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County Executive Warns of Possible 66 Percent Property Tax Increase in 2008
Bondi announces acquisition of land for new Humane Society Facility
by Margaret Sternberg
County Executive Robert Bondi's 2007 State of the County address was notable in several respects, but the one that would most catch residents' attention and certainly caught legislators' attention was the prospect of a 66 percent real property tax increase.
According to Commissioner of Finance William Carlin however, 44 of that 66 percent can be addressed by the renewal of the .5 percent increase in sales tax implemented two years ago, and that is due to expire this year, as well as an additional .5 percent increase in the sales tax rate, yielding the County an additional, estimated $12 million per year, based upon actual collections in 2006. Mr. Bondi said that failure to renew and raise the sales tax rates would result in county services cutbacks or elimination. If the renewal and increase are approved, the county's sales tax rate would be 8.375 percent.
The problem with those estimates of revenue however, is the fact that sales tax revenue for January 2007 was actually behind the collected amounts in 2006 used in Carlin's projections and lagged the estimated amounts for 2007 for January by over one-half a million dollars.
The 2008 budget forecast was divided into three areas, the first being funds used to balance the 2007 budget and unavailable to balance the 2008 budget. These monies totaled $5,300,000, of which $3 million came from the General Fund Surplus, which was partially responsible for Moody's recent credit downgrade of the County. According to Commissioner Carlin, the lack of these funds will cause a 20 percent tax increase "before page 1 of the 2008 budget is opened."
Failure to renew the existing .5 percent sales tax would cause the county to lose $6 million in revenue, accounting for a 22 percent property tax increase.
Miscellaneous costs, amounting to $6.5 million would equate to an additional 24 percent increase in property taxes. These costs include increases in debt service, health insurance, employee salaries, Medicaid and Department of Social Services programs, costs for eight new, state-mandated corrections officers, costs to operate the new courthouse, increases in equipment and increases in outside legal services.
Mr. Bondi came close to pleading for the renewal of the expiring sales tax and the increase, arguing that the sales tax is optional whereas a property tax is not, and raising the specter of evictions of homeowners.
The unsettling 2008 budget forecast had, however, been preceded by several upbeat announcements. Peppering his hour-long speech with the theme, "the people want change," Bondi appeared pleased to announce that a 10-acre parcel from the UJA property adjacent to the Tilly Foster Farm in the Town of Southeast would be used for the construction of a new Humane Society facility. There will be no fiscal impact on the County for the acquisition of the land due to "the incredible generosity of various members of our community."
Bondi also announced a proposal to institute a 24-hour crisis hotline, which would be dedicated solely to responding to calls requiring immediate assistance. The responder, who would be specially trained in suicide prevention, would provide as much support as would be necessary to reassure the caller and then refer the caller to a mental health provider for follow up. The crisis call center will also have a direct line to the E911 call center, should that be necessary.
This 2007 State of the County Address also marked the first time the annual address has been webcast, a development Mr. Bondi characterized as especially significant to those who are housebound or whose cable television systems are not the same as those on the eastern side of the county. In addition, use of the webcast enabled those unable to attend the meeting to participate in real time and submit questions, which Mr. Bondi responded to at the conclusion of his speech.
Mr. Bondi said that his administration had developed the webcast system so that members of the public will be able to log on at specific dates and times to "meet" with him "live" for question and answer sessions. Residents will be able to e-mail him questions, which he will field live, on camera, and then reply to via the Internet.
In the area of "ethics," Mr. Bondi said a local law will be proposed prohibiting any candidate running for county office from accepting campaign contributions "over a certain amount" from any business, contractor or organization doing business with Putnam County. Contractors who do business with the County would be required to sign contracts certifying they will limit their contributions to campaigns of county officials and candidates for county offices. Mr. Bondi later said that he believed the new monetary limit would be about $100 and that the current limit was about $2,000.
Mr. Bondi, appearing to bow to the ongoing issues regarding the operation of the Putnam National Golf Club, announced that the County would put out a Request for Proposal to run of the Club.
Mr. Bondi brought up other issues confronting the County, discussing them in general terms, and, unlike other areas, offering no specific solutions. The municipal separate stormwater sewer systems, illegal immigration and public safety were noted as issues requiring attention.
Several legislators commended Bondi for what was described as a realistic presentation of the County's status, and several agreed, including Legislators Sam Oliverio, Mary Ellen Odell and Robert McGuigan, that the renewal and increase of the sales tax was a good way to mitigate the property tax increase.
The legislature decided, following Mr. Bondi's address, that discussion of the sales tax would go to committee prior to being brought before the full legislature for a vote.
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