WHITE PLAINS CITIZENETREPORTER SETS RECORD VISITS FOR YEAR 7,017,658 VISITS! 2,098,003 VISITORS MADE 6 VISITS A DAY EVERY DAY. 63,330 UNIQUE VISITORS MADE 133,730 VISITS IN DECEMBER. WPCNR AVERAGED 17,284 VISITORS A WEEK, VISITING 31,270 TIMES.

Hits: 0

WPCNR POLICE GAZETTE. From the  Office of the Westchester County District Attorney. February 28, 2009: Lucien Chalfen, spokesperson for Westchester County District Attorney announced yesterday that aWestchester County Grand Jury had voted to charge Sheldene Campbell with felonies, in connection with the hit and run death of  Marie Bucci, a resident of the Haviland Manor neighborhood in White Plains, and the hit-and-run injuries suffered by  another resident of the same neighborhood on October 19. Chalfen reported Campbell would be  arraigned on the new charges in mid-March. Chaldene is being held on $200,000 bail in the Westchester County Jail.

Hits: 0

WPCNR COMMON COUNCIL CHRONICLE-EXAMINER. From City Hall. February 27, 2009: The Common Council swings into action Monday evening. The highlight of the meeting will be an ordinance reducing Coucilman Glen Hockley’s salary by 10%, the legality of which in view of the city charter prohibition that salaries may not be changed once a fiscal year has begun, is one for legal scholars to debate. Passing of such ordinance may create an intriguing precedent for councils in the future.  Requests for such a justification from City Hall in view of the Charter provision, have so far not been responded to.

Councilman Glen Hockley at the podium.  Monday Night the Council votes on an ordinance to lower Mr. Hockley’s salary on his request. However he is the only Councilperson to request a salary cut in light of the city’s reported $11 Million revenue lag. File Photo, WPCNR News Archive  

Also on the agenda are extension of a site plan for the Kensington assisted living project  adjacent to the Lexington Avenue Garage for 60 days.  Another item of interest is a resolution raising building department and planning department fees for reviews of builder requests. The rest of the agenda follows:

Hits: 0

WPCNR SCHOOL DAYS. By John F. Bailey. February 25, 2009 UPDATED 4:16 P.M. E.S.T. UPDATED February 26, 2009 11:35 A.M. EST : The Board of Education unveiled its “Austerity Budget,” Wednesday evening to mixed reactions at the high school. The public as a whole did not demand more cuts in the  Preliminary School Budget set at $185.9 Million,  (the lowest year-to-year increase in thirteen years), but mainly asked questions that demonstrated  a lack of familiarity with district expenses. Main concern focused on cutting teachers and teacher aids.

 

The Superintendent of Schools said that if the School Budget were voted down, the district could choose to offer another vote, or lower the budget at the Board’s discretion but were prevented from putting out a budget higher than any budget the district votes down.  It was pointed out that the current expense budget is .81% higher than the budget last year. And, the Contingency Budget believed to be allowed this year would enable a 4% year-to-year increase.

 

Superintendent of Schools Timothy Connors background with microphone and Assistant Superintendent for Business, Fred Seiler, foreground fielding questions from about 150 persons last night at the second Community Budget Forum.

 

 

The Superintendent of Schools Timothy Connors would not report the number of teacher, administrator, custodial and secretarial cuts in personnel until he said he shared the specific cuts with the schools. A teachers union representative, Joan Traber said the district had not shared the exact number of cuts of teachers and assistants with the Teachers Union going into the second round of state-mediated negotiations today. The Superintendent said a possible settlement was planned for in the new budget, and it would not have to be increased with any settlement.

 

In response to an angry tax payer surprised by the stealth cut in STAR Exemptions last spring that cost White Plains taxpayers unanticipated taxes , the Superintendent said as soon as the district received word from New York State as to cuts in the STAR BASIC and ENHANCED Exemptions (that lower home assessed values reducing property taxes) he would share that with the public. 

 

Fred Seiler, the Assistant Superintendent for Business said the school district anticipated a $2.5 Million cut in education aid. He also made a point that a 1% expense increase did not translate into a 1% tax increase, which Seiler admitted would drive the tax rate up. Seiler said the district anticipated lower assessed Value. His point was that though the district had only raised their budget less than 1%, that taxes would still be going up due to declining school aid, declining revenues from assessments.

