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WPCNR Quill & Eyeshade. By John F. Bailey March 27, 2008: The White Plains Commissioner of Finance reported to WPNCR Wednesday that the city 2008-2009 Budget will be delivered to the Common Council April 7. However, the budget has not been prepared with any input from the Budget & Management Committee, the group of citizens and councilpersons who in previous years used to suggest areas of concern and constructive criticism and warnings on city spending. That committee is chaired by Councilman Benjamin Boykin. Mr. Boykin told WPCNR yesterday:
“I (and the Committee) have had no input into the budget process,” Boykin told WPCNR. Boykin said he has sent Paul Wood, the city Executive Officer five e-mails requesting such a meeting, and in the last e-mail, he said Wood told him that the budget was so close to being presented that it was best to wait until it was presented. Boykin said the council would simply have to make changes in the printed budget after April 7, if necessary. WPCNR has put in a call to Mr. Wood to find out why there were no preliminary discussions before the budget went to print.
In previous years, Boykin recalled, prior to the departure of former Budget Director Eileen Earl, the Budget & Management Committee received detailed forecasts of the budget, making the Budget committee aware of the changing complexion of the city finances. This year the Budget committee did not receive any information on wage increases which they had requested, but were told could not be put together before mid-February. Boykin said he was given no reasons why the Budget Committee could not be convened.
Capital spending for 08-09 was gone over with Common Council observers, and the Council was informed of certain spending plans that were postponed and those that were kept in the capital plan.
The 2007-2008 budget stands at $154.5 Million with the city tax rate at $141.93 per $1,000 of assessed value.
Last year the city raised the budget 5.1%, resulting in a 7% property tax increase. The median White Plains home valued at $700,000 on the market, paid $2,622 in city property taxes in 2007-2008.
The city expects a quarter per cent increase in the sales tax expected to bring in approximately $5.5 Million. The quarter per cent is expected to be approved by the State Legislature. On the strength of the quarter per cent tax increase alone the city can fund most likely a 4% to 5% increase in the police, fire, teamsters, and CSEA contracts. A raise of 4% across the board was granted three years ago, and to solidify union happiness with elected officials, and to make union leaders look very good, a 5% increase (in a time of approximately 3% plus inflation), is attractive to a politically sensitive labor-appreciative Common Council. But, you never can tell perhaps the union heads will be conservative, show restraint and in the best interest of the city, accept a 4% raise.
Escalating electric rates will raise the budget. Rising health benefits of 5%, possible further demands from the state in pension fund contributions, and pay back of previous pension fund bonds, and pension fund shortfalls due to Wall Street woes, and a steady but not overwhelming increase in the present sales tax would seem to indicate budget pressures not present last year.
What could the budget be? According to the Bureau of Labor Statistics the inflation rate from February of 2007 to February of 2008 was 3.5%. That would take the budget increase automatically to $159 Million. Add to that a 5% increase in salaries ($3.5 Millon added to current $70.7 Million) and a 5% increase in health care benefits (the increase projected by the White Plains Schools) $1.7 Million added to $33,312,043 and that takes the budget to $167 Million. If the city grants 4%-ters across the board, it will be about $166 Million.
The present Sales Tax surplus should deliver a $3 Million surplus to feed into the budget, and add this to the $6 Million quarter per cent tax increase, and the city will have an additional $9 Million in revenue to defray effects of inflation and the salary increases. There is the mortgage tax that could put the city over the top to a balanced budget, barring substantial softening of the condominium market, allowing the possibility that White Plains could keep the property tax where it is – if it were not for certiorari settlements that continue to plague the city to the tune of $200,000 to $500,000 a month in tax refunds.
A third payment from LCOR for the Bank Street property could be set aside for the certiorari refunds – and the city keep the property tax increase to only a few pennies.
But this is contingent on the city’s commitments coming up for infrastructure, capital improvements, and open space acquisition.
Last year the city increased the property tax 7% ($9.28 – to $141.93) without any wage increases or the inflationary pressures now affecting the area.
Will the city keep property tax increase flat – no increase, which seems possible – based on just rough numbers? Or will they raise it as insurance – against more certiorari refunds?
If Mayor Joseph Delfino can persuade Assemblyman Adam Bradley to increase the sales tax another quarter per cent, bringing in another $6 Million, as Delfino had originally requested this would deliver insurance against more city budget surprises. The $10 Million a full ˝% sales tax increase would have brought in would have easily stopped any need for a property tax increase this year.
