Rye Finances: Steady as it Goes

Joe Fazzino, Deputy Comptroller, described the City’s financial condition in a presentation to the Rye City Council on October 17, as being in line with trends all year. Overall, the City’s revenues and expenses will be on budget by year-end.

As expected, through the first nine months of 2018, revenues are up about $600,000, which is in line with the 1.9% tax levy increase. Fazzino noted that there will be a spike in interest and penalties paid to the City because the annual foreclosure process as begun. “We have a payment plan in place for all delinquent taxpayers, but we shall see.”

Interestingly, over 1,000 taxpayers paid their taxes early this year in the hope that they would get some relief from the loss of the State and Local deduction from Federal taxes. In a “Pre-payers beware” statement this August, the Treasury Department announced that it will not allow such stratagems.

One of the City’s largest revenue items, which is often hard to estimate, is the mortgage tax. Fortunately, it is on target to meet budget of $1.6 million.

On the spending side, it pays not to sue people. As this Council has settled or withdrawn from several lawsuits, legal fees have declined by $181,000.

As usual, the biggest increase in spending comes from employee benefits. Health care for current and retired employees cost $380,000 more than last year. Fazzino noted that there is the financial benefit over time that employees on the family plan are replaced by younger employees, who tend to be on single plans, there will be savings.

“And that’s why we have that “no marrying plan,” Mayor Cohn quipped.

• <Peter Jovanovich>