COMMITTEE ON BUDGET AND APPROPRIATIONS

MINUTES

JANUARY 20, 1998

ATTENDANCE:

B & A MEMBERS: Wishnie, Abinanti, Carsky, Kaplowitz, Mosiello, Stewart-Cousins, Swanson, Young

OTHERS: C.E.’s Office: Barbara Fratianni; Budget Dept: Budget Director Kate Tooher, Law Dept.: Stacey Dolgin-Kmetz, Thomas Gardner; Town of Yorktown: Supervisor Linda Cooper, Assessor Robert P. Killeen, Councilman Nick Bianco, Louis D’Amico, David Wright; Town of Cortlandt: Assessor Sal D’Onofrio; CBAC: George Hosey, Barbara Strauss; BOL: Legislator Oros, Robert J. Boland, Glenn Guzi, Tina Seckerson

Chairman Wishnie called the meeting to order at 10:25 a.m. (There was a delay due to a fire drill in the County Office Building)

DISCUSSION: (There is a cassette tape on file for more detailed information):

MINUTES: On motion of Legislator Swanson, seconded by Legislator Kaplowitz, the motion to approve the Minutes of January 12, 1998 was carried by a vote of 8-0.

(4). HON. MICHAEL KAPLOWITZ: Segmentation Rate - Lakeland School District: Forwarding a report dealing with the tax segmentation rate which he believes is improperly applied in the Lakeland School District. (1/5/98)

• Mr. Wishnie explained that this issue has been before the Board before but due to pending litigation no action was taken previously.
• Mr. Kaplowitz explained that this issue affects the matter of taxation in the Lakeland School District. He stated that he feels there is a legislative ability to correct this situation.
• Ms. Cooper distributed and reviewed a copy of a time line (on file) explaining the history of the special rate which was initiated implemented in 1993 as a result of a petition filed by the Town of Phillipstown in Putnam County. The Lakeland school District is comprised of portions of six municipalities, three in Westchester (Cortlandt, Somers, and Yorktown) and three in Putnam Valley (Carmel, Phillipstown, and Putnam Valley).

COMMITTEE ON BUDGET & APPROPRIATIONS

MINUTES - JANUARY 20, 1998

PAGE 2

• The Town of Phillipstown filed a petition for a segmented rate with the State Office of Real Property Services. The State ruled that due to the presence of the utility property in the Town of Cortlandt which represents 10% of its assessment role, and which also meets the state’s criteria of 10% to qualify for the sement rate, Cortlandt taxpayers are benefiting from a lower school tax rate than the other municipalities in the Lakeland School District. The Town of Cortlandt is the only town in Westchester that meets the state’s 10% rule.
• Segmentation rate has to be re-issued by the state each year.
• Ms. Dolgin-Kmetz stated that their role as legal advisor to the Tax Commission they are involved in the lawsuit but are at this meeting to discuss the possibility of changing the County Code with regard to this matter. Mr. Wishnie asked Ms. Dolgin-Kmetz to summarize the Court’s decision. She replied that the Court (Judge Lefkowitz) ruled that the County Tax Commission has the right to consider, but not necessarily adopt the segmentation rate, if it is received in a timely manner, by December 19th of the calendar year. Appeals are pending.
• Ms. Iacomini stated that the Westchester County Administrative Code does not permit the County to use a segmented rate and therefore uses an advisory rate instead. The result of the advisory rate is a decrease in the Town of Cortlandt’s full value within the school district. She suggested that to alleviate the issue, the schools should be released from the Charter whereby they would revert to the state. Mr. D’Onofrio stated that this would lighten the load in Yorktown and Somers and the impact would come back to the Town of Cortlandt. Supervisor Cooper stated that she would like to see the administrative Code amended to allow the use of the segmentation rate for the apportionment of taxes.
• Mr. Oros reminded everyone that there is another community out of the community (Putnam) that benefit from the segmentation rate.
• Mr. Kaplowitz stated that the problem as summarized on page 4 of decision states, "Plaintiffs contend that Yorktown taxpayers in the Lakeland School District have unfairly borne the burden of school taxes in the Lakeland School District. It is not controverted that for the 1995-96 tax year, Yorktown taxpayers within the Lakeland School District were paying about 9.9% more in school taxes than required, but in view of 9 NYCRR (A-2) 186-5.5(a), nothing was done about it. For the tax year 1996-97 the differential is about 16%; that is, Cortlandt taxpayers within the Lakeland School District were being underassessed by approximately $2.5 million in property taxes." He suggested that the Administrative Code be amended and will bring proposed legislation back to the Committee.

