What If Revenues Come Up Short?

Supervisor Berman's 2009 town budget makes several optimistic revenue assumptions that may not come to pass. First it assumes that the town will realize $1,000,000 from mortgage taxes. Evidently Berman and the Board are unaware that real estate sales activity has come to a virtual halt in North Castle. The odds of the town receiving anything close to this amount are about as likely as Dr. Matusow's perpetual health insurance benefits being terminated.

Another unrealistic assumption is $225,000 in inspection and zoning professional fees. There is virtually no building or development taking place in North Castle now. Where is this money going to come from? Berman has yet to say.

Projected sales tax revenue is also potentially inflated at $1.4 million. The Board hasn't noticed the retail meltdown taking place in Westchester County. By the arrival of the New Year, many stores that were formerly household names will cease to exist. Actual sales tax numbers may be 10-20 percent below expectations.

So what happens if projected revenues comes up $500,000 to $750,000 short. This will require another more draconian round of budget cuts and further depletion of the general fund. North Castle will lose its Triple A bond rating, if it hasn't already--as a result of the adopted irresponsible budget. In addition, 2010 taxes will again have to be drastically increased to rebuild the general fund.

This is what happens when our elected officials refuse to face the fiscal realities that the rest of us must confront. By putting off the difficult decisions now, a budget bomb is just waiting to detonate.

What if the Revenues Come Up Short?

The 2009 North Castle Town Budget relies on some overly optimistic revenue

Who's Planning Department Is It?

During the December 17 meeting and others previous, numerous complaints were lodged against the town planning department. Perhaps the name of the department should be changed to the "Department of No." No matter how residents attempt to comply with often arbitrary and capricious rules, it seems that there is always another hurdle to overcome. One resident expressed disbelief that a mere garage addition had taken over two years and more than $10,000 to obtain an approval. Other residents stated that they wouldn't even attempt to a project because they dreaded the planning process.

Some developers have claimed that it is easier and faster to get a multi-million dollar project approved by the City of White Plains, than it is get a simple home renovation plan approved in North Castle. The town supervisor, Reese Berman, has studied this problem since she was elevated to her current position. Recently she announced a streamlined process for routine approvals. But this is obviously too little, too late. Many residents who were unable to obtain approvals have given up their projects in light of the current economic climate. Others, and we will never know how many, just never bothered. And we still have yet to see this "streamlined process" actually work in real life. In the end, it all boils down to less town assessables and less tax collections and higher tax rates. No doubt, this will be the legacy of the Berman regime.

And while we're on the topic of planning, our town is "fortunate" to have a full time planner, Adam Kaufman. Kaufman will not be happy until he has regulated every activity on every piece of property within the town. About a year ago, he was agitating to regulate all home businesses. Seems that no place in North Castle is zoned for home businesses. Luckily in one of Berman's few fits of common sense, she shot this proposal down. But Kaufman has declared open season on pet grooming establishments, day spas, limo companies and any other business attempting to thrive in North Castle. Perhaps if he spent a little more time trying to get approvals completeld quickly and less time trying to regulate businesses out of existence, our town would be in a better financial state.

How Much is Our Town Board Really Worth?

The Town of North Castle has four councilmen and one supervisor. Together they account for a yearly expenditure of $256,00o. Each councilman receives the equivalent of $54,000 per year in salary and benefits. They are part time employees, but it is impossible to know how much time they really spend on the people's business. In the past they have filed questionable time reports indicating that they were on call at least thirty (30) hours per week. However, it came to light that these reports were created solely for the purpose of earning these part-timers--full-timer pensions. Faced with the illegality of the practice, Berman reluctantly ended it.

A councilman's salary is about $20,000 per year. (Councilman Kittredge gets an additional $8,000 per year for being the "Deputy Town Supervisor.") This means that each councilman gets $34,000 in health and retirement benefits. Plus, after they have served ten (10) years or more they get to burden the taxpayers for the rest of their lives by receiving lifetime health insurance benefits, for themselves and their families. What have they done to deserve such lavish benefit packages?

Once upon a it was an honor to serve on a town board and it was inconceivable that members would receive any compensation. They cared about the town and the small salary they received was a mere token payment. Obviously, in North Castle, those days are long gone. But hopefully we will all live to see them again.

