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WPCNR CITY HALL HERALD. May 29, 2003: Wednesday evening, the Common Council adopted the 2003-04 City Budget. Here are Council President Benjamin Boykin’s remarks on the new budget:
I want to thank the Budget Department under the leadership of Ann Reasoner for developing a budget that is easy to follow and that lays out the opportunities and risks faced by the City of White Plains. Let me also thank Eileen Earle, our former budget director, who retired in February, and has continued to assist us through this budget cycle. In addition, I commend all the departments for their ongoing efforts to improve productivity and contain costs while maintaining our high quality of services to our residents and visitors to our city.
As a financial executive, I know the renewed emphasis that has been placed on financial disclosure. I am pleased to report that the City of White Plains continues to win awards for fiscal integrity and presentation.
This was a very difficult budget year for the city. Our city’s two main sources of revenues are sales taxes and property taxes. For the upcoming 2003/04 budget year, sales tax will fund 36% and property taxes will fund 35% of the general fund budget. These two categories provide 71% of the general fund revenue.
The overall economic slowdown has impacted our sales tax revenues, which are budgeted at $35.0 million versus $37.0 million in last year’s budget. The actual sales taxes that were received last year were $35.5 million, a $1.5 million shortfall versus budget. The shortfall in sales taxes reduced last year’s fund balance. Sales taxes have helped to stabilize our property taxes. The ½ of 1% additional sales taxes for White Plains has been extended for two years, with the sunset in August 2005.
The reinvestment in our downtown will enable us to maintain our high level of public services while keeping our property taxes low in comparison to surrounding communities. We are fortunate that the renaissance of this city will drive economic benefits and quality of life improvements for all our residents. We have made strategic and visionary decisions that will serve us well into this century.
While we are reinvesting in our future, the full impact of these decisions will not be realized until the 2004/05 budget year and we will still be at risks for economic and other factors beyond the city’s control.
The total proposed operating budgets for the city is $104.6 million, an increase of 1.7% over the current year’s adopted budgets. The operating budgets are:
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• General Fund – $96.045 million
• Library Fund – 5.0 million
• Self-Insurance Fund – 2.2 million
• Water Fund – 7.7 million
Interfund transfers total $6.3 million, resulting in the total operating budgets of $104.6 million.
In addition, our debt service fund budget to be adopted tonight is $7.3 million.
The budget is our commitment to provide services to our residents – public safety, public works, quality of life, governmental and community services. The 2003/04 budget includes a property tax increase of 7.5% or $7.31 per thousand dollars of assessed value. While I do not like to raise property taxes, it is important that we continue to provide our residents with the high level of services that make us a great city. In order to continue to provide these services, it is necessary that we increase property taxes.
Let me assure you that we have worked diligently to maintain services with the least impact to you, our taxpayer. We have retained the City’s Archivist position and we will continue to do infrastructure work and repair potholes. This is a budget that is fair and reasonable.
The assessed valuation of taxable properties is $317.1 million, a decrease of $1.7 million from the previous year. This decrease is primarily due to the removal of Bank Street Commons, City Center and Fortunoff from the tax rolls. Even though these properties have been removed from the tax rolls, the overall revenue to the city has increased due to the PILOT payments.
The upcoming budget is affected by items beyond the city’s control. As previously mentioned, sales taxes are budgeted at $2.0 million less than the previous year driven by economic factors as well as the lost of J. C. Penny and Saks retail facilities. Interest income is budgeted at $715,000, a decrease of $535,000 from last year.
Pension contributions are up $1.2 million. After an outcry from nearly every municipal government in New York, the State Controller revised the pension calculation which will require White Plains to pay a minimum contribution of 4.5% of total payroll each year to cover pension costs.
The city is a service organization. As such, personnel costs are our largest expenditure – approximately 79% of the budget. Sales and property taxes are no longer sufficient to cover personnel costs. The city has a dedicated and loyal work force that is committed to serve the residents of White Plains.
I want to thank them for their service. We must continue to seek ways to manage personnel costs and health benefits that is fair to employees and fair to the taxpayers.
We have worked hard to find new sources of revenues to add to our cultural and entertainment activities without shifting the burden to our taxpayers. The new Performing Arts Center, scheduled to open this fall in City Center and the new Renaissance Plaza and Park in downtown is being funded without increasing property taxes.
I am proud of our city’s renaissance and the hard work done to make it happen. We have reinvested in our downtown with new residential housing and commercial development of Stop and Shop, City Center and Fortunoff. We’ve made our city vibrant, kept property taxes low and enhanced our quality of life.
The budget that we adopt tonight maintains services at current levels in a cost effective manner. This is an outstanding accomplishment given the state of economic affairs. We are investing for our future to keep our city fiscally sound. White Plains has a bright future and all of us will be proud of this city. This is a great city to call our home.