WPCNR Quill & Eyeshade . By John F. Bailey. October 21, 2005: The City of White Plains finally responded to WPCNR’s repeated requests for year-end financials today, and released its preliminary financial report on 2004-2005 for the fiscal year ending three months and three weeks ago.
The report confirms the city did actually achieve a $1.4 Million surplus in 2004-2005 and according to Paul Wood, City Executive Officer, did not have to spend any of the $7,707,637 allocated from the city fund balance.
2004-2005 City Financials Confidential No More. Photo by WPCNR News
Wood solemnly told WPCNR the release of the final year figures at this time was “unprecedented” and that the city auditors had completed their analysis of the White Plains only within the last two weeks. He said the snapshot was not auditor-approved, but he was “100%” sure the numbers would not change.
Wood has maintained that previous administrations prior to the Delfino years had not released such year end data until November when the final audited report is submitted to the Common Council.
Former Mayor Alfred Del Vecchio told WPCNR, he could not remember if his administration ever put out final year financials prior to November, because, he said when the final figures were released was never an issue, because “whenever anyone asked for something they got it.”
One Sheet Snapshot.
The one sheet snapshot faxed WPCNR Friday afternoon shows a $1,451,437 surplus, (previously reported by the city to WPCNR in August), was generated in part by an 8.6% increase in sales tax collections ($40,929,781) over 2003-2004 ($37,698,714) and a 40% increase in collections of mortgage tax, ($4,019,245 was collected in mortgage taxes in 2004-05 compared to 2,876,033 in 2003-2004). The mortgage tax is attributed to the booming housing prices in White Plains the last year.
According to WPCNR’s mid-year figures released by city hall, the city earned $20,878,181 in the July-December 04-05 and $20,051,600 in the second half of the year ending in June.
Fines, City Charges Big Gainers
White Plains more doubled its revenues on Charges for City Services generating $13,346,928 in 04-05 as opposed to $6,112,023 in 2003-04, a 118% increase. In the original 2004-05 Budget, before the city absorbed the Parking Authority to erase a budget shortfall, Charges for City Services were budgeted at $5.8 Million. When the Parking Fees from the new Department of Parking were included in this sector, it appears, based on the final figures that the Department of Parking may have been responsible for $7,234,905 in additional revenue in this category in 04-05.
Fines & Forfeitures also had a robust year. In the spring of 2004, the Department of Public Safety launched its highway safety initiative. In 2004-2005, revenue from F & F
took in $5,079,371 new dollars as fines on parking tickets, and violations, among other sources were sharply increased. Revenue from fines increased 267% over 2003-2004’s paltry $1,900,776. Still the $6,980,147 actually collected in 2004 in F & F, was $992,073 less than projected.
The city took in $3,219,713 more in property related taxes ($37,315,925) in 04-05 a year-to-year, an increase of 9.4% over 03-04’s figure of $34,096212.
The city took in 27% more in Intergovernmental grants and payments receiving $6,304,171 in 04-05 over 03-04’s $4,960,939.
The city collected Revenues of $118,968,349 in 2004-05, $2,737,491 short of what was budgeted ($121,705,840), coming within 2.75% of projection.
Expenditures
On the outgo side of the ledger, Personnel costs ($61,976886) rose $5,365,015 from $56,611871, a year-to-year increase of 8.6%.
Employee benefits rose 39% from $20,044,788 in 2003-2004 to $27,891,449 in 2004-2005.
Total expenditures including $7,475,031 of debt service, and a $4,766,482 transfer to the Library Fund were $117,516,912, which when subtracted from the total revenues of $118,968,349, leaves a surplus of $1,451,437 as opposed to 2004-2004’s loss of $3,239,303.
Some questions.
Since Mr. Wood ended our telephone call, WPCNR did not get to ask some questions about certain items such as the bond proceeds item of $2,350,000 on the revenue side and the 126% increase in interest income in 2004-2005 of $932,039, up from a mere $412,014 in 2003-2004; and where the $2,569,808 in “Miscellaneous Funds” came from.
Hopefully Mr. Wood can get back to us with explanations of those items.
Wood on Certiorari Payments: 60% of Payments are for Years Prior 2000.
Mr. Wood at the request of WPCNR responded on another matter that has been raised against the city management of finances: tax certioraris.
Wood said the City Assessor, Eyde McCarthy advised him that of the city tax refunds given for tax years 2000-2005 so far in the year 2005, 60% included negiated settlement amounts from years prior to 2000.
The city according to Common Council records paid back $2,961,859.63 in certiorari refunds through April 2005. Add to that the $347,492 approved in certiorari refunds since then, and you come up with $3,309,351 in cert refunds in 2004-2005.
Using Wood’s 60% figure, that would mean $1,985,610 in refunds covers years prior to 2000, and $1,323,740 in refunds are based on taxes paid for tax years 2000 to 2005.
The rash of certioraris began in 2004. Only $228,677 in certs was paid in 2003.
Clearing the Docket: 1,300% Increase in Cert Payments in 22 Months.
Wood said the Delfino Administration had inherited a backlog of 1,700 certiorari cases when it took office in 1997. Wood reports that 1,400 of them have been settled and 300 are pending, and that is why there has been an increase in certiorari payments. “We are clearing the slate,” Wood said, “we do not want to leave this hanging for future administrations.”
Asked if the city would consider jawboning or inform possible certiorari filers of moves that the city would take if obviously successful organizations continued to file certioraris because of the equalization rate, Wood said he did not think that was fair. Wood pointed out that to fight a suit and lose would be more expensive in the long run for the city.
