I offer some comments on your article Sales Tax Receipts Up 2.5% In First Quarter- Slightly ahead of inflation as follows:
 
While sales tax revenues reported by the state are supposedly up 2.5%, the city has not reported its cash sales tax revenues actually received from the state for the 1st fiscal quarter ended Sept 30, 2005 (the 1st quarter) -- there may be a difference.  Moreover, the city has not issued its 1st quarter financial report as yet and doesn’t plan to issue this report until the December meeting of the Common Council (over one-month late).

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Comments

1.      The extremely high gasoline prices clearly contributed to the city's purported 2.5% sales tax increase.

2.      The city has not released its 1st quarter financials. We don't know what the city's total revenues were for the city's 1st quarter.

3.      Labor costs amount to over 3/4's of the city's total expenses. 

4.      Recent labor contracts agreed by the city have awarded 4% pay increases.

5.      Due to the city’s increased labor costs the city's cost "inflation rate" will be around 4%, higher than the nation's rate of inflation.

6.      If the sales tax growth is any indicator, it must be reasonably expected that, due to the difference between revenue growth and the city’s expense growth (ie, 2.5% vs. 4%), the city is very likely running a deficit again.

7.      Since the city hasn't released its year-end F2005 (over one-month late) or 1st quarter financials (expected in December), it’s hard to tell what the city’s financial position is.

8.      If the city is somehow not running a deficit again, then the city must be "in the black" due to the:

a.      homeowner real estate tax increases, 

b.      the high parking fees and ticket blitz, and

c.      the high gasoline prices that produced an unexpected sales tax windfall -- all on the backs of the citizens of White Plains.

9.      Many people actively wonder why the developers take - take - take while giving little back to the city -- It would be interesting if the city would regularly report the level of commercial assessments so that we could see how much the commercial assessments fell during the 1st quarter.

What's the bottom line? 

1.      The Mayor (ie, the city’s chief executive), the members of the Common Council (ie, the city's board of directors) and the citizens (ie, the stakeholders) need open access to the city’s financials -- results that are reported on a timely and accurate basis.

2.      The members of the Common Council are "flying blind" without having the city's financial results.

3.      The mayor is also “flying blind”.

4.      Some people ask - How can the members of the Common Council exercise their duties, especially their fiduciary duties, as council members?

5.      Answer - The members for the Common Council can't.

6.      Is this good government?

7.      Answer – No.
 

Solution

The city's financial reporting has to be brought to up to modern, post-Enron standards so that the city can be effectively managed.

I demand good government. If elected to the Common Council, I will recommend legislation to:

1.      Require timely, accurate reporting of the city's monthly, quarterly and annual financial results.

2.      Replace the existing auditors - the "Barker Street Boys"-- with one of the "big 4" accounting firms.  The city needs timely, accurate annual reports.

3.      Review and revamp the city's budget and finance departments so that timely, meaningful and accurate monthly and quarterly reports are produced.

4.      Require the issuance and availability (including over the city's web site) of all financial reports for the benefit of the citizens (stakeholders) of White Plains, the mayor (the city's chief executive), the members of the Common Council (the city's board of directors) and the investors who buy the city's bonds.

Clearly, it's time to toss away the green eye-shades and recognize that the city is a $130+ million a year enterprise requiring modern-day financial reporting that fosters modern day management of the city.
 
Sincerely,
 
John Carlson