North Castle Restricts Free Speech

Many town residents are unaware of the Town Board's efforts to restrict dissent and free speech at public meetings. Michael Fareri has been a frequent critic and gadfly of the current administration. He has taken every opportunity to lambast the Board for its irresponsible wasteful policies. Mr. Fareri has been frustrated by the board's no-growth policies. No doubt much of his ire has been raised by self-interest. However, in this instance, his self-interest is clearly alligned with the Town's vital interests.

At a meeting several months ago, Fareri raised the issue that the board members were padding their hours worked or on call, in order to qualify for enhanced retirement benefits. Whether they are entitled to any benefits at all is a discussion for another day. But finally, the Board was called on this issue. He wanted to know how councilmen could qualify for full-time retirement benefits when they were only working several hours per week. He was met with outrage by Berman and her associates. The Board was completely unconcerned that this illegal practice was costing taxpayers thousands in wrongful pension contributions.

Some believe that Berman's generally bright attitude has never been the same.

To Berman's credit, she went to the New York State Comptroller's Office in Albany to get an opinion. Never mind that in the past twenty (20) years, the Comptroller's Office twice ruled against the Town on this very same matter. This was an attempt to prove Einstein's theory, that "the definition of insanity is attempting the same thing over and over again while expecting a different result." The Comptroller again decided against the Town. Hence, the full-time retirement benefits for the part-time board are history.

But there is another question that has not been asked or answered. The Town pays Town Attorney Rolland Baroni, hundreds of thousands of dollars per year. Why couldn't Baroni figure out this very simple legal question?

Prior to this confrontation, there were no time restrictions during the Public Comment segment of each Town Board meeting. However, as a result of Berman's and the Board's total outrage at having been exposed in this fraud, she unilaterally restricted all public comment to three (3). Thus abridging the free speech and democratic rights of the entire town. One has to wonder whether there was a less restrictive alternative to dealing with the often justified criticisms of one community member.

Is Reese Berman Losing It?

The December 17, 2008 North Castle town meeting was a watershed event. Never before have so many residents turned out to participate in the rather mundane annual ritual of deciding how their $25 million gets spent. To say that these residents were enraged and irate is to miss the point. Until the financial crisis struck the nation, participation in local government has been lacking to say the least. Now that our citizens have awoken to the fact that they have been poorly represented by their elected officials, if represented at all, it will be interesting to see if democracy can be born again.

Supervisor Reese Berman's behavior at the meeting was interesting to put it charitably. She had her regular confrontation with her eternal critic and nemesis, Michael Fareri. She insisted on having the board take the budget vote before the residents and employees could be heard. This resulted in an acute sense of outrage among all present. Berman was screaming at the residents, especially Fareri, and they were screaming back at her. Becky Kittridge was doing her best to cover Reese's back, but alas, it was all for naught. The other three board members cowered in fear, praying that they could make a quick and hasty exit. Finally, after a private meeting amongst the board, they relented and agreed to hear from all.

Berman's demeanor throughout the proceedings was defensive and at times shrill. She looked like the proverbial jackass who had been hit over the head with a two by four, to get its attention. The overpaid and highly questionable town attorney Rolland Baroni did his best to avoid all eye contact and was seen to be regularly consulting his watch. Whether he was counting the minutes before he could beat a quick retreat, or he was insuring that his time was properly billed to the taxpayers, shall forever remain a mystery.

As usual, after the screaming dies down, all that's left are the tears. The board called a budget vote and unamiously passed what passed for a town budget. Even board member Weaver, the titular Republican, voted in the affirmative. The audience was outraged but resigned to their fate. But one thing is for certain, neither the board members nor Berman, acquitted themselves well with their performances. They will pay price and that price will be exacted in November.

Town Retiree Health Benfits--Out of Hand and Getting Worse

Like most residents I was surprised to discover that North Castle provides fully paid family health insurance to all former town employees, who have at least ten (10) years of service with the town. In certain cases, like that of Dr. Gene Matasow, eight (8) years as a part-time worker is sufficient to secure these benefits. The cost is around $1 million per year, or four (4) percent of the town budget.

