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.

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WPCNR THE POWER NEWS By John F. Bailey April 10, 2009. Consolidated Edison revealed to The  CitizeNetReporter this week that the state legislature voted to increase Con Ed’s Assessment to $283 Million  in 2009-10, which will raise Westchester and NYC area residents utility bills an as-yet-unspecified amount in a few scant months. The assessment must be paid this year.

 

The state assessment is a straight cash payment decreed in the new state budget. Con Ed  is faced with an increase of 857% up from $33 Million the state charged Con Edison this year.The assessment increase affects all utilities’ intra (within) state revenues across the state and pours billions into the state General Fund for unspecified use “related to energy.”

The Con Edision assessment  will raise all Westchester and metropolitan area customers’electric and gas bills an as-yet undetermined amount in your Con Ed or Electric Supply Company bills  this year.

 

 How the charge will be applied will be considered by the New York State Public Service Commission April 21 in Albany at a hearing which may be viewed on the internet at the Public Service Commission website at   http://www.dps.state.ny.us/webcast_sessions.htm

 

The “secret” assessment Revises Article18-A of Public Utilities Law, In S59B, A59 Bills.

 

 The Assessment is a new charge Con Ed customers will be facing  in addition to a possible decision to  increase the Consolidated Edison “Delivery Charge” that could increase that charge on your utility bill approximately 15%, according to Consolidated Edison’s filing and preliminary PSC findings, Jim Denn of the Public Services Commission Press Office confirmed to WPCNR.

 

Con Edison asked last year for a 15% increase in the Delivery Charge, or cost of delivering electricity and gas to their customers, a year later they have asked to increase that original $654 Million request to $819Million in the first year of the increase. The Public Service Commission Legal Judges have recommended a $632 Million increase, slightly less than 15%. On April 21, the Public Service Commission will attempt to split the difference. 

 

A 20% increase in the Delivery Charge  for example, in the current White Plains electric bill where the kilowatt hour electric charge is 7.55 cents, would increase the Delivery Charge for White Plainsians to 9 cents per kwh. On usage of 648 kilowatt hours in a month this would increase your delivery charge to$58.32 this month as opposed to $48.90 – a $10 increase on a light electric month, possibly considerably more in high use summer months.

 

Legislature Changes Up the Utilitity Assessment — Pours Part into General Fund

 

Last year  the state assessment on utilities throughout the state  previously had consisted of  1/3 of 1% of intra (within) state revenues. In the new state budget of 2009-2010 passed with much fanfare by the Governor, Assembly Speaker Sheldon Silver and Senate Leader Malcolm Smith last week, that assessment, formerly simply a revenue raiser to  support the Public ServiceCommission has been divided into two parts, according Public Service Commission spokesperson, Jim Denn, speaking exclusively to WPCNR Thursday afternoon.

 

The Bill, A00159, which included the 857% assessment increase, was passed in the Assembly and passed in the Senate, as S59B. Westchester Assemblypersons Adam Bradley,Richard Brodski, Sandy  Galef and Mike Spano voted for the bill. Only Assemblyman George Latimer voted against it according to the New York Assembly website.

 

Mr. Denn said Part 1 of the Assessment will charge up to 1% of a NYS utility intrastate revenues “for sercices that would go to operation of the Public Service Commission and other related entities.”

 

Part 2 funnels “another 1% (of  a utility’s intra “within” state  revenues) to the state general fund for energy-related purposes.” Mr. Denn could not define “energy-related purposes.”

 

 

Denn said the PSC will determine how the new $283Million Con Ed assessment will be applied to future 2009 consumer bills in the April 21 hearing. When the assessment would be added, and what increment it would add to the customer bill has not been determined.

 

Split between Con Edison and ESCO customers.

 

Bob McGee, spokesperson for Consolidated Edison told WPCNR Wednesday  that the state increased Con Ed’s assessment cost an additional $250 Million, up from $33 Million in 2008-2009.McGee wrote in an statement issued WPCNR Friday morning, “Not all the money Con Edison will be collecting is Con Edison customer money. A portion of it is being collected from ESCO (Electric Supply Companies), so the gross (assessment increase) figure appears to represent 800% or more increase, while for Con Edison customers it’s really a 500%increase.”

 

WPCNR emphasizes that the dollar amount,  whether it is isolated out in the electric bill as a separate charge, included in the kilowatt hour rate, or in the Delivery Charge, and how much per month it will be for the individual customer has yet to be determined by the Public Service Commission. They will consider that April 21. The 500% figure mention by Mr. McGee does not mean the electric or gas bill is going up 500%.

 

 

Impact

 

Mr. Denn  of the Public Service Commission told WPCNR, “At the end of the day, it’s going to impact the rate payer’s bill.”

