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Tax Related Issues
See also 2009
Town Budget for a discussion of the 2009 town budget.
Document
Search Fee (New town revenue source)
Background: During 2007 budget meetings, the board added $50,000 in
revenue for this new fee that would be charged to some people who wanted
certain documents from the Building Department, e.g., certificates of
occupancy, building permits, etc. At the meeting, there was a brief
discussion of the legality of the plan and who it was applied to but no
decisions were made. Metz
took the lead in proposing this new revenue source.
11/27/2007 (work session)
1. Metz
said issue dates back to Bock administration
2. Gregory still not sure what town could charge for. He felt there could be
a difference between the charge for a document and a charge for the search.
Currently, if a search produces no document, the department
creates one and charges $25 for it. The fee has been in place for 15-20 years
and amount hasn't been changed.
3. Town attorney said he checked law and his opinion was that it came under
the Freedom of Information law (Metz
had previously said that he felt it wasn't) and that there was no statutory
authority for town to levy this kind of fee. (the $11 fee clerk charges for
vital records is a statutory fee)
4. Metz said
other municipalities do it so why not us; he wants the fee to be charged only
to title companies
5. Campisi doesn't want it to be on homeowner; okay
to charge realtors; other board members weren't sure
6. Metz will
work with Gregory on details and come back to board; charges in other places
appear to range from $75-100.
7. Metz asked
Gregory how many title searches per year; Gregory never gave an answer.
See Budget Issues/March 24, 2009 and April 7, 2009 below for more on the
Search Fee issue
Budget
Issues
February 26, 2008 work session
2007 Budget Transfers
Comptroller Joan Goldberg advised the board that 2007 revenues came in $1
million over budget, with $600,000 additional from sales tax and $400,000
additional from the mortgage tax. The unexpected “surplus” would
go for $400,000 in worker's compensation expenditures and $500,000 for
capital projects.
A list of the individual budget transfers (a few pages long) will not be made
available to the public until after it is “approved” by the board
at its next regular meeting. Goldberg noted that all of the transfers had
been previously approved by the board.
Note: The 5 page list was approved at the March 4th meeting and is now
available to the public.
Tax Report: 2007/2008 changes
April 1, 2008
Councilman Bianco gave a summary of the new
town/county tax bill that homeowners who pay their tax bill directly received
in the mail. He noted the following tax rate changes over 2007
County tax: decrease of 15.97% (a result of additional development down
county picking up a greater share of the county tax bill)
Town tax: increase of 3.47%
Yorktown Hts fire district tax: increase 1.14%
Yorktown garbage & refuse tax: increase 1.51%
Advanced life support: increase 2.99%
Hallocks Mill Sewers (O&M costs only): increase
of 21.67% (for additions/improvements to the treatment plant)
Peekskill Sanitary Sewer District: decrease 3.16%
Water District: decrease of 8.29%
March 17, 2009
2008 Budget Transfers
The resolution approving 2008 budget transfers was taken off the agenda and
will be discussed at a board work session before being approved.
March 24,
2009, work session
Budget transfers and related financial issues
Comptroller Joan Goldberg went over a series of budget transfer issues with
the board. Prior to the meeting, she had given the board an eight page list
of transfers. There were also two memos that discussed transfer issues as
well as other financial issues. Only some of the specific budget transfers
were identified during the meeting. She explained that most of the transfers
were for projects or purchases that had been approved by the board.
1. Skate board park. The general fund overspent by $225,000 for the project.
However, because the town will receive $222,000 in revenue from the county as
a reimbursement, there will only have to be a net $3,000 transfer into the
general fund to cover the balance.
2. Library. The department over spent its budget because of the emergency
roof repair. Most of the money will come from the library's fund balance.
3. Highway. The department over spent its budget because of snow removal
costs. Mr. DiBartolo told the board that there had been 37
“events” so far this winter. Ms. Goldberg noted that the
department had already spent $375,000 of its 2009 budget for salt and Mr. Dibartolo said he hoped that with what was currently in
storage, plus the remaining roughly $90,000, the budgeted 2009 amount would
be sufficient. He also said that while the town expected to receive a less state CHIPS money in 2009 for pavaing,
he still hoped to be able to do some paving. Given the cost of blacktop,
however, he said that most of the blacktop will likely be used for patching
work.
4. Capital projects
Ms. Goldberg said that once the final bills come in for some completed
capital projects, the cost will be bonded. These included the Route 118
sidewalks ($54,000) and costs associated with the comprehensive plan
($26,000).
5. Unauthorized purchases
Software: Ms. Goldberg noted that the Planning Department and the
Building Department had spent $23,000 on software that would enable the departments
to tie in to the software used by the assessor without prior authorization
from the board. Neither expenditure was included in
the departments' 2008 budgets. She added, however, that the purchase had been
discussed with the board at more than one meeting and that its omission from
the budget was likely an oversight.
Hunterbrook fields: The town also
incurred bills from a company, Mike's Blue Wheel, for the removal of debris
at the Hunterbrook ballfields
that had not been authorized by the board or put out to bid. Mr. DiBartolo explained that when the work was done, there
was no way of knowing in advance how much debris would have to be removed.
The board approved paying the $15,000 outstanding bill. Later in the meeting,
Acting Town Engineer Sharon Robinson explained that this was the site of the
former Lakeside sewage treatment plant. When
the plant was decommissioned and the sewer district connected to the
Peekskill Sanitary Sewer district, the building was demolished. As costs for
the removal of the debris escalated, her department stopped the removal work
as at that time there were no plans for the reuse of the site. At the
suggestion of Ms.Goldberg, the cost for the debris
removal will be shared equally between the Parks Department and the Hunterbrook Sewer District. The board gave Mr. DiBartolo permission to seed the fields (which he said
would not cost anything). The town is still awaiting
DEC and DEP permits for the field and more community input on its use will be
needed. Mr. DiBartolo said that there was one area
resident who had expressed concerns about the field's future use.
Board members expressed concern over the fact that expenses were being
incurred without board knowledge or approval and that something had to be
done so that these kind of things didn't happen
again. Ms. Roker said that she would resend all department heads a copy of
the town's purchasing policy. It was also suggested that there be meetings
with department heads to review the town's financial procedures.
6. Attorney's fees for Planning Board and Zoning Board and Tax Certioraris
On the issue of the bills for tax certiorari work, Mr. Buckley said he will
be reviewing the separate bills for handling this work and that there had to
be a clearer understanding of what was included in the basic retainer for
this work. He told the board that in January, before Wormser
was hired, the town knew that there was going to be a lot of certiorari trial
work based on changes in the court calendar and the retirement of the
attorney who had done this work for the town in the past. (For a discussion
on Planning and Zoning Board fees see, Legal Issues
7. Search fee
Ms. Goldberg called the board's attention to the fact that the board had
included $50,000 in revenue from a new title search fee in both the 2008 and
2009 budgets but that the fee had never been imposed. Councilman Metz said
that he had made repeated calls on the issue and that no local law was needed
to implement it. Stating that it's a “joke” that it hasn't been
implemented yet, it said that there's always been an excuse why it hadn't
been done.
