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WPCNR QUILL & EYESHADE. From news reports. October 3, 2008: The House of Representatives in the Nation’s Capitol voted 263 to 171 today to approve the Trillion Dollar Bailout Bill conceived to support the recovery of the nation’s financial markets, credit operations and attempt to arrest deteriorating economic conditions across the country. President George W. Bush signed the bill into law. Secretary of the Treasury Henry Paulson promised “quick action.”
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WPCNR GOES TO THE THEATRE. By John F. Bailey. October 2: There are many bright shining moments, buffed, polished and gleaming once more in the new Lerner & Loewe’s Camelot, the first revival of the 1961 icon of a show — first course delicacy on White Plains Performing Arts Center theatrical buffet this season, as WPPAC continues its performing course in great musical theatre.
The Eternal Triangle Begins, Rendered by Robert Cuccioli, (seated) “The Official Leading Man of New York,” as the troubled, hesitant, heroic King Arthur, Her Majesty, the regal Juli Robbins as Queen Guenevere, looking on in disapproval at the boasting Greg Goodbrod as Sir Lancelot when they first meet in WPPAC’s debut production of Camelot, Friday through Sunday. Photos, Courtesy White Plains Performing Arts Center
Camelot could not come to White Plains at a better time. The show with its clever, amusing and intelligent book and songs depicting the ambiguities and resiliency of the best mankind has to give will inspire with the hope it instills. That’s the reason it was a hit the last time people believed in a Presidency, 1961 (when the Camelotian Kennedy administration governed two-1/2 years). You still have three days left to see it, Friday night, Saturday and Sunday this weekend at the WPPAC.
WPPAC engages the imagination by transforming the ever versatile WPPAC stage into King Arthur’s Great Hall, where the audience appears actually in the great hall with banners festooned about the sides of the hall. Through the magic of Thom Weaver’s lighting it turns into enchanted woods, a jousting tournament, castle battlements, and singer-performers who can deliver emotion without crossing into melodrama.
Camelot is the story of a love triangle between “The Official Leading Man of New York,” Robert Cuccioli, the Tony Nominated (Jekyll & Hyde) star who gave WPPAC hope last season with his house-buster Man of La Mancha; the exquisite regal flame-haired Juli Robbins as Guenevere with a voice as articulated and commanding as fine crystal, and Gregg Goodbrod growing into the role of Lancelot.
The attraction between Ms. Robbins and Goodbrod is apparent and subtlely developed as a real romance is. How the attraction develops, though somewhat preposterous, through Guen or “Jenny” as she is called by Arthur and Lance, detests Lancelot’s conceit when she first meets him. Lancelot performs a divine miracle through some kind of hands-on CPR, that proves to Guenevere he is not all ego.
Goodbrood’s first big moment comes with his hilarious singing resume, “C’est Moi!” , a testimony to his abilities. He bonds with the audience delivering a hearable, comprehensive delivery with gesture and savoirfaire bringing great laughs . At the beginning of Act II he delivers the song that made Robert Goulet a star in the original production.
As he professes he can no longer stand to live in Camelot with Guenevere out of reach, he stops himself and delivers If Ever I Would Leave You with a sweep, an emotion, an intricately sewn tapestry of range that delivers more meaning than Goulet ever put into singing this song. The songs in this show – all of them are not sung in the belt-and-shout style .
While Goulet just belted it, Goodbrood gives the sensitivity, the reality, the pain, and yes, the j’n sais quoi that somehow makes the audience understand why a man would rather be around a woman who inspires him whom he cannot have than not have her in his life at all. In this writer’s opinion the Goulet style simply blasted the song (especially in the hit recording), rather than deliver the intense finesse the song is given in this show.
It takes a great deal for you to take your eye off the regal queen Juli Robbins – here charming knights in The Lusty Month of May. Ms. Robbins intense mesmerzing gaze and Dove Beauty Bar complexion – casts her appreciation on Lancelot demurely, with class and manners, giving plenty of evidence of the smoldering fire for Lancelot within. Here is an actress who plays a queen who is queenly and sings like her namesake with a stately commanding style.
Taking the signature Julie Andrews role (Guenevere was Ms. Andrews follow-up star turn to her never-to-be-forgotten Liza Doolittle in My Fair Lady, acclaimed the greatest musical of all-time), Ms. Robbins has that very British royal inflection in word and song, articulating superbly.
Long experienced on the Camelot National Tour, Ms.Robbins is the radiant sun this production revolves around.
It’s Lonely, Confusing, and Tough to Be the King: Robert Cuccioli captures the king’s confusion and anxiety over loss of queen and pursuit of his ideas with a performance evoking compassion and inspiration.
Guenevere’s King Mr. Cuccioli negotiates the intricate nuances of loving two persons, his wife and his friend Lancelot, channeling his jealousy, and attempting to preserve his idealistic dream for the roundtable. He is a leader trying to do right in a world filled with self-interest (the knights). (Does that sound anything like today’s political scene?) The triangle dynamics work superbly.
Mr. C shows another side here – a committed dedicated powerful Quixote in Man of La Mancha, here he is a confused, diffident King in doubt until the end, but loyal to his two friends and his obligations to his ideas that sometimes as we find in life are always in conflict with what makes us happy. Is that timeless or what?