COMMITTEE ON BUDGET & APPROPRIATIONS

MINUTES - JANUARY 20, 1998

PAGE 3

• Mr. Mosiello asked what would happen if the Charter was amended to reflect this change, i.e. would the result be? Mr. Kaplowitz stated that this would bring Yorktown and Somers piece down while making Cortlandt’s piece up. Mr. Mosiello inquired as to how the residents of Cortlandt would be affected financially? The response was that the average taxes would go up approximately $300 per homeowner.
• It was asked if there any other school district’s that would be affected throughout the County. It was stated that any school district that crosses municipal borders could be affected. At this point there are no other segmented rates in the County. The circumstances that create a segmentation rate are being addressed by the state.
• Mr. Wishnie requested that the Law Department work with the Tax Commissioner’s office in researching why the Charter uses the advisory rate and what the County’s options are.

• Mr. Jacknis gave an overview of his vision and goals for the County. Based on his initial assessment the goals are to save money and be more effective and to make government more accessible to all.
• The most immediate requirement is making sure the County will be able to run the data center effectively when the IBM services are terminated by the County on February 28th. He is working with DPW with regard to upgrading the County’s power and electrical capabilities in order to upgrade the computer system and ultimately eliminate the UNISYS system.
• He stated that the County is way behind on the Year 2000 issue which involves computer programs as well as equipment. He has asked all Commissioners to appoint a Year 2000 liaison.
• He stated that the County’s long term requirements include:

COMMITTEE ON BUDGET & APPROPRIATIONS

MINUTES - JANUARY 20, 1998

PAGE 4

• Mr. Abinanti requested Mr. Jacknis include the County Board in whatever is done (view the Board as a department when assessing needs). He further stated that there have been requests from communities to link with the county (on computer). Mr. Jacknis stated that he has had discussions with various people, including Robert Elliott, President of the Municipal Officials Association on this matter.

1. COUNTY EXECUTIVE (ANDREW P. O’ROURKE): Settlement of Arbitration -Westhab: Proposed Act authorizing the County Attorney to settle the matter of the arbitration between the County of Westchester and Westhab, Inc. (1/5/98)

Committee will meet on this item as soon as the Law Department is prepared to do so.

2. HON. GEORGE LATIMER: Fiscal Year Budget Cycle: Suggesting that an analysis be done by the Committee on Budget and Appropriations on the proposal to change the County’s fiscal year from the current calendar year basis to a mid-year basis. (1/5/98)

The Committee is awaiting a report from the (Citizens Budget Advisory Committee) CBAC on this matter. (According to Mr. Hosey, Chairman of the 1996-97 CBAC is the report is ready and will be available within the week)

3. HON. GEORGE LATIMER: Tourism - Hotel and Sales Tax Revenue

Growth: Urging the Committee on Budget and Appropriations to meet with key representatives of the County’s Tourism Community to discuss measures that may help increase the level of tourism and convention business in Westchester. (1/5/98) (Also referred to CA)

The Committee will meet with representatives of the tourism industry.

COMMITTEE ON BUDGET & APPROPRIATIONS

MINUTES - JANUARY 20, 1998

PAGE 5

Mr. Wishnie informed the Committee that ten of the eleven member of last term’s CBAC have expressed their desire to be reappointed to the CBAC thus leaving one vacancy. He will be sending a memo to all Legislators informing them of this vacancy and requesting all interested parties send their resume or bio to the Committee.

Mr. Wishnie informed the Committee that they will be updated at next week’s meeting on A&C matters.

There being no further items for discussion, on motion of Legislator Young, seconded by Legislator Abinanti, the meeting was adjourned at 11:35a.m.