Mr. Buckley said that the fee should have been implemented but that the
discussion was bordering on a personnel issue that should be discussed in a
closed session.
8. Tax office software
Councilman Bianco raised the issue of the continued
need for new software in the tax office so that it could interface with both
the Finance and Water Departments and his frustration that the software had
not been purchased sooner. The issue had been raised in previous years but
nothing was done about it. The board voted to authorize the $30,000 purchase
and proceed with the installation even if a town employee wasn't happy with
the change.
9. State of town's finances
Ms. Goldberg reported that Moody's had reviewed the town's finances and was
impressed with what it found. She said that there will be an increase in the
General Fund fund balance for 2008. She did not
provide details. She also said she planned to send the town more frequent
financial updates.
April 7, 2009
Budget transfers
During Courtesy of the Floor, Susan Siegel (the person writing this summary),
asked the board when it was going to account for the budget transfers
associated with the consolidation of labor services. She reminded the board
that at the December budget hearing, the comptroller stated that by the end
of the year, departments would have to pay for work done for them by other
town departments. She said that as of October 10th, the value of the shared
services totalted $65, 00. She asked for an update on the value of
the shared services through the end of 2008.
In response, Councilman Bianco acknowledged that
this was an issue and that the town should look into it. In response to a
comment from Vishnu Patel that the real issue was whether the town was saving
money, Mr. Bianco said that the issue was not about
savings but about the legal requirements governing the use of special
district funds.
Search Fee
During the pre-session meeting the board was advised that the building
inspector has implemented a $50 search fee for title companies.
Capital Budget and Capital Projects
May 6, 2008
During the Courtesy of the Floor portion of the agenda, Susan Siegel,
speaking on behalf of Citizens for an Informed Yorktown (and the observer
writing these board summaries) asked the board to provide information at its
next meeting on the $1M borrowing in 2007 for a series of capital projects.
She also wanted to know how long the $5M bond authorization approved earlier
was good for.
She also asked for information about the cost of the trailers currently being
used to house the Recreation Department and future plans for the use of the
trailers.
May 20, 2008
Ms. Siegel reminded the board about the questions she had asked at the
previous meeting as no information had been forthcoming.
(Note: After the meeting, Supervisor Peters
gave Ms. Siegel a 2-page document dated May, 2007 entitled "Pending
Capital Projects May 2007 Work Session." A total of 14 projects were
listed at a total cost of $5M. The following day, Mr. Peters provided the
following additional information: The $5M bond authorization was approved on
May 22, 2007 and is good for ten years; the $1M already borrowed has added
slightly less than 1% to the tax rate; the total cost of the trailers for the
Parks & Recreation Department is $213,392, $150,000 of which came from
the initial $1M borrowing. Information on what projects have already been
funded from the iniitial $1M borrowing was not made
available.
April 14, 2009, work session
Federal stimulus money
Citing a press release from Gov. Paterson announcing that NY State was
getting $430 million in stimulus funds for environmental projects, Councilman
Campisi said that the town should go after some of that
money, possibly for sewer, drinking water or other “green”
projects. To be eligible for the money, the projects have to be shovel ready
so that contracts can be signed by January, 2010. The deadline for submitting
projects is May 29, 2009. The funds require a 10% town match.
Councilman Campisi suggested that it may make sense
to send assistant planner Lorraine DiSisto, the
town's grant writer, to Albany or Washington to seek how much money Yorktown
could get. No action was taken but the board will speak to Ms. DiSisto after she returns from a grant writing seminar
she has been attending.
April 21, 2009
Councilman Campisi announced that Yorktown
is entitled to $128,000 of a $430 million pot of money the federal government
has made available to the EPA under the stimulus program. The money can be
used for energy efficiency, green innovation and waterways projects. The town
must submit its proposals by May 29, 2009 in order not to lose the money. The
board agreed to send assistant planner Lorraine DeSisto
to Albany to
see if there were any additional funds.
During the pre-session meeting, Councilman Martorano
said that he had given details about available stimulus funds to the
supervisor and Planning Director John Tegeder about
five weeks ago.
During Courtesy of the Floor, Susan Siegel (the person writing this summary)
asked if there would be any public discussion and opportunity for public
input on proposed projects prior to the May submission.
May 19, 2009
Without any discussion the board approved a resolution authorizing the
supervisor “to apply for various grants under the American Recovery and
Reinvestment Act of 2009.)
(Note: In a CIY follow-up after the meeting, it was learned that the
resolution did not contain any specific projects but was passed so that the
town can meet a May 29th submission deadline. The planning department is
currently reviewing a list of possible projects that could meet the
requirements for specific grants under the program. According to the
department, approximately 200 possible programs have to be reviewed to see
which ones might be applicable for possible town projects.)
2008
Revenue projections
June 3, 2008
During the Courtesy of the Floor portion of the agenda, Linda Miller of
Citizens for an Informed Yorktown read a statement asking the board to report
back to the community on whether revenue projections in the 2008 budget for
the mortgage tax and sales tax were coming in as expected. She noted that the
board had increased projections from these lines by $150,000 in order to
reduce the tax rate increase, despite the fact that home sales and the
general economy were in decline. She also raised questions about when some
personnel promotions may have been voted on, noting
the board's practice of reopening its meetings after a closed session and
after the public was long gone.
Councilman Bianco agreed that the revenue receipts
should be looked into and said he would ask for a report from the
comptroller. (Note: subsequent to the meeting, Mr. Bianco
notified the writer of this summary that the comptroller will make a five
month report to the board at the June 24 work session.)
Councilman Jim Martorano said that he didn't think
the $150,000 increase in revenue projections was a gamble.
June 10, 2008 work
session
Town Comptroller Joan Goldberg gave a five month update of revenue receipts and
expenditures. (Note: the presentation was in response to questions raised at
last week's meeting by Citizens for an Informed Yorktown, the organization
that prepares these meeting summaries.) Ms. Goldberg gave the board a two
page listing of major revenue and expenditures figures as of June 10, 2008,
noting either increases or shortfalls from 2008 budget projections.
At the conclusion of her presentation (see below), Supervisor Peters advised
the board that other municipalities had already sent memos to town
departments advising them to reduce their expenditures by 8-10%. The board
agreed that he should send a similar memo to department heads and that they
should be cautions about incurring any unbudgeted
expenses.
Highlights of the report include:
Revenue
1. Sales tax: There has been a $675,000 increase in sales tax revenue
because of higher gasoline prices – but she noted that the increase
might not hold through the rest of the year if consumer spending fell in
order to compensate for higher gasoline prices. This increase will offset the
decrease in the mortgage tax.
2. Mortgage tax: She is projecting a
$600,000 shortfall. Payments, to date, are 39% lower than the same period
last year. She alerted the board that when preparing the 2009 budget, the lower
projection for the mortgage tax will result in a 4% increase in the tax rate
– even before other increases are factored in, such as wage increases.
3. Fees for the Building Department and
Planning Department are lower than projected.
4. The proposed search fee to be paid
by title companies that was projected to raise $50,000 has never been
implemented. Councilman Metz will pursue discussions with Building Inspector
Gregory who has been reluctant to implement this fee. (See earlier meeting
notes relating to the Search Fee). He will also explore a new fee to license
electricians with Mr. Gregory, something he said that most other towns do.
