WPCNR COMMON COUNCIL CHRONICLE-EXAMINER. By John F. Bailey. April 8, 2004: The Proposed 2004-05 City Budget "bomb" dropped Tuesday night, but nobody noticed because there were no comments by the Mayor, or any of the Common Councilpersons to the public during Common Council meeting on what the budget was, what it meant for the city, and why it was lower than Budget Director Anne N. Reasoner indicated in meetings just scant weeks ago. The proposed budget is $110.5 Million. To keep the budget down, rolling stock has been removed from the budget and will be reinstituted in 05-06, or bonded for at that time.
WHITE PLAINS BY THE NUMBERS: The 2004-05 Budget was delivered to the Common Council Wednesday night. Photo by WPCNR News.
WPCNR had projected a budget of $120 Million at the outset, and $115 Million on the low side, and when handed the budget book at the end of the Common Council meeting, it was found to come in at $110.5 Million. For the $110.5 Million figure to hold, without further budget increases or services cuts, the city is projecting a sales tax collection in the current fiscal year 2003-2004 of $37.8 Million, according to Budget Director Reasoner's message.
The budget also assumes State Comptroller Allan Hevesi will go along with legislation to allow cities to limit their debt to the state pension fund to 6.5 % of salaries though other communities like Port Chester, are not counting on it. (White Plains owes $7.8 Million to the state pension fund for 04-05). The 6.5% of salaries proposal has yet to happen, and would limit the White Plains check to the pension fund to $3.7 Million instead of the $7.8 Million, and that is why the budget is $110.5 Million and not $114.5 Million. The 6.5% of salaries idea is Governor George Pataki's solution to budget relief on the pension hit to municipalities. However, it is not guaranteed at this time.
If that does not happen, according to Ms. Reasoner's budget message, the city would have to come up with an additional $4 Million, (increasing the budget to $114.5 Million, or requiring a 12% tax increase, or a cutting of the budget by $4 Million).
Another option discussed to handle the extra $4 Million if the 6.5% of salary solution is not passed to handle the pension funds, (in Ms. Reasoner's budget message) is bonding the difference over 5 years, resulting in a 2.7% tax increase for each of the five years of bondings
Sales Tax Revenues Are Down to the Wire.
However the other dicey factor in the $110.5 Million rosy scenario is that as of the end of February, sales tax revenues for the city were running behind 2003-2004's projection of $37 Million, projecting at $34 Million. White Plains needed about $8 Million the rest of the year to hit the $37 Million mark.
If the 2003-04 sales tax revenues do not meet the $37 Million after three quarters, the city will have to account for that difference in the 2004-05 budget, or replace or cut the difference between that and the $37.8 Million they hope for in sales tax revenue in 2004-05. (Sales tax revenue total can be added to up until May 27, the budget adoption night). If they don't make the $37.8 Million figure the city may be forced to lower their sales tax projection they can budget to below $37.8 Million, and make up the shortfall in the 03-04 budget.
Hopefully the real figures coming out in two weeks will bring good news.
To keep the budget at 110.5 Million and not have it go up to $119 Million ( $4 Million to the pension fund, plus a $1Million to $5 Million sales tax revenue shortfall), Mr. Hevesi has to accommodate the pension fund relief legislation , and the city has to collect $37.8 Million in Sales Tax actual revenues during the first three quarters of 2003-2004 (ended 7 days ago).
WPCNR has learned that the actual sales tax revenues entitled the city for the third quarter of 2003-04, the current year, will be reconciled with the state in two weeks at which time, the amount of sales tax the city is allowed by law to include in the budget, will be determined. The estimated figures as of the end of February were running behind 2003-04. If the reconciliation does not equal $37.8 Million, a further tax increase or budget cutting would be called for.
It also marks the first time in memory that White Plains has submitted a budget crossing their fingers. There is no fund balance to back them up if they are wrong.
Dig for about $125 more a year in City Property Tax if All's Well That Ends Well.
A 7.9% tax increase is an $8.28 increase per $1,000 of taxable evaluation. For a $600,000 home, assessed at $18,000 that is a $150 annual tax increase. The $110.5 Million Operating Budget is a 6% increase over the 2003-04 budget of $104.3 Million.
If the pension fund payment relief reduction of $4 Million does not happen , an additional 12% one year increase in the tax rate may result.
Savor that Water, Bring Change.
During the council meeting, the council passed Water Rate increases unanimously, hiking consumers water bills 15%, and excess users' rates 85%, to meet rising water costs, while also voting to increase parking fees and fines to add $4.9 Million to the city revenues, thus saving a tax increase on top of the 7.9% increase called for by the $110.5 Million budget presented the Common Council last night.
On the telecast of the Common Council Meeting, in the last two hours, you will see Eileen Earl's presentation on the water rates, and Albert Moronie's presentation of parking rate increases. They are riveting.
Sunrise Assisted Living Facility is Approved.
The Common Council also approved the Sunrise assisted living facility on Maple Avenue, for 85 units. It is anticipated to be built in 13 months or so from the time construction starts.
Windsor Terrace continues. Expects Zoning Change.
The Council approved the revised site plan for 10 Windsor Terrace, paving theway for another redesign of that condominium project by Frank Cantatore. Cantatore said he expected the council might institute a zoning change allowing him to go back to longer balconies as proposed in his first design, when it was discovered the balaconies violated current zoning.