 

He also said that the Metropolitan Transportation Authority proposal to tax school districts, if enacted, would cost the White Plains district an additional $325,000 plus added to the budget. That, WPCNR computes,  would move the year-to-year budget increase up to .9% from the .81% 

 

The Superintendent noted  the school district is seeing an increase in enrollment at the kindergarten and the high school levels from private schools as the economy deteriorates. He also stated that the Emerging Scholars Program, originally given to WPCNR on a list of summer programs to be eliminated two weeks ago, was not going to be eliminated.

 

The budget presently is $1.5 Million higher (0.8% higher) than the 08-09 budget. This is the lowest school budget year-to-year increase since 1995 when the budget was $87.8 Million and increased only 1.94% .

 

For a more complex analysis of the Preliminary Budget published earlier this week follows.

 

 

In the thirteen years since, the school budget has more than doubled to the suggest $185.9 Million made public Monday evening, a .81% increase, increasing the tax rate an estimated $11 per $1,000 of assessed value by WPCNR estimates before the district considers its 09-10 revenues, giving a tax increase of approximately $150 for the $500,000 to $700,000 home, and  substantially more over $200 and up for homes valued higher than $700,000.

The $4.3 Million in cuts the school district made from the $190.3 Million submitted are mainly layoffs, attrition and retirements amounting to about 30 persons based on an estimate of $100,000 in salary and benefits for each person whether they be teacher, secretary, custodian or teaching aid.

 

The Superintendent of Schools has declined to reveal the number of persons who will lose jobs, will be retiring, or whatever, if these are real people or not. For years the district has been told you can’t cut teachers without  reducing teacher-student rations and thus increasing class size.

 

Well this year, the district said Monday, they can. It raises the question of why more personnel cannot be cut, why suddenly after years of increases of 6 and 7% the district can suddenly lop off their essential overhead.

 

 WPCNR’s Math Lab says it all depends on where the city assessment roll ends up after the record number of assessment challenges. Depending on how the City Board of Assessment Review rules on the current assessment roll, stopped for the moment at 288.4 Million,  $3.3 Million less than last year’s $291.7 Million roll. Because the Preliminary Budget announced Monday night is $1.5 Million higher, it amplifies the assessment decline by another million and change that has to be made up by the tax rate.

 

No handle on Revenues

 

The school district significantly has not estimated “revenues” yet. All they have done is look at expenses. The Assessment Roll at $288.4 Million means they are down in tax base (last year, $291.4 Million) creating a $1.6 Million revenue shortfall. They have chosen to add $1.5 Million to the budget, so they need to “find”$3.1 Million in revenue, and this is before they get the word on what state education aid will be cut.

 

Going into tonight’s meeting, WPCNR estimates that if state aid remains the same as last year, which is doubtful, the district has to make up a minimum of $3.3 Million in revenue from the taxpayers, just based on the documented assessment roll decline, prior to the assessment roll being set in stone March 2.

 

For the School District to  make up the $3.3 Million just from the drop in the Assessment, plus the $1.5 Million more in spending programs the tax rate needs to increase to $513 and change per $1,000 of assessed valuation from the current rate of $503 per $1,000 of assessed valuation.

 

This will mean for the average house assessed at $15,145 of assessed value (about a $650,000-$700,000 home) an automatic tax increase of  $166 ($7,784 compared to $7618 this year) . If your assessment is $20,000 you’re going up $220. ($10,280 compared to $10,060)

 

PROPOSED STEALTH STAR BASIC AND ENHANCED CUTS INCREASE TAX IMPACT DISCREETLY

 

 If, however the STAR BASIC and ENHANCED EXEMPTIONS are reduced 18% as planned by Governor David Paterson, your assessed value will go up – even though your assessment remains the same.

 

As WPCNR pointed out exclusively in 2008 when the legislature secretly lowered the BASIC and ENHANCED Stars to pay for increased state education aid restoration, the Governor’s office is planning this again in 2009-10. According to Assemblyman Adam Bradley, the Assembly is fighting this proposal, so at least the Assembly and presumably the State Senate know about it. They professed not to know of the 10% cut in the Basics and Enchanceds last year.

 

This year on the $650,000 to $700,000 home, should the STARs be cut 18%, this will mean your assessment goes up automatically $731 – (I know this is complicated but bare with the CitizeNetReporter here) – lowering the amount you can deduct from your assessment and therefore increasing your property tax. 