5. Revenue from tax receipts are down
$1.25M. When taxes are not collected, the town still has to pay the county
and school taxes out of general funds; it subsequently recoups the money with
late fees and/or liens on the property.
6. Sale of Bernstein property. $300,000 has
been budgeted from this sale. The house has not been put up for auction yet.
Expenditures
1. The town saved $630,000 on budgeted expenditures in 2007.
2. Police overtime. To date, $170,000
out of a budgeted $320,000 has been spent. If expenditures track the same way
through the end of the year, there could be a
$80,000 shortfall. In a separate presentation with pie chart graphics, the
police chief explained that most of the overtime was to cover policemen out
for bereavement, sick leave, comp time or to cover
people in training. He explained that the only way to reduce overtime was to
increase the overall number of patrolmen. Councilman Campisi
asked what would happen if overtime wasn't used to cover a patrolman and
there was one less patrolman on a shift. The chief's response was that it
would hurt back up time. Councilman Bianco raised
questions about the use of overtime to cover patrolman released for PBA
activities in violation of the union contract; the supervisor will review
this with labor counsel. The issue was also raised about the full cost of
having resources officers in the schools if it resulted in increased overtime
costs. There was also a discussion of the practice of patrolmen doing outside
side jobs, such as being in uniform with a patrol car for a movie, that are now being billed and paid for through the
town with the town making some extra money.
3. Water department. A shortfall of
$156,000 is expected in the equipment line. The department purchased a piece
of equipment in 2007 that is not capable of doing the job it was supposed to
do. (Note: the equipment cost $284,7250.) Ms.Goldberg said that the company that was the sole
bidder for the equipment has agreed to take back the machine for a 15%
restocking fee. Instead, she suggested that the town might want to try to
auction it. The equipment was purchased after discussions between Water
Department staff and the sole bidder over what the equipment was supposed to
be capable of doing. Town Attorney John Buckley will contact the company
regarding its prior assurance that the equipment would do what the town staff
said it needed the equipment to do.
4. Although not a
2008 expenditure, the board was advised that in 2009 it will have to
replace the HVAC system in the library and that the new system will be
“expensive.” No dollar amount was noted.
5. $100,000 of the snow budget remains,
although salt supplies exceeded the budget by 63,000.
6. $70,000 in additional expense for
school and town and county taxes for the Shallow Creek property acquired in
2007 and which won't be taken off the tax rolls until 2009.
Miscellaneous
1. As a result of a new contract with a new company, phone charges for
town hall and the library will be reduced by $3/month. Both buildings will
also be getting new phones.
2. Money has been saved by eliminating
a position in the Finance Department and by consolidating several separate
contracts for alarm services.
3. In general, department heads will be
advised to limit overtime when possible. Mr. DiBartolo
noted that some workers in the Parks Department were now working weekends
under the flex time provisions in the union's contract.
4. Councilman Bianco
noted that eliminating staff was the only way to make significant reductions
in expenditures. Mr. DiBartolo said there had been
a resignation in the Department of Environmental Conservation that would not be
filled, although he would have to fill some vacancies for laborers.
5. Mr. DiBartolo
said he had completed the paving program for the time being and was trying to
use the funds available from the CHIPS program because of rumors that the
program may be eliminated in the future. Paving will resume in September. He
told the board that it had cost $144,000 to pave Granite Springs Road. Given the
escalating cost of blacktop, he said that the usual 15 year cycle for
repaving roads would likely have to be stretched out to a 20 year cycle.
6. Town
Engineer Sharon Robinson advised the board that the bid for three sewer
projects had come in lower than estimated and asked permission to use the
excess money to hire an outside firm to supervise the construction. The board
gave its approval although a resolution will have to be approved at a later
date.
June 17, 2008
During Courtesy of the Floor, Linda Miller of Citizens for an Informed
Yorktown asked how the town anticipated making up for the projected shortfall
in revenue for 2008 and what impact the shortfall would have on the 2009
budget. She also asked that the comptroller present a shorter version of the
5-month financial update at a televised board meeting so that more residents
would know about the state of the town's finances.
In response to Ms. Miller's comments, Supervisor Peters said that the board
had nothing to hide and that he would have the comptroller give a
presentation and answer questions at a future meeting. Councilman Martorano noted that while Ms. Miller focused on the
revenue shortfalls, she said nothing about the increase in sales tax revenue.
Councilman Bianco said that the way to reduce
expenditures and save money was by not filling non critical jobs.
July 1, 2008
In response to a request at last month's meeting from Citizens for an
Informed Yorktown, Supervisor Peters summarized the five month financial
update report that the town's comptroller, Joan Goldberg, had presented tro the board at a work session.
He reported that revenues were flat, with the $1M increase in sales tax
revenue due to higher gasoline prices offsetting shortfalls in other revenue
sources. He also highlighted several expenditure areas that were coming in
over budget, including police overtime. (See earlier meeting summaries for
details of the comptroller's report.) During Courtesy of the Floor, Police
Chief Daniel McMahon commented on the police overtime, stating that it was
“not frivolous” and was due to the fact that there was a lag time
between when people left the force and new hires were able to fill the
positions. He noted that the dispatcher's position has been vacant for almost
a year and has necessitated some overtime. He offered to repeat the
presentation regarding overtime that he had made at a work session at a
future televised meeting.
July 15, 2008
During Courtesy of the Floor, Susan Siegel (the person writing this summary)
read on statement on behalf of Citizens for an Informed Yorktown asking the
board to report back to the community at its August 5th meeting on steps the
town was taking to collect on $4 million in uncollected taxes. She asked what
procedures were in place to foreclose on properties with tax liens and sell
off foreclosed properties at in-rem sales.
In response to her comments, Councilman Campisi
explained that by law the town must send the school districts and county all
the tax dollars they are due, whether or not the property owner has paid the
tax. Eventually, when the taxes are paid the town recoups the money with
interest. He said that the town attorney had advised him that there were
currently 80 properties in foreclosure
Councilman James Martorano said that the town
always had a back log for in-rem sales and that
more had to be done to collect these outstanding taxes.
Councilman Bianco noted that in the past, one of
the foreclosed properties had been owned by an elderly woman and rather than
force her out of her home, the town rented the house to her. In some cases, we
have to have a little heart, he said.
August 19, 2008
During Courtesy of the Floor, Linda Miller, speaking on behalf of Citizens
for an Informed Yorktown repeated questions CIY had asked at the July 15th
board meeting about what the town was doing to recoup the overdue tax
payments that now total over $4 million. She asked where residents could get
the information on both the raw numbers and the process followed by the town
to move from lien to foreclosure to in rem sale.
In response, Town Attorney John Buckley explained what he called the lengthy
legal process for foreclosing on property. He said the town had to wait two
years after the payment was due before initiating the foreclosure process
which involved filling petitions and advertising. He said the town was
currently initiating foreclosure proceedings on liens dating back to 2000.
Councilman Bianco said that the Tax Receiver's
office had a book that listed who owed taxes, adding that perhaps the town
needed to do a better job of collecting overdue taxes.