His first meeting with Guenevere, he carries off brilliantly taking advantage of Ms. Robbins’ not knowing he is the king she is to marry. This banter between them is brilliantly acted by both. He sets the tone with the title song Camelot. Robbins plays a young and lamenting nervous bride singing The Simple Joys of Maidenhood.
Lancelot is introduced to Guenevere by Arthur and Guenevere’s contempt for Lancelot’s self-confidence, to say the least is another throroughly amusing scene highlight by the company’s The Lusty Month of May, and Guenevere’s attempt to take Lancelot down a peg by urging knights of the roudtable to joust him are the beginning of the Lancelot-Guenevere romance. Robbins cajoling of the knights with her rendition of Take Me to the Fair is splendidly timed with appropriate raised eyebrows and wide eyes – any knight would oblige.
The Jousts scene – right out of the Races scene in My Fair Lady – is another suspension of belief carried out by the WPPAC production team.
ACT II things go bad for our conflicted King, Queen and Knight errant.
The evil Mordred, Arthur’s illegitimate son arrives and plots to take over the court. Played by Saum Eskandani, (center, third from left), who played the scheming nephew in How to Succeed In Business Without Really Trying on this very same stage. This guy is very good at playing evil, scheming, slimy guys and making them hated and entertaining simultaneously, his Mordred singing The Seven Deadly Virtues is hysterical, followed up by Fie on Goodness when he converts the Knights of the Roundtable above, who reminisce about their looting and whacking, is just great stuff. Mr. Eskandani deserves a sitcom.
In the denoument, Cuccioli and Ms. Robbins deliver a wonderful duet, What Do the Simple Folk Do? In which with each verse, the passion that once was between them almost rises to the surface, but because of outside forces has been forever mooted, an all too familiar theme in everyone’s lives.
But this is not a sad show, even Ms. Robbins lovely farewell to Lancelot after Mordred’s plot exposes their romance, is a positive and uplifting adieu. Her I Loved You Once in Silence warms the heart and tears you up the way Ms. Robbins styles it, in her silky soprano so precise with control and courage and emotion.
Robert Cuccioli’s role Arthur, (played by the tortured Richard Burton in the original), gives brooding and angst worthy of the Burden persona, but more lovable. He is central, moving Arthur through his various stages of shrinking from responsibility, dealing with it, pushing for an ideal, being the “big person” in a situation. His dialogues are soliloquys of doubt, perfectly realisticly rendered.
His How to Handle a Woman is handled just right, completely in keeping with Arthur’s realization he has lost Guenevere but still loves her.
The songs in this show are so encompassing in the way they facet every shade of emotion. Each song is not just entertainment but philosophy, wisdom, truth, all those good things artists try for years (most of them anyway) to portray – crystallizing human existence. (O.K., so I’m a sentimentalist.)
Kudos to the comic relief of Ronald Brown as Merlin and Pellinore – magician and mentor, and errant knight, providing excellent comic relief.
Music is reminiscent of Ferrante & Teicher — the two pianist stars of the 50s — whose style is perfectly matched by two elevated pianos keyboarded by James Bassi and Steven Gross who impeccably lay a splendid “bed” of melody under the voices. I really loved their style and the two should record this sound track – a bold concept in staging by the Musical Director Gross, and an economical one at that, and it works.
Sidney J. Bourgoyne, the director weaves the interaction sensitively. The staging especially the rescue of Guenevere scene with lighting high drama. The costumes use authentic armor. As Brenda Starr, yours truly’s companion remarked, she appreciates minimalist productions because you can concentrate on the performances, not the pyrotechnics.
Another spectator advantage of seeing the classics at WPPAC is that every seat is a box seat. The actors have to act better, they are not saved by distance, and the vibrance and reality or lack thereof is instantly discernable. It is like a private command performance for royalty.The acoustics are impeccable.
Camelot is not sad, ending with a vibrance that send us all out to be “a few great shining drops in the ocean.”
It inspires us to leave the theatre and strive for our own bright and shining moments which is why it is a classic.
Tickets are still available, so go see a classic – it’s always guaranteed at White Plains Performing Arts Center. Tickets, 328-1600 or visit the theatre’s website, and select your seats at www.wppac.com. There are limited seats still available for shows at 8 Friday, 8 Saturday, Sunday at 2 and Sunday at 7.
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WPCNR SCHOOL DAYS. By John F. Bailey. October 2, 2008: The White Plains City School District is holding back the $24 Million in municipal bonds it has plans to float to complete its district-wide renovation of the rest of its elementary, Middle and High Schools, and its anticipated certiorari tax refund payments, Assistant Superintendent for Business Fred Seiler advised WPCNR today.
He said the district has to underwrite the bonds between January and June 2009 to keep the project moving and meet expected certiorari obligations.. Previously the $50 Million the district borrowed for the capital project was costing the district an average 4% interest, ranging depending upon maturity from 3-3/4% to 4-1/4%. He said with New York City having to pay interest of 5-3/4% recently to attract buyers for New York City bonds that he hoped the rates would come down from the current highs. He said the markets were too unstable now to float an issue. He said the district would keep evaluating the situation with its underwriter.
