WPCNR QUILL & EYESHADE. By John F. Bailey. August 7, 2006 UPDATED August 8, 2006: Tastefully tucked away in the First Reading Ordinances, Items 29-30 on Monday evening’s Common Council Agenda was an ordinance authorizing the first of the new fiscal year’s certioraris, which is a $523,337 refund to Macy’s of The Galleria, and a corresponding lopping of their assessment from $1.8 Million to $900,000, continuing the assessment drain lead by commercial properties in the city.
The $523,337 refund translates to approximately an additional $2.1 Million refund from the city school district. (School Taxes are 4 times the city tax). The School District is planning to issue an $8 Million bond to cover this and other expected certiorari refunds this year, the debt service coming out of school taxes.
The Monday evening settlement covers tax years 1995-96 through 2005-2006. Paul Wood, the City's Executive Officer, said the settlement is not a new one but is the other half of the settlement with Federated Department Stores from last year where Bloomingdales' received a tax cert. Wood confirmed the $523,337 would come out of this year's budget and affect the 2007-2008 tax roll.
Mr. Wood also said that the city made its budget in the final quarter of 2005-2006 ending June 30, actually making more than the budget called for, and he would get the figures for WPCNR from the Commissioner of Finance. WPCNR awaits the good news.
It is too early to tell whether this is the beginning of a new raft of certioraris that will outpace increases in assessments from condominium and home sales and possibly increased PILOT payments this year that will result in additional pressures on the school and city taxes, or perhaps, keep the assessment roll even which would stop a disturbing trend.
In the last four years, the City Tax Roll has declined $22,472,507, ($4.4 Million in 2003-2004, $9.1 Million in 2004-2005, $2.6 Million in 2005-2006, and 2006-2007, $6.3 Million). This has shifted the burden of paying for the city and school services to the homeowner to the benefit of the commercial property owner.
Meanwhile the White Plains homeowner is paying the vast share of taxes, and faces a watershed increase in taxes as the school district prepares to repair its physical buildings.
The school budget at $165.8 Million in 2006-2007 has grown from $89.4 Million in 1995-96. That is an increase of 86% in a decade when inflation has risen 26%. To finance this growth and the recent declines in city commercial assessments, the school district has increased Mr. and Mrs. White Plains school taxes 92%. From $202.91/$1,000 of assessed valuation(1995-1996) TO $449.64/$1,000 in 2006-2007.
With the city budget fat with expenses that outstrip its revenues this has resulted in an increase of city taxes of 7.8% this year. The continued dwindling of commercial property assessments of established successful business mainstays of the city through the certiorari process appears to be continuing as evidenced by the Macy’s refund approved Monday night.
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