WPCNR CITY HALL CIRCUIT. By John F. Bailey. April 3, 2007: Paul Wood, City Executive Officer, gave WPCNR a preview of the 2007-2008 City Budget today, saying that the new budget will total $155.5 Million, $1.5 million more than WPCNR predicted last week. Wood said the budget that will be presented to the Common Council Wednesday evening calls for “a modest 7% increase in the property tax, and projects a $43 Million in sales tax collections for this current budget year. Wood said the city is averaging $10 Million a quarter in sales tax, in a major policy initiative, said the Mayor would ask the state legislature to raise the city sales tax to 2-1/2%. The city budget will be presented for the first anywhere Wednesday evening.
Persons coming to park in White Plains will also pay more. Wood said the rate in municipal parking lots will go from 50 cents an hour to 75 cents an hour, and the street meter rate will rise from 75 cents an hour to $1 an hour There are no plans to raise parking fines, Wood said.
He said that the increases in the budget are in what he described as “direct user fee increases.” He noted that 300,000 persons come into White Plains a day, take advantage of White Plains services, and the direct user increases are a way for the city to be compensated for providing those services.
In a major policy initiative, Wood said Mayor Joseph Delfino would ask Albany to pass a home rule issue raising the city sales tax from 2% to 2-1/2% to bring White Plains up to the level of Mount Vernon, Yonkers and New Rochelle which currently enjoy a 2-1/2% sales tax. Wood said this would be requested in the current legislative session, to go into effect in the 2008-2009 budget year.
Wood estimated the extra ˝% would bring White Plains and additional $10 Million in revenue a year to ease the property tax burden on White Plains citizens. Based on projections, Wood reports the extra ˝% would bring in $53 Million and more in sales tax in 08-09, should the legislature pass the home rule measure.
Asked by WPCNR is the city was considering any additional taxes, Wood said, the city was evaluating putting a city hotel tax in place. Asked if a commuter tax on those coming to work in White Plains, or an income tax on city residents was being contemplated, Wood said they were not.
Wednesday evening, the Mayor is expected to give his annual State of the City Address at the Common Council meeting beginning at 7:30 P.M.
By WPCNR estimate a 7% increase in property tax by the Mayor would boost the city tax rate to about $142 per $1,000 of assessed value, meaning for the owner of a $700,000 home in the city would pay $2,623 in total property tax, an increase of $173.
A 7.8% increase in city taxes last year bumped the city budget 5.2% and a 7% budget increase by the Mayor would likely bump the city's "mystery budget" to approximately $154 Million compared to last year's $146.3 Million. But, we must caution this is purely speculative on the numbers, though it would provide for 4% increases for all city unions this year if the Mayor were to execute such an increase.
The budget traditionally does not state the salary increases being contemplated for the Common Council and select Administration figures, so WPCNR expects the budget will actually top $156 Million once the council agrees on what it is going to pay itself and what the Mayor feels his commissioners will receive in compensation in 2007-2008.