Should the district be forced to pay 6% interest, for example, this higher rate would increase school bond payments above the $10.3 Million in debt service expected in 2010-11. Typically, Seiler said they might have an interest payment in June, and no principal payment on the new $24 Million issue until January 2010. He said he could speculate at this time how much higher the debt service would run should the district interest rate be driven up to today’s 6% levels.
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WPCNR QUILL & EYESHADE. By John F. Bailey. October 2, 2008 UPDATED 4 PM EDT with Labor Statistics: The New York State Department of Labor is not seeing the layoffs predicted for Wall Street appearing yet in significant numbers in the Department filings for unemployment, according to the Department’s Communications Office.
“There is a little upswing, but we are not seeing numbers being predicted. Not yet. Do not forget when some Wall Street personnel were laid off they were greeted on the street with billboards saying we’ll hire you. They immediately got other jobs. If they do not apply for unemployment benefits, we do not count them,” stated Chris Perhan of the state Labor Department Communications.
If terminations increase as expected, they will add to the financial burdens of companies making the layoffs, Ms. Perhan said. The way unemployment benefits are funded is through assessments on state employers and employees. When a person is let go, she said, the employer’s Federal Unemployment Tax Assessment increases the next year, for each person terminated. The new assessment is usually given to the employer in the spring of the year.
One could see a scenario where layoffs would be held off until January, to avoid FUETA increases until 2010, by which time things might turn around. This advantage might be a reason why the beginning of predicted unemployments have not escalated. Any layoffs will add to company’s burdens, but of course, but not to the extent of carrying the employees on payroll now if an employer cannot afford to.
Perhan said the percentage of payroll the employer usual pays is determined by a “floor” or minimum FUETA assessment, and is raised according to the number of employees the firm let go the previous year. She reports the FUETA rate for 2008 is 6.2%. Employers must pay 6.2% of the first $7,000 in salary per employee, and that holds through December, 2008. She had no estimate at this time as to what any increased assessment would amount to per employee by next spring. She could not give a figure for how much the rate goes up per number of firings.
The Comptroller’s Office this week not only predicted the job losses, but also stated business taxes wre down $366 Million year to year from last year, while personal income tax collection for the first six months of 08-09 were $2.7 Billion higher, but was slowing. The Comptroller’s office noted Wall Street Bonuses on which the state collects taxes expected to be 50% lower amounting to only $16 Billion.
On September 18, a State Labor Department news release stated New York State’s private sector employment increased over the month by 3,000, or less than 0.1 percent, to 7,261,200 (seasonally adjusted) in August 2008.
In addition, New York State’s unemployment rate, after seasonal adjustment, increased from 5.2 percent in July 2008 to 5.8 percent in August 2008 — its highest level since June 2004. New York City’s seasonally adjusted unemployment rate was 5.8 percent in August 2008, up from 5.0 percent in July 2008. The rate in the balance of the state outside of New York City also rose over this span, from 5.3 percent in July to 5.7 percent in August 2008.
“New York State’s labor market indicators reported mixed signals in August. Although the state did add 3,000 private sector jobs, the unemployment rate increased from 5.2 percent in July to 5.8 percent in August. This 0.6 percentage point jump represented the largest monthly increase in the state’s rate since January 1991,” said Peter A. Neenan, director of the Division of Research and Statistics.
The Job Trends by Type of Employment July 2007 to July 2008:
| Industries with Job Gains: | |||
| Educational & Health Services | +37,400 | ||
| Leisure & Hospitality | +11,500 | ||
| Government | +7,200 | ||
| Other Services | +4,800 | ||
| Information | +2,900 | ||
| Professional & Business Services | +2,800 | ||
| Trade, Transportation & Utilities | +2,400 | ||
| Natural Resources & Mining | +200 | ||
| Industries with Job Losses: | |||
| Manufacturing | -17,900 | ||
| Financial Activities | -9,400 | ||
| Construction | -2,200 | ||
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WPCNR ZONING ZEN. By John F. Bailey, October 1, 2008: The Zoning Board of Appeals tonight approved Renamba LLC’s application for a variance to build an Assisted Living facility of 115 units in the pristine wilds of Saxon Woods along side the Mamaroneck River. The vote was 4 to 1 rejecting former Building Commissioner Mike Gismondi’s interpretation of the zoning ordinance and the City of White Plains 8-year history of opposition to the project that has stood for almost a decade. The reason given was that the city stood to be violating Fair Housing law which prohibited restricting “reasonable use.”
A Buzz in the Rotunda: Renamba Group foreground, in cordial, confident triumph, while residents of Saxon Woods mill about in the shadow of the Legal Department in background, in rotunda of City Hall in stunned disbelief at the zippy Zoning approval. Unofficial city records indicate it was the swiftest approval ever.
The 4-1 approval was executed at the top of the agenda swiftly. Very swiftly. The meeting must have started at the second the big clock in the Council Chambers struck 7 PM and took 6 minutes. (Yours truly arrived at 7 on the nose by our ZULU TIME synchronized watch and it had started.)
Tonight’s decision clears the way for construction of the 115-unit 3 story apartment complex on Village of Scarsdale property, allowing access through a 25 foot variance paralleling the Ethical Culture Society driveway entrance off Saxon Woods Road.
Cecilia Bikkal, the Chairperson of the Zoning Board made a brief statement after tonight’s vote saying that permitted uses of the property in question in the White Plains section of the property included similar types of structures that generated large volumes of traffic.
