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PROPOSED BUDGET SUMMARY BY JAMES ARNETT

A property tax levy increase of 1.37% which is under the NYS Property Tax Cap limit for the 2024-2025 Fiscal Year;

A property tax rate of $244.18 per $1,000 taxable assessed valuation, which is 2.47% more than the 2023-
2024 tax rate of $238.29.

For a residential home with a median assessed value of $13,500, this would
yield an increase in City property taxes of $80 annually;

Appropriations of $212.3 million, $10.8 million (5.4%) more than the 2023-2024 Adopted Budget of $201.5
million;

Debt proceeds are not used as a financing source for tax certiorari or pension amortization;

$16.0 million is appropriated from the various components of fund balance, which is $2.3 million more than
was appropriated in the 2023-2024 Adopted Budget;

Taxable assessed valuation of $278.5 million, a decrease of $3.0 million from the assessed valuation from
the prior year;

A continuation of hiring restrictions where possible.

This is the thirteenth fiscal year that we developed an annual budget in accordance with a real property tax levy
cap (“tax cap”) mandated by Chapter 97 of the New York State Laws of 2011. In all thirteen years, the city has
met this tax cap limit and has not once required an override of the cap. This law limits the real property tax levy
increase over the prior year’s levy by not more than two percent (2%) or the rate of inflation, whichever is less,
plus or minus other adjustments. The rate of inflation utilized by the State for the City’s 2024-2025 fiscal year
was 2.0%.

In addition to the inflation rate, the tax cap formula also includes adjustments to the maximum
allowed levy for special assessments (such as Business Improvement District assessments), a tax based
growth factor provided by the State (such as new construction), certain increases in pension costs (also
provided by the State) and judgments or court orders related to tort actions (tax certiorari are not considered to
be tort actions).

When compared to the current year, the 2024-2025 proposed real property tax levy is
increasing by 1.37%.

The levy as proposed is actually $1,646,581 less than the maximum increase allowed by
the NYS tax cap formula and allows the City to maintain a rollover amount to be used in future budget years.

The real property tax levy of $68.0 million represents 32% of total General Fund revenues and other resources.

Over the past several years, the City has made significant strides in addressing the expenditure side of the
equation. One initiative undertaken by the City has been a “green initiative” to convert less efficient, older
technology lighting over to LED lighting.

In cooperation with the New York State Power Authority (NYPA), the City has converted street lighting to LED lighting and has also installed LED lighting in certain City parking garages and facilities as well as at Delfino Park and City Hall.

The City is now, with the help of a NYS grant, converting the lighting in the White Plains Library to continue this initiative. As utility prices rise, the cost savings aspect of this initiative becomes even more important. This and other “green initiatives” are constantly being looked at as ways to help both the environment and the City Budget.

A second initiative is one in which the City has entered into a 25-year agreement to lease property for solar development. Through this contract, solar energy systems have been installed at eight City-owned facilities and benefit both the City and its residents in addition to helping to preserve the environment. The City should realize approximately $936,464 in the upcoming year with these systems now fully online.

Some more recent initiatives undertaken by the city are the completion of the Battle Hill Pollinator Habitat,
which serves as a shelter and habitat for butterflies, moths and hummingbirds and boasts an impressive array
of native plants. The city’s in-house food waste composting program reduces waste and creates high quality
compost. This compost is then available to be used throughout the city and is distributed to city residents at no
cost. The city has continued to expand its electric fleet, including the ordering of an electric garbage truck which
is expected to be received by the end of the year. The city has also increased its focus on beautifying the
downtown area with additional code enforcement, additional staff to keep the downtown clean of graffiti, lantern
flies and other eyesores and to perform additional maintenance and repairs as needed and continuing the
annual Holiday lighting display.

In spite of the challenge of keeping property tax increases to a minimum, the City continues to provide superior
services to our residents and maintain its infrastructure in peak condition. The 2024-2025 Proposed Budget
includes amounts necessary to fund salaries, benefits, debt service and other costs in accordance with current
contractual or legal requirements. Taxes levied on behalf of the Business Improvement District (B.I.D.) remain
at $900,000.

The City is using its bonding authority to address capital needs where appropriate. Recent increases in interest
rates are expected to put additional stress on the City’s budget in future years. Where prudent, the City has
recently paid for certain Capital Projects with cash instead of bonds. This practice is likely to continue as rates
remain high.

Even with close attention paid to cost control measures by departments in the current and prior
years, and in planning for next year, inflation has led to a 5.4% increase in operating costs when compared to
the 2023-2024 Adopted Budget.

In addition to continued increases in utilities, an increase in the health insurance rates charged by NYS for employees and retirees and pension related expenses also charged by the State as well as approved union contract salary increases are playing a large role in this increase.

The total 2024-2025 Proposed Budget for the Library Fund is $7.4 million, an increase of $253,693 over the
previous year. Property taxes raised through the General Fund will provide $7.1 million (97%) of the funding
needed for Library operations.

The 2024-2025 Proposed Budget of $15.4 million for the Debt Service Fund is $.5 million more than the amount
in the 2023-2024 Adopted Budget. The impact of rising interest rates isn’t expected to be seen until the 2025-
2026 Budget, which will include debt service expenses associated with the upcoming April 2024 bond sale.