 

Denn said that since the new 2-Part Assessment was just installed into the budget last week, it was a new issue the Public Service Commission would consider along with Con Edision’s Delivery Charge request, “and how best to accommodate these (new) charges.”

 

 

Meanwhile…back in the State Assembly…Fixed Electric Rates Probing

 

The WPCNR report of the new assessment, the scope of which is to be determined, comes at   the time Associated Press reports today that an Assembly Committee is looking in to alleged “over charging on electric bills and is seeking evidence of conflicts of interests and collusion among New York producers.”

 

Meanwhile…back in the Governor’s Office…Utility Customer Rights Protection

 

The Assembly “investigation” parallels a news release from Governor David Paterson distributed to the media, in which the governor announced “a major consumer outreach effort to remind New York residents who are struggling with utility bills of their rights and “protections” regarding service termination and reconnecting utility services.” That release may be viewed at http://www.ny.gov/governor/press/press_0408092.html.

 

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WPCNR MR. AND MRS. AND MS. WHITE PLAINS POLL. April 9, 2009: Well the $160.2 Million 2009-10 City Budget as hammered out by the Mayor’s Office is in. It predicts a $12.4 Million gap between expected revenues and expenses and suggests various remedies for making up that gap. The budget as is calls for a 4.9% city tax increase upping the city property tax of the average White Plains $650,000 to $700,000 home $134, and the tax on the $450,000 home about $110. However, the budget proposes using $12,400 of fund balance to fund expected arbitrated union settlements and revenue shortfalls from parking, mortgage recording taxes and licensing and permit fees, among other shortfalls based on current trends. What the budget does is fund expected union contracts with money it does not expect to receive, and instead uses fund balance to do that.

If city economy does not uplift spectactularly the city will not have the revenue or the fund balance in 2010-11 to pay the expected union settlements, if revenues remain on the current track. The city needs the revenues (projected at $138 Million for 2009-2010  to  rebound beyond the 2007-2008 level of $141 Million ( which saw the zeneith of the White Plains Renaissance and the highest sales tax ever received by White Plains –$45.7Million) in 2010-11 to find that $12.4 Million in fund balance to break even in 2010-11. The city needs at least $155 Million in revenues to balance the 2010-11 Budget if expenses remain at present levels $148 Million, considering inflation. Is this New York State in microcasm?

Well Mr. and Mrs. and Ms. White Plains what would you do? Tell the Common Council what they should do with this year’s budget — how does White Plains avoid going broke in 2010-11?  You decide from the following suggestions:

1: Property Income Tax Increase to Keep Pace with Expenses:  WPCNR projects that to make up the $12.4 Million deficit in the 2009-10 budget, the council could decree a tax increase of 30% which would generate $57 Million on the present city assessment roll of $285.2 Million. It would be good to make the tax increase this year (even though it is an election year), simply because assessments will decline significantly next year — perhaps as high as $10 Million if past trends are an indicator of what the certiorari lawyers have up their sleeves.

So the time to get a big bang on the tax increase buck –is now.  If the $650,000 to $700,000 home in White Plains faced a 30% tax increase it would lift the tax bill in 09-10 beginning in July from $2,724 to $3,700, a $1,000 tax increase. Of course the council could choose to raise half the amount by property tax (increase of 15%) cutting the tax increase on the average home to $500, and raise it elsewhere. What do you think?

2. Commuter Tax– White Plains could slip a tax on persons living outside White Plains who work in White Plains.  The mechanics of this might be explored. This way the residents of White Plains would be spared a significant (see # 1) tax increase.  Should this be explored?

3. Fire Commissioners and Management: The 37  appointed officials in White Plains earn collectively $5,000,000 — should a large portion of  this staff be asked for their resignations — to save money in 09-10 — allowing the new administration to appoint a leaner city administration?

4.  Lease City Institutions: The budget as published suggests leasing city municipal garages, selling property, and WPCNR suggests perhaps privatizing the City Library…at least NOT spending $600,000 on the window replacements. What do you think about leasing the garages (to bring in an estimated $30 Million up front?)

5. Raise Sales Tax Another 1/4%: The Administration has suggested this as a means of raising the approximately $4.5 to 5 Million in money that would conveniently cover the 2009-10 labor settlements. How do Mr. and Ms. White Plains feel about this option raising the sales tax? (The council has tabled this option until May).

6. Surcharge Penalties for Filing Certioraris. A new wave of certiorari filings for the last three tax years is on the way, if this past January is any indication, especially for commerical properties. Should the city enact surcharge for every certiorari filed, as a cost of evaluation of each challenge? Should businesses collectively in the city be charged a percentage of any settlement (to preserve city services of course), and realtors be charged a fee for homeowners filing certioraris. Just a few suggestions. Anyway should some kind of Certiorari Penalty Surcharge on all businesses be explored by the city to replace lost revenues from assessment reductions.  