Councilman Campisi challenged the $4 million
overdue figure cited by Ms. Miller which he said had also been stated by
Susan Siegel (the person writing this summary) at the July 15th meeting. He
said the overdue amount was about $1.9 million. At the second Courtesy of the
Floor segment, Ms. Siegel responded to Mr. Campisi's
comments, noting that both she and Ms. Miller had said that the $4 million
figure was cumulative and did not represent a single year. She also advised
the board that some of the liens dated back to 1988.
Supervisor Peters said he would like to sell some of the properties that the
town has foreclosed on , put them back on the tax
rolls and possibly make them available as affordable housing.
Councilman Metz explained that unpaid taxes are paid when the property is
sold and said that a lot of the current situation would take care of itself
when the real estate market turned around.
Outside
Audits
July 8, 2008 work session
2007 Audit
Two representatives from Bennett Kielson Storch DeSantis, the town's
outside auditors, discussed their 2007 audit of the town's finances.
In general, they said that the town's finances were “very good”
and that the town was well positioned to weather the economic conditions of
2008 and the uncertainties going into 2009. They stressed the need for long
term planning. The discussion touched on the following issues:
A. Fund balance in the General Fund
1) the increase in the fund balance at the end of the year ($3.3 million,
compared to $2.6 million in 2006) was due to the town's controlling
expenditures rather than generating surplus revenue. The fund balance
represented 13% of the total amount of the General Fund budget. While total
revenue projections exceeded the budget by $466,809, the excess revenue was
considerably less than the $2,120,305 excess revenue in 2006. The biggest
variance in revenue projections was property taxes which came in $1,238,000
lower than projected compared to $384,028 less in 2006.
Both the auditors and the board took note of 2008 trends, specifically the
decrease in mortgage tax revenue and the increase in sales tax revenue. The
auditors cautioned about being too optimistic about the sales tax revenue as
the town had no control over it. Comptroller Joan Goldberg also noted that
the economy is not likely to pick up for the balance of the year and the
auditors noted that the forecast for 2009 was not any better. The auditors
noted that approximately 80% of the town's expenditures were mandated costs,
such as salaries, and that there wasn't much flexibility on the expenditure
side. The major 2008 unknown expenditure would be snow removal costs.
2) in response to questions from Councilman Bianco about whether the town was keeping too large a
fund balance, the auditors pointed out that the fund balance is the town's
working capital for the first four months of the year before tax receipts
start coming in. They also noted that whereas in the past the town has used
the fund balance to finance capital projects instead of borrowing, in the
near future there probably would not be sufficient funds in the fund balance
to finance future capital projects. Ms. Goldberg explained that while the
board authorized a $5 million bond for capital projects, none of the money
has been borrowed yet; the bills for the first project, the new boilers at
the YCC, haven't been paid yet so there has been no outlay on money to date.
Councilman Bianco noted that the town has only used
1% of its constitutionally permitted debt limit.
B. Borrowing for capital projects
Without expressing an opinion one way or the other, the auditors noted that
there were two schools of thought regarding borrowing for capital projects:
the town could borrow now when interest rates were low and have future
residents pay for the projects that they will benefit from - or – use
money in the fund balance (from the General Fund or a Special District Fund)
that resulted from taxing the current residents even though they might not be
benefiting from the project in the future.
The auditors advised the board to develop a plan that addressed the issue of
why some of the funds were accumulating a surplus and how that money was
going to be used.
C. Unpaid taxes
Comptroller Goldberg said that the town had over $4 million outstanding in
tax liens.
Town Attorney John Buckley advised the board that there were 80 properties in
foreclosure and that 40 were almost ready to be put up for sale in an in-rem sale. Petitions (from homeowners) have been filed in
the remaining 40 instances.
This precipitated a brief discussion about the disposal of town-owned
property. The auditors indicated that odd lots could be sold off to adjacent
property owners as a way to raise money. Councilman Bianco
noted that some of these parcels should be kept for open space and converted
to parkland. Councilman Metz noted that probably some could be sold.
D. Fund Balance in Water District
In response to the auditor's comments about seeing a big increase in the fund
balance, Director of Labor Operations Eric DiBartolo
explained that there had been a 9% reduction in water rates last year. He
also noted that money was being accumulated for a new pump station on French
Hill but that the he has come up with an alternative plan that would be less
costly. He also said that he was making management improvements that would
reduce the 24% water loss (the difference between the amount of water the
town buys from the Joint Water Works and the amount of water that is billed
to district customers).
E. Highway Department Fund Balance
In response to the auditor's comments that the department did not have much
of a fund balance, Mr. DiBartolo explained that
before a three year contract came to an end, the department used funds for
blacktopping projects.
F. Town's Bond Rating
Councilman Bianco asked why the town only had an A1
bond rating instead of AA or AAA. Ms. Goldberg explained that the town's fund
balance was too low for a AA rating.
G. Miscellaneous
Ms. Goldberg noted that the time was approaching when the town would have to
hire an actuary to calculate the future liability for benefits for current
employees and retirees. (Note: Although not stated during the meeting, the
understanding was that this was a mandated expense.)
July 28, 2009, work session
2008 Audit Report
A representative of Bennett Kielson, the town's
auditor presented the highlights of the firm's 2008 audit. Final copies of
the report were not available pending the submission of two letters from law
firms that did business with the town. The letters are needed to determine
whether the town has any future liability in the cases. Town Comptroller Joan
Goldberg said that based on the legal letters received to date, the legal
letters are positive.
All in all, the auditor said that the news was good and that the town was in
great financial condition. He added that reducing reliance on the fund
balance was also a plus. (In 2009, only $50,000 was taken from the fund
balance as a revenue.)
General Fund
The town received $408,372 more in revenue than it projected in the
budget and spent $351,869 less than budgeted. When final budget numbers are
factored in, the town spent $760,241 more than it received in revenue.
However, when transfers into the General Fund from other sources are added in
(mostly water, sewer and refuse funds), the town ended the year with a
$797,270 fund balance, bringing the total fund balance to $4,054,082.
On the revenue side, the auditor noted that the revenue surplus was less than
the $1 million surplus generated in past years. While the sales tax and
franchise lines were better than projected, the major “hit” was
on the mortgage tax that came in $503,645 less than projected. The auditor
ventured to say that the revenue from this source could be lower for 2009.
Ms. Goldberg reported that the town has over $5 million in uncollected taxes,
compared to the usual $3 or $4 million. (As of 12/21/08, there was $3.4
million in uncollected taxes; for 2009, the uncollected town and county taxes to date totals $1.8 million. Councilman Matt
Metz said that people were still likely to pay some of this before the end of
the year and Councilman Nick Bianco responded that
he was concerned as school taxes will be due in September.)
The auditor noted that the town hasn't had a foreclosure sale in many years
which prompted Council Bianco to say that “we
can't get a handle on this.”
Town attorney John Buckley said that the town had recently gotten judgments
on 30 properties; 28 were little pieces and only two had the potential for
sale as buildable lots. He added though, that the parcels couldn't be sold
for two years when the redemption period ran out.
