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WPCNR CITY HALL CIRCUIT. From The Mayor’s Office. February 5, 2009: Mayor Joseph Delfino has followed up on his promise to ask Assemblyman Adam Bradley to consider approaching the State Legislature to enact an additional 1/4% to the White Plains sales tax raising it to 8.38% . He did so in a letter furnished to the media today. In the letter the Mayor partially outlines the financial steps his administration has been taking the last two months to address city budget issues in the current 2008-2009 budget. He outlines a scenario depicting widespread city layoffs or a 12.3% city property tax increase given present city budget and finance conditions, attributed to ” drastic decline in home sales,”  ‘virtual cessation of all new construction,” and “being crushed by certioraries (property tax refunds),” and “retail sales being the worst in decades.”

Here is the Mayor’s request to the Assemblyman provided the media today:

The Honorable Adam T. Bradley

Four New King Street Suite 125

White Plains, New York 10604

As you are aware, the City of White Plains has applied to the State Legislature for the

continuation of our sales  tax rate increment, and the l/4o/o rate increase which began in July

2008, for our total current total sales tax of 2-1/4% . As our Assemblyman, I appreciate your

continued support of the City in this matter, and your help in securing the extension of these sales tax

rate increases.

 I also appreciate your assistance  on the Hotel Tax Bill which could bring the City an

additional $800,000 to $1 million in additional revenue  presuming  a 75 o/o occupancy rate. The

current economic situation may adversely affect the occupancy, however.

As you are also aware, I advocated strongly last year for an additional 1/4 % increase that

would only make  the total sales tax in White Plains equal to that of other large cities in

Westchester, Mount Vernon, Yonkers and New Rochelle. You had graciously agreed to review

the City’s finances this year to see if it were warranted.

Obviously, these are turbulent and unprecedented economic times. White Plains is

struggling as is every municipality in the state, more so than others because of our uniqueness. As

you know. White Plains’ residential population has grown to 57,000, but must provide services

to nearly 6 to 7 times that amount daily as our population swells to accommodate offîce workers,

county workers, shoppers and those  simply coming to enjoy our  entertainment venues. That is

why 90% of our sales tax comes from those who don’t live in our City and it relieves the burden on our

 property tax payers..

Looking at White Plains sales tax revenues reported by NY State for  the fìrst six months

of the City’s fìscal year (July -December). we see the severe blow this deep retail recession has

had on the City. With sales tax revenues representing such a signifìcant part  (over 30%) of the

City’s total revenues, and with retail sales being at the worst level in decades, if  not generations,

and the additional 1/4% approved in 2008 are barely keeping the city afloat at this time.

If other city revenue sources were stable, then the 1-1/4% increase would be enabling the

City to hold to its budget in this economic crisis. Regrettably that is not the case. Due to the

drastic decline in home sales and the virtual cessation of new construction, the City has suffered

irreplaceable losses in revenues from Mortgage Recording Tax and fees, Building permit Fees,

and we are being crushed by commercial tax certioraries caused by the State’s ridiculous formula

used in the equalization rate. We have asked  all departments to cut their current spending by 7%

and have taken other cost-cutting actions. We may have to cut even deeper this year and may have

to consider drastic measures including layoffs of City employees to  avoid excessive use of

our fund balance which is running extremely low.

To avoid substantial cuts to City services, which must serve both the residential and

commercial sectors of the City, and avoid burdening the residents of this City with a substantial

property tax increase when they, too, are struggling with financial crises of their own, I am

requesting that you actively support and assist the City in obtaining from the State Legislature

approval of the additional 1/4%  on the City’s sales tax rate. This increase will not generate

windfall sales tax revenues to the City, but merely help to prevent a dramatic shift in tax burden

to our homeowner taxpayers. Data on sales tax sources clearly demonstrates that the

overwhelming amount of sales tax is paid by non-residents (of White Plains).

The following example demonstrates how crucial this additional1/4% increase is to our

homeowners. On an annualized basis, the current 1/4% represents about $5.2 million in revenues

to the City. An additional 1/4% which would bring White Plains sales tax up to that of its sister

cities, could substantially offset the significant losses the City is experiencing  and anticipates

will continue.

