PROPERTY TAXES BELOW CAP AGAIN IN NEW CITY BUDGET: The proposed 2024/25 White Plains budget increases the property tax rate by 2.47%. The total property tax to be raised will increase 1.37% to $68 million, but since the city’s total assessed value has decreased by $3 million, the tax rate increase is higher. The assessed value of commercial property in the city has fallen for the fourth straight year. Payments in Lieu of Taxes of $2.2 million are detailed in the budget package.
After property taxes, the other major revenue source for the city is sales taxes. The amount included in the proposed budget is $56 million, slightly less than the amount forecasted to be received in the current year. The portion of sales tax that was previously restricted is now unrestricted.
The parking revenue, which was $26.8 million pre-pandemic, has been budgeted at $29.2 million, partly due to higher rates. The budget provides for $5.5 million in state aid, the same amount the city has received for more than a decade. Mortgage tax is expected to take a dip due to high interest rates. Notable revenue increases include about $875,000 more in developer's contributions/fees and $150,000 in subdivision filing fees.
Personnel costs continue to be the biggest expense for the city, constituting 74% of anticipated spending in the General Fund. The 2024/25 General Fund budget calls for an increase in salaries & wages of $2.6M (3%), and employee benefit increases of $5 million (8.2%) compared to the previous budget, the latter due in large part to higher health insurance and pension costs. The city plans to hire three additional police officers and two more firemen while reducing headcount elsewhere by 13 employees.
Debt service payments are expected to increase about $0.5M to $15.4M in 2024/25; this figure is anticipated to increase each of the next three years. The city has a six-year capital improvement plan, and the city’s indebtedness is now scheduled to peak in 2025/26. Much of the upcoming borrowing is to be for a water treatment plant. Actual future costs will depend on economic and interest rate trends. The city continues to not borrow for current expenses.
Overall spending from the General Fund is budgeted to be $6 million, or 3%, more than in the current budget. Other than the General Fund, the Water Fund is the largest part of the budget, and its revenues and expenses are anticipated to be about $350,000 higher than the current year.
As a result of the above, the city budget in the General Fund shows a deficit of $16.0 million. This will be financed by using existing fund balances, including $14.2 million from unassigned fund balance out of the $31.8 million projected June 30, 2024, balance (a small deficit is forecast for the current fiscal year). However, as shown during past years, the city is able to keep actual expenditures below budget.
The White Plains Common Council held its regularly-stated monthly meeting on April 1, 2024. Anthony Keough was appointed city judge. A public scoping session for the draft environmental impact statement for the redevelopment of the Galleria was held. Public hearings for the 2024/25 city budget and a special permit for a development at 6 Cottage Place and 99 Church St. were set for May 6.
The council approved:
- Two capital improvement projects to replace trash cans in parking garages and add an accessible swing at Delfino Park totaling $310,000
- Property tax refunds of $45,000 for TD Bank
- The annual budget for the Business Improvement District
- Accepting grants for Youth Bureau programs of $24,668 and for the Youth Climate Action Fund of $50,000
- Amending the city’s procurement policy, laws on water service lines and fire mains, and public records law
The meeting was adjourned in honor of the recently-deceased former councilman Nancy Wallace.
At the Citizens to be Heard session, several people spoke about the gas blower ban, and others on the use of union labor in the Galleria redevelopment, and the need for an environmental impact statement on the proposed comprehensive plan.
In a special meeting on March 25, the Common Council discussed capital improvements, a redesigned plaza at the City Center, rezoning 70 and 80 Westchester Avenue, and a new low-income project on Church St. and Cottage Place.
