Professional Documents
Culture Documents
Mr. James L. Noble, Jr. Ms Andi Turco-Levin, Mr. Thomas Hoffay, Mr. Charles Landi, Rev. Shirley Whitlock, Dear Alderpersons:
Ms Jen Fuentes, Ward 5 Mr Ron Polacco, Ward 6 Mr. William P. Reynolds, Ward 7 Mr. Robert Senor, Ward 8 Mr. Hayes Clement, Wards 9
The Kingston Uptown Residents Alliance (KURA) has reviewed the proposed 2012 City Budget, and wishes to submit the results of its analysis and suggestions for your consideration. However, before we do that there are some general principles, which underlie these recommendations that need to be reviewed. Kingstons taxes are too high, both homestead and non-homestead. As we have pointed out, Kingston has the third highest per capita taxes of any city north of New York City. The two cities with higher taxes were Rye and White Plains, which have per capita incomes many times larger than those for Kingston residents. The result has been the exodus of businesses and taxpayers along with reduced property values. To become competitive, the City must reduce taxes. The principle obstacles are the commitments in union contracts for pension and health care benefits, which are unaffordable for a city like Kingston with the low median income of its residents. These benefits, as a percent of personnel expenses have grown from 41% in 2002 to 74.7% in the proposed budget. Neither the amount nor the growth rates are tolerable. Most municipalities and states face similar problems and have started to confront them with employee reductions, salary freezes, increased contributions to health care and pensions and modifications to pension qualifications, among others. Franklin D. Roosevelt stated in 1937, that collective bargaining with public employee unions means some of the decision-making authority over government functions is taken away from the peoples elected representatives and transferred to union officials, with whom the public had vested no such authority. In New York State, this is particularly true because its Legislature passed the Triboro Amendment. This all but eliminates collective bargaining, because it specifies that a union contract will remain in effect until it is replaced by a new contract. This puts the Mayor and Common Council in a difficult position to reduce taxes and address the mounting legacy costs.
You have two basic options. Negotiate real concessions (not just deferred salary increases) with the unions and minimize or eliminate layoffs. This is the approach that is being followed by New York State and around the Country. If an affordable settlement cannot be negotiated, the only other option is to layoff employees to reach cost levels that permit the reduction of taxes to competitive and affordable levels. It is sincerely hoped that the City and unions will do all they can to preserve the jobs of our deserving City workers and that sustainable cost levels will be achieved, At the same time it should permit an increased Police presence and strengthened Code Enforcement. Although the Mayors proposed budget for 2012 attempts to move in the right direction and remains within the 2% tax cap, it falls short in a number of key areas. It does not achieve a reduction in both homestead and non-homestead taxes. It unwisely uses about half of our reserves and leaves the City vulnerable as we approach the winter snow season. It funds the four firemen, who had been added by a grant last year and we cannot afford. This was a Trojan Horse grant which paid for the first year but, gives you the privilege to pay for them thereafter. To make Kingston competitive, KURA recommends that a number of actions be considered for the reduction of taxes for Kingston taxpayers and the increase of revenues.
1) Negotiate with the unions to reduce pension and benefit costs to financially sustainable levels, along with work rules, which will permit the City to manage its affairs. These concessions could include, among others, a salary freeze, higher health care contributions, modifications to the pension qualifying conditions, reduction of overtime and relaxation of work rules. If negotiations fail, be prepared to make the unfortunate decision to layoff employees to achieve the needed tax reductions. 2) Up to 75% of a Kingston taxpayers bill relates to School and County taxes.
Kingstons Total Taxable Assessed Value (TAV), which is established by the City Assessor, determines the share of these taxes that Kingston taxpayers will pay. Because the City assessments have fallen only 9% in a market, which has eroded by more than 30%, Kingston is overpaying its share of these taxes. This has cost Kingston taxpayers as much as $10 million dollars per year. The new Assessor should be directed to reduce the TAV as much as possible and reduce the Kingston taxpayers total tax burden, the major elements of which are School and County taxes.
3) While KURA has a high regard for Kingstons firefighters and their professionalism,
the City cannot afford the Department in its current form. New York State has 1286 fire departments. Only 68 of these are paid, professional. These are mainly airports, large corporations and larger cities. In the IBM era Kingston decided to become a paid, professional department in anticipation of high growth. The Town of Ulster chose to remain a volunteer department.
The result is a Kingston Fire Department that costs $ 7.5 million dollars per year and uses inferior equipment. The Town of Ulster has a Department which costs their taxpayers $1.9 million dollars yet they have superior equipment. Kingston made a poor decision and, as a result, our costs must be reduced substantially. The organization is top heavy. Thirty-three firefighters have a 7 or 8 grade level (83%), while there are only 7 at levels 2 through 6. 36 of 61 (59%) cost the taxpayers more than $90,000 per year. Overtime, Support Pay and Comp Time is budgeted for $670,800 or 9.6 % of the total budget. The Code Enforcement division, which plays a key role in quality of life issues, is seriously understaffed and its budget must be increased. To achieve a substantial reduction in cost, we suggest for current members of the department a package of measures described above to achieve Kingstons short-term goals. The creation of a Tier should be established for new hires, which contains a sustainable pension and benefit package. A transition should be initiated and implemented over time to create a Combined department with paid firefighters for the day shift and mostly volunteers for the other shifts. This approach has been adopted by other cities for cost reasons. We have been told that more than 15 Kingston residents are volunteers for the Town of Ulster fire department. Let us bring them home. Another area to be considered is the costly response to medical emergencies. Currently the Department does a very good job but the use of expensive fire equipment is not cost effective. It is suggested that smaller vehicles be used for this purpose and that charging for emergency calls, like an ambulance service, would offset the cost of obtaining these vehicles. Many of these calls could be covered by medical insurance and could provide a much needed revenue stream for the City. An alternative would be to turn this service over to the ambulance companies and get out of the EMT service. Some have estimated that this would save up to a million dollars per year. These alternatives may not be what we would like, but the real issue is what can we afford.
