LAKE PLACID — The Lake Placid Village Board of Trustees is proposing a 2022-2023 budget that would increase spending but meet the village’s tax cap and ultimately decrease the tax rate.

To pay for the majority of its proposed spending, the village would levy — or collect — $4,059,527 from village taxpayers over the next fiscal year, up from $3,914,528 in 2021-2022. That 3.7% increase exactly meets the village’s tax cap, according to village Treasurer Mindy Goddeau. The state tax cap is 2%, but Goddeau said the village was given a higher tax cap this year because the village stayed under the tax cap last year.

While the village would collect more taxes than last year with the proposed budget, the tax rate per $1,000 in assessed value would drop from $5.44 in 2021-2022 to $5.08 in 2022-2023.

The village’s tax rate would decrease with the proposed budget, despite an increased tax levy, because the collective assessed value of the village’s properties rose by more than $79 million in the past year alone — from more than $719 million last year to more than $798 million this year, according to the tentative budget. A municipality’s tax rate is determined by dividing a budget’s tax levy by that municipality’s total assessed value of all property there.

The village is proposing to spend $6,559,466 with the tentative 2022-23 budget, a nearly $145,000 increase from $6,344,579 outlined in last year’s budget. Goddeau said the village wants to buy a new street sweeper to replace the current “historic” one, and the cost of that machinery is accounting for the majority of the tentative budget’s increase in spending.

Despite an increase in spending, the proposed budget projects a nearly $7,000 decrease in revenue from last year. Goddeau said the loss mainly comes from the lack of parking revenue as the Main Street construction project continues. The village’s proposed budget would use $413,845 in reserves — $221,786 more in reserves than the previous fiscal year’s budget — to help pay for the increase in spending.

The village board will hold a public hearing for the tentative budget on Monday, June 20 at 4:30 p.m., ahead of the board’s regular meeting at 5 p.m. The hearing is expected to stream live on GoToMeeting. Log-in credentials will be available on the village’s website and Facebook page, according to the village’s public hearing notice.

People can view the village’s tentative 2022-2023 budget online at https://tinyurl.com/mr2bxk87.