 

Here’s how it works for the $650,000 to $700,000 home if you’re under 65,  when this year you enjoyed, as did all homes in White Plains and the state, a $3,330 STAR BASIC EXEMPTION.

 

If the Governor has his way, your exemption will be cut to $2,731. Deduct this from your $18,475 Assessed Value and your assessed value is not $15,145 as it is this year, but $15,744.

 

State Taxes an Additional  $599 in Assessed Value.

 

The Bottom line  WPCNR Math Lab School Tax Calculator (pending other revenue cuts or revenue additions) then places your increased school tax at $8,092,  ($514 per $1,000 of assessed value times 15.744), this means, pending revenue projections by the school district your school tax for the $700,000 home will go from $7,618 to $8,092, a tax increase of $474.

 

If your assessment is $20,000 of assessed value it increases to $20,600 increasing your school tax to $10,588 from $10,280 – that is an extra $308 in tax – if the 18% goes through.

 

For Seniors STAR ENHANCED CUT adds $588 to their 09-10 Tax In addition

 

The impact on seniors of an 18% STAR ENHANCED CUT is brutal.

 

This year the Senior Enhanced exemptions for homeowners over 65 was $6,500. If the Governor’s program to lower the exemption floor 18% is adopted, the senior Enhanced STAR Exemption declines $1,170 to $5,330 they may deduct from your assessed value.

 

In our mythical $650,000 to $700,000 home, with an assessment of $18,475, the senior has $5,330 he or she can deduct giving them an assessed value of  $13,145. They pay a new school tax of $6,756  (13.1 times the new tax rate of $514) instead of $6,168.

 

The 18% reduction in the Enhanced STAR delivers to seniors over 65 an automatic increase of  $588 on top of the $6,152 they pay at the straight predicted $514 per thousand rate.

 

So the district residents attending tonight have to cross their fingers that the state education aid will not change (in this case, go lower).

 

Bottom line, going into the state budget deliberations for 09-10, you have to hope that STAR EXEMPTION cut gets stricken or eased somewhat, otherwise the impact will deliver a more taxing blow.

 

The Tax Impact Overall.

 

Updating the WPCNR tax outlook published last week: here is how the tax increases for each taxable authority impact the $650,000 to $700,000 homeowner in White Plains with a house assessed at $15,145 assessed value.

 

SCHOOL TAX:  $7,784

 

CITY TAX (WITH $167M BUDGET: $4,000

 

COUNTY TAX: $2,400

 

TOTAL ESTIMATED 2009-10 TAX BILL ($700,000 HOME): $14,284

 

TOTAL 2009-2009 TAX BILL: $12,600

 

 

YOUR YEAR TO YEAR TAX INCREASE: $1,684*

 

This could be reduced if the city or the school districted reduced their budgets from the School District $185.9 Million, and if the city cut their present budget from $161.7 Million, and did not roll it over to $167 Million to cover projected deficits and sales tax shortfalls. There is still time for frugal financial management by the city and the school district to lower their budget.

 

 

 

Hits: 0

DO YOU RECOGNIZE THIS MAN? CONTACT POLICE, 914-422-6111

WPCNR POLICE GAZETTE. From Daniel Jackson, White Plains Deputy Commissioner of Public Safety. February 24, 2009: The White Plains Police Department is looking for some assistance identifying  a bank robbery suspect.

The attached photos are of a male subject that got about $6,000 from the Citizen’s Bank within the Stop and Shop Supermarket at 154 Westchester Ave. yesterday(2/23) morning just before 11 a.m. Subject left on foot towards Westchester Ave.

He is described as a male, medium complexion, average build, approx. 5’8″ tall, scruffy facial hair, earring in left ear, possibly early 30’s, wearing black waist length coat, tan baseball cap, blue jeans, and silver framed aviator style sunglasses.

No weapon displayed. The subject passed a note to the teller demanding money.

Anyone with information to identify this subject is asked to please call the White Plains Police Department at 914-422-6111.

Hits: 0

WPCNR QUILL & EYESHADE. By John F. Bailey. February 23, 2009 UPDATED 4:12 P.M.: Last week, the City Finance Commissioner, (exclusively reported by WPCNR), told the Common Council the city was projecting at this time a revenue shortfall of possibly $11 Million in the current budget year. That in itself is stunning news considering the city pronounced nervously on target three months ago.

