for recreational and agricultural use.
Recounting the work by various departments in the past years, he thanked county employees for improving public safety, health, quality of life, and infrastructure for residents.
Financial Shape
Sales taxes, the lifeline of county operations, have grown at a rate higher than expected since 2021 and are on track to surpass the budgeted amount of $394 million this year.
The county derives nearly half of its revenues from sales taxes.
Businesses of all kinds contributed to the sales growth, including big names like Woodbury Common and local restaurants around the corner, Neuhaus said.
Industries that produce the most sales taxes in the county are clothing stores, gas stations, car dealers, restaurants, and e-commerce, according to the New York State Department of Taxation and Finance.
Booming sales taxes contributed to a property tax levy reduction of over $7 million in the 2023 budget.
They also helped beef up the fund balance, the county’s rainy-day money.
The fund balance grew almost tenfold in the last 10 years from $21 million in 2013 to $206 million by the end of 2022—a healthy amount based on recommendations by Moody’s Investors Service.
Meanwhile, county debts have gone down by $28 million since 2014, Neuhaus said.
“We are very strong financially, and our problems are coming mainly from Albany now,” he said, citing the potential reduction of Medicaid reimbursements and various state mandates with inadequate funding.
Economic Growth, Land Preservation
Neuhaus highlighted several new and expanding businesses, including Woodbury Common in Central Valley, Royal Wine in Goshen, and a new Adams Fairacre Farms store in Wallkill.
He credited the economic growth to a collaborative effort among the Orange County Partnership, the county’s economic and tourism development team, and local municipalities.
Last year, the low-cost carrier Play Airlines also began flights from Steward Airport to Europe.
To promote tourism, his administration launched a million-dollar marketing campaign last fall to bring visitors to the county year-round, Neuhaus said.
Major ongoing tourism projects in the county include the Front Hotel in Port Jervis, the Aspire Brewing in Wallkill, and the Milk Factory in Montgomery.
The county also gave grants worth thousands of dollars to municipalities to promote local attractions.
More out-of-county visitors will further boost sales and hotel taxes, Neuhaus said.
During the past 10 years, the county’s hotel and motel taxes have doubled to $6 million.
While pushing for development, the county also works with local municipalities, Open Space Institute, and Orange County Land Trust to preserve open lands.
That includes preserving Sugar Loaf Mountain for recreational use, protecting a 152-acre Montgomery farm with prime agricultural land, and adding over five hundred acres to the Port Jervis Watershed Park.
Work by County Departments
Neuhaus said his county department heads and employees had worked hard for county residents in the past year or so.
The county sheriff’s office launched a new white-collar crime task force, enhanced in-house training, and added a couple of new K-9s for broader local assistance.
The emergency services team improved the water rescue operation and added new fire training.
As for the district attorney’s office, a 100 percent conviction rate on felony jury trials and a focus on illegal gun prosecution were noted.
In terms of infrastructure, 68 percent of county-owned roads have been repaved since 2014.
Plus, four new pickleball courts are to open in May at Thomas Bull Memorial Park.
The 311-call center, launched three years ago, received over 50,000 calls last year by addressing a wide range of non-emergency inquiries, including mental health, suicide prevention, substance abuse, overdose, and sexual assault.
As to veterans, over $1 million in benefits were secured with the help of county employees last year.
A mobile DMV office was just announced by the clerk’s office to serve remote areas.
While recounting past work, Neuhaus looked forward to future projects such as more first-aid training for county residents and a new conference center.