 

 

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WPCNR CITY HALL CIRCUIT. By John F. Bailey. April 7, 2009: The 2009-10 City Budget released last night to the Common Council paints a picture of city cash reserves depleting significantly in less than a year.  Substantial additional revenues, it reports need to be created “through sale of city assets, cost savings and privatizations.”

 

Preserving the fund balance at the current $17.7 Million of reserves, if done by tax increase only have to  raise city property tax by 30%. The 09-10 proposed budget  increases taxes 4.9% but only cuts the budget by .06%

 

Unless city revenues recover significantly  by about $12 Million  in 2009-10, the proposed 2009-10 budget will see the White Plains “rainy day fund,” its fund balance decline to $5.3 Million, according to the budget book. 

The city bank account  stood at $28.4 Million at the close of 2007-2008 at “the height” of the White Plains “Renaissance.” If the revenue projection holds steady,  the city will have only $5.3 Million  in the bank to fund the city payroll increases anticipated in 2010-2011, analysis of the budget indicates, and would be forced to raise taxes by 30% then, pending revenue recovery.

 

The budget says additional revenue sources amounting to $50 Million can be achieved and it expects to achieve them by

 

• Selling additional taxi medallions
  
• Sale of Towing Medallions
  
• Commercial Fire Inspection Fees
  
• Sale of Firehouses 4 (currently headquartering the Police Emergency Services Unit) and Firehouse 5, on  Robertson Avenue in Battle Hill.  Both houses are inactive. 
  
• Establishing an Industrial Development Agency (though Councilman Dennis Power commented Monday evening, that might only generate $2 Million revenue, based on his knowledge of the County IDA.)
  
• Dual residential and commercial property tax rates “to stem the tide of property tax challenges.”
  
• Leasing of 2 parking facilities (Galleria Garage and Library Garage)
  
• Hotel Tax of 3% (sitting in the state legislature, awaiting possible passage)
  
• An additional ¼% sales tax increment.

 

Stimulating a Discussion

 

According to a reading of the city budget,  a copy of which could be acquired only this morning by WPCNR, the city answer to a predicted $10 Million deficit calculated for the current budget year 2008-2009,  is: “While the City will likely finish the 2008-2009 fiscal year with a deficit approaching $10 Million, there are sufficient accumulated financial reserves to absorb this financial shortfall.” In view of that statement, this means the fund balance dips to $17.7 Million going into 2009-10.

 

The budget poses the question that it is up to the Common Council in dialogue with the administration to decide whether this is prudent policy, stating “The following forecasts (of fund balance use) are not absolutes, but are provided to stimulate a constructive discussion of the City’s overall economic position as the Common Council reviews the proposed budget.”

 

The Scenario

 

The city is predicting a $12.4 Million deficit in 2009-10 predicting revenues of $136.1 Million against expenses of $148.5 Million, their answer: decrease the city budget $990,117, even though the City Commissioner of Finance was predicting $4.6 Million in lost revenue a month ago.  

 

The city is raising the property tax 4.9% and that “reflects the amount of revenue that is required to be generated from the City’s assessment roll to balance the City’s budget after all other revenues have been included.”  The city cites loss of assessments to have cost the city $1.3 Million in revenue.

 

Should the revenues not recover in 2009-10, the city is hedging by dedicating $12.4 Million more in fund balance into the budget just in case: “The total appropriation of  fund balance in the proposed fiscal year 2009-10 general fund budget is $12.4 Million…Given the extent of the economic downturn, significant utilization of undesignated fund balance is not surprising.”

 

City Bets Revenues Will Not Be Worse.

 

In order not to touch the fund balance, the revenues projected at $136.1 Million ($44.1 Million in property taxes and $47.3 Million in sales tax plus $17.1 Million in services charges and $9.4 Million in government revenues)  will have to rebound beyond 2007-08 levels ($141 Million).

 

The city is cutting a stated $990, 717  from the 2008-09 budget.

 

Budget not set in Stone: for Discussion.

More Tax Increase Up to Council.

 

The copy in the 2009-10 budget says  the decision of increasing property taxes beyond 5% in the hands of the Common Council.

 

WPCNR predicts that to run a budget that keeps the remaining $17.7 Million fund balance intact by taxes alone, the Common Council needs to authorize an additional  29%  property tax increase.

 

Here’s our Math Lab Report: If you take out the fund balance budgeted for 09-10: $12.4 Million, you have to replace it.  If you do it through the property tax only , you need to raise the city’s projected tax rate of $154.70 per $1,000 of assessed value to $198 per $1,000 of assessed value based on current projections.

