WPCNR COMMON COUNCIL-CHRONICLE EXAMINER. By John F. Bailey. April 7, 2008 UPDATED 12 Noon EDT, April 8, 2008: Mayor Joseph Delfino and his administration delivered the lowest budget increase since 2001-2002 Monday evening as the Mayor introduced the 2008-2009 proposed budget. However, because anticipated union contract settlements for 2008-2009 are not included in the budget, the budget may rise, apparently without further cost to the taxpayer. The anticipated union settlements are temporarily being funded by drawing down on the city fund balance.
Joseph Delfino, Mayor of White Plains delivering his State of the City address Monday evening.
The Mayor said the increase in the budget spending is 3%, which yields a City Property Tax Increase of 4.9%.
For the median White Plains home ($700,000 on the market) this yields a city property tax increase of $130, a total city tax of $2,750. The Tax Rate per $1,000 rises about $6 from $141.93 to $148.88/$1,000 of assessed value.
Plugging in the numbers for Mr. and Mrs. White Plains median homeowner, this means the total school, county and city tax for 2008-2009 (as predicted by WPCNR and White Plains Week two weeks ago) will be $12,650 made up as follows:
School Tax– $7,500
County Tax–$2,400
City Tax– $2,750.
Total 2008-09 Property Tax on the $700,000 home: $12,650.
Residents should note half White Plains homeowners will pay more, half will pay less. Condominum Owners are taxed at 50% of the homeowner rate.
The City Budget book uses the example of a home accessed at S15,000, and notes the average annual incremental property tax will increase $104.32 (or 29 cents a day). A $15,000 assessed home is approximately a $575,000 home in White Plains and will pay about $224 in property taxes next year.
Budgeted Salary Increase Does Not Include 2008-2009 Union Contract Settlements.
The increase in salaries in the new proposed budget is 2% year to year for General Fund, Library Fund and Water Fund 77.1 Million in 08-09 compared to 75.4 Million in 2007-2008. According to the Budget Book, “Salaries and Benefits in the FY 2008-2009 proposed budget total $107.2 Million without consideration for merit, cost of living, union wage increases or vacancies.”
The city had projected a 5% increase in salaries for 2008-2009 to the state. Employee Benefits go up 5% from 35.3 Million to $36.8 Million in the Proposed Budget. A sales tax increase of ¼% making its way through the State Senate at this time may be the anticipated source to fund additional salary costs resulting from the renegotiation of union contracts with the Police, Fire, Teamsters and Civil Service Employees Association, due to expire June 30, 2008.
Romancing the Ritz Stone.
In other action Tuesday evening, the Common Council voted not to sell the median on Renaissance Square to LC Main, LLC, the Louis Cappelli organization (currently containing a Ritz-Carlton marble marker). This despite Mr. Cappelli’s representative Mark Weingarten cautioning the Common Council this action would be considered “arbitrary and capricious.” After the vote was taken Mayor Joseph Delfino expressed , the Council felt so strongly on the presence of the Ritz stone marker and offered the Council an opportunity to reconsider the vote or express interest in discussing how the Ritz Carlton might make the traffic island safer, which was the council’s main concern. The council declined the Mayor’s effort at keeping “island diplomacy” in play. The Mayor told WPCNR he had no idea at this time when Cappelli Enterprises would be directed to remove the Ritz Carlton stone and make improvements to the island’s curb.
Mark Weingarten, Louis Cappelli’s legal counsel, demonstrating photographs of signs on city property which advertised private establishments like The Galleria and Westchester Mall.
The Ritz Stone shown on the disputed traffic island at left of picture. The Council voted not to sell its space to Cappelli Enterprises, opting for possible removal of the stone because of liability and safety issues. The stone was erected with city blessing on a request by the Ritz Carlton made to Louis Cappelli, the developer, according to the Mayor.
Weingarten said that Louis Cappelli feels that asking him to remove the Ritz-Carlton sign was a pesonal insult to him (Cappelli). Weingarten characterized the Council effort to remove the stone (which reads “Ritz-Carlton” and occupies the traffic island on Renaissance Square), could be considered “arbitrary and capricious” on the part of the Council. Each member of the council took grievous umbrage at this characterization and proceeded to vote 6-1 to not sell the area the stone occupies to Mr.Cappelli.
