SCHOOL BUDGET, CITY BUDGET, HOUSING FORECLOSURES, PLAYLAND MADNESS A WITCHES’ BREW
WPCNR QUILL & EYESHADE. NEWS & COMMENT by John F. Bailey. March 10, 2016:
THE WHITE PLAINS SCHOOL BUDGET AND THE CITY OF WHITE PLAINS BUDGETSHAVE PROBLEMS..RIGHT NOW THE SCHOOL BUDGET IS DEPENDING ON MORE AID FROM THE STATE..YET IT IS ROLLING OVER LAST YEAR’S BUDGET AND EXPECTS IT TO BE $209.3 MILLION –$3.5 MILLION MORE THAN LAST YEAR.
THE CITY ASSESSMENT ROLL HAS STAYED THE SAME BUT –SINCE IT DID NOT GO UP THE SCHOOL DISTRICT HAS TO ABSORB THE 1.7% INCREASE IN SPENDING THEY CURRENTLY PLAN. THIS MEANS THEY HAVE TO GET THE MONEY FROM YOU BY RAISING THE TAX RATE $13 TO $228.
THIS IS A 2.13% INCREASE IN THE TAX RATE WHICH TRANSLATES TO—AROUND $235 MORE IN TAXES FOR A MEDIAN PRICED HOME ($650,000)—THAT’S WHERE THE SCHOOL DISTRICT IS NOW DEPENDING ON THE SCHOOL INSTRUCTION BUDGET COMING UP NEXT WEEK—AND THE SCHOOL DISTRICT IS LOOKING AT ANOTHER BIG BOND ISSUE WITHIN THE NEXT YEAR.
THE CITY HAS A BIG LABOR PROBLEM.
THE POLICE SETTLED WITH THE CITY FOR A 6.75 % SALARY INCREASE THROUGH 2017-18…BUT THE OTHER THREE UNION CONTRACTS ARE UP THIS YEAR SO YOU KNOW THE POLICE, CSEA AND THE TEAMSTERS ARE HUNGERING FOR PARITY.T
HIS WILL COST THE CITY PLENTY IF THE PRESENT SOFTNESS IN SALES TAXES CONTINUES—IT WAS DOWN 6% IN JANUARY…AN ADDITIONAL $6 MILLION IN SALARY PLUS BENEFITS IN THE 2016-2017 YEAR AMOUNTS TO A $16 PER THOUSAND INCREASE IN THE TAX RATE –TO COVER THAT IF THE SALES TAXES CONTINUE TO SOFTEN.
THAT IS A 1% INCREASE IN THE TAX RATE (UNLESS HOTEL TAXES HELP OUT)…NOT AS BAD AN INCREASE AS THE SCHOOL DISTRICT POSSIBLY FACES…BUT THE PROBLEM IS THESE SO-CALLED BUSINESSES (THE CITY AND THE SCHOOL DISTRICTDO NOT CUT EXPENSES AS THEY GO FORWARD FACING BLEAK HOME PRICES, AND LACKLUSTER ECONOMY GROWTH.
IT REMAINS TO BE SEEN HOW THE CITY PARKING REVENUES ARE DOING—AND THE CITY FUND BALANCE IS DEFINITELY NOT GROWING BECAUSE $5 Million of the sales tax set aside every year is used to pay salaries and is not socked away for a rainy day.
OVER IN GREENBURGH—WE LEARNED THAT GREENBURGH HAS BEEN VERY PATIENT WITH OVER 300 HOMEOWNERS DELINQUENT IN THEIR TAXES…LOST IN THE GREENBURGH PRESS RELEASE IS THE GLARING FACT THAT THOSE HOMES LEFT – 72 THAT GREENBURGH IS ASKING THE COURT TO FORECLOSE ON WILL BE SOLD BY THE TOWN..FURTHER LOWERING REAL ESTATE VALUES. IT SHOWS THE ECONOMY IS STILL SICK DESPITE THE ROSY FORECASTS OF JOBS BEING UP.
SPEAKING OF JOBS –THE PLAYLAND JOB FAIR IS THIS WEEKEND AT THE COUNTY CENTER—BUT MORE TO THE POINT WHO IS GOING TO RUN PLAYLAND IS THE COUNTY REALLY SERIOUS ABOUT SPENDING $58 MILLION MORE OR LESS ON INFRASTRUCTURE?
THAT’S WHAT THE DEVELOPER HANDPICKED BY THE ASTORINO ADMINISTRATION WANTS THE COUNTY TO SPEND…AT TAXPAYER EXPENSE AND THE DEVELOPER WANTS TO RUN PLAYLAND FOR 30 YEARS…ARE THEY SERIOUS? I THOUGHT THE APPEAL OF THIS DEAL WAS WE’D BE RELIEVED OF PLAYLAND DEBT SERVICE AND THE COUNTY WOULD MAKE MONEY?
WE TAXPAYERS DO ALL THE PAYING AND THE DEVELOPER GETS ALL THE LIVING.
BUT DOES THE COUNTY BUDGET COMMITTEE TAKE UP PLAYLAND FIRST ON THE AGENDA MONDAY. NO.