She said that the White Plains R1-12.5 zone permits building a school, church, or hospital on the property,owned by The Ethical Culture Society of Westchester, and the property is “allowed reasonable” use of the property. She said that prohibiting left turns onto Saxon Woods Road departing the Ethical Culture Society driveway, and prohibiting left turns out of Saxon Woods Road onto Mamaroneck Avenue Northbound, adding shrubbery and noise screening, “was the best the zoning board could do.”
WPCNR arrived at 7 sharp, coming in at the midpoint through ZBA member Michael Romar’s explanation of the Zoning Board’s decision which was not immediately available to the media.
Mr. Romar’s statement indicated that the Zoning Board of Appeals based its decision on the Fair Housing Law which permits “reasonable use” of property. Michael Turschmann, an attorney who has submitted two lengthy opposition letters on why the ZBA could safely reject the proposal based on previous court decisons, said in his opinion, the ZBA use of the Fair Housing Law was being stretched here because the Fair Housing Law he said applied to preserving residential homes, not the building of institutions.
Silence from the ZBA
At its September meeting on this project, the Zoning Board was all over the proposal, Brian Keating particularly asking the applicant to explore another entrance off Mamaroneck Avenue through the Saxon Woods Pool property. The Planning Board voted 4 to 1 in August saying it had no objection to the project. Tonight the Zoning Board quietly approved the project without hearing any exploration of the Saxon Pool entrance possibility in public by the applicant.
The Common Council has not shown any interest in weighing in on this project which will change the character of the Saxon Woods, and create an as yet, unknown increased flow of traffic at the Saxon Woods Road/Mamaroneck Avenue interchange throughout the day.
Ready to Go:Amba Sharma, the Manager of the project, told WPCNR, he already had $30 Million in financing to build the project, and he was applying for Building Permits shortly. Sharma said the complex-to-be had utilities cleared, (White Plains had previously threatened to withhold water service to the project to prevent its construction). There were no further obstacles to be overcome.Mr. Sharma did not have a date for construction to begin, but promised to invite the press to the ground-breaking.
The decision tonight brings to a close an eight year saga.
One Saxon Woods resident said, “I’m very disappointed.”
The Gismondi Doctrine Dies.
Previously the former White Plains Commissioner of Building, Michael Gismondi, in 2001 had rejected the project request for the use of the Ethical Culture Society drive on the grounds that Section 3.5.1 of the Zoning Code where a lot spans a boundary of either a district, or in this case, a municipality, a use permitted in one district or municipality(Scarsdale) can not extend into another White Plains district unless it is otherwise permitted in that district.
In the September ZBA episode, when the hearing was extended to tonight, Renamba argued the definition of “Use” in the White Plains Zoning Code did not apply to driveways. Renamba’s attorney argued that since the driveway was not included within the definition of “Structure” in the Zoning Ordinance, a driveway was not a “Use” and therefore not regulated by 3.5.1.
Mr. Sharma did not have a date for construction to begin, but promised to invite the press to the ground-breaking.
We Don’t Want to Hear It.
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WPCNR QUILL & EYESHADE. By John F. Bailey. Interview with City Executive Oficer, Paul Wood. October 1, 2008: Paul Wood held an exclusive interview with WPCNR this afternoon to give details on the city financial position after the first quarter. He assured the city that city financial borrowing planned for the year had been completed before the present runup in interest rates and slowdown in lending. Though the city has spoken with its underwriters on the matter of financing, he said it was too early to tell the effect on 2009-2010 issues until “the turbulence” substides.
Paul Wood, City Executive Officer confirmed WPCNR’s sales tax projection this morning that the city was expecting $13 Million in Sales Tax in the till in the First Quarter, based on the ¼% sales tax increase. He attributed the sustained sales tax performance in the first quarter to White Plains “diverse” selection of retail outlets, saying other communities had told him White Plains was “sucking away” shoppers from their shopping centers.
The Eyeshade Process
He said that the Mayor was meeting with Department heads as he does every year with no objective to cut across the board but to achieve savings if possible. He said on going expenditures were running “slightly under” budget. It’s not unusual to pull in department heads at midyear, we’re just doing it a little bit early because of what’s going on. We do it every year to see if there are certain items they can do with out. It’s more of a priority because of the ($400,000) cut (the council made) in the Reserve for Financing.They cut the reserve by a point. We’re looking at rolling stock, any area where we can do things differently. We have a hiring freeze on.”
Asked if the city departments were under budget, Wood said “A majority of them are, at this point. You have to remember we’re entering a point when you have to do more with less. We have 7,000 more residents here, more people coming into the city.”
Calling in the Council Early This Year
He said that Common Council members had contacted the Mayor’s office “showing their support and concern,” but said none had offered policy suggestions on budget cutting. Wood said given the turmoil of the economy outside White Plains, that the Mayor would bring the Common Council together earlier this year, possibly in November after elections to give them the opportunity to see where the city stood and for them to give early input into 2009-2010 budget.
Holding Inflation Line the Goal.
Wood said it was the Mayor’s goal to hold the city budget to the present inflation rate, 5% (the Consumer Price Index).