Ms. Goldberg said she wanted to see the parcels off the tax rolls so that the
town did not have to continue paying taxes on them. Director of Labor
Operations DiBartolo said that it was a maintenance
problem for the town to care for these small parcels and Councilman Bianco said that the Open Space Committee should review
them.
The auditor noted that for the first time, the liabilities section of the
audit report includes a $27 million liability line for medical benefits for
retirees. The expense will be paid out over a 30 year period.
Highway Fund
The Fund ended the year with a $166,000 fund balance.
Water Fund
The Water Fund has a $6.7 million fund balance. Mr. DiBartolo
said he had two projects planned. And Ms. Goldberg said that the tax rate had
been reduced in 2009 in part because of the large fund balance.
Bond Rating
Ms. Goldberg explained that Moody's bond rating service would not
increase the town's rating from A1 to AA because the town relied too heavily
on sales tax revenue which the company felt was uncertain. A second factor
was the amount of uncollected taxes in relationship to the town's per capita
income.
August 11,
2009, work session
Agreement with auditor
The board authorized a one year “engagement letter” for the
services of the auditing firm Bennet Kielson for 2009. The firm has almost completed the
town's 2008 audit.
Star
Rebate Program
September 2, 2008
Councilman Nick Bianco, commenting on the school
tax bills that are now in the mail, explained that in April, 2008 the NYS
Legislature approved changes in the way the Star Rebate was calculated that
had the effect of reducing the amount of the rebate by about 5%. The
reduction applies to both the basic and enhanced program.
He noted that there had been no public announcement of the changes at the
time.
Anyone having questions about their tax bill should contact either the
Receiver of Taxes or the Assessor at 962-5722.
September 16, 2008
Councilman Nick Bianco reported that rebate
checks for the Star Program will be mailed out beginning September 29th.
Because the checks are being mailed out alphabetically by county, the Westchester checks probably won't be mailed until the
end of October..
The amount of the “middle class” rebate
checks, which are based on income, are the same as last year. Those eligible
for the enhanced STAR rebate, however, will see a $393 increase in their
checks. For residents with incomes less than $120,000, residents in the Lakeland district will
receive $1,248.79. Yorktown residents will
receive $1,185.32.
These rebate checks are in addition to the reductions on the school tax bill.
Repeating comments he made last year when the rebate checks were mailed, Mr. Bianco pointed out that some seniors eligible for the
enhanced Star program receive rebates even though they don't pay any school
taxes. He said that this year approximately 324 of the 1,621 seniors eligible
for the enhanced program do not pay any taxes. (Note: In a phone call to the
CIY the following day, Mr. Bianco said that based
on new information he had just received, there were a total of 698 people in
the enhanced Star program who did not pay any school taxes.)
More information about the Star program, both the rebate checks and the
reduction in school taxes is available by calling the town assessor's office
at 962-5722, , ext 224.
November 18, 2008
Councilman Nick Bianco advised residents that the
NYS Star Rebate Program for the 2009-2010 school year will be cut by 10%. He
called the cut, which was approved last April, “unacceptable” but
said he didn't know what local officials could do about it.
January 6, 2009
Saying that residents have to be prepared for school tax increases next year,
Councilman Nick Bianco alerted residents to pending cuts in the 2009
Star Rebate program and asked town assessor Harold Girdlestone
to provide additional information about the cuts. In 2008, the NYS Legislature
changed the way the STAR rebate was calculated. The result was a decrease in
savings that homeowners realized on their 2008 school taxes in both the basic
and enhanced program. Councilman Bianco said that
even if the school districts came up with a zero increase in their tax rate
next year, homeowners might have to pay up to $1500 more because of the cuts.
The legislation calls for additional cuts in 2009 that will affect next
year's school tax levy. In response to questions from the board, he explained
that the reduction in the rebate could mean, depending on the assessed value
of their property, that some homeowners in the
enhanced STAR program who previously paid no school tax might have to pay a
school tax in 2009-2010. Charts showing the cuts are available in the
assessor's office. Additional information is also available by calling the
assessor's office at 962-5722.
Mr. Girdlestone also advised residents that
Governor Patterson's 2009 budget proposal calls for the total elimination of
the Star Rebate check that was dependant on income.
Councilman Bianco said that he would draft a board
resolution to be sent to our state legislators opposing the cuts. He also
commented on a recent report about the dysfunctional New York State
Legislature.
January 20, 2009
The board unanimously passed a resolution to send a letter to the governor
and state legislature urging them to reconsider the elimination of the Star
Rebate Program and the decreased Star Exemption.
It was noted that the New York City
members of the Legislature, as well as the Governor who is from the City did
not understand the impact of school taxes on suburban homeowners.
Assemblyman Greg Ball also spoke of his ongoing efforts to provide school tax
relief.
April 7, 2009
Councilman Bianco presented figures showing the impact of changes
in the program enacted into law by the state legislature. The figures were
for the Yorktown
School District and
were put together with the help of the district's business superintendent,
the town assessor and resident Tony Grasso. He hadn't received any numbers to
date from the Lakeland
School District.
Commenting on the proposed tax impact and noting that the districts were
likely to get funds from the federal stimulus program, Council Campisi said he hoped that the school districts would be
able to rethink the potential staff layoffs.
Town
Assessor Related Issues
Property Tax Exemptions for Cold War veterans
February 26, 2008 work session
There was a brief discussion on a proposal by the assessor on a proposed local
law that would have extended tax exemptions to Cold War veterans similar to
those already approved by the county. The exemption would represent a savings
to the veteran of approximately $35 off the county tax and $29 off the town
tax. Disabled veterans would save $116 on county taxes and $98 on town taxes.
The total tax impact for the town was not discussed. The proposed will be
advertised for a public hearing on March 3trd as it must be enacted into law
by March 4th.
March 4, 2008
A public hearing was held to extend tax exemptions to Cold War veterans which covers veterans of active military service between
1945-1991. See earlier meeting notes for the savings which are the maximum
allowed by law
There were no comments from the public and the board unanimously approved the
exemption. Interested parties can
apply for the exemption, which is good for 10 years, in the Assessor's office
in town hall.
January 12, 2010 work session
Assessor Harold Girdlestone
reported that the existing exemptions, designed to acknowledge and reward
service to our country, were passed 2 years ago, and covered the periods of
WWII, Korea, Viet Nam
and actions after 1990. Last year
the State passed legislation that would expand the program to allow alternate
exemptions for periods not previously covered (1945-50, 1954-60, 1975-90). The
County has already passed those exemptions, and this proposal would enact
them for eligible Town residents. The exemptions cover Town and County taxes,
but not school taxes.
Currently, about 50 residents qualify as Cold
War veterans, with 3 disabled, and they receive a maximum reduction of
$264. This year the new tax
exemption would be limited to $1188. The average tax benefit per veteran
under the expanded program is estimated to be an additional couple hundred
dollars. The calculation is 15%
off the assessment capped by $54,000 times the equalization rate (which
changes every year). There are
additional exemptions for disabled vets.
Total tax impact to the Town would be $5200. (The Town has a tax base
of 14,350 parcels, so the individual impact would be about $.35 to make up
the difference.)
