City to receive monthly financial updates

Written by Greg Maker

Thursday, 04 February 2010 19:05

At the request of Councilman Lou Trangucci (R-1st District), Commissioner of Finance Howard Rattner updated the City Council on the New Rochelle’s financial situation for the first time on a monthly basis. Previously, reports were presented to the council quarterly.

“I suggested the financial reports be done monthly because of the financial crisis we are in,” Trangucci explained. “A year ago I requested the reports to be done quarterly because previously they were never presented to the public.”
Since the final revenue numbers will not be completed until March, Rattner did not have much to report but did mention that Gov. David Paterson’s proposed budget would reduce state aid to New Rochelle by five percent which would remove approximately $335,000 of funding to the city. Rattner also updated the council on other items that may impact New Rochelle in the future such as taxes on soft drinks and selling wine in supermarkets. Since the data is not quantified, Rattner does not know how much of a savings these proposals would create.

“This would be one of many impacts in the budget,” said Mayor Noam Bramson. “Right now it is premature to make decisions about how to react to such a reduction of state aid.”

The state government looks at state aid of municipal budgets. The more state aid received in an individual municipality’s budget, the less state aid is cut. Most of the municipalities receiving higher levels of state aid are located upstate where the economy is more challenging than in southern New York.

Rattner is also working on a proposal to allow New Rochelle to increase the gross tax receipt on utility companies. Currently, the state allows New Rochelle to tax utility companies one percent but through special legislation the city may be able to tax up to three percent. Currently Buffalo, Rochester, Syracuse and Yonkers are the only cities in New York State that are allowed to charge a three percent gross utility tax. Rattner estimates that if the city is allowed to charge three percent, it could bring an additional $2 to $2.5 million to the city.

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