WPCNR CITY HALL CIRCUIT. By John F. Bailey. February 21, 2010: The Bradley Administration is putting the finishing touches on a new “Sewer Usage Charge” on city water use, Mayor Adam Bradley’s Chief of Staff, John Callahan confirmed to WPCNR Sunday.

John Callahan, City Chief of Staff.

The legislation now in process, WPCNR estimates, could conceivably generate a $1Million windfall to the city, by channeling the surcharge into a new Sewer Fund, similar to the City Water Fund, while spreading the cost of maintaining the city sewers proportionately to the largest users. Presently the cost of maintaining the sewers is charged in the city general fund.

The legislation, not yet presented to the Common Council, Callahan said, would transfer part of the cost of maintaining the city sanitation sewer system to properties now tax-exempt from the city property tax, including county-owned buildings, federally-owned buildings, hospitals, churches and the city school district, all of which are now city property tax-exempt.

Callahan said the legislation would establish a surcharge to each user’s water bill based on the amount of water the property used. The current figure being considered is 10%, he said. He said the average annual water bill in White Plains is $200, and if the 10% tax is passed by the Common Council this means the average additional charge to the water bill would be $20, for homeowners.

A large office building, a hotel, a school, an apartment building owner with considerably higher water usage would pay more of a surcharge proportionately.

 Proceeds of the new "sewer tax" would be dedicated into a special fund (the Sewer Fund to be created) which WPCNR has been told by City will be dedicated to paying the $777,802 budgeted for sewer charges in the general fund. The costs of maintaining the city sewers would be transferred out of the general fund and into the new proposed Sewer Fund.

Callahan said the city did not have numbers yet on exactly how much “surplus” over the annual $777, 802 budgeted in 2009-10 would be generated.

In 2009-10, the water fund is budgeted to generate $10,688,811, approximately 90% of which is based on “services,” supply of water. WPCNR reasons that, if a 10% surcharge ("sewer tax") is enacted  eventually this would mean the new sewer charge could conceivably generate $1.6 Million and with expenses pegged at $778,000, the city would generate a $922,000 surplus

This might contribute to replenishing fund balance, or other uses, and at the very least, make the city balance sheet look a million dollars better. The surplus possibly would be greater if city water rates go up as expected due to New York  City increasing the rates to White Plains.

Callahan said that communities are allowed to legislate such a surcharge without approval by the state legislature.

News of the plan comes just two days after Mayor Adam Bradley told WPCNR he was considering no further cuts in the current 2009-10 city budget to cut back on the expected deficit  at the close of June, 2010 when the current fiscal year ends.

The Budget & Management Committee meets this Thursday to consider the first look at what city departments are looking at in expenses being budget for 2010-11.

Callahan told WPNCR the program could conceivably begin July 1, the start of the new fiscal year, if approved by the Council.

Asked if the city was considering a commuter tax, Callahan that was not being considered (at this time).