WPCNR QUILL AND EYESHADE. By John F. Bailey. February 11, 2005, UPDATED WITH CHART PIX, 3:30 P.M. E.S.T.: The city issued its  Interim Financial Report for the first half of the fiscal year Monday evening.

The city, as Mayor Joseph Delfino mentioned in his State of the City Message, is running 12% ahead of last year’s pace in sales taxes. However, the beeps, boops and blips of city store and restaurant scanners slowed their pace during the holiday season October, November, December from the First Quarter (July, August, September) when sales were running 15.6% ahead.

WHITE PLAINS OFFICIAL SCORECARD: Six Months in the Books. The above figures show the sales tax collections in the current fiscal year, 04-05, through the first six months. $10,117,695 was collected in the First Quarter (July, August, September), and $10,760,486 in the Second Quarter (October, November, December). The percentage spread over and under compred to 2003-04 is at far right hand column, by month and quarter. Photo by WPCNR News.

Commissioner of Finance, Gina Cuneo-Harwood, who personally turned over the finance report to this reporter, commented  the city was “looking good.”

As the city started January, the report has the city taking in $20,878,181 in sales tax the first six months. The city projected $37,698,723 for the year. It is on pace to hit approximately $42 million in sales tax receipts, leaving some $4 Million more sales tax revenue to make settlements with the police and fire unions (which expire June 30), manage certioraris, replenish the fund balance, and plug unforeseen financial leaks.

That $42 Million figure should be hit if the city maintains its $10 Million a quarter pace. In January to June of 2004, the city collected $9,691,617 in sales tax in Jan-Feb-March, and $9,240,938 in April May June, to just make its  $38 Million budgeted sales tax figure for 03-04. 

 Best Holiday Quarter Jump in Sales Tax in 10 Years.

This year's  holiday season did $642,791 more in sales taxes  than the summer first quarter (10,117,695), WPCNR’s early projections of a $45 Million sales tax take (with a 15.6% increase in the Christmas Quarter or more, fall by the wayside, unless the Albany coffers find major sales tax "windfalls"  in the fourth quarter coming in with White Plains’ dibs on it. 

The $642,791 jump from first quarter to second quarter, though it may be dissappointing,  is the largest First Quarter to Second Quarter increase in 10 years. The previous largest increase quarter to quarter was $700,000 in 1995 when The Westchester opened.

What Might Have Been.

Doing the math, had the city simply sustained the 15.6% pace during the holiday season, retaining the First Quarter fast start, it would have generated an $11.5 Million Second Quarter and had approximately $21.5 Million and heading towards a $42 Million-plus Sales Tax total by June 30.

More to the point if the city had attracted more Holiday Shoppers with their new downtown retail mix, (Fortunoff, Barnes & Noble, Target, Circuit City, Filene’s Basement in place), you might have expected to see a 16-17 even 18% increase over the First Quarter. But that did not happen.

Sales were  up 7.5% over the holiday season of last year. It is nice to dream what would have happened had White Plains been a holiday shopping destination.  

Dreams for Christmas Future.

An 18% increase over last year’s holiday quarter (which beeped up $10,013,674 in sales tax revenues), would have generated  $11.8 Million in sales this year, and the city would be breathing a sigh of relief. Instead we tacked up $10,760,486.

Reality is that the city only generated $642,791 more in the second quarter this year (with City Center and Fortunoff, Morton’s, The Cheesecake Factory, Legal Seafood, and Zanaro’s in place) over the first quarter. That works out to a 7.5% increase over last year, when there were, by my count, 4 less restaurants.

 The rosy scenario WPCNR painted  in October, a pipe dream of an 18% second quarter increase when we reported on the first quarter results, would have the city earning $21.8 Million and with sustained quarters of $10 Million plus each in the upcoming third and fourth quarters, the city would be pushing $44 Million in Sales (close to the heady $45 Million). That would give them a shot at a balanced budget even with the 4% Police and Fire pay hikes expected.  It still could happen.

If the city equals last years numbers in the third and fourth quarters coming up, they will come in at $18.9 Million or $39.8 Million, a mere $1 Million in sales tax receipts over fiscal 03-04.

THE TOTALS AFTER 4-1/2 INNINGS: Last year's Sales Tax Numbers appear in the left hand column for January,February, March 2004, and April-May-June, 2004, showing what the city brought in to narrowly tie up their projection at the very last moment in June 2004, to make their $38 Million project. The city is currently running $10.3- $10.4 Million a quarter (as noted in right hand column). Can White Plains wallets open up and sustain the first half sales tax flow to bring us into the promised land? Photo by WPCNR News.

On Target. No Margin for Error.

The good news is that the present city economy seems to be sustaining a $10.1 Million handle every quarter in the city. The $10 Million trend is up and growing. This generates a $20.2 Million second half, combined with the $20.8, first half would have the city hit $41 Million in sales tax revenue on the nose – the figure the city told Moody’s it expected to generate in fiscal 04-05.