 

This report is not in any way an attempt to pick on the city, but even this simple calculator analysis by the WPCNR Math Lab,  reveals  the ghastly money pit the city and the school district are now freefalling into.  An analysis of simple tax mechanics shows the dramatic significance of tonight’s School Board introduction of the Preliminary Budget.

 

 

If the school district does not deliver a budget the same as this year – the property tax burden soars on Mr. and Mrs. And Ms. White Plains to over $14,000  for school, city and county property taxes — on the average home and higher if your home value is over $700,000.

 

 The meeting to pay attention to is tonight at the Board of Education, 5 Homeside Lane, 7:30. 

 

The outgoing Superintendent of Schools Timothy Connors is expected to announce a Preliminary School Budget, which is currently sitting at $190.3 Million, when the other city tax guillotine will fall on city taxpayers’ collective necks. The more your home is assessed, the more you will pay –thousands more and that is just in one year.  If the school budget is not at least $1.2 Million less than this year’s budget, the typical home of assessed value of $15,000 will be forced into a $2,000 and up tax increase.

WPCNR observes, (as reported on White Plains Week, our television show Friday evening, you may see it tonight at 7:00 on FIOS TV 45 or Cablevision Public Access Channel 76/,  that if your home is worth from $650,000 to $700,000 – if the city deficit holds, and the School District does not get the budget down below this year’s budget of $184.4 Million – you face a $1,800 tax increase from the school district, city and county combined. If your home is assessed based on a value over $700,000 you’re paying a lot more.

 

 

If the city is not high balling the deficit to make a point with the unions, whose contracts all run out in June,  the city will have to make that $11 Million up from its undesignated fund balance dropping its rainy day fund to below $20 Million. The fund balance will not be available to fill the $11 Million money hole created by the bottom dropping out of Mortgage Taxes, Building Permits, and sales tax erosion suddenly gripping the city. Slide by White Plains Week

 

Strategies of what to do in “crafting” the 2009-2010 budget, with that $11 Million shortfall likely —  due to continued softness in sales tax collections —  have to consider a whopper of a city tax rate increase if city spending continues at the same rate.

 

 

WPCNR Projects the City Property Tax Would Rise 33%.

 

Let’s take a look. As the legendary City Executive Officer George Gretsas, architect of the White Plains Renaissance in the first years of this decade,  once told this reporter,  for every $1 Million of budget increase you have to increase property tax 3%.

 

If the city does not cut its $161.7 Million 2008-09 budget for 2009-2010, you are still going to have to allow for the no building permits and license fees, the eroding mortgage tax, and soft sales tax shortfalls going forward. The decline has no end in sight, especially with major big box retailers rumored, in addition to Fortunoff to be closing 

 

The city is going to have to fund the current union wages somehow at the present rate – funded by revenue that the city last week is telling us is just not there.

 

Do not forget the Common Council refused the police and fire unions a 3.75% increase in December, perhaps politically motivated at the time, but obviously in retrospect, a thoughtful decision by the Common Council, no matter what their motive.  

 

 

But, you are going to have to do something with the unions, whether the demands for wages are dictated by mediation, arbitration or fact-finding, and the only way to do that, (short of state aid of some mechanism, or another ¼% increase in the sales tax urgently requested in a letter from the Civil Service Employees Association in a letter to the Mayor, putting the pressure on Assemblypersons Adam Bradley and Amy Paulin and State Senator Suzi Oppenheimer) is to increase the city property tax. The CSEA has been without a contract since June of 2008. The Police, Fire and Teamsters unions contracts expire in June.

 

Because, do not forget, city hall has to pay the unions, the commissioners and the expenses at this year’s rates any way in 2009-10 – with according to the projection, $11 Million less in revenue. How is it going to do that?

 

City Hall will have to do that because apparently it has not cut substantially to reduce the $11 Million deficit the Commissioner of Finance expects this year.

 

No detailed department-by-department list of cuts was issued by the city Thursday evening. The Mayor said in December he was seeking $4 Million in cuts.

 

So far that list of cuts has not appeared, despite repeated requests by the media. Now, they do not have to give it to the media, but they should at least have furnished it to the Common Council Thursday, and the Council strangely has not asked for it.  How much of the $4 Million has been realized and ponied up in actual city cuts?

