North Castle Budget Criticized at Public Hearing
The North Castle Town Board vowed to reduce the proposed property tax hike in the 2013 tentative budget after several residents were highly critical of the $29.3 million spending plan during last week’s public hearing.
The preliminary budget, released on Nov. 16, included a proposed 4.56 percent tax rate increase and a levy that exceeds the tax cap by just over $146,000 while adding about $167,000 in spending. Under the originally proposed plan, the owner of a median house in North Castle, valued at $903,000, would pay $131.28 more in taxes next year.
Despite being over the tax cap at the moment, Supervisor Howard Arden said there was no need for the board to pass a resolution giving it the power to override the cap.
“The intent of all of us is to be under the cap. So if that’s our intent and our goal, why even bother with this?” Arden said.
Armonk resident Michael Fareri was one of three residents who criticized the budget during the Nov. 28 hearing, arguing that officials haven’t done enough to hold down spending and taxes. Over the past decade, town property taxes have skyrocketed 66.9 percent and spending has grown by 56.6 percent, with only a modest 8.8 percent increase in assessables, he said.
“This board controls our taxes,” Fareri said. “I believe my property values have been declining.”
Fareri made a series of suggestions on how to cut costs, including replacing Police Chief Robert D’Angelo when he retires with one of the department’s lieutenants. As a result, the department could drop to two lieutenants instead of having three, for a $250,000 savings. Another suggestion by Fareri was to pay the four council members stipends rather than salaries, eliminating fringe benefits.
North White Plains resident Anthony Futia said the town should consider merging the North White Plains Fire Department with the White Plains Volunteer Fire Department to help save money. He also said property owners who enter the sewer district in Armonk should pay a fee to join.
The town is under pressure with another round of sharp increases in pension and health care costs projected for next year. There is a $659,517 jump in health care expenses, an 8 percent rise over the current year. Pension costs are projected to go up $438,418, or 22.5 percent, to nearly $2.4 million.
Councilman John Cronin said the town has been taking a number of steps to reduce spending. He also criticized Councilman Michael Schiliro for failing to support a resolution earlier this year to have current department heads and retired employees pay a portion of their heath insurance.
In June, the board approved changes in its Compensation and Benefits Manual requiring retirees contribute 15 percent toward premiums. Private industry has been asking its workers to pay a higher portion of their health costs, Cronin said.
Schiliro replied that he opposed the measure because retired employees should not be responsible for the higher health care costs, though he did support having current town employees pay more for their coverage.
There was also disagreement whether the board should vote on legislation that would give it permission to override the tax cap. Schiliro said the board should approve a resolution, even though the goal should be to fall within the limit.
“We did the same exercise last year,” Schiliro said.
However, the remainder of the board did not go along with his suggestion and there was no vote on the resolution.
Prior to the hearing, Arden said he would ask the state legislature to allow North Castle to impose a hotel tax to help generate additional revenue. A $3 per day hotel occupancy tax could raise about $100,000 a year, Arden said.
Arden said the preliminary budget will be revised during the next week. Two budget work sessions–one held on Monday morning and the second coming up on Dec. 10 at 11 a.m. at town hall–were scheduled so officials can make adjustments before a vote on the final budget is held at the board’s Dec. 12 meeting.