4) The Police Department does a good job with the manpower it has. The Police Department budget needs to be increased to combat crime but the cost per officer must be reduced and the following problems must be addressed. Forty of the 80 (50%) members of the Police Department cost the Kingston taxpayers more than $100,000 per year. Police officers are concentrated in the highest grade. 39 (78%) of the Police Officers are in the top grade (6) and 11 (22%) are in grades1 through 5. Overtime and Comp pay is budgeted for $536,000. The average police officer works 180 days per year, while the average for private industry is 220 days. 5) The Department of Public Works has been reduced in recent years but still remains somewhat top heavy. Forty-four of its 62 (71%) employees cost the Kingston taxpayers more than $65,000 per year. The need for two Assistant Superintendents should be reexamined as well as specific activities that lose money.
The bus service is forecast to costs the taxpayers $213,800. The schedules
should be adjusted to conform to work day schedules. Equipment should be down-sized to be consistent with rider demand. Other cost cuts should be made to make this, at a minimum, a break-even operation. Combining this bus service with the County bus service should be considered. The Dietz stadium loses $54,000 of taxpayer funds. A plan should be developed to achieve break even. The zoo loses $102,000. Additional revenues from grants, sponsorships and advertising should be sought to reduce this deficit.
6) As mentioned earlier, the over-assessment of Kingstons taxable properties has caused Kingston taxpayers to over-pay $10,000,000 per year for School and County taxes. It has also put a drain on City government expenses because of SCAR and Certiorari appeals. Some have estimated that appeals cost the Citys taxpayers as much as $500,000 this year. This would include the costs of GAR ($75,000), consultants and appraisers, outside attorneys and refunds for cases lost. Just yesterday your Council was asked to approve $175,000 in addition to the already budgeted $100,000 to contend with major reductions in the assessed values of the Holiday Inn and Stoney Run.
The Assessment process is broken and needs a major overhaul to reduce taxes and eliminate unnecessary expenses both for the City and the cost to the taxpayers, who must make the appeals.
7) Kingston has many tax delinquent properties, some of them chronic. Develop and
enforce a procedure that results in seizure at an earlier date and resale by the City to create an increased revenue stream. A policy and supporting Code enhancements should be developed for vacant and abandoned buildings. This could facilitate City maintenance of these properties and for reimbursement by the owners, if owner maintenance is unacceptable. The code should be enhanced to permit seizure of properties, which ignore complaints and the City should resell them to generate revenue.
8) Economic development has been a failure in Kingston. Between 2010 and the 2012 the Economic Development Departments budget has increased by 52.4% without significant results. The Citys development and planning departments are looked upon as impediments by prospective investors, an obstructionist bureaucracy.
A major reorganization and consolidation of these activities and an upgrade in personnel is required if Kingston is to achieve the level of new investment it needs.
9) The revenue derived from the Rondout docks is only $8,000 in the budget. This appears to be inadequate, especially after the beautiful walkway was constructed. The Common Council should investigate this matter and find ways to increase this revenue source significantly. 10) Below are a few suggestions for increasing revenues.
- Charge for Police and fire calls to a location. Free for the first 3 in a year and a substantial charge for subsequent calls. This would also address the problem of troubled housing
which cost taxpayers an inordinate amount to service. It would place these charges with the owners who are responsible for the problem. - Unbundle certain City services and charge a flat fee for them to all, based on frontage, square footage or other basis. The fees should be offset by lower taxes for homestead and nonhomestead taxpayers. However, these fees for basic services would apply to non-taxpaying entities and could cover fire protection, trash collection, and other services, similar to the way water and sewer are charged today. - Special charges for prompt trash pick-up of landlord evictions, renovations and multiple housing units, when complaints are made.
We at KURA hope that these suggestions will help to increase revenues and cut costs to reach a budget that permits a reduction in taxes. As stated earlier, it is critical that Kingston move to become competitive from a tax standpoint and stem the exit of taxpayers and businesses. None of the alternatives are easy but we are in a difficult position in poor economic times. The cost cuts must be made and with the help of the unions, it is hoped that they will not be too painful. Yours truly,
Gerard T. Soldner, President of KURA and the KURA Executive Committee cc: Mayor James M.Sottile Mr. Shayne R. Gallo Mr. Ron Polacco Mr. Richard T. Cahill, Jr. Mr. Steve Ladin Mr. John Tuey, Comptroller