Next step is to hold a public hearing to amend
the existing law. If passed,
qualifying veterans would need to apply for the exemption by June 1, 2010 by
providing a copy of their discharge papers (DD214). There is no need to
re-apply if already receiving existing exemption.
February 2, 2010 Public Hearing
The assessor
provided an overview, and indicated there will be a $6000 tax impact. This also means that all Cold War vets
are being treated fairly.
Public comments:
Ed Kileen appreciates the offer but feels it is wrong, vets
get so much (he is one). We are
making things unaffordable for the young. If this was based on income level
or disability it would be different. “We’ve been given so
much.”
Gil Kaufman
disagrees with Ed, is a combat veteran, says this
will help.
Kevin Donahue,
also a veteran sees this as an opportunity cost. “If you served you
lost quite a bit of life. They
did it, they should get it.”
The Board passed
the resolution adopting this exemption.
April 8, 2008 Work Session
a. Change in valuation date
Town Assessor Harold Girdlestone has proposed to
the board that the town change the date that new assessables
are valued from June 1, 2008 (the current practice) to 7/1/2007. The change
is possible as a result of a change in the Westchester County Charter.
The rational for the change is that with real estate prices falling, the 2007
date may generate a higher figure for the current year and that this might
help in some pending tax certiorari cases. However, if the market goes up,
then the town would lose the benefit. The potential benefit would only apply
for this first “adjustment” year. The change would have no impact
on the equalization rate or on the assessment for already developed
properties.
Mr. Girdlestone explained that so far about 3 or 4
other town have passed such legislation. Cortlandt is considering making the change.
The board wanted to know what Cortlandt decided
before taking action and why only three towns, out of 43 in Westchester,
have adopted the change so far. The town can make the change in May, before
the June 1st deadline. The assessor will check on what Cortlandt is planning on doing and report back to the
board.
(Note: see below for April 22, 2008 work session.)
b. Pending certiorari cases
The assessor reported that there are seven or eight cases set for trial, the
earliest of which may begin on May 5th. However, there are
tentative agreements for at least three of the cases. Some of the cases are
10-15 years old. (Note; at an earlier board meeting, it was explained that
property owners challenging their assessment frequently do not aggressively
pursue their cases until several years have elapsed in order to increase the
amount of the potential settlement.) He said that the town did have an
“exposure” in some of the cases. While he did not state any
dollar figures, he said that there were no “large ones.” The
total number of pending certiorari cases are between 50-60.
April 22, 2008 work
session
On the recommendation of Town Assessor Harold Girdlestone,
the board unanimously approved the change in date for valuing new
construction. Mr. Girdlestone advised the board
that Cortldant had already made the change.
May 13, 2008, work session
Mr. Girdlestone advised the board that there were
some proposed certorari settlements but he couldn't
go into any detail on them in an open session.
He also advised the board of the good news that the preliminary equalization
rate was 1.99, compared with 1.97 last year. Despite the increase, he thinks
the rate should be higher and he plans to challenges some of the state's
numbers as well as its trends. He felt Yorktown's
numbers should be the same as Cortlandt's.
June
16, 2009
Councilman Matt Metz advised the board that there were two bills pending in
the state legislature, A05037 and S4558 that would create a county wide
property revaluation commission for Westchester. Both bills are still in committee. The
bills would tax condos as single family homes. The board approved a
resolution opposing both bills, noting that it would increase taxes for
condominium owners and would be harmful to both young and older residents.
Councilman Campisi noted that the town had been
down that path before, adding that we fought it earlier and we'll fight it
again.
Tax
Certiorari Issues
June 17, 2008
The board approved three certiorari settlements, two in the Lakeland School District
and one in the Yorktown
School District.
Councilman Bianco read out the amounts of each
refund and apologized for the fact that the refunds for the school taxes,
which accounted for a larger share of the settlement, were not available. In
response to comments by Susan Siegel during Courtesy of the Floor, he noted
that the settlements will reduce the assessment roll for 2009 tax purposes
but not by very much, adding that the decrease would probably be beneficial
for Lakeland School District homeowners.
Note: the total town refund indicated below includes special district taxes
such as fire, water, sewer, etc.
a. Yorktown Self Storage, 2720 Lexington Ave (1997-1999) Refund: $4,312.75
b. Chemcial Bank, 3651 Lee Rd (1991-1993): Refund:
$5,386.41
c. Chase Bank, 3660 Lee Rd (1988-1997) Refund: $7,685.07
October 7, 2008
The board approved the following two certiorari settlements.
a. Southland Corporation (Seven-Eleven) on Commerce St. The
settlement covered 1999-2002 and involved a refund of $1,400 for town taxes,
$6,121 for school taxes and $1,219 for county taxes.
b. Friendly Ice Cream. The settlement covered 1999-2002 and involved a refund
of $2,087 for town taxes, $8,972 for school taxes and $1,957 for county
taxes.
November 18, 2008
The board approved a tax certiorari settlement for Mavis Tire Supply Co. on Kear Street
that will result in a total $8,028 town refund to the company and a $31,550 refund
to the Yorktown
School District.
The board approved a tax certiorari settlement with BT-Newyo
located at 1785 Front Street.
Under the terms of the settlement, the property owner discontinued his
previous petitions covering 1999-2002 in exchange for an $84,000 reduction in
the property's 2008 assessment.
July 7, 2009
The board approved a resolution accepting a tax certiorari settlement with
the owner of the “Biffer” property at 3641 Hill Blvd.
The settlement calls for a refund of $10,346.16 covering the tax years
2001-2008. In consideration for the settlement, the property owner will drop
certiorari claims for a second parcel.
See Budget Issues/March
24, 2009 above for more on the tax certiorari issues
2009 Budget
October 7, 2008
The town board will review the supervisor's tentative 2009 budget with
department heads on Saturday, November 1st at the Yorktown Court located at 2295 Crompond Rd.
The meeting will begin at 9am. While the meeting is open to the public, the
public will not be permitted to speak during the meeting. The public hearing
on the budget will be held on December 3, 2008.
Taxes
on Town Owned Property
July 1, 2008
The board approved a resolution absolving interest payments on 52 properties
that had liens and which the town had acquired title to. The list is
available from the Town Clerk's office.
See also Disposition
of town owned vacant parcels
Workers'
Compensation Program
January 6, 2009
In response to recent newspaper commentary by the Committee for a Yorktown
Town Administrator (CYTA) criticizing certain aspects of the town's workers'
compensation program, the town's Insurance Representative, Robert Spadaccia, made a presentation giving an overview of the
program and how the town has saved $1 million over a five year period and
$1.5-$2 million over the 15 years since the town decided in 1996 to become
self insured for workers' comp. Mr. Spadaccia said
that the program has cost the town an average of $300,000 over the past five
years and that that cost was considerably less than three other possible
providers: the state fund, PERMA and an private insurer where premium costs
would have ranged from $500,000-$800,000. He said that the town only had one “bad”
year since being self insured and that was the very first year of the
program. In addition to the savings on the premiums, the town also benefits
by getting the investment income on the money it retains. He said the town's
third party claims administrator was doing a good job of investigating the
claims and met with the board twice a year, in closed session, to review the
claims. Councilman Metz said that the town aggressively investigated claims
and tried to get employees back to work as soon as possible.