WHAT DOES THIS SAY ABOUT THE COUNTY TAKING CARE OF PLAYLAND THE LAST 6 YEARS DURING THE ASTORINO YEARS, AND DURING THE SPANO YEARS? WHAT DOES IT SAY ABOUT THE COUNTY BOARD’S REVIEW OF THE ORIGINAL DEAL? (A LOOK AT BY A DISORGANIZED POSSE OF LEGISLATORS RIDING BY ON A FAST HORSE.)
WHAT DOES IT SAY ABOUT HOW CLOSELY THE DEVELOPER LOOKED AT THE PROPERTY…$60 MILLION IS A LOT TAXPAYER MONEY DOWN THE DRAIN AND IT HAS TO BE SPENT BY THE COUNTY WITHIN 3 YEARS. THE COUNTY TAKES A DECADE TO REBUILD A SWIMMING POOL
THIS PLAYLAND SCREW UP IS A LOUSY JOB BY THE ASTORINO ADMINISTRATION, AND THE SHEEPISH COUNTY BOARD IN REVIEWING THE FIRST DEAL.
AND REMEMBER SUSTAINABLE PLAYLAND WAS THROWN OUT BY THE COUNTY BOARD BECAUSE THEY COULD NOT ASSURE THE BOARD THEY WOULD FINANCE WHAT THEY WANTED TO DO WITH THE PARK AND REVEAL WHO WOULD BE THEIR VENDORS….
IF THE BOARD APPROVES THIS 30 YEAR DEAL –WITH SHARPLY HIGHER IMPROVEMENTS IN THE COUNTY SHARE OF THE PROFIT SHARING…THAT COVERS THE $60 MILLION DEBT THE NEW VENDOR WANTS THEM TO PICK UP IT IS A BAD DEAL FOR THE TAXPAYER.
WHAT’S NEW? EVERY GOVERNMENT DEAL IS A BAD DEAL FOR THE TAXPAYER.
GREENBURGH SPEEDS UP FORECLOSURE PROCESS. GREENBURGH FORECLOSES ON 72 PROPERTIES.RECEIVES SETTLEMENT/PAYMENT OF BACK TAXES ON 298. “Will Not Wait to File Foreclosures in future years.”
WPCNR QUILL & EYESHADE. From Greenburgh Town Supervisor Paul Feiner. March 7, 2016:
Last week the town filed a Motion for Judgment of Foreclosure in State Supreme Court to foreclose on 72 properties. The final list is for 72 parcels representing approximately $7.1 million of delinquent taxes (including interest and penalties) of which 16 (including 2 demolished) are classified as family residences.
We are now waiting for a Judge to sign the papers. The town will than have ownership rights to these properties and will sell or auction off the properties.
When Receiver of Taxes Anne Povella and Michael Pflaum, special counsel in the office of the Town Attorney began the process in December 2013, the delinquent tax list for 2010 and prior tax liens consisted of 370 parcels representing approximately $19.9 million of delinquent taxes (including interest and penalties at such time).
Thus to date, we have reduced the list of delinquent tax liens by 298 parcels representing almost $13 million. By April 29, 2014, when the List of Delinquent Taxes was filed, the number of parcels was reduced to 222 representing approximately $13.0 million. For the most part, the $6.9 million reduction was the result of full payment or entering into a tax agreement (that required current taxes to be paid as well as a deposit for the remainder).
An additional 94 parcels representing approximately $4.5 million were removed from the list prior to the filing of the Petition and Notice of Foreclosure on July 1, 2015. Since the filing of the Petition and Notice of Foreclosure, an additional 56 parcels representing approximately $4.7 million have been withdrawn from the list resulting in the current list as described above.
It is important to note that removing a parcel from the list was not subject to our arbitrary discretion. Removal required compliance with Section 1138 of the Real Property Tax Law. Thus, either the tax liens were redeemed in full, the tax liens were subject to a tax agreement, the owner of the parcel had filed for bankruptcy or collecting the tax lien was subject to a legal impediment.
Examples of a legal impediment include parcels subject to other legal disputes (that ultimately will result in a sale whereby the Town will collect in full) or a parcel that will cost the Town more to own than the taxes due. Also included in this category are parcels subject to a valid sales contract that has yet to close. There are six remaining parcels that we expect to collect over $.9 million at closing.
This is the first in rem (foreclosure process) that the town has taken in many years. We have decided to do this annually in the future.
By not waiting – it will be easier for residents to come up with the dollars that they owe, work out payment plans and avoid foreclosure. I feel that we have done everything possible to help property owners avoid foreclosure.
At least seven letters were sent to everyone who owes back taxes.
I devoted many hours – meeting with residents who contacted me, connecting them with non profits and others that were willing to be of assistance to them.
Some people sold their property to avoid foreclosure. Others worked out payment agreements with the town or obtained reverse mortgages.
The Receiver of Taxes and Town Attorney’s office also had numerous meetings with property owners—and was successful in reducing the list of property owners on the foreclosure list.
To encourage payments of back taxes the Town Board even enacted an amnesty on interest in 2013.
Paul Feiner
