City Finances Proposed 2007 Property Taxes to Rise 4%; Spending Up 6%

City Finances
Proposed 2007 Property Taxes to Rise 4%; Spending Up 6%

– By Arthur Stampleman –

The City staff's proposal to increase the City of Rye property tax rate by 3.96 % next year was the main agenda item at the Nov. 8 City Council meeting. Proposed spending by City government would increase by 5.8%. City Manager Paul Shew and City Comptroller Michael Genito made the recommendations.

The new tax rate would be $127.24 per $1,000 assessed valuation. In making their recommendation, they observed that the tax increase was slightly more than the most recent year-to-date Consumer Price Index (CPI) average — 3.4 % in September. The CPI average for all of 2005 was also 3.4%. They noted that while budgeted expenditures are up 5.8% compared to the 2006 budget, items within “the control” of City departments are up 2.69%.

The budget and the proposed tax rate will now be considered by the City Council. Meetings to review the budget will be held in the next few weeks. The next Council meeting is Wednesday, Nov. 15, 8 p.m. They must approve a budget before year-end.

City property taxes account for approximately 16% of the tax burden on Rye property owners. School districts account for 62%, and the county 22%.

Among the highlights, the City and the Rye Free Reading Room are developing a new model for funding the library in a separate fund, with voter involvement by 2008.

City staff also recommends an $8.5 million bond referendum to pay for the purchase of 1037 Boston Post Road (the former CVS building), reconstruction of Theall Road and several other projects. Plans for 1037 Boston Post Road as a potential site for a new Police Headquarters will receive much attention in the coming year

Among the projects in next year's capital budget are annual road resurfacing, traffic light improvements at Purchase Street/ Wappanocca Avenue and City Hall, parking improvements at Damiano and Gagliardo Park and repairing the tennis court fence and backstop at Recreation Park. Recent major capital projects show mixed results — Damiano is on budget and on time, but the Locust Firehouse Headquarters renovation is behind schedule.

Personnel issues requiring attention include continuity, as many of the City's senior staff are qualified to retire, and the limited affordable housing available in Rye.

Total Expenditures in the General Fund next year are budgeted at $29.5 million – 5.6 % over the latest forecast for 2006 and 4.5 % over the 2006 budget. Revenues (including the 3.96% tax increase) are budgeted at $27.6 million – 1.5 % over the latest forecast for 2006 and 5.3 % over the 2006 budget.