Bondi: Property Taxes are ‘Unbearable’

Putnam County finds itself on stable footing despite the recession that has affected most families throughout the Hudson Valley.

County Executive Robert Bondi delivered his 20th State of the County address Wednesday evening before a special meeting of the Putnam Legislature at the historic Putnam Courthouse.

While the executive talked about declines in sales tax revenue, high unemployment, increased home foreclosures, and unfunded mandates from Albany and Washington, Bondi commended county governmental leaders for “controlling costs in the face of daunting fiscal challenges.”

The New York State Comptroller’s office reported this week that Putnam was the “second ranked lowest in expenditures per capita of all counties in New York State” last year, with Saratoga County ahead. Bondi said during the period Putnam spent $1,409 per person, which was 29 percent less than the statewide average of $1,975 per person. “During that time, Putnam spent less on social services per capita than any other county in New York. In its last independent bond rating report, Moody’s Investors Service cited Putnam’s ‘proven ability to control expenditures’ when assigning a rating of Aa3—one of the strongest in the state,” said Bondi.

Despite a $5 million loss in sales tax revenue, Putnam’s general fund’s undesignated fund balance actually increased by $650,000 last year, to an amazing $14.6 million. Bondi called the achievement “incredible in light of the revenue struggles experienced.” He predicted that the strong fund balance would enable Putnam to “return surplus funds to our property taxpayers by offsetting the county property tax levy in 2011.”

Bondi said in the current budget, $3.7 million was returned to the taxpayers: “My administration will attempt to return that amount again next year to keep county property taxes the lowest portion of the real property tax bill.” Putnam County has the 10th highest property taxes of all the counties in the United States.

Bondi noted that “despite our strong fund balance, circumstances beyond the county’s control will make [budgeting for] 2011 an even more challenging process than 2010.”

Bondi said the county’s main concern related to the “revenue side of the ledger. Sales tax revenues remain lower for the first two months of 2010 and we are very concerned about New York State’s massive budget difficulties and their possible negative impact on the county budget.”

The executive reported that Putnam had depleted $1.4 million in debt service and transportation fund reserves used to balance the 2010 budget as well as $1.4 million in Medicaid funding that was set to expire: “It is clear that in order to continue to deal with these revenue losses, county government must focus on expenditures where everything is on the table, from employee layoffs to funding cuts to outside agencies.”

Bondi addressed the issue of providing discretionary, non-mandated services.

“Ways must be found to lessen the burden of government. While programs mandated by Albany and Washington make up the greatest part of our county budget, a significant portion of the fiscal spending plan is dedicated to discretionary services,” he said.

Bondi said the selling of the county’s Certified Home Health Agency license to the Visiting Nurse Service of Westchester would save the county $500,000 annually. (see story on page 9).

Bondi thanked members of the Health Department for their “fine work exhibited over the years. The bottom line is that Putnam residents in need of home health care will receive the same, if not better care from the new agency.”

Bondi outlined several new initiatives that will be undertaken this year despite the difficult economy, including septic tank repair, the closing of the former Putnam landfill in Carmel, a municipal separate storm water system initiative, and continued improvements to the Putnam Bikeway, as well as numerous health concerns.

Bondi cited a recent national study conducted by the Robert Wood Johnson Foundation and the University of Wisconsin that compared counties across America: “Putnam County was ranked as one of the healthiest counties in New York State. Our little county was ranked at the top for having the best overall health outcomes. The report provided one snapshot of county residents—confirming what we have believed for some time—that Putnam was a healthy place to live and work, where most people enjoy better health than other parts of New York.”

The problem of drunken driving remains a thorn in the county executive’s side. Arrests for DWI have increased by 30 percent from 2008 to 2009. Bondi said the county was “rolling out every tool possible to decrease these terrible statistics, including the funding of a new technology called SIDNE—an acronym for Simulated Impaired Driving Experience.”

The device is a battery-powered vehicle that simulates the effects of impairment from alcohol and other drugs on a motorist’s driving skills: “Participants will experience with a sober brain how it feels when reaction time is slowed and drivers are unable to make a turn or stop, even when they have ample time and space. We hope that SIDNE will help drivers identify firsthand the potentially deadly consequences of alcohol and other drugs on their driving ability.”

On a more positive note, Bondi announced plans for a program tabbed “Tap a Tree—Borrow a Boat,” where residents will be able to tap trees on county property for the purpose of producing maple syrup. Putnam residents will be charged 50 cents per tree. The second initiative will allow residents to use rowboats at the Putnam Veterans Memorial Park by renting the craft as well as necessary equipment at an hourly rate.

Bondi quickly turned to the future and forecast that government could not continue on its current path: “Much of the unhappiness found across our county deals with the high property tax bills each of us pays. Although Putnam ranked second lowest in New York State in terms of county government taxes as a percentage of the total property tax bill, we rank fourth highest in New York in terms of the total tax bill. As a matter of fact, Putnam’s property taxes are the 10th highest in the entire U.S. The State Comptroller’s office reported that $378.3 million was levied in Putnam County last year, which equates to $4,000 in property taxes paid by every man, woman, and child in Putnam. A ridiculous 120 taxing authorities will levy property taxes in our villages, towns, and county this year. As a result, property taxes have proven to be an unbearable burden in the great recession and are a major reason that one out of every five deeds recorded at the County Clerk’s office is a foreclosure deed.”

Bondi said wholesale changes are on the horizon: “Does Putnam need a County Executive and nine-member Legislature? Do the people of Putnam need 10 separate school districts to educate its children? Do we need multiple police departments, fire departments, and highway departments to get the job done? Does Putnam need six towns and three villages to conduct business?”

Solutions to these questions will not occur overnight, but Bondi called on “cool minds” to study these issues in the weeks and months to come.