Wood said the city was not facing threats to the budget from within, but from the loss of income from the state. He said he anticipated a cut in the city’s AIM (Aid & Incentives for Municipalities) funding from the state of $5 Million, which the city would not know until April when the budget will be presented to the Common Council. Wood said there might be other effects or mandates that the state might decide to level on cities.
The city has already presented its revised 2009-2010 projected budget to AIM and Wood said he would be sending that to WPCNR. Wood alluded to energy costs as being up, though expenditures as a whole were running slightly under budget. He said he would get an analysis for WPCNR of how much city energy costs had grown.
Union talks situation.
On the negotiation of the union contracts for police, fire, teamsters and CSEA, Wood said he could not comment. He said he felt the six year settlement Westchester County had recently announced with its Civil Service Employees Union was not a good model for any settlement in these times. Asked how the Mayor felt about the City School District and its teachers union agreement to negotiate a 2 year contract (though not settled yet), Wood said it (a shorter term contract until “things settled down” made sense in these uncertain times. He said the unions were very aware of the troubled times in talks so far.
Commenting on the school district 2-year teacher contract being negotiated, Wood observed, “I think a two year contract kind of makes sense, they’re saying here’s where they are, obviously this is a difficult year for everybody, let’s take two years and see where we are after that. I don’t think the 6 year county contract with the CSEA was a very smart thing. I’m really pleased with the tone (of the unions) they obviously are in touch with the situation the city is in and we appreciate there efforts in providing extra services despite the interest in demand. We’re respectful of one another and very hopeful that will come to a somewhat reasonable solution to settle in the midst of this turbulence.”
Wood said length of contract was being explored with the unions
Captial Projects Funded in Summer. No Bond Issues going out Now.
On the city ability to float municipal bonds in the current market, Wood said the city had already gone out for its municipal bond needs prior to the current credit crunch. The city, Wood said, had not withdrawn any issues they were planning to put out on the market and did not anticipate any for the next six months. The school district, conversely is looking at a $16 Million in bonding to complete their $66 Million Construction Project, $50 Million of which has already been marketed successfully, plus another $8 Million in certiorari payments.
New Certiorari Filings Threaten finances. May Require City to Bond for Settlements.
Asked if previously successful commericial property owners who have been granted certioraris about five years ago had refilled for more certioraris due to this year’s dramtic drop in the “Equalization Rate.” Wood said the city has seen the number of certiorari cases jump up over 300. Wood said the judges in order to unclutter the certiorari crunch in the court system have shown a tendency to rule quickly in favor of certiorari filers, Wood explained, “forcing us to settle more cases than we’d like.”
Wood disclosed that the city is looking at continuing a process started this year of payinc certioraris on installments with the winning plaintiffs and bonding for the certiorari payments, a process the school district used last year and intends to use again in 2009.
LCOR Financing Found
Wood confirmed Ms. Malmud’s understanding that the LCOR 55 Bank Street 80-20 Affordable Housing project has received a commitment for financing. “That’s what we’ve been told,” Wood said, saying that LCOR financing has in the past been supported by the California Teachers Retirement Fund. But, he did not know whether that fund was the source of the financing.
Asked if LCOR was proceeding with the project, drawing up site plans for submission to the council in January, Wood said ” Yes, they default if they don’t submit those drawings.”
Asked if LCOR had indicated they were no longer interested in the project, Wood said “No.”
Kensington Assisted Living nears HUD Approval.
On another ongoing city development, the Kensington assisted living project for which the city built a $19 Million Municipal Parking Garage (with space to be leased to White Plains Hospital for parking, Wood reported “That’s still moving forward. We spoke to them this weekend they said HUD may actually approve their request much more quickly than anticipated. These projects are assets that someone will want. There isn’t a lot of risk out there but there are investors looking to put money into projects where performance has occurred. Look at Robert Weisz, he had no trouble financing the first new White Plains office building in 20 years.)
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WPCNR TAX STORY. From Westchester County Association. October 1, 2008: Nassau County Executive Tom Suozzi, Chair of the New York State Commission on Property Tax Reform will speak at the 15th Annual Government Reception of the Westchester County Association Wednesday, October 22 at the Ritz Carlton hotel in White Plains from 5:30 to 7:30 P.M. Tickets are $75 for members of the WCA, $85 doe non-members. A gathering of guests, according to the press release, will include distinguished elected and appointed officials representing Municipalities (Cities, Towns, Villages), the Westchester County Board of Legislators, the Westchester County Executive Branch, the NYS Senate and Assembly-Westchester delegation and Westchester U.S. Congressional delegation. :Lobbying” opportunities to meet and greet and talk with our leaders are promised.
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WPCNR CITY HALL CIRCUIT. By John F. Bailey. September 30, 2008 UPDATED 12 Noon EDT, October 1, 2008. UPDATED 1:10 PM: The city issued a news release Tuesday declaring the sales tax collections by the city have started well and are meeting the expectations for July, August and September (WPCNR-estimated as $12.4M) as of last week. The news release states that Mayor Joseph Delfino is conducting meetings with city department heads to look at “creative ways to save expenses and maintain the level of service White Plains residents are accustomed”
WPCNR asked the senior Councilpersons Rita Malmud and Council President Benjamin Boykin last week if they felt the city should be looking at budget cuts for the present year in light of dire revenue shortfalls in the state. Neither responded. WPCNR repeated the questions after receiving today’s release as to whether they or any other councilpersons wanted to be in on the meetings, had positions on spending cuts. Ms. Malmud finally responded Tuesday evening and WPCNR awaits Councilman Boykin’s response. As of noon, Councilman Boyking has not responded.
