WHITE PLAINS CITIZENETREPORTER SETS RECORD VISITS FOR YEAR 7,017,658 VISITS! 2,098,003 VISITORS MADE 6 VISITS A DAY EVERY DAY. 63,330 UNIQUE VISITORS MADE 133,730 VISITS IN DECEMBER. WPCNR AVERAGED 17,284 VISITORS A WEEK, VISITING 31,270 TIMES.

Hits: 0

 

 

WPCNR THE HOUSING NEWS. Interview with Better Homes and Gardens/Rand’s Mike Graessle. May 30, 2009:  

 

What a great day to buy a house — in White Plains.

 

Attractive White Plains home prices and the city’s  low taxes compared to the rest of the county continue to offer great opportunities for the home buyer in White Plains today, which local realtor Mike Graessle says is holding its own.

 

 

“What’s selling are the lower priced homes. The higher priced — those already in a house, looking to move up are challenged,” Graessle said, sharing latest in-city sales statistics. WPCNR File Photos Posed by Professional Models.

 

White Plains homeowners looking to sell, and those looking to buy in White Plains face a market where the city’s  lower priced homes in the $400,000 to $600,000 range are moving , at a slower pace,  even producing bidding wars,  Graessle says.  Higher priced home sales in the $700,000 and up range are still stymied by banks being unwilling to lend the jumbo mortgages required and enforcement of strong credit standards in approving such loans large or small, he said.

 

 

Mike Graessle, of  Better Homes and Gardens Rand Realty, told WPCNR Friday that though White Plains home sale prices have fallen January through March–houses are moving, they just take longer to sell.

 

White Plains flagship housing market

 

White Plains closings (29) in the first quarter,  were actually one more than last year’s first quarter activity. Graessle said this was encouraging because the closings reflected deals agreed to in the fall, indicating White Plains was holding its attractiveness to home buyers in the midst of the financial crisis of the autumn.

 

 Mike observed that Westchester-wide closings were down 42% (427 closings in 2009, compared to 732 in the 2008 First Quarter).

 

In  the first five weeks of the second quarter from April 1 through May 6: 203 homes sold countywide to last year’s 327, down “only” 38%.

 

Average Selling Price Down 17% One Year After “Crash of ’08”

 

White Plains home selling prices are down, Graessle observed, but White Plainsians are not taking as much a loss in value as other homeowners in the county. Graessle, quoting local stats from the Westchester Putnam Multiple Listing Service,  said the average sale price in White Plains for Single Family Homes closing the first three months of 2009 was $593,699. Last year the average price in the first quarter (before the “Crash of 08”) was $715,364, a decline of  17%.

 

 

Around Westchester County, first quarter price decline was severe. The average selling price the first three months of this year countywide was $694,672 compared to the $935,067 in the first quarter of 2009—that’s a 25% decline.

 

The White Plains median price for a single family home in the first quarter of 2009 was $590,000, meaning half the 29 closings sold below that and half sold above that figure. This is down from the $623,500 median price from the first quarter of 2008 – a 5.4% decline. Across the county the first quarter median price was $530,000  down 15% from the $622,500 in the first quarter of 2008.

 

5-1/2 months to sell

 

Graessle noted that the average days of the market for homes closed in the first quarter in White Plains was 165 days or 5-1/2 months. He noted the total of White Plains new listings in quarter one was down 35%. As of May 29, 141 homes in White Plains were on the market.

 

Expect Close to Sale Price.

 

The realtor drew WPCNR’s attention to the interesting factoid that of the homes closed in the first quarter in White Plains, that the average difference in price offered and the price the home sold for was 5.6%, unless of course you price your home too high on debut.

 

3.5% Down Payment Required

 

Graessle expressed optimism that the White Plains lower priced homes at least would continue to keep the White Plains real estate market moving forward . He noted that with the 3.5% down payment and $8,000 tax credit now in effect on FHA loans, a first-time home buyer if they can muster a $20,000 down payment can get a mortgage on $500,000 White Plains home, and secure a 5%– 30 year mortgage, if their credit is good.

 

Foreclosures Not Contributing to Price Decline

 

Despite soaring county foreclosure judgments, Graessle was asked if the number of foreclosures was contributing to the softening of sales prices in White Plains. He said no, because when foreclosed homes go on the market in White Plains, there are competitive buyers who bid the price up, based on his recent observations of the White Plains market.