The 2024-2025 Proposed Budget provides $11.3 million for the payment of principal and $4.1 million for the
payment of interest on general long-term debt. Transfers in from the General Fund and Library Fund of $14.0
million and $0.6 million, respectively, together with a $650,000 appropriation of fund balance and a subsidy of
$136,648 from the New York State Environmental Facilities Corporation (EFC) provide the resources for these
payments.

Including depreciation (a non-cash expense) of $1.7 million, the 2024-2025 Water Fund Proposed Budget
provides for $19.9 million of expenses. Included within these expenses is $0.9 million for capital improvements
or emergency repairs. Expenses in the Water Fund are fully covered by revenue from user charges and other
revenues.

The 2024-2025 Sewer Rent Fund Proposed Budget provides for $4.0 million of expenses, including
depreciation in the amount of $.5 million. Funding is provided for $525,000 in capital improvements or any
needed emergency repairs. Revenues from user charges of $3.3 million as well as other miscellaneous
revenues fund the entire $4.0 million of expenses. The sewer rent surcharge that the City bills residents and
businesses is 18% of the total water bill.

The 2024-2025 Proposed Budget of $6.1 million for the Self Insurance Fund covers current operating costs
needed during the fiscal year for the City’s risk management and insurance program. These costs are charged
back to the other funds of the City through interfund charges.

KEY REVENUE SOURCES

The City’s portion of the total sales tax rate (8.375%) is 2.5%. This 2.5% is comprised of a 1.5% unrestricted
amount, a 0.75% unrestricted amount and a 0.25% amount that was converted from restricted to unrestricted in
2023. While the 1.5% component is permanent, the 0.75% and 0.25% components need to be renewed every
two years. They are currently due to expire on August 31, 2025.

The previously restricted component,  mentioned above, was required by New York State to be deposited into a Contingency and Tax Stabilization Fund. While the restriction was removed for new receipts, the requirement to follow the rules set forth by NYS Law restricting the uses for the monies already in that fund remains.

For the current year, the City estimates that sales tax collections will total $56.3 million, which is slightly less
than what was received in the prior year, but more than the current year’s budgeted amount of $54.4 million.
Sales tax revenues seem to have increased significantly in the past few years due to a strong economy,
inflation and the enhanced State collection of internet sales taxes, but now seem to have leveled off.

In the fiscal year 2024-2025 proposed budget, sales tax revenue is proposed at $56.0 million, which is $1.6 million
more than budgeted in the current year. Going forward, the addition of retail and residential units in the City,
which is now underway, should provide new retail purchases which will also help to strengthen the sales tax
revenues.

Parking related revenues of $29.2 million, including meter fees, parking related fines, red light fines, and permit
charges, represent 13.7% of total General Fund revenues and other resources. Parking revenues fund the total
cost of operating and maintaining parking facilities and help support the costs of services provided to nonresidents visiting or doing business in the City.

As more and more people came back to the City to work and shop after the Covid pandemic, these revenues have increased and are now nearing those pre-pandemic levels. A parking rate increase was approved by the Common Council at the December 2023 Council Meeting for certain parking related fees and fines. The additional revenue related to these increases reduces thereliance on property taxes to fund vital City services including current and future maintenance of our aging parking system.

The 2024-2025 Proposed Budget includes Intergovernmental Grants and Aid of $7.7 million representing 3.6%
of total General Fund revenues and other resources. Revenue from the New York State Aid and Incentives to
Municipalities (AIM) program is proposed in this category at $5.5 million. Local Municipalities have lobbied the
State to increase this funding which has not increased in over a decade and there is hope that this could be
increased at some point in the future.

In the 2024-2025 Proposed Budget the amount of unassigned fund balance appropriated is $14.2 million. This
amount is $2.3 million more than was appropriated in the 2023-2024 Adopted Budget. An appropriation of $1.7
million from the fund balance committed to tax certiorari is also included. There is no appropriation from the
City of White Plains

Contingency and Tax Stabilization Reserve in the 2024-2025 Proposed Budget, although those funds have
been used recently and likely will be used again to fund certain Capital Projects where selling bonds was not
the best choice due to the specifics of those particular projects.

THE FUTURE

The objectives of this and every budget are to contain costs, to seek reasonable and responsible increases or
new forms of revenue and to ensure that our fiscal performance goals meet or exceed best practices. We strive
to achieve the alignment of revenues with activities generating costs to alleviate to the extent possible the
burden on our taxpayers.

We affirm our commitment to maintain and replace our capital assets in a manner that spreads the costs
appropriately over the life of those assets and to those receiving the benefits produced by those assets. This
includes responsible long-term planning for the acquisition, maintenance and disposal of assets and a judicious
funding blend of cash, debt and grants/aid.

The 2024-2025 Proposed Budget offers a plan for the delivery of needed and desired services that preserve our
quality of life while adhering to fiscal policies that will ensure retention of our coveted Aa1 credit rating. The
budget achieves these goals while remaining within the State mandated cap on the property tax levy.