When I see such public extravagances, it makes me slightly sorry that I decided to work in the private sector, complete with its risks of joblessness, benefit cuts, insurance co-payments, etc. I feel foolish when I see our town workers getting cradle to grave health insurance. And their insurance is not like yours or mine. They get full dental, eye glasses and contacts, laser eye surgery, prescription drug coverage and the list goes on and on. And these poor impoverished retirees are already receiving very generous pensions compliments of Jane and Joe Taxpayer as well as social security benefits.

More on the infamous Dr. Gene Matasow. A long long time ago he served on the Town Board, for just eight years. He paid for his medical benefits for two years after his departure. Then, lo and behold, the Town of North Castle, in a fit of taxpayer funded generosity, decided to pay his health insurance premiums ever since. Seventeen years, at a cost of hundreds of thousands to the beleaguered taxpayers. And what is Reese Berman's response, "As reported at the June 13, 2007 Town Board meeting, the Town Board investigated allegations concerning Dr. Matusow’s health benefits. It unanimously concluded that “a mistake was made 17 years ago . . . solely by the Town and not through any overt act of Dr. Matusow” and decided that “no action will be taken by the Town at this late juncture.” The events at issue occurred many years before I became a Councilman or Supervisor or had any role whatsoever in Town decision making."

So what was the outcome of the discovery of this "mistake?" The Town is still paying for this error. When will it end? Matasow's benefits should have immediately been terminated and he should have received a bill from the Town for at least the past five (5) years premiums. There's a word for someone who takes benefits that he should know he doesn't deserve. But we'll leave it to the reader to decide the appropriate term.

If the Board and Berman can be so cavlier as to simply shrug off improper payments to a politically connected former board member, what else are they hiding? What other sacred cows reside beneath the surface of the opaque town budget?

We need to know.

The Party Is Over--North Castle Residents Rise Up

In the December 19, 2008 edition of the Journal News the following article appeared.

NORTH CASTLE - The Town Board passed a budget last night with a 4.5 percent tax increase after a tumultuous budget season that saw hundreds of residents demanding little or no tax increase.

Hundreds of residents and the majority of the town workforce showed up to the budget meeting last night at Crittenden Middle School in Armonk, with residents saying town taxes shouldn't increase while they are being hit with the bad economy and police officers saying their numbers haven't grown in years since despite an increase in population and call volume.

"They're going to have to realize it's going to affect them sooner or later," PBA president Joe Horesky said today.

The 4.5 percent tax increase brings the tax rate up $5.99 per $1,000 in assessed value to $139.09. That brings taxes for a home assessed at the average of $23,800 to $3,310, up $143 from this year.

What the Journal News failed to mention was the nature of the town resident's grievances. The fact is that the Board Members are paid to generously at our expense. Each member receives the equivalent of nearly $55,000 per year in salary, health benefits and retirement benefits. Not too shabby for a part-time job that has very few requirements other than winning the quadrennial popularity contest at the ballot box. The town supervisor, Reese Berman, gets 117,000 of our tax dollars per year. Since she worked for the school system most of her career, it is difficult to calculate from the numbers given, her exact compensation package.

In addition, the issue of retiree health benefits was addressed by certain members of the audience. It was pointed out that the town spends nearly $1 million per annum on medical benefits for former employees who are already taking down large pensions and receiving social security and medicare benefits as well. In addition, the issue of Dr. Gene Matasow was raised as well. For those unaware, Matasow was a board member for just 8 years. According to Berman, he wrongfully received retiree medical benefits for the past 17 years at a cost of hundreds of thousands. However, she has absolutely no interest in righting this wrong.

Another frequent board critic, Michael Fareri, a town developer, chastised the Board for its anti-sensible growth policies. He pointed out that he warned the Board when the town building moratorium was passed, that in four years time they would come to regret their actions. Well, he just one year off on that prediction.

The amazing thing about the budget meeting was the number of town residents present. There were hundreds. At last year's budget meeting, there were less than ten. Its as if the town residents awoke from a slumber and suddenly looked around and realized that all of their possessions had been stolen. They were angrier than a group of Bernie Madoff investors attending a financial seminar.