 

Tax Increase  would have to push 30% to Make Up the Projected Deficit

 

That impact of preserving fund balance through property tax increases alone would be significant on the $650,000-$700,000 priced home in White Plains. That home’s city tax would go from $2,724 in 2008-09 to $3,658, a $934  property tax increase.  

 

The $400,000 home, assessed at 15,000 would pay $2,303 in city tax under the 4.9% increase proposed by the Mayor’s budget. That same $400,000 home if the council chose to preserve fund balance and pay off the deficit with a tax increase of 30%  at the $198 per $1,000 of assessed value would pay $2,970. a $91 increase.

 

The Mayor’s Budget Book detailed $990,717 in cuts on a $161.6 Million 2008-09 budget.

 

Cuts Proposed Short of $4 Million Goal

 

Those cuts include a $615,392 cut in the city contribution to the Library Operating fund.

 

The city will cut $100,000 of funding to the White Plains Performing Arts Center. It is not clear whether the city will cease paying the operating costs of the center.  (The Center is now scrambling to find sources of funding to keep it performing, according to its  operator,  White Plains Performing Arts Center, Inc. )

 

Over $700,000 of the Mayor’s $990,117 of cut is being born by the Library and the Arts Center. The Mayor is telling the various city departments to reserve 5% of their budgets and not spend it, pending revenue pace in the next year.

 

The $990,117 falls some $3 Million short of the savings the Mayor was asking four in mid-fall.

 

The city uses the fund balance to pay projected union contract raises in the amount of  $6.1 Million in the Reserve for Financing. The city has decided to go to binding arbitration with the police and fire unions, perhaps conceding to a settlement in line with recent settlements around the area, about 3.75% to 4% for 09-10 and 2010-11.

 

 

 

 

 

 

 

 

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WPCNR STAGE DOOR. April 6, 2009: John Ioris, Chairperson of the White Plains Performing Arts Center, Inc., the community group which operates the White Plains Performing Arts Center, and Jack Batman, formerly Executive Producer, whose contract expired one week ago have issued the following statement through O & M Agency, their public relations firm in New York City this afternoon on the status of the theatre which Mr. Ioris has described as in desperate need of financial contributions in order to stay in operation.

 “White Plains Performing Arts Center is categorically not closing.  We are in the process of reevaluating our production requirements and will make an announcement later this week.:” Statement  issued Monday from John Ioris, right, and Jack Batman, left, (shown in April 2008) on the future of White Plains Performing Arts Center.

Phillip Carrubba, spokesperson for WPPAC, contacted by WPCNR,  and asked if Mr. Batman would be staying on with the theater as Executive Producer, perhaps on a consulting basis, told WPCNR he “believed so.”

Last week the Executive Committee of White Plains Performing Arts Center, Inc., met to discuss the financial considerations the WPPAC faced if it were to remain in operation. At the time, Mr. Ioris denied that the WPPAC staff had been dismissed, and said that Mr. Batman’s role with the theater had not ended, saying “he’s still with us.”

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WPCNR CAMPAIGN 2009. April 6, 2009: Councilman Glen Hockley,  officially denied the nomination to run again for his Common Council seat by the Democratic City Committee Nominating Committee last week, will hold a fundraiser Tuesday evening at Prophecy Restaurant from 6 to 9 P.M.

Mr. Hockley told WPCNR Friday he was considering running for either Mayor of White Plains (Hockley is shown getting acquainted with Republican Candidate  for County Executive, Rob Astorino above) opposing Adam Bradley or for County Legislator in District 5 contesting White Plains Bill Ryan, the Chair of the County Legislators for Mr. Ryan’s seat.  Photo Courtesy, Carl Albanese

Ironically, a Hockley-Bradley race either in a Democratic primary or the general election, would find Mr. Hockley running against the man who put Mr. Hockley on the Council in 2002 when Bradley defended Mr. Hockley from a Special Election runoff in the 18th District against then-incumbent Councilman Larry Delgado. An election machine had jammed, throwing the results of that district in doubt. That case went all the way up to the New York State Court of Appeals and made election law history in New York denying courts the right to call for a Special Election. To this date, no effort has been made to overturn that decision by altering the election law spelling out how to handle an election count that has been determined not to have counted all cast votes.

It has been pointed out that technically the Democratic Party has not denined Hockley the nomination, because Mr. Hockley did not  submit his name for nomination to the Nominating Committee. However, Hockley’s challenged to district leaders last year all but assured he would not be the “People’s Choice.”

It is the third time in eight years that Democrats have become so disenchanted with the performance of Democrat Councilmembers that they have denied them the oppportunity for reelection to their seat. Bill King in 2003, Arnold Bernstein in 2007, and now Glen Hockley in 2009.