 

 

Hits: 0

WPCNR COMMON COUNCIL CHRONICLE-EXAMINER. By John F. Bailey. May 28, 2009 UPDATED 3 P.M. E.D.T.: The Common Council this morning at11:17 A.M. voted 5-2, with Mayor Joseph Delfino and Councilman Glen Hockley opposed and Councilpersons Boykin, Lecouona, Malmud, Power and Roach in favor to enact a $158.2 Million budget for fiscal year 2009-10. The council also voted to eliminate the funding for the payment of David Birdsall as Acting Budget Director, and enacted an unspecified number of job cuts of full and part-time personnel.

Melissa Lopez, of the Mayor’s office reports to WPCNR that 55 part-time jobholders and 25 full-time employees of the city have been cut beginning July 1. WPCNR asked for a list of the jobs being cut by department, and for a list of the names of the individuals. Lopez issued this statement: “The Mayor’s Office wishes to respect the privacy of these individuals.  If you would like their names, I would recommend you file an FOI request.”

Ms. Lopez said a list of the positions by department was being worked on but it “would take awhile.”

The members of the Common Council voting in favor of the cut, trimming the Mayor’s budget $2 Million from his proposed budget of $160.2 Million, spent two hours telling the morning television audience how hard they had worked on the budget to begin to repair the city finances and keep the city fund balance at the $5 Million level. Councilman Tom Roach, Rita Malmud, Dennis Power described the Mayor’s original budget as “unbalanced,” “unacceptable,” “impractical,” because it proposed using up $11.4 Million in undesignated fund balance. The Council-enacted budget today, keeps the fund balance at the $11.9 Million level by adding new revenues, cutting expenses, and borrowing $2 Million for undetermined “settlements or court-ordered expenses.” 

Councilperson Tom Roach commented that a long term structural financial plan was needed to repair the city’s finances going forward, bringing expenses in line with revenues, and he predicted substantially more “pain” in developing the 2010-11 city budget. He described the cuts the council made as “turning the battleship around.”

Councilperson Milagros Lecouna said she looked forward to a new Mayor where the council would be a part of the budget process.Lecuona also noted that if the council were to consider raising the sales tax another 1/4%, part of the increase should be spent on creating affordable housing and acquisition of open space.

Dennis Power, promised the council would do much more next year (in terms of financial adjustment). He said the council might have to look at raising the sales tax, and alluded to the council having to look at the White Plains Performing Arts Center (which filed papers with the IRS this month, disclosing it was $700,00 plus in debt as of last June), and seeing what it could do to keep the WPPAC a “viable organization.” Power said separate commercial and residential tax rates for White Plains was a legislative priority, that he hoped would be passed. Mr. Power also suggested that the city might revisit the possibility of developing the railroad station area in the future

The council members, criticising in turn, this morning  the “one-shots” the majority of members at this morning’s table  had voted for in past budgets to balance the Mayor’s  spending that lead to the current year deficit, did not allude at any time to projected union settlements to come that will affect city budgets the next few years in these revenue-challenged times.

The lone councilman in support of the budget was Glen Hockley who said he was not in favor of any job cuts that hurt families. He also quoted Commissioner of Public Safety Frank Straub as saying downtown safety would be compromised, considering that during the summer, according to Hockley the city averaged 30 arrests on both Friday and Saturday nights in the downtown. Hockley also quoted Straub as saying and fire response time to the southend of town slowed by inactivating two pieces of equipment.

Mayor Joseph Delfino defended his budget as “balanced,” and noted that had the Common Council enacted the  1/2 per cent sales tax he had asked for two years ago, (the council would only go for a quarter per cent) the 1/2 per cent would have brought in the $12 Million which the Mayor said was equivalent to the $12 million gap the council was now closing.

Delfino in a bitter close to the meeting, often appearing on the verge of tears on television, said the revenues of the city were not broken, but “splintered,”: and said his budget was an attempt to fix that.  He saluted his Acting Budget Director, David Birdsall for his terrific efforts. He cut off shouts from the floor over the restoration of $50,000 to the library budget. He called the restoration of the $50,000 to the library a political move.

Delfino in his final soliloquy accused the council of laying a 33% tax increase on the citizens. Councilman Tom Roach interrupted the Mayor’s speech pointing out it was not a 33% tax increase, but a 6.5% increase, and the increase in the tax increase was a third, not an overall 33% increase.

Delfino closed saying to White Plains he has always been “a servant,”  not a politician.

Hits: 0

 

 

WPCNR BACKROOM BULLETIN. By John F. Bailey. May 27, 2009: The calls are going out to Democrats in White Plains. They’re asking very interesting questions about how voters feel about Councilman Glen Hockley, and the darkhorse candidate, Bob Hyland in a race against County Legislator William Rayn, and they want to know how you feel about them.

