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Putnam's 2008 Proposed Budget Shows 40 Percent Property Tax Increase
Budget contains new spending initiatives for 2008
by Margaret Sternberg
On September 6, 2007 Putnam County Executive Robert Bondi's delivered his proposed 2008 proposed, which contains a 40 percent property tax increase, costing the average Putnam taxpayer $3 per $1,000 assessed value. This will raise County property taxes for the average homeowner approximately $274 in 2008, going from approximately $695 in 2007 to $969 in 2008. The total amount raised from property taxes for 2008 would rise to $37.9 million from $27 million in 2007.
Sixty-six percent, or $88.3 million of the $133,246,000 2008 budget, is comprised of federal and state mandates, 21 percent ($27.4 million) is mandated by county charter and laws, and $17.6 million, 13 percent, is discretionary monies.
Under appropriations, the 2008 budget includes funding for a 5 percent raise for union employees and a 2.5 percent raise for management and elected officials. Mr. Bondi appeared to justify the union raises, noting that county employees had had their salaries frozen in 2007.
Legislator Tony Hay called the 2008 proposed budget "the worst budget I have ever seen as a legislator" and vowed to defeat what he foresaw as $10,000 raises for some managers.
Asked to comment on Hay's views, Mr. Bondi accused Hay of unfairly picking on the managers because Hay's view would be "politically palatable to the CSEA (union,)" noting that Hay was up for election this year. Bondi also noted that union members' raises take into account the individual's step, grade and longevity, sometimes resulting in raises that are higher than manager's raises.
Also contributing to increased appropriations by the County is an increase in debt service due to the completion of the new courthouse, which was state-mandated.
Mr. Bondi again took aim at the cost to the county of county retirees' health insurance, stating that the costs comprised a significant part of the budget and recommending that retirees contribute more to the "skyrocketing" cost of health insurance. Summing up what he considered the fruitlessness of past attempts to make changes in the retirees' health insurance plan by calling it "beat[ing] our proverbial heads against the wall," Mr. Bondi pledged to cooperate with the Legislature should it change its position on the issue, which has been to leave the current package as is, contradicting Mr. Bondi's view that many retirees are "profiting" financially from the package.
In addition to increased appropriations contributing to the rise in property taxes, Mr. Bondi blamed a lack of balance between commercial and residential growth in the county, citing a 2 percent increase in non-property tax revenues for 2008 versus 2007.
Bondi also said that the County decreased use of the general fund surplus to decrease taxes, leading to higher property taxes. Last year $2.9 million was used leaving $4 million in the surplus. In 2008, $2 million will be used leaving, Mr. Bondi said in an interview, approximately $7 million in reserve, a result of funds that will be surplus at the end of 2007.
Among the discretionary programs the County funds, $4.4 million is used to fund the road patrol and $1.3 million provides funding for the Humane Society, museums, libraries and other organizations providing quality of life services. The County is allocating $950,000 for the county-wide advanced life support ambulance system.
Absent from the 2008 budget are Putnam National Golf Club and Tilly Foster Farm, both of which had been sources of contention between Mr. Bondi and the Legislature. Their operation in 2008, according to the budget proposal, is subject to the Request for Proposals process and if that process yields a result that requires taxpayer funding, "the Legislature will have to decide either to fund them or close them down."
Mr. Bondi also proposed several new initiatives, including allocating $1 million in East of Hudson funds to handle the County's MS-4 program. The program, Municipal Separate Storm Sewer Systems, an unfunded federal and state mandate, addresses stormwater runoff impairments to reservoirs and other sensitive water bodies.
The 2008 budget includes $100,000 to support the Town of Southeast and the Village of Brewster in their efforts to address illegal immigration. The funds would be a part of a partnership program among the County, Brewster and Southeast, with each sharing 1/3 of the cost, which would enable the village to hire full-time police officers.
A mobile crisis intervention service was also proposed for residents in psychiatric crisis. The program, which is not to begin before April 1, 2008, has been given $55,000 in the 2008 budget. A specific starting date was not given for the service. In addition, a 24-hour crisis intervention phone service was initiated this week.
A private well testing initiative is being proposed that would require the test be conducted upon the sale of a private home served by a private well. The law would also require testing on an ongoing basis for rental properties of one to four units. The program would be funded by fees by the owners.
The Probation Department was given $24,000 in funding to initiate an electronic monitoring system for offenders. The system is used as an alternative to jailing, and would cost about $4.50 per day versus $120 per day in local jail costs.
Asked why he was proposing initiatives that require funding in the face of a proposed 40 percent rise in property taxes, Mr. Bondi said that he is "receiving a salary to move the County forward and propose initiatives for the improvement of the County" and the betterment of peoples' quality of life within Putnam.
Legislator Vinny Tamagna said that in recent months the sales taxes in the county have increased by .5 percent from 7.78 to 8.38, "This affects our small businesses in the county [and] makes us less competitive with surrounding businesses." Tamagna accused the County Executive of overestimating the county sales tax revenues over the past two years by almost $6 million total, asserting the overestimation leads to county property owners having to make up the difference.
Tamagna has repeatedly called for a comprehensive financial review of the county's budget in order to insure fiscal accountability. The legislature has rejected this proposal.
Tamagna, along with Assemblyman Greg Ball, whom Bondi repeatedly cited in his budget address as consistently failing to deliver financial help to the county in the forms of alleviating state mandates, helping to pass the increase in sales tax and in other ways, called for County Executive Bondi to resign because "he has now become downright destructive to those whom he purports to represent. Out of control spending, failed negotiation, and a general lack of leadership has rendered him ineffective and we need a change."
Mr. Bondi said that he would not resign and that he had been elected for four years and had taken an oath to serve the people of the county, adding that he "has no plans for the future other than to do my job."
The Legislature has scheduled day-long committee workshops this week to examine the proposed budget and make adjustments where deemed appropriate. The budget must be adopted by October 16.
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