"Picking Our Poisons:" Council Debates Budget Amendments

As the clock ticks down to the adoption of the 2011 budget, the New Rochelle City Council met Tuesday night to discuss four proposed amendments that could lower the tax rate to 2.27 percent, down 1.6 percent from the proposed 3.9 percent tax rate that is currently budgeted.

The include financing a projected $700,000 in certiorari payments, reducing the parking enterprise fund subsidy, increasing the marina PILOT (payment in lieu of taxes), and establishing a public-private fund for community celebrations.

The amendments were proposed in a memo, dated Sunday, Nov. 28, from Mayor Noam Bramson and the three Democratic council members (Barry Fertel, Roxie Stowe, and Marianne Sussman) to City Manager Charles Strome, Finance Commissioner Howard Rattner and council members Richard St. Paul, Albert Tarantino and Louis Trangucci.

Bonding Certiorari Payments

Bonding certiorari payments would add $350,000 to the city's 2011 surplus fund, bringing the total fund balance to about $3 million. The city would put off paying $700,000 in certiorari in cash and instead spread the payments over a five-year period beginning in 2012.

With the current interest rate at 1 to 2 percent, the city could expect to pay $7,000 to $10,000 a year in interest on the bond. "So a rough estimate would be [spending] $40,000 to borrow $700,000?" asked councilman Richard St.  Paul.

City manager Charles Strome said that certiorari bonding is a measure that should be used in "emergency situations."

Asked by Councilman Tarantino if the current fund balance of approximately $2.65 million was able to sustain the city in the event of an emergency, Finance Commissioner Howard Rattner replied, "No. It should be at least double that amount, at least."

Parking

The amendment concerning parking is intended to reduce the amount of money the general fund contributes to the Parking Enterprise Fund by raising hourly rates at the New Roc City parking garage from 75 cents and hour to $1 an hour, which would generate an estimated $400,000 per year. Essentially, any revenue generated by increased parking fees would be money that remains part of the fund balance.

Tarantino wondered if raising the garage rates would cause more people to park in the streets and push into residential areas.

Bramson said that was a legitimate concern but believes that because amount of on-street parking in New Roc City is so minimal it wouldn't affect garage parking. "I think the garage will almost always be the destination for people who want to use New Roc City," Bramson said.

The mayor added that the fee increase could be changed in the following year's budget if it proved problematic.

"We're in the process of picking our poisons," Bramson said. "None of these solutions are particularly appealing. It's trying to choose which of these actions are the least unappealing."

Increase in Marina PILOT

This amendment calls for an increase of $25,000, from the current $75,000 to $100,000 in 2011, noting that the marina fund is operating at a surplus of about $30,000.

Tarantino expressed concern about keeping the marina a high-quality facility. "We don't want to raise rates so that people would go elsewhere," he said.  He also asked where money would come from if the marina needed it during the year.

Strome said that if the marina faced a situation like damage from a major storm that required emergency funding, money would have to come from the general fund balance

Public-Private Partnership for Community Celebrations

This amendment would establish a public-private account to help offset the city's spending on the Memorial Day Parade, the July 4^th Fireworks and the Thanksgiving Parade. The city would need to raise a total of $55,000 from private entities for all three events to continue as they have in past years, according to the memo.

Tarantino said that he supported the idea of a public-private partnership to fund community celebrations, but asked if it was actually possible to raise the money needed for the various events.

Bill Zimmerman, commissioner of the Parks and Recreation Department, noted that the city has already secured $10,000 toward the Thanksgiving Day parade, bringing the total amount the city needs to raise down to $45,000.

The New Rochelle Thanksgiving Day Parade was canceled in 2009 due to lack of funding, but restored this year thanks to a donation from electrical contractors John and Charles Valenti.

Zimmerman also said Webster Bank has agreed to donate $10,000 to fund the Summer Concert Series.

"I am absolutely confident that we will raise the money for the Memorial Day parade," Mayor Bramson added. And while funding for the Fourth of July fireworks could take a greater effort, he said the city will have more lead time to prepare for it.

Strome said that securing funding would require the support of the council and other community organizations. "It's a reachable number…but we need to have more of an involved group," he said. 

The amendments will be revisited at the city council meeting on Dec. 7. The final public hearing before the budget vote is on Tuesday, Dec. 14, at 7 p.m.  Details on the budget are available on the City of New Rochelle website.