 

The telephone call executed by a private research firm begins by asking how the respondent thinks White Plains is doing, then gets personal, asking if Mayor Joseph Delfino has done a good job or poor job, and asking you to name some of the Mayor’s accomplishments.

 

It asks should Mayor Delfino be reelected, and whether the person knows who Adam Bradley is. It asks if Bradley would make a good mayor.

 

Then it gets interesting, asking who you would vote for in a Glen Hockley-Adam Bradley contest for Mayor. It asks your opinion of Mr. Hockley.

 

The next question references the County Legislator for District 5 Race where White Plains’ Bill Ryan occupies that seat. It asks in a possible race between Mr. Ryan and Bob Hyland, the local restaurant owner of The Sports Page, very active in local business circles, who would you vote for, Mr. Ryan or Mr. Hyland.

 

Who is paying for the poll is not clear at this time.

 

As of today, White Plains Republicans have nominated no one to run for Mayor, the Common Council or Mr. Ryan’s County Legislature seat. A question to Brian Maloney, the White Plains Republican Leader, as to whether the Republicans will not contest any of the local seats has not been answered as yet.

Hits: 0

WPCNR QUILL & EYESHADE. News & Comment By John F. Bailey. May 26,2009: On Thursday morning, the Common Council will meet at 9 A.M. to pass a $158.2 Million city budget, after quietly administering  about $10 Million in spending cuts, job cuts,  fee increases, and fund shifting to cut Mayor Joseph Delfino’s submitted budget of $160.2 Million by $2 Million.

 

The council held the city property tax to a 6.5% increase moving the tax per $1,000 of assessed value from $147.47 this year to$157.06  in the fiscal year beginning in July.  Their “cutting and feeing” saves the city  from using up their undesignated fund balance for another year, by creating $10 Million of “savings” while funding a to-be-decreed increase for the city firefighters, which most likely will be handed down by an arbitrator next January.

 

 

 

The council deliberations were “monitored” by Assemblyman Adam Bradley, the Democratic nominee for Mayor, who presently has no opposition from the Republican side. WPCNR telephoned Brian Maloney the standard bearer of the Republican City Committee posing the question of whether the Republicans would not run any candidates for Mayor or Common Council. So far Mr. Maloney has not informed WPCNR of Republican contention policy.

 

Bradley, speaking to WPCNR last week,  praised the Common Council refusal to increase the sales tax another ¼%. He said he stood by the savings of fund balance, and said he felt confident that the hotel tax of 2% would pass the state legislature that would add to city revenue. He expressed optimism that a separate property tax rate for commercial properties and a separate property tax rate for residential properties would pass the senate in time for next year, which if enacted could dramatically slow the tax refunds (certioraris) that dropped the city assessed value $5 Million this year, and threatens to drop the assessment roll considerably more in 2010-11 if not addressed.

 

Next year, if city sales tax continues flat and development remains at its present standstill, the  city faces another revenue-challenged year.  In order to fund the expected labor settlements, the city will be forced into another year of painful cuts in the city workforce. Mr. Bradley faces daunting decisions in creating the 2010-11 budget.

 

To continue services as they are, more fees and more revenue must be found by either slicing costs, cutting back on capital projects, or increasing taxes substantially. If the shortfall between revenue and expenses matches the $10 Million the city faced this year, a one-time tax increase of 30% would be needed for the residents to keep paying for the services they are accustomed.

 

What would that mean?

 

To generate the $11 Million the city needs in 2010-11, a 30% tax increase would be needed, raising the per $1,000 of assessed value tax rate to $188/$1,000 as opposed to the $157 per $1,000 Mr. and Mrs. White Plains will start paying next year.

 

In July, Mr. and Mrs. And Ms. White Plains who own median priced homes in the $650,000 to$700,000 range, will pay $2,900 in city taxes, up $176.

 

In July 2010, they will, if  the city has to enact a tax increase of 30%, the owners of that same house will pay $3,473 to the city in property taxes,or $573 more.

 

That of course may not happen if  sales tax shoots up, development resumes promptly, and housing inventory is cleared out, and home prices rise, like this year.

 

Now that is the bright side. If that separate Commercial Tax Rate is not passed by the legislature, assessments are going fall like a rock next January, making this year’s surprise $5Million drop look good.  Any further erosion in assessment will mean an automatic tax increase just so the city can keep pace with their loss – then they have to fund the labor settlements.

 

To their shame, the Common Council (unless they asked this behind closed doors), never asked for projections of  what further tax roll declines would mean next year.

 

 

That is unintelligent. It’s crossing-your-fingers on the budget.