In response to questions from the town board regarding how Yorktown's costs
compared with other towns, Mr. Spadaccia explained
that comparisons weren't necessarily helpful because towns offered different
services and had different numbers of employees.
During the Courtesy of the Floor portion of the agenda, Dr. Patricia Podolak and Susan Siegel, the co-authors of the CYTA
workers' compensation report, presented board members with copies of their
report and read a statement highlighting some its findings. (Note: Susan
Siegel is the person writing this summary.) The speakers thanked Mr. Spadaccia for his presentation and reminded the board
that the CYTA report never questioned the wisdom of remaining self insured;
it only questioned whether the town had done cost comparisons since becoming
self insured in 1996. They said that one of the reasons for doing the report
was to shed light on the program. They also reminded the board that the key
to reducing workers' compensation costs was preventing accidents from
happening in the first place and that there was room for improvement in that
area in the town's programs. The CYTA report is available online at
www.yorktownadministrator.org/risk.html.
Councilman Martorano thanked both Mr. Spadaccia and the Committee for their reports and
presentations and said the town was always interested in improving. He asked
Mr. Spacaccia to look into some of the items
mentioned in the report.
Several board members and Town Clerk Alice Roker spoke praised the town's
employee safety training program.
April 29, 2009, work
session
Comptroller Joan Goldberg advised the board that the town's existing contract
with US TPA, the third party administrator of the town's workers'
compensation program, had expired on March 31st. She said that the town had
looked at 3 companies---US TPA, PERMA and PMA. She said that PERMA was out
because it would not do self-insured; clients would have to join its pool in
order to use its service. She said that the town had previously had used PMA
but they the company wanted a portion of what they saved in claims. So they
were out. She said that PMA also started at $32,000. So, that left US TPA
which they were very happy with. The costs will be: year 1- $28,000, year 2-
$30,000 and year 3- $30,000. In response to Councilman Matt Metz's question
why there was no RFP, Ms. Goldberg basically responded that this had to do
with professional service and that was not necessary. Town Clerk Alice Roker added that
an RFP t had nothing to do with this sort of thing. The board will vote on
the contract at its next meeting.
Mortage
Tax and Sales Tax Revenue
February 3, 2009
County Legislator Michael Kaplowitz reported that Yorktown had received $5.09 million in sales tax
revenues, up from $4.9 million in 2007. Pointing out that the 2008 total
included the fourth quarter downturn in the economy and that as own petroleum
products (gasoline) accounted for only 5% of the sales tax revenue, he said
he was hopeful that the same level of revenue would hold in 2009. (Yorktown had forecast $4.1 million in sales tax revenue
in its 2008 budget.)
June
16, 2009
Duing Courtesy of the Floor, Mr. Kaplowitz
informed the town that mortgage tax receipts for the town for the six month
period October 1, 2008 through March 31, 2009 would be $519,000, down 32%
from the $765,000 the town received last year for the comparable period. He
also said that sales tax revenue for the county was down 11% from last year,
although he did not have a specific dollar amount for Yorktown.
He noted that if the NYS Legislature did not renew the county's authority to
collect the 7.38% sales tax soon, the county was facing a 60% increase in
property taxes.
In response, Councilman Bianco said he thought the
town would be okay on both taxes as it had “low balled” both
estimates during budget meetings.
MTA
Payroll Tax
February 17, 2009
The board unanimously approved a resolution opposing the proposed MTA tax on
employer payrolls and urged residents to contact their state lawmakers to
urge them to oppose the proposal.
September 8, 2009, work session
At the suggestion of Councilman Bianco, the board
approved a resolution to include a notation on the next town tax bill
indicating that $70,000, or approximately ½ percent on the town tax
rate, was to pay for the MTA tax. The board will want to see the precise
language of the notion before those tax bills are sent out.
The MTA tax issue was followed by general comments assailing Albany
for unfounded mandates and its lack of fiscal discipline and a call for
residents to send a message to their state legislators that Albany needed to change its ways.
Town
Pensions (New York State Retirement System)
March 17, 2009
During Courtesy of the Floor, resident Mara Ziedins
wanted to know who held the pension money for town employees and what limits
there were on retiring employees adding sick leave and vacation time to their
final salaries in order to increase their pension payments. In response, the
board explained that the money was safe and was held by the NYS Retirement
System, the second largest system in the country. The system raised or
lowered the fees it charges the town as it needed more revenue. Supervisor
Peters said that the increase had been 8% this year. Recent changes in the
retirement laws put a cap on pension benefits so that retiring workers add no
more than 20% to their last salary before retiring.
Insurance
Purchases
March 17, 2009
During Courtesy of the Floor, Susan Siegel (the person writing this summary)
read a statement on behalf of the Committee for a Yorktown Town Administrator
asking why the town did not solicit independent competitive quotes before
purchasing 16 insurance policies that cost the town $833,000 in 2008. In the
absence of town board votes approving the insurance contracts, she also
wanted to know who was making the decision to purchase the policies.
In response to Councilman Metz's comments that the town did get competitive
quotes from its insurance broker, Ms. Siegel said that the Committee's report
explained why it would be in the town's best interest to get quotes from more
than one broker.
October 6, 2009
During Courtesy of the Floor, Susan Siegel (the person writing this summary)
said that she was pleased that the board had decided during its pre-meeting
session to postpone any decision on its insurance coverage for 2010 for an
additional 60 days so that two additional insurance brokers could submit
quotes. At the meeting, Bob Spadaccia, the town's
current insurance broker, told the board that if they accepted a proposal
from Travelers Insurance that evening, the town would save approximately
$25,000 for the fourth quarter of 2009 and between
$175,000-$184,000 in 2010. However, Councilman Bianco
said he knew nothing about the supervisor's plans to change insurance
carriers before the current policies expired in December and wanted to know
why there was a rush to renew the policies earlier. In response, Mr. Spadaccia likened not signing the current Travelers'
proposal to a roll of the dice and that the town's premium for 2010 could go
up is something bad happened between now and December.
Mr. Bianco was also concerned that an insurance
broker mentioned in a North County News article had not been given all
the information he needed to submit a quote and said that there should be a
level playing field for all brokers interested in submitting quotes.
Supervisor Peters and comptroller Joan Goldberg said that they had cooperated
with the broker.
Miscellaneous
Tax and Spending Issues
April 21, 2009
Police salaries
Commenting on the recent Journal News article that reported on police
salaries, Mara Ziedins asked the board what it was
doing to control costs. She said that as management, it was up to the board
to negotiate the contracts with the police which resulted in the added pay
they were receiving above their base salaries. She cited the Journal News
figure that the town spent $4.3 million in the “other pay”
category.
In response, Councilmen Metz said that the town was trying to cut spending
and had cut about $500,000 out of this year's budget. He said more needed to
be done to cut spending and consolidate services.
Compensation for Police Chief
The board authorized the comptroller to calculate and pay compensation and/or
benefits to Chief of Police Daniel McMahon pursuant to Section 207m of
General Municipal Law. No details were provided. (Note: the section deals
with increases in compensation.)