If this revenue were not available through an increase in the sales tax, it would fall

to the property owner to make up the difference, as other revenue sources are not available. To

raise the equivalent amount from property taxes  would require a property tax increase of 12.3%.

For a homeowner with an average assessment of $15,000, this represents a property tax increase

It would require purchases in one year of almost $1 1,000 in goods and services

subject to White Plains sales tax to equate to that homeowner’s propefty tax increase. Clearly the

impact of that property tax increase on the homeowner is much greater than would be the 1/4% tax

increase which, at 25 cents on a purchase of $100, whiðh would be spread across all

retail purchasers who are predominantly non-residents.

White Plains has been blessed by the new development  and reinvestment in existing

housing and buildings which has taken place as part of our wonderful renaissance. This

renaissance was achieved because all sectors of the city’s economy, and all levels of government

worked together to achieve our dream of a truly walkable, transit oriented, residential and

commerical center, with beautiful neighborhoods enhanced by new open space and reduced

We must continue to work together, especially during these most difficult times. I believe

that crucial to our success in surviving this economic crisis with the least burden to our residents

is to obtain an increase of an additional 1/4% in our sales tax. This increase would help the City

to bridge the gap being created by declining retail sales, virtually stagnant home sales and the fall

off in construction.

As you may know, New York City’s Mayor Bloomberg is advocating an increase in sales

tax to 8.625% well above the  (White Plains proposed ) rate (of) 8.38% which would be the total with

this proposed increase, and this  increase would only makes us equal to and not greater

than, the sales tax rate charged in the other major cities in Westchester.

I strongly believe that an increase would not harm White Plains’ retail competitive advantage. 

White Plains is successful because of the diversity of its retail base and its unique position

as the County seat.

Should you require any addition(al) documentation, please feel free to contact me, It is

imperative for the City of White Plains that this be given top priority and that it is engaged

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WPCNR COMMON COUNCIL CHRONICLE-EXAMINER. By John F. Bailey. February 3, 2009: In one of the shortest Common Council meetings of all time, lasting just 35 minutes, devoid of any drama, or commentary on the state of the city finances, the Council  approved $250,000 in bonds for rehabilitation of fire houses; approved a $650,000 budget for the Downtown Business Improvement District); agreed to $190,043 in certiorari refunds to four condominium complexes in the city. It also approved new Department of Recreation and Parks fees for residents and non-resident use of city recreation facilities and activities for 2009-2010.

The meeting was interesting to note that no one on the council or the Mayor addressed the current city financial efforts to cut the current city budget, how much it was being cut, or when details of the cuts would be released. No mention was made of the recent Councilperson Rita Malmud announcing she would not run again. No comments were made on how the city is approaching the new 2009-2010 budget. The only person who mentioned the financial pressures the city faces was The Reverend Jacob Stukes of the Lonnie White Memorial Church of God in Christ who prayed that the Lord would help the city through these times in the Invocation.

The Council also voted to submit the city ¾% sales tax to the state legislature to renew the sales tax, and voted to submit a request for a hotel sales tax within the city limits to the legislature. A request to adjust the sales tax another ¼% as promoted previously by the Mayor within the last two weeks, was not part of the request.

Condominium Erosion in Value Begins to Impact Tax Roll.

Certiorari refunds of $98,447.90 were approved for Bryant Gardens covering 2005/2006, 2006/2007, 2007/08; and 2008/2009, with  a total assessment reduction of $260,000. Parkview Condominiums was granted a $66,508.15 refund for tax years 04/05/, 05/06, 06/07, 07/08 and 08/09 and a $130,000 assessment reduction. Wesley House received a $21,935.85 refund for years 04/05,05/06, 06/07,07/08 and 08/09 and an assessment reduction of $51,500. Tanglewood Gardens received a $4,051.60 refund and a $14,000 lowering of their assessment.

The total of $190,943.50 in refunds will cost the White Plains City School District approximately $764,000 in refunds this year. (For every dollar the city refunds in property taxes, the School District has to refund 4 due to the higher school property tax assessment.)

City Assessor Lloyd Tasch told WPCNR today that the  $455,000 in lowered assessment is currently reflected in the 2009-2010 Tax Roll, ($288.4 Million).