Shock at Perceived Extension of Affordable Housing Deadline.
The council also expressed shock that Cappelli Enterprises was asking the Council to extend the site plan for building affordable housing at 240 Main Street until April 7, 2009. Rita Malmud and Dennis Power and Benjamin Boykin each demanded an explanation as to why the deadline for building the affordable housing Mr. Cappelli owes for 221 Main and the City Center was being extended, and appeared appalled that the letter admits Mr. Cappelli has “not actively engaged our subcontractors to move forward.”
What the council did not appear to grasp was that this request was an extension of a site plan approval, not a request to extend the deadline for the building of the affordable housing Cappelli owes. Without extension of the site plan, the Council could be, in effect, killing the affordable housing project for good, whether they realize it or not. The backup material clearly states the request is merely for an extension of the plan. It does not make any request to untie the affordable from the 221 Main condominium tower agreement in effect.
State of the City.
In the Mayor’s State of the City message, he called the city “sound and extremely strong… vital and vibrant.” He made a strong case that the development over the last seven years has been very good for the city, and has mitigated property tax increases, citing a series of comparisons, leading up to his announcement of the tax increase and conservative increase in spending compared to the county (4.4%) and the school district(5.7%). He also declared his intention to refurbish City Hall, and explore possibilities to restore the grand old lady of 255 Main Street to her former glory. He also announced the purchase through a grant of two trolleys which will begin service in the downtown in 2008.
In 2001-2002, when the City Center was approved (September, 2001), the city budget was $97.7 Million. It was just about that a year earlier in 2000-2001. The tax rate was $91.48/$1,000 of assessed valuation. The year 2001-02 was the second straight year of no tax increases.
Seven years later, the 2008-2009 Proposed Budget last night is $161.7 Million, with a tax increase of 4.9% . The city budget has grown 66% — $64 Million in 7 years, an average of $9.1 Million a year. What cost $97.7 Million to buy in 2002, would cost $114.8 Million today. By that measure, the city budget has increased at a rate 40% more than the rate of inflation. Inflation has run about 3% a year over seven years.
In his State of the City Speech, the Mayor described the budget as having no cuts in services, and a rise year to year of 3%. According to the actual budget book, the budget actually rises 4.6% over “this year’s adopted spending plan,” and “4.35% TO $151.1 Million” in the general fund.
The Budget Book explains the 3% increase announced by the Mayor this way: “When spending is compared to the city’s 2007-2008 revised budget, the year over year increase in spending is $4.5 Million, or 3%.” The revised budget, WPCNR believes, is the savings achieved during the year, as cutbacks are made, but this needs to be checked out.
Albany Don’t Fail Us Now.
If the city should increase union contracts later this year 5% as they call for in the 2008-09 projection to New York State, the budget will increase the salaries of the four unions about $5.3 Million. The anticipated sales tax revenue of 1/4% more enroute to White Plains if the State Senate approves it — will generate about $6 Million — enough to cover the union contract settlement of 4 to 5
Romancing the Fund Balance for $11.3 Million for Salaries, Open Space, State Aid.
Delving deeper into the budget book Wednesday morning, WPCNR notes the budget in the interim is being balanced by $11.3 Million from the city’s fund balance.
To wit, on page I-9, union increases anticipated to be awarded in new contracts, are covered thusly: “Full-time positions were budgeted according to current labor contracts; a provision for salary agreements that have yet to be settled was included in the Reserve for Financing” ($6.1 Million).
The Budget Book, separately on page I-38 gives the detail of how useful the city Fund Balance (about $28.9 Million) is. The city draws on it each year, anticipating future revenue sources, then replaces it when those revenue sources come true.
The strategy this year is to draw $11.3 Million, the book explains on Page I-38:
This includes $10 Million from the undesignated fund balance, $1 Million from designated fund balance for tax certioraris, $1.6 Million from the fund balance designated for open space (purchase) and $1.7 Million in anticipation of the increase in state aid….If the City is granted authorization to increase its sales tax revenue by 1/4% by the New York State Legislature in fiscal 2008-2009, the City’s anticipated use of fund balance in fiscal year 2008-2009 will decrease significantly.
In a final note, the Venue project had its hearing continued until May 5.
The council also demanded noise reports on cabarets in the city, by law which have not as yet been delivered, even though Councilwoman Malmud has been asking for them for three months.