In today’s New York Times, a front-page article notes that muncipalities across the country are having difficulties finding financing for key projects, requiring many to cut back projects, and in New York City having to offer a higher rate of return on bonds costing the municpality more in interest payments. This raises the spectre that White Plains and the White Plains City School District will be facing higher debt service on any new issues in the future. You may read the Times report at http://www.nytimes.com/2008/10/01/business/01muni.html?_r=1&adxnnl=1&oref=slogin&ref=todayspaper&adxnnlx=1222876866-4HQ0uOmCqBKyIxM0R/80uQ
Ms. Malmud responded this evening to that question by saying that the Budget and Management Committee will be meeting shortly.
Mr. Boykin the Chair of the Budget and Management Committee asked last week if he was going to convene his committee soon in light of the state revenue shortfalls widely lamented by Governor David Patterson, has not responded yet. We await Mr. Boykin, the Council President’s thoughts on city financial policy.
Malmud in a statement wrote “Budget issues will be first examined by the Budget and Management Committee. I expect them to meet shortly. The Mayor has not sent me the press release you mentioned nor informed me of any planned review of department budget cuts.”
This would indicate that the Mayor had not invited key councilpersons to give input in a bipartisan fashion, or conversely, Ms. Malmud at least, nor any other councilperson had expressed concern about city spending to the Mayor.
WPCNR asked Ms. Malmud if she had any policy suggestions on how the city should approach the police, fire, teamster and Civil Service Employees Union contracts that expire this June.
Malmud wrote, “According to NYS law, only the Mayor can negotiate such settlements. The Mayor has not chosen to consult with us on this matter.”
WPCNR asked Ms. Malmud about the possibility of the city financing the stalled LCOR affordable housing project at 55 Bank Street or borrowing for city municipal improvements now as possibly being attractive to the market, Malmud issued this comment:
“The whole national economy and lending framework is in a major state of flux now. Although White Plains has an excellent credit history, we will be impacted by national economic and lending issues. In another week or two, we should have a better idea of what direction those national issues are heading and the likely impact on us.”
Ms. Malmud asked about the Horton’s Mill request for the city to cover their cost overruns since the county has refused to do so said did not indicate how the council feeling on the Horton’s Mill request, though at the time, the council acted reluctant to pay the $581,140 dollars.
Regarding the stymied LCOR project, Malmud rejected the notion that LCOR was going to ask the Urban Renewal Agency to finance the project, a $320 Million project, which the council approved being built in stages last month
She explained, “LCOR – To my knowledge, LCOR has not asked the City to finance their project and have stated that they already have financing in place for 55 Bank Street.”
On several sensitive budget projects, Ms. Malmud wrote these comments:
“ Mortgage tax revenue – has already been estimated for this current fiscal year ($4.1M). We have many months to go before we can determine whether that is an accurate estimate.”
“Pension fund contributions “demanded by the state” – is entirely up to the state and White Plains will respond as is “demanded.”
WPCNR since speaking with Ms. Malmud, has learned from the State Comptroller’s Office that the city pension fund contributon for 2009-2010 is actually down, a bit of good news, and will not be affected or reflect stock market declines of 2008 until the city’s 2011-2012 Budget year.
Asked to clarify whether she wanted the city to cut, had suggestions as to how to cut, or was leaving all spending adjustments to the Mayor, and any thoughts on what general objectives (length, benefit adjustments, increase targets) the union contracts ($100 Million of the $161.5 City budget this year) might achieve, Ms. Malmud declined to comment.
WPCNR is waiting for the city to comment on the mortgage tax trend, the effects of the current credit markets on city municipal offerings, and of course, WPCNR awaits Councilman Boykin’s take on what matters he sees the Budget and Management Committee taking up in regards to current budget cuts, when his committee is going to meet, and of course the looming 2009-2010 Budget.
In today’s New York Times, a front-page article notes that muncipalities across the country are having difficulties finding financing for key projects, requiring many to cut back projects, and in New York City having to offer a higher rate of return on bonds costing the municpality more in interest payments. This raises the spectre that White Plains and the White Plains City School District will be facing higher debt service on any new issues in the future. You may read the Times report at http://www.nytimes.com/2008/10/01/business/01muni.html?_r=1&adxnnl=1&oref=slogin&ref=todayspaper&adxnnlx=1222876866-4HQ0uOmCqBKyIxM0R/80uQ
Decade of Growth
It pointed out that the property tax base has grown with 7,000 new residents, most of whom are condominium owners. City Hall notes the residential tax base has been increased and the commercial tax base has increased more. The office vacancy rate has declined from 34% to the point where Robert Weisz of the RGW Group is planning to build the first new office building in the city in 20 years (at 1133 Westchester Avenue.)
The release reports real value property in the city, residential and commercial has grown from an estimated $4 Billion in 1999 to $11 Billion as of July 1. The city blames “the bizarre formula” of the New York Equalization Rate for the city being “inundated” with commercial tax reductions.
