WPCNR QUILL & EYESHADE. By John F. Bailey April 8, 2006: First looks at two pages of the 2006-2007 budget by WPCNR indicate the city is running a deficit of $2,249,069 more than revenues as the Common Council prepares to be briefed by the Mayor’s financialists Monday at 6 P.M. in the Mayor’s Conference Room at City Hall. The projected tax rate for both city and school system mean the owner of the White Plains average home assessed at $15,000, will pay a total of $8,393 in school and city property taxes in budget year 2006-2007.
THE RAW BUDGET. A “Black Market” copy of the budget may be seen on www.whiteplainsonline.com. Photo, WPCNR DocuLab.
On the city side, the $136,580,112 General Fund calls for an 8.7% property tax increase to augment Sales Tax and other revenues to meet the $136,580,112 in expenditures. This computes a tax rate of $132.64 (up $9.59) per $1,000 of assessed value, a $144 increase in City Property Taxes for the property owner living in a house assessed at $15,000. When you add that $144 to the $1,845 in city tax that owner pays in City Taxes in 2005-2006, and the city tax bill for you, Mr. or Mrs. or Ms. “Average Homeowner” is going to be $1,989. (I have rounded to the nearest dollar.)
The tax rate bumping up against 9% is caused in part by the hemorrhaging of assessables that spiraled down to $296,154,564 for 2006-2007 down from $302,256,199 in 2005-2006. The city has to make up far less than the school district. The ratio between school district and city tax dollar is $4 for every $1.
When School and City Taxes Mingle…
Combine the rather modest $144 City Tax increase with the $500 increase called for by the new School District Adopted Budget released Monday. That same average total city-school tax bill for for $15,000 property will goes up $644 for that $15,000-assessed house.
The homeowner of the $15,000 home pays $1,989 in City Tax as the present City Budget goes into surgery, and $6,404 in School Property Taxes for a total of $8,393 in taxes.
Budget Director Outlook
Anne Reasoner writing in the 2006-2007 begins with this analysis of the city in transition:
“if the City had not planned as well as it has for the future, the following facts hold true here: The assessment reductions on older buildings would still have happened, since the Equalization Rate substantially affects valuation and the increase of residential properties are part of the mix. The increased sales taxes would not have been there to help restrain property taxes. Additional revenues from PILOTS vs. equivalent property taxes would not have been generated. The sizable mortgage tax revenues realized by the City would have been substantially less, not to mention parking revenues from increased visitors and White Plains would very likely have continued to be a City in decline with a deteriorating downtown, instead of the vibrant, award-winning place it has become, attracting new (on balance higher earning and younger residents and visitors to live, work, and play.
Ms. Reasoner’s predictions are mixed: Revenues from Sales Tax will eventually level off. To that end, it is imperative for the City to review fee structures in all departments to make sure they are kept up to date. Ms. Reasoner, in addition calls for consolidations and to be wary of duplication of services between departments.
Sales Tax Flat at this time. Waiting for Wal Mart
Sales Tax in the 06-07 budget is estimated as $42,550,000 absolutely deadeven with 2005-2006. The city is crossing its fingers that Wal-Mart due to open this month will get the sales tax nudging. The money collected in sales tax after six months of 2005-2006 was sitting on $21,184,041. Unless Wal Mart comes through big time in May June bringing in a million, without impacting Target and other mall stores, the city will not have that little something extra. But, that is not to say the Wal Mart Windfall will not save the day.
Meanwhile, salaries are projected at $69 million, up 4.2%,(from $66,216,965) benefits $32.4 Million up 6-1/2% (from $30,424,197) and Debt Service at $8.9 Million in 2006-2007.
The unforeseen windfalls of 2006-2007 could bring visions and realities of mortgage taxes, new assessment valuations, higher parking collections, and land sales to turn a surplus. But, this should all come clear as the budget talks begin Monday evening.
One thing Ms. Reasoner notes is that the revenue budget is bolstered to the tune of $1,483,365 in deferred (amortized) pension payments for the police and fire pensions, for the third year straight. This technique actually produced the 2004-2005 surplus the city announced prior to the election, when $2,350,000 was teamed with the mortgage tax windfall of approximately $4,000,000.
Cash coming in over the transom from mortgage taxes in combination with the pension amortization was the 2004-2005 magic bullet that created the “surplus” OF $1,451,437 in 2004-2005.
Combined Budgets Show City Operating at a loss going into budget deliberations. Photo, WPCNR DocuLab.
The “Paper Chaser” Puts 2006-2007 Budget Online
The “paper chaser,” Don Hughes has posted the elusive City of White Plains 2006-2007 Proposed Budget on his “just the documents, ma’am” website where he publishes the documents the city of White Plains could publish if it wished to on its own website, but does not.
Mr. Hughes, as a service to Mr. and Mrs. and Ms. White Plains publishes them for aficionados of the obsure but impactful ordinances, relations and decisions that alter and illuminate and complicate our time. All the sections of the brand-new $25 a copy budget may be viewed at http://www.whiteplainsonline.com/WPOL_listing.rsp?_p_Operation=Ordinance&_p_Path=bd/2007/0.ProposedBudget/
