White Plains Budget Director Continues Plea for Mandate Relief
The City of White Plains 2015 to 2016 Proposed Budget was submitted to the Common Council on Monday evening.
Keeping within the tax cap of 1.65 percent for this year, White Plains has proposed and maintained a budget within State tax levy constraints for the fourth consecutive year and is yet to experience any relief from the State mandates that have kept most New York municipal budgets extremely tight.
The total General Fund Proposed Budget is $162.9 million, an increase of $2.2 million or 1.4 percent over last year. The total combined proposed budget is $179.1 million, an increase of $3 million or 1.7 percent.
The proposed Property Tax levy of $56.3 million is within the State tax levy cap by approximately $12,000 and would result in a tax rate of $200.74, an increase of $4.60 or 2.4 percent over last year. This means that with a median assessed value of $13,500, a White Plains homeowner would pay $62 more in City tax.
Sewer fees would also remain at 21 percent of the bill for water consumption.
Stressing the fact that White Plains has a stable financial base, Michael Genito, Budget Director, noted that the path to economic recovery continues slowly and incrementally, and has been constructed to maintain the city’s Aa1 credit rating with Moody’s Investors Service.
The real property tax levy remains the largest revenue generator. A small increase in the assessment roll (up $75,915 or 0.03 percent) provided by slightly more property tax revenue because of one apartment complex coming on the roll after PILOT payments, is an indicator why White Plains has applied to New York State for its own IDA (Industrial Development Agency), rather than having to work through Westchester County, which reaps many of the benefits of new development in White Plains.
The second largest revenue source, Sales Tax, at $46.2 million (based on actual receipts received through December 2014 and estimated receipts through February) represents 28.4 percent of total General Fund Revenue.
Citing a slow retail season because of extreme winter weather conditions, Genito expressed hope that future sales would increase because of new development in White Plains and any of the planned developments set to come online that are now in the approval process. For now, sales tax revenue is up a little, but not rebounding.
The city must also secure the approval of the NYS Legislature to extend the three-quarters percent sales tax necessary to balance the budget and remain within the tax cap, according to Genito.
The city also seeks renewal of the quarter percent sales tax rate which funds the Tax Stabilization Account and of the hotel occupancy tax, which provides about $1 million in annual revenue.
Parking related revenue of $23.1 million represents 14.2 percent of General Fund revenues. Other sources include inter-government grants and aid of $7.3 million representing 4.5 percent of total General Fund revenues.
Since 2010, Genito explained, White Plains has made significant strides in addressing the expenditure side of the budget. This was accomplished by the consolidation of administrative functions, workforce reductions, wage freezes and citywide reductions in various operational accounts. Despite efforts many costs, such as debt service continue to increase at rates greater than revenues, indicating the continued pressure of keeping costs down, to maintain tax levies under the state cap, while receiving no relief from mandates that are driving costs up.
Despite the pressures and a continuation of hiring restrictions, funding has been included to operate the city’s new Community Education Center now under construction at the Winbrook Housing site on S. Lexington Avenue. The Center is scheduled to open this summer and will receive revenue by leasing part of the facility that will help to offset costs.
A new position, Special Patrol Officer, has been added to the Police Department to monitor taxis at the Transcenter to ensure a friendlier consumer experience.
The full Proposed Budget for 2015-2016 is available for view on the city’s website at cityofwhiteplains.com.
On April 15 at 5:30 p.m. there will be a joint meeting of the Budget & Management Advisory Committee for a general review of the entire budget. Public Works, Public Safety and Parking will be reviewed at a 5:30 p.m. meeting on Monday April 20; Community Services at a 5:30 p.m. meeting on Wednesday, April 22.
A public hearing is scheduled for Monday, May 4, 7:30 p.m. in Common Council Chambers and the budget vote is scheduled for Wednesday, May 27.
