WPCNR QUILL & EYESHADE. By John F. Bailey. April 6, 2005: The Proposed 2005-2006 city budget delivered without any Common Council or Mayoral comment at the Common Council meeting Monday calls for a $129,825,408 General Fund Budget, a $10,543,139 increase beginning in July, 2005 with a corresponding 3.9% property tax increase (about $70 on a $600,000 White Plains home).

The 2005-06 Budget Incognito. Photo by WPCNR News.

The budget averts a 27% tax  increase (the property tax goes up by 3% for each million dollars of spending)  by diverting $8.7 Million from the Fund Balance, ($3.1 Million more in fund balance rescue money than last year when the city balanced their budget when  $5.6 Million was diverted from the fund balance). It is the fifth (not fourth as previously reported), consecutive year the city has drawn down its fund balance to meet expenses.

The budget plans on using the $3.5 Million in projected sales tax surplus for 2004-05 (over the $38 Million) to replenish the fund balance. Should all go according to plan the city’s Fund Balance that they can use for the budget will sit on $12.4 Million, after the $3.5 Million sales tax surplus is dedicated to the “Rerserve for Financing” (fund balance).

However, the budget points out that holding at a 3.9% property tax is contingent on selling city owned land for approximately $2,667,000. The Council is being asked to approve the sale of this land which is envisioned by the budget as being “sold to be developed, provides a permanent revenue stream in the future.”

Should the council decide not to sell the land, the proposed budget pegs the resulting property tax at about 9% (a $140 property tax increase on a $600,000 home at market).

The budget allows for a 4% pay increases for police and fire (in 2005-06)  added to the 4% settlement with the Teamsters union in June, 2004.

At the time this article was being prepared, the sales tax figures for the third quarter (January through March 31) were not available yet, according to  James Hricay, City Chief Deputy Budget Director.  The city based on the first six months results projects an increase of $4.2 Million in sales tax (up from $38 Million in 2004-05.

The city has also taken advantage of Allan Havesi, the state comptroller’s largesse in allowing the city to amortize its police and fire portion of the state pension costs (amounting to $1.5 Million), saving another 4% in property sales tax, but delaying contributions now due.