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From the Mayor: Water Rates, Electrical Rates, Taxes, and DPW



Feb. 19, 2014:  At the February monthly meeting, the trustees acted on a myriad of substantive issues in the areas of taxes, public works, and public utilities.

Water Rates:  The board joined a consortium with neighboring communities--which includes New Rochelle, Eastchester, Ardsley, Tuckahoe, Dobbs Ferry, Hastings, Pelham, and Pelham Manor--to challenge a proposed astronomical raise in water cost and hydrant maintenance by our water purveyor, United Water.

United Water is asking the state's public service commission for a 22.95% increase in water rates and a whopping 36.99% increase in hydrant maintenance fees. Sadly for the consumer, the public service commission has been very willing to grant double-digit increases to the utility. As an example, the village's hydrant maintenance fees were $84,244 in 2011 and in just two years escalated to $126,637. This number is now the base for the proposed 36.99% increase.

The above scenario underscores why all water users, not just property tax payers, should share in the cost of hydrant maintenance.

Unfortunately, we have no recourse to change water providers, since United Water owns all the purveyance infrastructure. All we can do is present a united front with our neighbors and legislators and fight the increases.

Electrical Rates:  In the same vein, the New York Power Authority recently authorized a 12.6% increase in the cost of municipal electrical rates, and the hike was reflected in our January invoice.

Consultant:  The trustees also voted to engage the services of a local consultant, Donald Marra, to assist in the search for a new village treasurer and village administrator. We are also taking advantage in this unprecedented sea change in village management to step back and review village staffing in totality to ensure that we have the right combination of skill sets, full- and part-time staff, and the level of efficiency and services that taxpayers deserve.

Tax Collection:  The village's tax collection was recently reconciled. As a refresher, the village collects approximately $8 million to run the village and $38 million to operate the school. As of January 31, 2014, $1,138,892.86 was uncollected, representing 2.46% of the levy.

The village must make the school district whole, so tax liens will be sold on March 13, 2014. Per New York State law, the lien sale will be noticed in the paper of record, the Journal News. A list of real estate parcels identified by section, block, and lot on which taxes remain unpaid is available in the village treasurer's office.

DPW Facility:  Funded in past capital budgets, the trustees voted to engage Calgi Construction Management to evaluate the department of public works facility on Palumbo Place. Never modernized since its construction in the mid-1940s, a thorough evaluation is long overdue. The goal of the review is to determine whether the existing facility is worthy of modifications to meet the needs and equipment of a 2014 department or rather it is more prudent/cost effective to construct a new or pre-fab structure. Our current facility will be evaluated with regard to vehicle maintenance needs, equipment and material storage, material handling, electrical needs, environmental regulations, and energy efficiency.

Salt Costs:  Add to this list the now unprecedented costs for salt and snow removal resulting in another challenging budget process.

Tax Cap:  All of the above variables are set against the backdrop of the governor's continued emphasis on a 2% tax cap increase despite the fact that state government unfunded mandates continue unabated while state aid to communities continues to decrease.

The fallacy of the 2% tax cap is that well before its inception, no communities were increasing staffing and/or services by 2%, rather they were trimming services to deal with the often double-digit tax increases sent directly from Albany.

At the February trustees meeting, the trustees, as is custom, voted to set the process in motion to override the tax cap, although we have only exceeded the 2% cap once and that by only $40,000. Our vote is rather a statement of support for local control of budgetary decisions. The trustees believe we are elected to be stewards of the local taxpayers' dollars and answerable only and directly to them and not to be an instrument to advance the political aspirations of others.

Special Meeting:  Finally, we have added a special meeting/work session of the board of trustees for Wednesday, February 19, chiefly to discuss our upcoming capital program.

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