 

Using that yardstick of 3% property tax for every $1 Million in spending and assuming the sales tax  trend continues its sluggish pace,  the sales tax collection is not going to meet the $45 Million projected revenue. WPCNR notes it should hit $43 Million at the present rate of decline in retail sales, computed by WPCNR to be 14%

 

Mayor Pleads with Landlords to not Gouge Businesses.

 

Mayor Joseph Delfino is well aware of the cascading malaise in the White Plains retail sector. In an interview on News12 over the weekend he pleaded with landlords in the White Plains downtown not to raise rents on retail tenants and called for the landlords to be flexible and work with tenants so they will not have to close.

 

 

 

The Commissioner of Finance reported Thursday, the city is down $2 Million in Mortgage Recording Tax; $600,000 in Charges for Services; $1.5 Million in Licenses and Permits; $1 Million in Fines and Forfeitures; and $2.3 Million in miscellaneous – the deferred payment for the municipal parking lot postponed indefinitely because it is payable after LCOR builds the 55 Bank Street project, not even started yet.

 

When you include projected sales tax shortfall of $4 million based on the current rate of retail sales being down 12% (in the holiday quarter just completed), the city could be facing an $11 Million deficit if they keep the city budget where it is ($161.7M)

 

If union contracts are settled at 1, 2 or 3% (by negotiation, an arbitrator, or whatever it takes, and city has no other sources of income, “one-shots,” state aid or whatever),  a 33% tax increase is what the city may face. 

 

In the following chart we take the $650,000 to $700,000 White Plains home, which currently pays $2,724 in city property tax. If the city tax rate must increase 33% (3 x 11, figuring 3% increase for every $1 Million you need to collect) then your city property tax on a $650-$700,000 home goes up $899 to $3,623 as opposed to $2,724 this year almost a thousand dollars. If your assessed value is more than $15,000 that year to year increase, of course, will be more.

 

 

Now, that’s only possible if the city budget remains at  the $161.7M spending level. 

 

Say, the city based on union settlements by arbitration, mediation, fact-finding or election year largesses decides to lift expenditures say 4%. Then the city property tax increases proportionately.

 

 You have to make up the $11 Million revenue shortfall in current income next year PLUS another $6 Million in budget, because the fund balance will be for all intents and purposes be too low to touch.

 

The city fund balance, sitting on $28 Million last April will be depleted by the $11 Million shortfall projected last week – which was supposed to come from projected revenues that are not materializing.

 

 The city has to make up that revenue in 2009-2010 since undesignated fund balance will sink to $17 Million if the dire prediction of last Thursday comes true, and the city appears reluctant to snatch more of that.

 

 The city notes in the 2008-2009 budget, “The City’s largest percentage increase in the tax rate (14.4%) for Fiscal Year 1992-1993 occurred after fund balance fell to a low $10.4 Million.” So it would be unlikely for the city to just run out more undesignated fund balance in 2009-2010 in the face of the economy meltdown on recently demonstrated retail sales softening.

 

Increase of 4% in city budget for 2009-10 hits the $650,000-$700,000 home with a $4,000 city property tax.

 

So say the city budget increases 4%, then the $650,000-$700,000 home city tax has to increase 51% to cover the extra $6 Million in change added to the budget. That works out to $1,377, lifting the tax from 2008-09’s $2724 to a staggering $4,101. That is stunning, but that’s the math.

 

 

 

Let’s look at the sobering numbers:

 

If as City Assessor Lloyd Tasch estimates the $288.4 Million City Tax Roll declines $500,000  to $1 Million considering the doubling of the number of assessment challenges he and the Board of Assessment Review are working through, the school board has to cut the budget starting out from this year’s $184,4 Million. If the budget is raised to only $188 Million, then the tax rate goes to $530/M up from this year’s $503/M

 

Why? They are already facing a revenue shortfall since their assessment roll is down from the $291.7 Million of this year.The district, like the city has to play catch up money ball due to the assessment erosion before they even begin to add money for salaries (currently in mediation), new programs ($500,000 being proposed) and the last bond sale for $16 Million for the balance of the $66.7 Million capitol project, (contract bids have been received).

 

School Tax, City and County Tax Pushing $15,000 on the $650,000 home

 

As the chart shows below if the School District settles at the $188 Figure the burden takes the White Plains median home over the $4,000 property tax level.