The New Rochelle City Council has passed the 2012 City Budget on a 5-2 vote with Republicans Lou Trangucci and Richard St. Paul voting against the budget. The budget contains an operating budget of $108 million with a tax increase of 3.68%, the maximum allowable under the tax cap. The City is also raising the residential refuse fee from $66 per residential unit per year to $223 per unit per year (qualifying senior citizens will continue to pay $30 per unit per year).
In voting against the budget, Trangucci said he could not support what amounts to an effective tax increase of 15.06%
Mayor Noam Bramson became emotional in his remarks before voting, characterizing Trangucci’s vote as dishonorable and a retreat from his responsibilities.
Marianne Sussman, at her last meeting as a Council Member after 12 years, called her vote for the budget a sad note on which to leave Council.
In the budget document, City Manager Chuck Strome explained the budget in the context of the tax cap and a dramatic decline in the assessed value of property in New Rochelle.
The property tax cap places a cap on the calculation of the property tax levy, that is, the total amount of money to be raised by property taxes to cover the cost of providing public services. The legislation does not apply to the calculation of the tax rate, which is the rate needed to collect the total levy. The rate is determined by dividing the levy by the total taxable assessed valuation (AV) of the City. As the AV drops due to successful tax certiorari and Small Claims Assessment Review (SCAR) litigation during economic times when real estate market values plummet, the tax rate increases proportionately in order to generate the equivalent tax levy.
The City’s property tax base has been severely eroded over the past several years by the downturn in both the residential housing and commercial markets, producing in effect a one-way (downward) form of reassessment. Almost 7,500 property assessment grievances have been filed over the past three years, compared to 940 in 2007 and 1,320 in 2008. As a result, the City’s taxable assessed valuation for the FY 2012 budget fell by an additional $7 million, or about 2.5%, and requires a corresponding tax rate increase of 6.36% to achieve the 3.68% tax levy increase.
I guess he wasn’t a business or economics major at Harvard.
Can someone please explain to me how NR can raise the garbage tax from $66 to $223 or 238% without voting to override the tax cap? Are they saying it isn't a tax? I pay on my tax bill so it really feels like a tax to me.
Just another unbalanced budget in NR filled with 1 shot gimmicks that will haunt us. Trangucci is right and its actually Bramson who's not willing to make ANY kind of hard decision. The guy simply doesn't know how to cut anything and restoring the $1 million back into the budget really just squandered it and puts future budgets out of balance.
And shame on Tarantino for voting for this outrageous tax increase, I thought he would have stepped up to the plate for the homeowner.
Here's my New Year's wish, may the NR Republican party finally get its act together in 2012. Otherwise, I'm about ready to join the 80% of New Rochellians that don't vote or participate.
More and more I'd like to move but the city and school district have boxed out most 1st time home-buyers with high property taxes and nobody's trading up so the real estate markets really soft.
I wonder how many New Rochelle homes owe more on their mortgages than their properties are worth. And what will happen if the lenders and banks decide not to keep funding/paying the property taxes on what they already own. I know of at least 1/2 a dozen properties in the historic district that sit vacant with no one out there to buy them yet the taxes continue to accrue at an alarmingly fast rate so the rate of return to whoever owns these things is quickly disappearing. A very bad set of circumstances.
Eventually something has to be done but don't expect Bramson to lead the charge, he just seems clueless on this issue. I guess he wasn't a business or economics major at Harvard.
I wouldn’t pay the garbage
I wouldn't pay the garbage fee. Tell them you don't like the service and want to have your garbage collected by another company.
They call it a fee, but it is a mandatory fee. I don't think anyone can force you to pay a fee for service you don't want.
Just more of how NR plays word games to get around the law.
How is a mandatory fee not a tax?
How is a mandatory fee not a tax, especially if it appears on your property tax bill? Sure sounds like a tax to me.
I knew this tax cap was full of holes but this BS. If this is what can happen, I guess it really was a worthless piece of legislation that Cuomo & Silver watered down.
Has anyone noticed all of Cuomo's commercials on TV lately? Why does he feel the need to self promote? I read somewhere that the middle class tax reduction he's promoting will buy you a night at the movies, no popcorn or soda!
The garbage fee is a tax.
The garbage fee is a tax. Fees contain opt out clauses and give people a choice. A tax is mandatory. The city is playing games. Lou Trangucci should look into this. You cannot force people to suscribe to a particular service. The city has essentially created a monoply in that they are the only ones who are allowed to collect garbage in NR and they have carte blanche to charge whatever they wish. Time to put an end to their antics.
Harvard
Believe me, the business and economics majors from Harvard are just as clueless. Most of the professors are liberal hacks who couldn't run a lemonade stand.
Bramson has some nerve to say
Bramson has some nerve to say that Trangucci and St. Paul were afraid to make the tough choices. They both suggested things that could be cut but that the dems did not want to consider–including the elimination of the environmental consultant.
Moreover, I love the way the Bramson fails to take responsibility for any on the economic troubles in NR. He places the blame on the state and federal government but refuses to acknowledge where the city would be if it weren't for Avalon and the lack of retail.
As far as Fertel, when he lost his hair his brains went with it. He continues to say that the city's economic development plans had nothing to do with the city's financial troubles. Bull. The city has been increasing taxes, adding taxes–like the library tax–and adding fees for at least the last decade. Despite all the additional revenue brought in through the garbage fee and the removal of library from the budget, the city still can't provide adequate city services.
Here's some suggestions Mr. Mayor. Get together with other local leaders who are fed up with antiquated civil service pension and arbitration rules and lobby Albany for change. The number one problem facing our communities is the high salaries, health benefits and pension costs. While everyone in America has been forced to take paycuts, the civil service unions still manage to get annual pay raises. You, that's you Mr. Mayor, have to make your employees understand that they "serve" the people. If they want raises, they better learn to do their jobs with fewer co-workers.
Became emotional???
So, it's Trangucci's responsibility to raise taxes on the citizens of New Rochelle? I watched that arrogant, inexperienced little idiot on TV the other day. Maybe Noam should go tell the guy just trying to get by about the honor of paying the garbage tax. The council should start by stopping the insane policy of health coverage for life. I'd love to know the annual cost to insure all the current and former members of the council. I pay over $20,000/year for my coverage. The city might get a better deal, but it has to be in that area for each current and former member. Then again, I'm talking about goverment, so they probably pay $50,000.
The Silence is deafening (or does it speak “volumes”)?
I was at New Rochelle's budgetary wake last evening. For what it's worth, I will file my comments later in the day. But was no one else there to witness the public abdication of fiscal responsibility? Hello??? Anyone home?
Some have just given up
Steve, It is a little of both. Or should I say a lot of both. They are either at home or still working to pay the bills. I can’t tell you the number of people I see that are so upset and say, “Why bother, they will do what every they want. We can’t do anything about it. We have no voice. Even if we attend the meetings”. These are people who’s families have been members of this community for generations. People are so disenfranchised that they just roll with the punches to survive another day to pay their taxes and mortgage. I wouldn’t say to “Occupy City Hall” but everyone needs to speak up and become part of the process. Write your council member. Attend a meeting or Watch it on cable. Then send your comments in for the record. Otherwise there is no conversation that could at some point lead towards change. As you say numbers (Citizens) speak volumes. Those that speak now can’t do it alone.
Happy Holidays to All!