May 19,
2009
During Courtesy of the Floor, Susan Siegel (the person writing this summary)
asked the board to provide information to the community at the next regular
meeting on:
1) what the new MTA payroll tax would cost the town and when the tax went
into effect
2) an update on revenue receipts from the mortgage tax, sales tax, and
property tax, including whether there has been any increase in the number of
taxpayers who have not paid their property taxes
3) an update on the status of the Marcy St. group home controversy
In response, Councilman Bianco and
Supervisor said he would ask Comptroller for an update, possibly to be
discussed at a work session.
May 26, 2009, work session
Town's petty cash fund
Although not on the agenda, Town Clerk Alice Roker raised the issue of the
need for a petty cash type of fund to pay for last minute purchases such as
those at BJs. Her office currently does not have such a fund. And the town
does not have town credit cards.
After rejecting the idea of the comptroller giving an employee a blank check,
it was decided that the comptroller, who already has a small petty cash fund,
will put $100 into that fund, which will then be used by the clerk's office
as well as the supervisor's office which currently has been laying out money
and then submitting a voucher for repayment.
June 2, 2009
During Courtesy of the Floor Susan Siegel (the person writing this summary)
asked the board if it had obtained the answers to the questions she had asked
regarding the MTA payroll tax and the status of certain revenues receipts. In
response, Councilman Bianco said that the town comptroller would be giving a
financial update in July. Councilmen Martorano and Metz both noted that
the mortgage tax was coming in okay due to an increase in mortgage
refinancing but that the sales tax revenue might be lower.
July 14,
2009, work session
Six Month Financial Update
Comptroller Joan Goldberg gave the town a six month financial update. She
said the town was being “hammered” on the revenue side of the
budget and that it could end the year between $600,000 to
$1 million short. She anticipated a $400,000 shortfall in mortgage tax
revenue, $300,000 less in building permit fees and $200,000 less in interest
earnings. The only good news on the revenue side was an additional $100,000
from Verizon and Cablevision franchise fees.
The next mortgage tax payment is not due until December but Ms. Goldberg said
that her counterpart in Cortlandt keeps in touch
with the Westchester County Clerk's office to get an advance sense of what
the numbers are looking like.
On the expense side, the major expenses that are likely to exceed budget
estimates are legal fees ($100,000 over), litigation expenses ($113,000 over)
and repairs to the YCCC theater. She explained that the town will have to
spend an estimated $40,000 to install a sprinkler system in the theater to
separate the stage from the audience. The need for the sprinklers dates back
to a 1989 violation notice. Town board members agreed that the sprinklers
needed to be installed but wanted to see paperwork on the issue prior to
spending any money.
The town overspent on snow materials by $250,000 but Highway Superintendent
Eric DiBartolo said he felt confident that he had an
adequate supply to carry through Jan or Feb or 2010.
On the plus side, the town did not have to spend $250,000 in debt service
interest because last year's capital projects were financed from the fund
balance instead of borrowing. The town also spent $125, 000 less than
anticipated on medical benefits because the actual premium increase came in
lower than projected. The unexpected MTA payroll tax will cost the town
$75,000.
Commenting on the comproller's numbers, Councilman Campisi said that the decrease in building permit revenue
might not be as bad as anticipated as there were three large projects on tap
that hadn't yet gotten their permits. Councilman Matt Metz added that he
thought that the revenue from the next quarterly mortgage tax installment might
pick up due to refinancing and a federal stimulus program incentive for home
buying.
Ms. Goldberg said was confident that the town could get through the year by
using some of the $4 million fund balance and Councilman Bianco
added that the real problem would be in 2010. He asked Ms. Goldberg whether
there was a plan to go forward. She said she had asked the town's
outside auditors for suggestions but their response was that that type of
advice was not in their purview. Suggestions on how to control expenses
boiled down to a hiring freeze. Ms. Goldberg said that in this year's budget
two positions were currently vacant and Police Chief McMahon said that there
might be one possible retirement in his department. She added that the town
would have to prioritize services and mentioned closing the library on Sunday
as one possible option. It was noted that police overtime was down.
Councilman Metz said he thought talking of cuts was premature and felt that
the fund balance could pull the town through this year. Councilman Martorano asked Ms. Goldberg to give the board another
financial update in 90 days.
In related financial issues, the comptroller said that the town's five year
contract with its auditor had expired but that the auditor had agreed to do
the 2008 audit at the 2007 price. She said the firm was asking for over
$100,000/year in a new contract and it was suggested that the town do an RFP
for 2009.
The town has also engaged the services of an company
to do an electricity audit. There is no up front cost and the company will
receive 30% of what they are able to save the town. The comptroller's office
is also reviewing proposals for a new phone service at the police department.
That discussion prompted the police chief to advise the board that on July
3rd at 4:50 in the afternoon, the police building's phone service went out
and that a repair person did not show up until Monday morning.
September 1, 2009
Report on school taxes
Councilman Nick Bianco reported on the school tax bills that are just
arriving in residents' mailboxes. Residents in the Yorktown
School District will see a $230 tax
increase while Lakeland
residents will see a $140 increase. However, Mr. Bianco
pointed out that because the NYS Legislature reduced the reduction in the
Star property tax exemption and the eliminated the Star rebate checks, the
actual out of pocket tax increase will be much higher.
Mr. Bianco was joined by other board members in
blaming the state Legislature for the Star program cutbacks and said that the
town board was powerless to make any changes.
Mark Drexel, a member of the Yorktown School Board, explained that some of
the increases in school taxes were due to unfunded mandated that came from Albany. While he said
that some mandates, such as special ed programs, were necessary, he
questioned others, citing the mandate to supply calculators to all students.
October 6, 2009
Pledge for fiscal responsibility
Councilman Matt Metz read the text of the Pledge for Fiscal
Responsibility that the board had voted on at its previous meeting without
having seen the actual text. The pledge was sent to all NYS lawmakers asking
them to sign it. Mr. Metz said that others town were interested in following Yorktown's example. He read a few responses from some or
the legislators. He said that approximately 200 people had signed a petition
asking Albany
to exercise fiscal responsibility.
Westchester
County Taxes
January
5, 2010
Although the County
Legislature approved an overall 2.9% tax increase, Councilman Bianco explained the increase is not equal in all
municipalities in the County. In Yorktown the increase will be 1.80%. The reason for this has to do with
assessments and the equalization rate.
Yorktown assessments haven’t
gone up as much as other Towns. A
Yorktown resident in the Lakeland
School District, the Mohegan
Fire District and with Peekskill Sewers (and County taxes) has 90% of their
taxes based on the equalization rates.
February
2, 2010
The increase will be 1.7% in Yorktown. County taxes are 20% of the typical
bill in Yorktown. The Board of
Legislators will continue to try and keep expenditures down. Mr. Kaplowitz
indicated he supports the County Executive’s proposal to have
employees share the cost of their health insurance, and is voluntarily doing
it. Long range he believes the county should come up with a fair progressive
formula allowing the Towns to take advantage of alternatives.
April
27, 2010, work session
Lock Box
System whereby taxes are sent directly to a bank - this
will reduce Town staff in Tax Receiver Department.
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