The creeping  financial worry of  more condominium certiorari filings on relatively moderate priced condos, reflects the slow and growing erosion of condominium prices  locally.  

Condominium Mean Sale Price in Westchester County in the 4^th quarter was down 12.2%  from 2007 to an average $393,560, below the average price of $400,672 in the 4^th quarter of 2006, according to the Westchester-Putnam Multiple Listing Service.

BID Sails On on a lower budget.

The counci approved a $650,000 budget for the Downtown Business Improvement District with no increase from last year.

The BID plan  includes $303,793 in salary expenses; $176,000 in BID Services (to the city);  and $90,000 is planned to be spent on programs to increase business in the downtown, including $60,000 for the New Years Eve Gala, $30,000 in the Taste of Downtown Food Festival. 

 The budget (including contributions) is down about $84,000 to $686,743, from the 2008-2009 budget of $770,730. It  should be noted the BID is funded by assessments of member-businesses in the downtown.

The BID Services include Public Relations and Marketing that plans $18,000 in BID advertising; Meals, $3,000, Travel, $500; Meetings, $1,500; Dues and Subscriptions, $500; Printing, $5,000; Conference and seminars, $750.

The Clean Sweep program (crews sweeping streets) costs $132,000; Supplies for Clean Sweep, $20,000; Gumbusters (Gum machine operation), $7,000; and Green Machine street sweeper, $12,000. The monthly costs for the Clean Sweep program have been reduced by $48,000.

Albany Asked to Extend Sales Tax, Enact Hotel Occupancy Tax.

In approving the resolutions for the  extension of the city’s 2-1/4% sales tax, the next step is for Assembly and State Senators representing the city to introduce the continuation of the home rule request in the state legislature to continue the sales tax for two years through 2011.

The approval of the resolution of the hotel tax, requests the legislature to enact a 3% hotel sales tax within the City of White Plains city limits, to December, 2012.

Fire house improvements infrastructure financing approved.

The $250,000 in fire house improvements include redoing the floor of one fire house, brick improvements and plumbing, energy efficiency upgrades, window and door replacement, waterproofing and site work. The improvements as described appear structural and not related to amenities.

Kensington Extend.

The council also extended for 60 days the period for due diligence on the Kensington senior living project adjacent the Lexington avenue Municipal Garage at the corner of Maple Avenue through March 31. Kensington is awaiting HUD guarantee of any loans and financing negotiated by Kensington for building of the $30 Million site. Financing as of this time has not been obtained by the Kensington group.

The council referred out a request by The Metropolitan, the planned condominium development at Maple and DeKalb avenues extending that approved site plan for another year.

Tim James and Jeane Garment were reappointed to the Library Board.

Rec Fees Advanced.

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WPCNR PHOTOGRAPH OF THE DAY. February 2, 2009: The doomed Big Ball Park in the Bronx awaits the wrecker’s ball while the new Yankee Stadium, (at right) considerably more diminutive with upper decks set way back from the action, stand side by side in this view from a 757 winging west.

Your Tax Dollars at Work: Yankee Stadia — Old Yankee Stadium, left, and New Yankee Stadium, right, built with a lot of  your tax dollars, from a Boeing 757 after LaGuardia takeoff. Photo by the WPCNR Roving Photographer.

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WPCNR MAINLINE NEWS. Special to WPCNR By Renee Marks Cohen. February 1, 2009: On January 30, the Westchester County Association presented Elliot (“Lee”) Sander, Executive Director and CEO of the MTA, at their Distinguished Speaker Breakfast.

Metro North Northbound Tracks, White Plains

Sander oversees 2.4 billion subway, rail, and bus trips each year (about one third of U.S. mass transit trips); and the bridges and tunnels that carry over 300 million vehicles per year. (In light of the economy, the writer wondered what Sander’s bonus, pension, and parachute are.)

Here are MTA Director/CEO Sander’s main points:

·        The MTA is facing a $1.2 billion operating deficit mainly due to debt service of about $2 billion a year, what Sander called a “horrible situation.” It thus has Draconian budget issues.

·        Its 5-year capital program will cost $30 billion; that includes creating the Second Avenue subway.

·        The MTA has cut its budget about 11 percent. Its administrative costs are 7 percent of its budget.

·        Sander hopes the MTA will receive 15 percent of the brand new Federal transportation stimulus package of $9 billion.

