New Rochelle Proposes to Increase Tax Levy to the Maximum Allowed

Revenue increases and spending cuts—including the loss of 54 full- and part-time jobs—are driving the proposed 2012 budget for the City of New Rochelle.

City Manager Charles Strome III released the proposed budget Thursday.

"I wish this was a joyful budget presentation," he said, "but the policies of the state government and the economy make this very difficult."

The total spending package is down $5 million dollars from the revised 2011 budget to $144 million. Operating fund expenses decrease by $1.26 million to $108.4 million.

The real estate tax levy will increase 3.68 percent, which is the maximum allowed by the state's "tax cap" legislation. The increase is comprised of the 2 percent growth rate allowable, plus a 1.68 percent exclusion because of pension cost increases.

The tax levy is the amount of money a municipality has to raise from real estate owners in order to pay its bills. It is a percentage of the assessed value of properties. The tax levy is usually offset in part by other revenues, such as mortage and real estate taxes and municipal fees.

Strome called the state's decision to impose the tax cap without any mandate relief "unconscionable."

"It's flawed and quite frankly not really accomplishing what it should accomplish," he said.

The resulting tax rate increase from the proposed budget, Strome said, is 6.36 percent.

Finance Commissioner Howard Rattner said the rate increase equates to about $184 for the average homeowner, or about 1 percent on their combined city, county and school district tax bill.

"This has been the hardest budget in my 10 years as city manager," Strome said, "and the most difficult in the 20 years I've been with the city."

State-determined pension and health-care costs are increasing 20 percent and 16 percent, respectively. Energy costs are growing by 5-8 percent. The city's tax base fell by $7 million.

To make up for the rising costs and revenue shortfall, Strome proposed the following:

• An increase of the residential refuse fee from $66 per unit to $223 (except for qualifying seniors, who will remain at $30)
• No management employee raises (for the third year in a row)
• Cutting 36 full-time positions (24 through attrition; 12 layoffs)
• Cutting 18 part-time crossing guard positions

Over the last two years, the city has cut staffing by 57 full-time positions, all through attrition. Strome said staffing levels in the city are at its lowest number ever.

Rattner said the situation facing New Rochelle is not unique.

"Many municipalities have resorted to layoffs," he said, "but over the last three years we have not laid off anybody.

"However, now the economy has not improved as we had hoped it would, and we have to take these processes that many of our fellow municipalities have done," Rattner said.

Three full-time clerical workers in the police department will be laid off. There will be two Department of Public Works employees—non-field workers—whose jobs will be eliminated. One parks employee will be laid off. Six full-time firefighters will see their jobs cut.

Gary Bruzzese has worked as a New Rochelle fireman for almost four years. He will be one of the firefighters who will be laid off.

"Personally, this turns my world upside down," he said. His father has 31 years in the department.

"All I want to do is go to work every day and do my job," Bruzzese said, "and serve the city I've called home my whole life."

He said it was "heartbreaking" to know that in January he is not going to have a job.

"More so, the city is going to be at risk," Bruzzese said, "and my brother firefighters are going to be at risk."

The proposed 2012 budget is attached to this article. Copies can also be found on the city's Web site, in the City Clerk's office and at the .