 

The City School District whistled past the taxpayer’s graveyard by not cutting their budget at all. They slowed the rate of increase, yes, but that is not what they needed to do.

 

Everybody’s favorite Board of Education – the optimists who had a “free cut” year when they could have slashed their budget deeper – but they did not cut. They increased their budget  $1.4 Million. (At least the Mayor and the Common Council cut their budget year to year.) To be fair, they slowed the rate of increase, finally looking at WPCNR projections which showed the budget hitting $200 Million if they kept up their steady 7% growth-in-the-budget pace.

 

 This was the year the school district could have slashed the budget down into at least the high $170 Million range, and should have, with an outgoing superintendent, allowing their new Superintendent the ability to increase the budget, mend fences with its irritated teaching force, rather than facing the unpopular task of pushing out highly-paid school administrators. But, alas they did not.

 

A $10 Million drop in assessments is likely next year, if you look at equalization rate history.  (This is not the first time WPCNR has pointed this out, people.) 

 

In 2002-2003, when the state equalization rate nose-dived from 6.35 to 4.71, two years later, this lead to a decline of  $13 Million in  city assessed value.  In 2007-2008, the equalization rate fell from 3.34 to 2.75. We should be seeing the fall out from this next January, when companies which filed certiorari claims like crazy and received massive refunds and assessment reductions three years ago, come back for another round, in addition to new filers.

 

This would mean the school district and the city face mutual tax increases of proportions never before seen. If taxpayers feel squeezed now, just wait.

 

Say the city loses $10 Million off next year’s tax roll. This drops the roll to $275 Million. That means that the city loses $1.6 Million in property taxes. To make that up alone, the city has to increase the tax rate from $157.06 to $162, a 3% increase. Plus maintain services. Plus pay for water tanks. Rolling stock. Where will that come from if the White Plains economy does not turn up sharply?

 

The School District faces Financial Armageddon.

 

 Right now the just-passed 2009-10  School Budget demands $515.15 per $1,000 of assessed value. If assessed value declines $10 Million to 276.8 Million, the school district loses automatically $5 Million in revenue – before inflation, salary increases, benefits increases, retirement fund increases—the rest of “the works”  take effect.  They have to hike your tax rate $20 to catch up with that lost assessment revenue!  The new tax rate next year, if assessments decline $10 Million (perish the thought), will be $535/ $1,000 of assessed value. 

 

That means that median priced home of $650,000 to $700,000 would pay $8,300 in school taxes, up $315 if the school budget stays at $185.8 Million (the 2009-10 figure) and it will be more when you add in all the add-ons. That is why the school district should have cut more expenses this budget year.

 

The School Board President said the new Finance Committee will be taking a closer look at the school budget earlier. They better start July 1.

 

The Common Council may want to think about jacking that tax increase to at least 15% to ease the pain next year.

 

Or, maybe all will work out right.

 

Maybe, baby.

 

Hits: 0

WPCNR NEWS & COMMENT. By Carl Albanese. May 26, 2009:

In Honor of all who serve our great nation, have served our great nation and continue to serve our great nation of American Freedoms and Liberty. From our Founding Fathers of Liberation and Freedom as a New Nation to every individual who served, fought and died for the foundations of Freedom, Liberty and Democracy, serving all human existence and civil rights for mankind. The best honor one can express on Memorial Day is to thank a Veteran for being a Veteran, place an American Flag on the grounds that a Veteran rests in eternity, shake the hand of a Veteran and welcome him or her home. Honor him or her, thank him or her and never forget the luxury you share and enjoy was at the pride an honor of all those who died, served, fought and guaranteed the privilege we have to be an American, a people of a free nation.   B-17 PILOTS with their “baby.” Photo by Carl Albanese. The greatest honor I had this Memorial Day weekend was to sit inside a WW II B25 Bomber all alone one on one at the Palm Springs California Air Museum and listen to three WW II Veteran Bomber pilots and crew tell me of their historical experiences serving in WW II and the battles they fought in for the freedoms of the world. An Honor and privilege myself and son will cherish and respect in honor of our great American Veterans. Honor and respect those who made the ultimate sacrifice for our freedoms and democracy, so we can enjoy the luxury and freedoms we all have as a great nation as Americans. Honor our Veterans on Memorial Day.   The “Old Ironsides” of Our Time: The aircraft carrier Intrepid. She served in World War II, Korea and Vietnam. At rest in New York Harbor. Photo by Stephen Sisler. Used with permission The Tradition Continues: The destroyer, Franklin D. Roosevelt, in port for Fleet Week. Photo by Stephen Sisler. Used with permission.