·        If the MTA doesn’t get enough funding (as happened in the 1970s and ‘80s), the resulting poor capital program might lead to the demise of Manhattan. Sander displayed a 1912 signaling mechanism that was used until recently on a city subway.

·        According to Sander, sustainability is a big issue. The MTA explores many green initiatives, including offshore wind farms, aluminum third rails, hybrid-powered buses, and rolling stock that uses less energy.

·        The MTA wants a clear vision of population growth in Dutchess, Orange, Rockland, and Putnam Counties.

·        Safety and security are important for the organization.

·        Congestion pricing was too political; bridge tolls can be a substitute.

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WPCNR QUILL & EYESHADE. By Sara Dimerman, Author of Am I a Normal Parent? January 31, 2009:While most parents feel satisfied by providing their children with life’s necessities, many parents may feel guilty when they can’t give their children what the neighbours’ kids have. During these difficult economic times, many parents are re-evaluating their spending habits and trying to please their children with what they do have. For many children, distinguishing between a want and a need is tricky.

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Here are ten tips to help you deal with cutbacks in your family:

1. Take this opportunity to reflect on and review your spending habits. A crisis can also create an opportunity for change and an opportunity to gradually teach your children about the value of money by modeling wise spending and careful budgeting. Even if you have lots of money to spend, consider what you are teaching your child by continually adding to their material wealth.

2. Keep in mind that children are easily frightened by sudden changes and can quickly jump to the worst conclusions. A young child, for example, may worry about not having a house to live in if they hear you talk about not being able to throw them the usual birthday party. The key is to cut back gradually and to not make an issue over not being able to afford something. Instead of having to talk about what you can no longer afford, consider how you can spend your money more wisely.

3. Help your child understand the difference between a need and a want. Do this at a quiet time when he or she will be more likely to listen—don’t wait until you are at the toy store.

4. Help older children understand the value of money. Have them contribute part of their allowance or wages from part time employment to items that are not necessities.

5. Watch how you model buying habits. If you buy on impulse, it may be difficult for you to help your children reflect and wait a couple of weeks to see if it is still at the top of their must-have list.

6. Don’t say “we can’t afford this anymore.” Children will again jump to terrifying conclusions about what will happen next. Say something like, “I’ve been thinking that since you already have so many games and toys at home, that buying more is just adding to the clutter. Let’s go through the cupboard, give away what you don’t need, and see if you really need another game like this.  Maybe we’ll even find something similar to it stuck away at the back of the cupboard.”

7. Compromise.  If your child insists that the item is really important to him or her, say something like, “I know that you really want it. I know what that feels like. Unfortunately buying that toy wasn’t on my shopping list for the week.  Can you think about it? If you really want it as badly in a couple of weeks, we’ll think of a way to make it happen.” Plan on how to save the money to get it: “If you put aside your allowance over the next two weeks, that’ll mean that you’ll have half of what you need. I’ll put in the other half.”

8. Without alarming your children, gradually include them in some simple budgeting for the household. First decide as an adult what you feel comfortable allocating each week towards your household expenses. Take that amount and present this as an exciting activity–your children won’t even realize that they are improving their math skills! Lay all bills (real or Monopoly money) out and then ask your children what they think you spend on the necessities. By showing your children how to budget and allocate, they may be more sensitive frivolous spending and you are teaching them an essential life skill. A word of caution: Make sure that your children are not at home or are asleep if you and your partner fight about money–it’s amazing what children hear even when you think they aren’t listening!

9. Always try to have some money left over for a slush fund.  Treat yourselves to something fun at the end of the month, especially if you’ve been careful all month long.

10. Try to remain optimistic, even during tough times. Even if you can’t afford something right now, talk about how you can make it happen as a family. Ask, “How can we work together to make this happen?”

About the Author: Sara Dimerman, author of Am I a Normal Parent?, graduated with a Master’s level Diploma in Assessment and Counseling from the Institute of Child Study, University of Toronto. After ten more years of training, she obtained the title of Psychological Associate by the College of Psychologists of Ontario.  In 1990, Sara founded the Parent Education and Resource Centre in Thornhill, Ontario. She is a well known author and lecturer on parenting and family issues.