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WPCNR SCHOOL DAYS. By John F. Bailey. March 6, 2006 UPDATED 11:45 P.M. E.S.T. UPDATED WITH PIX 3/7/06 6:45 P.M. E.S.T.: The Board of Education was presented with an accounting strategy Monday evening to soften the blow of last week’s announced decline in the city tax roll which has cost the district $11.6 Million in tax collections. The Assistant Superintendent for Business, Terrance Schruers suggested Monday evening the School Board take the option of taxing the five variable PILOT properties at the 2006-2007 tax rate, as a strategy to hold the 2006-2007 Budget School Tax Rate Increase to White Plains property owners to 9.54%.

The Schruers Solution: Levy One, Books Pilot Revenue Going Into 2006-07 to Keep Tax Rate to 9.54%. Note PILOT Revenue of 8.8 Million as opposed to Levy Two (Below). Photo, WPCNR News
To make up the $11.6 Million tax shortfall directly attributable to the $6.3 Million Tax Roll deterioration, announced by the School District last Thursday, the district is raising the school tax rate to $449.64 per $1,000 of assessed valuation, or $39.19, UP from $410.45 per $1,000 of Accessed Valuation in 2005.
This means if your home is assessed at $18,500( which has a taxable value of $14,175 approximately a $700,000 home on today’s market) your school tax will be $6,475 in 2006, up about $570 from $5,904 in 2005. Your tax rate goes up 9.54% if the Schruers strategy is adopted.
The School Budget projected for 2006-2007 was not discussed, but instead remains at the current $166.1 Million figure presented last Monday evening, prior to the report from the City School District that the Tax Roll had declined.
$6.3 Million Nosedive in Assessments Costs District $11,622,000 in taxes.
The $6.3 Million erosion of the 2006-07 tax roll, though softened by a projected $1.6 Million increase in PILOT revenue up from the Assessor figure of $7,248,405 for 2005-2006 costs the School District $11,622,000 in tax collections. A corresponding tax increase from the city (15 to 20%) will put the average $704,000 home (the median price for a home in White Plains) in a position to pay about $9,000 in taxes to the city and the school district in 2006, and puts residents on target to pay five figures in city and school taxes for the first time ever in 2007.
The school district is proposing to make up that $11.6 Million shortfall from the eroding city tax roll by raising their the school tax rate to $449.64 per $1,000 of assessed valuation, (using the Levy 1 Schruers Solution).
In previous budget years, Assistant Superintendent of Business, Terrance Schruers said variable PILOTS for the next budget year have been taxed at the current year tax rate for estimating purposes. The effect of that practice that Schruers called “Levy II” has always generated a slight surplus to the school district that went into the fund balance, but generated a higher tax levy.

If the school district continued old formula for taxing variable PILOTS, Schruers explained to the Board, the tax impact on district property owners would be 9.99%. Note lower PILOT Revenue on Levy 2 (second figured down, right column). This formula was used in past years to estimate PILOT revenue. Photo, WPCNR News
The district will receive an additional $400,000 in revenue by choosing the new Levy 1 strategy, slightly softening the $11.6 Million cumulative tax hike. Levy 1 was invented by Schreurs to deal with the budget surprise created last week when the city tax roll was discovered to have declined $6.3 Million ($6,354,257 less than the $304,680,309 tax roll of 2005-2006,) to a $298.3 Million tax roll ($298,326,170) for 2006-2007.
The effect of the Levy 1 strategy keeps the tax increase residents face to 9.54%.
Booking Projections as Revenue.
Previous fund balance surpluses, caused by the more cautious estimating the school district used on PILOTS, Schreurs explained, had been used to fund retirement payments and certioraris, which now routinely exceed the fund balance capacity to cover them.
The certiorari tab for 2005-2006 alone to the school district is approximately $8 Million, which was covered by a short term bond issue, which will be paid for over the next five budget years. The district expects to float another $8 Million bond issue in 2007-2008 to pay for expected certioraris in 2006-2007.
Check with the Accountants
Board of Education member Terrance McGuire recommended the district check with their accountants to get their opinion on the recommended practice. Superintendent of Schools Timothy Connors said the strategy would be shared with the Annual Budget Committee on Wednesday evening to get their feelings about the change in strategy.
Superintendent of Schools Timothy Connors and Board of Education President Donna McLaughlin remarked how cooperative the City of White Plains had been this year with conference calls last week discussing the pilot situation and giving the district more accurate information than they ever had before.
Math Experts Leave Early.
The discussion came up after a presentation of changes being made to the school district 5th to 7th grade math program, with six of seven middle school math teachers present. Unfortunately, the math teachers left before the discussion of the PILOT tax strategy began. Most of the approximately 86 winter season Scholar Athletes (all having obtained an averge of 90 or better), being recognized earlier in the evening left, too. The scholar athletes were unavailable to aid the mathematically challenged in divining the budget solution to keep the tax increase under 10%.