Retail Growth the news release reports, brought about by the Mayor’s Economic Development Plans has created a “boom in the retail base, making it much more diverse.” The report says “vacant stores are filled with a thriving business that continues to do well. As late as last week we are being told that our sales tax numbers are still holding steady.”
Sales Tax Solid
WPCNR notes that with the ¼% increase in the sales tax enacted, that would mean the first quarter is projected to be about $13 Million, when the current 5.3% inflation rate is applied and the extra ¼% sales tax increae is figured in. (Last year the city received $10,917,000 in the first quarter with a 2 cent sales tax which was increased to 2-1/4 cents.)
Now if the city is equaling that $10.9 Million pace of last year, then the economy may be hurting the city sales tax handle. The rationale for this being the city should get a 5% lift from inflation, plus a 12% lift from the extra ¼% sales tax as well as the sales tax, if sales are steady.
The city commented on the failure to get more in sales tax than Albany than it did, writing “in order to relieve property tax payers of any additional burdens the Mayor proposed a half percent sales tax increase. This was cut to a quarter percent by Assemblyman Adam Bradley and the Democratic Common Council,” the release said.
The release also noted, that the Mayor “voted against this year’s budget because of the Council’s cuts to the reserve for financing. This is the very fund the city relies on during turbulent times.”
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WPCNR QUILL & EYESHADE. By John F. Bailey. September 30, 2008 UPDATED WITH TRANSCRIPT OF OPENING REMARKS, 3:10 P.M. EDT: In a 30-minute conference call with reporters from across the state today, Senatory Hillary Clinton said Senator Harry Reid is prepared to lead the U.S. Senate in passing yet a third version of the Billion Dollar Bailout bill, the process to begin when congress returns to work tomorrow. She said, “It is a necessity to stabilize our economy.”
She said the public had to get past the need to punish those whose business practices lead to current world financial crisis, and she promised both houses of congress would hold hearings bringing principle players involved in the recent waive of failed institutions to explain themselves and determine their roles, an the practices alleged to have created the “Great Crash of 08.”
“If nothing is done (the bailout not being passed) small businesses may not be able to keep drawing loans to meet payroll and inventory. They are being stretched to the breaking point. Students are having trouble getting family college loans. The credit crisis cannot on its own, correct. Commerce could grind to a halt. ” She told reporters.
Clinton said if nothing was done, more people would take money out of banks which, she said, “compounds the credit problem.” She said she understood “the deep skepticisms.”
“I was against the original plan, but we have negotiated a better bill.” She said the bill makes the bailout not unlimited, taxpayer is protected, there are now checks and balances and regulatory oversight mechanisms, and accountability included in the bill.
“There’s not one person in congress who believes this bill is perfect…There is no choice.”
Senator Clinton said a provision might be added to the bill to free more actual mortgage money to restore mortgages, as a way to save the bill. She also called for a stimulus to housing sales as was done in the Great Depression of the 1930s, which she said she would introduce in the Senate in a separate bill but did not say when. She emphasized the tax credit concept should not be included in the “Bail Out Bill.”
But on the personal level, students are going to have increasing trouble finding college loans. Families are having difficulty with the daily expenses and certainly with their housing costs as home values drop. And we know that this credit crisis that we are in the midst of cannot on its own correct.
It sounds dire, but there is a risk that commerce could grind to a halt. Banks are already unwilling or unable to lend to each other. We’ve got investors parking money into Treasury bills that are yielding next to nothing because they think it’s the only safe investment right now.
With the domino effect of banks failing, people are taking money out of their banks, looking for a safe place, like Treasuries, or frankly, you know, under their mattress, which then compounds the problem.
I understand the deep skepticism surrounding the proposal, and clearly I was against the original plan sent over from the Treasury because it was a blank check giving Treasury virtually unlimited powers to do whatever they saw fit.
But we have negotiated through the Congress on a bipartisan basis a better alternative that installed taxpayer protections, asserted oversight and accountability, and came up with the checks and balances we should have had rather than the blank check.
This bill that was voted on yesterday is a compromise among the Bush Administration, the Democratic and Republican leadership. You’re not going to find anyone who believes that this bill is perfect. Many of us regret deeply and very much resist having to bail out those who we believe contributed mightily to the problems we’re in. But there is no choice.
I believe that the companies benefiting from the taxpayer dollars should be asked to repay their debts to the Treasury or give taxpayers more of a share of any future profits. I continue to advocate for a plan to rewrite unworkable mortgages to stop the inevitable cascading of defaults and foreclosures that will come as interest rates reset. For two years I’ve proposed steps to freeze adjustable mortgage rates and temporarily halt foreclosures and reset mortgages at risk of default and foreclosure. That’s why I continue to propose a mechanism to do that, and it is modeled on the one we used during the Great Depression.
Obviously people are deeply concerned about how we’re going to take action that will be effective. I think it’s important that we go at the root of the problem, which is the continuing loss of home values and mortgages that are unaffordable for homeowners. Now there are other steps we should take. The housing market is caught in a vicious cycle of too much supply, too little demand, sinking housing prices, rising defaults and foreclosures. There are other steps we can and should take to try to get demand up again in an affordable way.
