WPCNR COMMON COUNCIL CHRONICLE-EXAMINER. By Don Hughes. April 19, 2006, UPDATED Thursday April 20: 3:00 P.M. E.D.T.: Monday´s (evening's) budget discussion (by the Common Council and Budget and Management Advisory Committee) was mainly about tax certs and operating funds. It was noted that the largest part of the budget  represents salary and benefits.  It was questioned (by councilmembers) why  salaries were increasing faster than inflation.  It was  explained that in addition to the negotiated salary  increases that most employees also received `step´  increases.  It was suggested that future negotiations  take that into account.  It was also noted that we were approaching the day when then number of retired  employees receiving benefits would exceed the number of  active employees.

In a clarification from the Mayor's Office, just in, the city reports that during the meeting, the Assessor had mentioned that Mayor Alfred Del Vecchio, had been quoted as having "admited" to a Journal News reporter, commercial buildings were overassessed during his (Del Vecchio's) adminstration.

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It was suggested the future (salary) negotiations should try to  shift some of the health care cost to the employees.  It was noted that legally the city could not change any of the promised retirement benefits for current employees.  It was noted that a previous negotiations had limited health care to retirees with 20 years of service, but that only affected people hired since that change.

It was noted that we have borrowed the last two years to  cover some of the pension costs, and will do so again this year.

UnCERTainty on Certs

There was a long discussion on tax certioraris (see recording of  assessor's comments, at http://www.wpny.us  - recordings).  Last year´s budget underestimated the necessary amount (to pay certiorari settlements) by $1.6 million, and the members wanted some assurance that this year´s $800,000 was adequate. 

The Assessor said that she and the actuaries were comfortable with the number, but refused to be more specific.  She indicated that although a claim must be filed within a narrow window; it is to the plaintiffs benefit to delay the proceedings as long a possible and to try to combine multiple claims into a single proceeding.  She indicated that although White Plains was very aggressive in filing dismissal motions if any dates were missed, the overall pace of the process was driven entirely by the plaintiff.

Will the Cert Drain End? Del Vecchio Blamed Again for Today's Certs.

There were a number of questions on when the city could expect to see an end to the certioraris and what was in the `pipeline´.

It was indicated that a factor making the tax challenges successful was the disparity in the appreciation in market value of residential property not being matched in the commercial sector.  The application of a single equalization rate to both types of property allows the commercial owners to claim that they are being over assessed.  In addition, it was said that the Del Vecchio administration (1976-1993) purposefully over assessed commercial property.

David Maloney of the Mayor's Office contacted WPCNR Thursday afternoon and said that the Assessor in addressing the council Monday evening said that Mayor Del Vecchio had been quoted by Keith Eddings, a Journal News Reporter, as having "admitted,"  commerical buildings were over accessed during his (Del Vecchio's) administration. This was, Mr. Maloney said, the context in which Mayor Del Vecchio's administration was mentioned as being responsible for the alleged over assessment.

It was indicated that the solution was to do a citywide reassessment which would remove the need for the equalization rate; but politically this was unlikely.  The alternative was for the city to continue to fight
the equalization rate each year, and to continue to push for legislation that would allow for different rates for different classes of property. 

Fund Drains.

There was then discussion on the various operating funds.

It was noted that the Water fund had a deficit because of the numerous recent increases in water charges from New York City, and that it was going to be necessary to increase the water rate.

Insurance was discussed at some length.  It was noted  that most of the health coverage was provided by the state with the premiums on any optional policies limited to a maximum of what would be paid for the state coverage.  It was noted that White Plains was getting a very good deal since premiums were set on a statewide basis and White Plains was receiving more in benefits than it was paying in premiums.

It was noted that we are self-insured for liability coverage and that several neighboring cities had
recently had very large claims.  The cost of providing excess liability insurance was discussed but not
resolved.  The reserve that normally would be used to cover catastrophic claims has been drawn down, and it was suggested that we should either buy the insurance, or put an equivalent amount into the reserve.

It was noted that there was some borrowing for rolling stock, but at a reduced level from last year.


Editor's Note: Because there were a number of questions commissioners and city officers could not answer satisfactorily, two more Budget & Management Advisory Committee Budget Review Sessions have been scheduled. For budget aficianados here is the schedule:

April 24, Monday, 6 P.M.: Recreation and Parks

April 25, Tuesday, 6 P.M.: Budget & Management Advisory Committee Budget Review Session.

April 26, Wednesday, 6 P.M.: Public Works, Youth Bureau (at the Department of Public Works Garage)

May 1, Monday, 7:30 P.M.: Public Hearing on the Budget.

May 4, Thursday, 6 P.M.: Budget & Management Advisory Committee Budget Review Session.

May 9, Tuesday, 6 P.M.: Decision Night

May 25, Thursday, 5:30 P.M.: Special Meeting for Budget Adoption 2006-2007