CITY RAISES BUDGET $4.6M T0 $183.8 MILLION, AN INCREASE OF 2.6%, HOLDING TAX RATE TO $200.95
TAX RATE UP 21 CENTS 1/10 OF 1%!
WPCNR QUILL AND EYESHADE By John F. Bailey. April 4, 2016:
The White Plains city administration presented the 2016-2017 proposed City Budget to the Common Council this evening with a $183.8 Million budget raising property taxes 1/10th of 1 percent—the lowest tax increase since before WPCNR started covering the city finances (2000-2001).
In 2000-2001 the city tax rate per $1000 of assessed valuation was $91.48/M on a budget of $86,145,700 and now 16 years later it will be $200.95 per $1000 of assessed valuation on a budget of $183.9 Million.
The city Budget Director Michael A. Genito and Fiscal Advisor, Eileen Bradley presented a budget that rises $4.6 Million to $183.8 Million (a 2.6% increase from the $179.2 Million of 2015-16, (now in its 9th month)
However, the city has offset the increase with increases in licenses and permits of $1.6 Million and charges for services of $1.8 Million, (including an increase of 10% in parking permits).
The city plans a $5.1 Million appropriation to the general fund from the Tax Stabilization account which can only be used “to address either a significant and unforeseen shortfall in a major revenue source; provide funding for a significant and unforeseen increase in expenditures and/or be appropriated in the adoption of an annual budget to reduce a property tax levy increase to no more than 2-1/2%. Section 68 of the City Charter further prohibits the Common Council from appropriating an amount in excess of the balance reported in the account at the close of the prior fiscal year.” The city transfers approximately this amount each year, which is why the Tax Stabilization Fund, created by a transfer of sales tax revenues each year, has not grown significantly.
The city says that the city tax rate will go up just 21 cents per thousand dollars of assessed valuation, an increase of less than 1/10 of a percent.
The city says this will amount to a $3 (yes, $3 dollars) in city property taxes for the median home assessed at $13,600 assessed value.
The budget allows for all anticipated step raises and future negotiated contracts yet to be determined in the Reserve for Financing. The city is facing demands from three unions that are without a contract the fire union, the CSEA and the Teamsters mostly demanding parity with the police settlement through 2018 for 2%, 2-1/8% and 2.5%. According to the budget presented this evening the settlements the city anticipates are covered.
The city says sales taxes will decrease 2.4% to $45.1 million, though if March, April May and June sales receipts equal last year’s totals ($16 Million), the sales tax “take” will be approximately $54 Million, which would be an all-time high for the city. The city is forced by the Charter not to count revenue they have not taken in beyond the end of the last fiscal year.
The city budget document reports this the fifth year the city has proposed a budget within the New York State Tax Cap which this year plumetted to 1% of tax levy increase allowed. the tax levy is $56.3 Million (including the Business Improvement District) and is under the state levy cap by $13,000.
It is interesting to note that sixteen years ago in 2000-2001 the city tax rate per $1000 of assessed valuation was $91.48/M on a budget of $86,145,700 and now 16 years later it will be $200.95 per $1000 of assessed valuation on a budget of $183.9 Million.
The tax increases by the city in the last two years and the proposed 1/10 of 1% proposed for 2016-17 are the lowest in the last 16 years when increases averaged 5% a year.
