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WPCNR SCHOOL DAYS. By John F. Bailey March 2, 2004: After a meeting with Mayor Joseph Delfino Friday, Superintendent of School Timothy Connors was able to receive information on the long awaited 2004 city assessments, with a balance of the figures coming to the District Friday, and updated figures delivered Monday in the late afternoon. The bad news was delivered to the Board of Education Monday evening at Education House.
$1.4 MILLION CUT…BUT — Assistant Superintendent for Business for the City School District, Terrance Schruers reported Monday evening that the city announced their assessments on commercial and residential property had dropped $3, 218,000 year-to-year (after adjustment for Payment in Lieu of Taxes increases), resulting, Schruers said in a 3.3% increase in the school tax rate, moving it to 8.45%, or $30 more per $1,000 of accessed valuation. Photo by WPCNR News.
Tax Rate To Move Up 3.3% to 8.45%
This erosion of assessments requires an increase in the tax rate from the 6.9% of 2003-04 to 8.45% for the school year of 2004-05 to maintain district revenues.
This means, Schruers said, a $30 increase per $1,000 of assessed valuation for the average homeowner. The revenue drop requires a raise from a tax rate of $349.03 in 2003-04 to $378.54/$1,000 of assessed valuation,
To put this into perspective for the resident, if you have a home assessed at $15,000 of assessed valuation, you would pay an additional $30 per thousand, (actually $29.51) or about $450 more in school taxes in 04-05, or a total of $5,670, up from $5,235 this year.
This situation has been created because the total assessments, according to the city’s figures supplied, have dropped from $316,196,649 to $304,718,459, according to the City Accessor Eydie McCarthy’s estimated figures provided to the School District.
Meanwhile, Budget Trimmed $1.4 Million to $143,910,784.
Mr. Schruers preceded the sobering assessment figures with details on $1.4 Million in cuts in the proposed 2004-05 School Budget trimming the budget from $145,340,666 to $143,910,784.
The $1.4 Million in cuts trimmed the total budget increase to 6.89%, a $9,278,152 increase over the 2003-2004 budget of $134,632,632.
Schruers reported $675,000 was reduced in salaries, by transferring grant money to cover increases, and through savings achieved in retirements, in which personnel would be hired at lower salaries. Another $80,000 in salaries was saved in transferring of grant monies, and $130,000 was achieved through new retirement announcements, for a total of $885,000 in savings on salary by finding alternate funding sources and personnel management dexterity.
The other approximate $500,000 in savings was executed through cuts, equipment cutbacks, and transfer of last year’s monies not spent in key budget categories.
Details of the cuts will be discussed at the Wednesday evening final meeting of the Annual Budget Committee at 7:30 P.M. at Education House.
GRANTS FULLY USED. NO PROGRAMS CUT. Superintendent of Schools Tim Connors said that prior to his coming to the district, the tendency of the district was to horde grant money not used in the current year for the next year. He has instructed that administrators use all grant money received in the current year and to look at ways grant money can be used to fund operations in keeping with the spirit of the actual grants. He told WPCNR that no programs are being curtailed or eliminated by any transference of grant moneys to trim the 04-05 budget. Photo by WPCNR News.
Second straight year Assessments have eroded.
After a long decline in assessments from a high of $440 Million assessed values in 1988, assessments stabilized at $320 Million in 1999, where they remained until 2002-03, when they declined to $316 Million, and now again in 2004, they have dropped to $304.7 Million.
Schruers said the $14,078,000 drop in assessments this year was primarily due to tax certioraris on commercial properties, the city reported.
Mr. Schruers said the city reported $14,078,000 consisted of certioraris over a two year period with $2,569,716 occurring in 2003 due to a Special Franchise Assessment set by the state “too late to be recorded on the 2003 assessment role,” according to the city figures.
In 2004, there was a $399,488 Special Franchise settlement, again “set by the state.” However a total of $7,826,275 in certioraris were substracted in 2003-04 involving the following business properties, a growing trend as Mr. Schruers has noted to the School Board at recent Annual Budget Committee meetings.
Hamilton Avenue, Westchester Avenue business campuses get reductions.
The business properties receiving certiorari judgments are:
Saint Agnes Hospital ($374,625), 777 Westchester Avenue ($300,000), 701 Westchester Avenue ($150,000), 707/709 Westchester Avenue ($591,000), 925/1025 Westchester Avenue ($391,000), 360 Hamilton Avenue ($972,050), 440 Hamilton Avenue ($1,551,500), 400 Hamilton Avenue ($1,624,100), 60 South Broadway ($268,000), Nordstrom’s ($1,204,000), and 1311 Mamaroneck Avenue ($400,000).
Schnurmacher Center for Rehabilitation and Nursing received a new exemption of $701,000. JPI (builders of The Jefferson at White Plains at 300 Mamaroneck Avenue), came off the tax rolls and their first PILOT payment of $345,000 starts in 2004, and 24 South Kensico, $8,400.
JPI to Pay $70,000 more in Taxes.
The JPI reduction, WPCNR has learned from a reader who questioned this, is a result of JPI coming off the tax roll and their PILOT “kicking in.” this year. Contrary to the impression the City School District handout gave, JPI has not had their PILOT reduced. (This anomaly of JPI reducing by $275,000 and contributing $345,000 on the same sheets handed out by the City School District Monday evening, means that JPI will contribute a net of $70,000 MORE to the tax roll this year, not $345,000 more, as they School District handout Monday indicated.)
$1,010,000 in Major Assessment Increases
The following businesses had their assessments raised in 2004:
120 Bloomingdale Road (Bloomingdale’s), up $150,000; 200 Hamilton Avenue (White Plains Mall), up $100,000; 111 Main Street, up $300,000, Sears, up $100,000, 75 South Broadway, up $50,000, and Crowne Plaza, up $310,000.
PILOTs Grow by 78.5%; bring Additional $4,856,650 to District. Louis Cappelli to the Rescue.
The city reports that the School District can expect Payments in Lieu of Taxes increasing in 2004 with PILOT payments from the following properties, growing by the corresponding amounts, Clayton Park, $75,750, Fortunoff, $1,200,000, Reckson, $80,050, Bank Street Commons, $578,400, JPI $345,000, Cappelli, $2,469,050, 333 Westchester Avenue, $8,400.
The School District estimates it will receive $6,273,767 in PILOT payments in its 2004-05 budget, up from $3,515,096 last year based on this new information on the increased PILOT payments. This is a 78.5% increase year-to-year increase. However, the overall decrease in assessments is driving the 3.3% increase in the school tax rate from 6.9% to 8.45%.
“That’s not what we like to hear,” Schreuers sadly commented on the 8.45% rate.