But the American people need to understand the benefits of this unprecedented market intervention versus the cost of inaction. There are ways we can continue to try to improve the tools available to the government so that Americans are reassured that this is not either a blank check to the Bush Administration or a blank check to Wall Street, but in fact it is not only necessary for us to do but that the economy will benefit and taxpayers will be protected.
But we cannot let the perfect be the enemy of the good, or in this case the enemy of what’s necessary. We certainly won’t be able to spur the housing market if our financial institutions are unwilling to lend to homeowners, and if banks stop lending to businesses, and banks refuse to lend even to each other, which we are seeing.
So we have to go back and in a bipartisan fashion, face up to the difficult decisions ahead of us.
We have to take action and I know that New York is particularly affected by our failure to act, which is why I told the Long Island association yesterday morning that although I despise the position that we find ourselves in as a country, I would have voted for the package.
We have tens of thousands of people in New York dependent on the financial services industry. We have thousands of people I’m hearing from around our state who cannot get the credit they need to stay in business. We’ve got tens of thousands more who are in businesses that are dependent directly and indirectly on financial services. Our city and state revenues will be adversely affected, which will have a ripple effect in terms of the services that people need. We’ll see the unemployment rate go up and I am deeply concerned that this package be passed this week in order to put the brakes on what is not just a market and a credit crisis, but a mounting economic crisis.
I believe, too, that the Senate would be ready to act. I know Senator Reid has said on numerous occasions that he believes the Senate has the votes to pass the bill and is prepared for the Senate to go first, and I certainly am prepared to stand up and be counted if we do. But I hope that everyone will take a deep breath. The Congress is not in session because of the Jewish New Year, so everyone has a chance to think hard and maybe cool off a little from the emotion and the pressure of the last two weeks. And we get back to Washington starting tomorrow and do what we have to do to try to stabilize not only our nation, but the entire world for the benefit of everyone.”
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WPCNR CITY HALL CIRCUIT. By John F. Bailey. September 28, 2008 UPDATED 11:59 A.M.: On a day when the Dow Jones Industrial Average declined 777 points, the largest decline in the market since 1987, and when inflation is taken into account, almost equaling the dollar value lost in one day that was lost by investors in the five days of the 1929 Stock Market Crash, (October 24 through October 29), the City of White Plains which has budgeted about $1.5 Million in interest income into the 2008-2009 budget of $161 Million, said the city funds investments appear in good shape at this time.
Monday, White Plains Chief Financial Officer, Gina Cuneo-Harwood issued this statement: “There has been no changes in the Federal Fund Rates since May and the money is coming in as expected. It is too early to tell what might happen.”
“Bailout Monday,” the day when congress was supposed to “bail out” the financial crisis of the last two months, but did not, is being called the largest one session decline in the history of the Index, but it is equal only in decline when dollar value is considered.
WPCNR notes that Monday’s stock market decline almost equals the 1929 Black Tuesday crash when inflation is taken into context. The stock market lost $1.1 Trillion in stock value on Bailout Monday, roughly the outer limits of what the bailout was predicted to require.
The $1.1 Trillion loss in vallue is 10 times the 5-day beating started by the October 24 through October 29, 1929 Black Tuesday, 79 years ago, when the stock market, declined 69 points from 299.6 to 230.7. That precipitated a decline in value by November of 1929 of $100 Billion 1929 Dollars.
Today, that $100 Billion in losses experienced in five days 79 years ago is equivalent when 79 years of inflation is taken into account to $1.2 Trillion in 2008 dollars. That is just just 100 Million more than the trillion-one lost yesterday in the stock market.
Mortgage tax, the county has previously disclosed and reported by WPCNR first two months ago, is down 30%. The County budgeted $28 Million in mortgage tax in 2008. The City of White Plains budgeted approximately $4 Million in mortgage tax.
Decline in projected figures affect the city in this way, according to the city’s previous Executive Officer, George Gretsas: for every million dollars of revenue decrease, the property tax would have to be increased 3% to make up the difference.
Sales tax figures for the first quarter are not in yet and are expected within the first 10 days of October. The City has budgeted $45 Million in sales tax, and expects to easily clear that in 2008-2009 due to the 1/4% increase in the city sales tax to 8-1/8 per cent, expected to add $5.6 Million to the city sales tax revenues. However, most of that $5.6 million surplus from the 1/4% would be spent in the expected settlements to police, fire, teamsters and Civil Service Employees, if as expected wage increases of 4-1/2 to 5% are demanded and granted by the city.
The City, anticipating possible sales tax shortfalls due to a sluggish economy last fall had pushed the Democrat-controlled council and Assemblyman Adam Bradley for a 1/2% increase in the sales tax giving the city a base. That was denied by the Democratic Council, and Mr. Bradley was sent to Albany to request only a 1/4% increase.
The two senior members of the Common Council, Rita Malmud and Council President Benjamin Boykin have so far not replied to WPCNR’s question of whether the Common Council will convene and call for a look at current expenses with the Mayor to save more money out of the current 2008-2009 budget over the next three quarters of this fiscal year.
The School District is closed Tuesday, and WPCNR will be asking them Wednesday if they are contemplating going out early for municipal bond offerings, now gaining in attraction. (The School District needs to bond $16 Million to complete its construction projects and approximately $10 Million for possible certioraris.) The question has already been posed to the city.