6/29/2011

Totes Totes Totes....

Posted by MJ

6/30/11

The LUSJ reported on some of the costs.

By turning refuse collection duties over to the private sector, the City of Lockport should save upwards of $10 million in tax money over 10 years...

6/29/11

The LUSJ reported on the upcoming garbage system that is expected to be voted on next week.

A week from today, the Common Council is set to OK a contract with a private hauling company to collect all garbage in the city.

The vote is historic for several reasons, not the least of which is the city will get out of the refuse collection business and, over time, reduce its employment roll by nine.

Privatization also will bring curbside recycling service to residents, finally, about 20 years after it was introduced in every town around the city.

Also a pretty big deal, the trash pickup program that the city commissioned will relieve city taxpayers of the burden of paying for everyone’s garbage pickup based on their property value.

The new “variable cart” program invites all property owners to help set their own refuse disposal costs, based on how much they throw away versus recycle....
 A nice primer Q&A is also given. And remember to get as much big stuff out in the next few weeks before you'll have to pay to get rid of it, or hold onto it to put out one per month.

2/15/2011

Property Tax Cap

Posted by MJ

The Buffalo News posted a quick overview of the proposed property tax cap:

For all the talk about the property tax cap that seems headed our way, something has been kind of lost in the hubbub. The details...
...- A district's tax levy increase would be capped at 2 percent or the annual increase in the consumer price index, whichever is less.
- There is a way for schools to exceed the cap. If a district proposes a budget that exceeds the tax cap, the district would need 60 percent approval of the budget, rather than the standard 50 percent.
- If a budget fails to get voter approval, the district would have to submit a revised budget subject to a public vote on the third Tuesday in June. If this revised budget exceeds the tax cap, it would require approval by 60 percent of those voting.
- If the revised budget fails to get voter approval, the district would have to adopt a budget with no tax levy increase...
The article is dead on on one point: THE DETAILS. This affects almost every conversation out there. there needs to be easier access to public documents. In this internet access age, there should be no excuses to providing them for anyone to download and read.

But back on track....The Buffalo News also ran an article (editorial) a few weeks back on how the cap has affected Taxachuetts over the past 30 years.

Something happens as the green "Welcome to New York" sign fades in the rearview mirror when you cross into Massachusetts: Taxes go down.
They are lower on clothing purchases. On gasoline, on furniture, on alcohol and on a range of goods and services. On businesses. And personal income is taxed at a lower rate.
But, most noticeably, property taxes are lower.
As a result of a 30-year-old law limiting their annual growth -- the kind of plan under debate in the New York State Capitol -- sharply rising property taxes no longer dominate kitchen table discussions in Massachusetts...

1/13/2011

Trash Update

Posted by MJ

The Buffalo News and LUSJ reported on a trash system meeting last night.

The city’s new privatized garbage disposal system won’t start until at least July 1, the Common Council learned Wednesday.

Dawn M. Timm, the laid-off former Niagara County solid-waste coordinator who has been working on Lockport’s plan, told the aldermen that the three prospective haulers thought the city’s plan to start in April was unrealistic.

The process, which began with the haulers being asked to submit comments on the plan’s structure before bidding, now calls for the final draft of the request for proposals to be posted by Feb. 28. The waste haulers will have until March 30 to submit bids.

“We’ll take about three weeks to chew over that and enter the negotiation phase,” said Timm, who is continuing to work on the city’s project as a volunteer.

She said the contract should be awarded in mid-May, and the first of the city’s five garbage routes will be privatized about six weeks later....
 Notable is where the "large item disposal" is heading:

One “bulk” item pickup per month, per property, to be included in the fee each property is charged for regular pickup. Bulk items are things such as a chair or other large item set out in addition to the trash can; the definition and maximum size/weight of a “bulk” item is also still being worked out.

•A “special circumstances” pickup, to be paid for by property owners in addition to their quarterly refuse fees as needed, for dumping of trash including construction-and-demolition debris. Basically, the property owner would contact the hauler and make arrangements for disposing of special debris alongside weekly trash; but the special debris wouldn’t be picked up unless the owner paid for the service.

The haulers discouraged an idea in the preliminary RFP, for a spring cleaning/”amnesty” month during which property owners could put as much trash out to the curb as they like. The city couldn’t estimate how many parcels would participate or how much would get thrown out, so the haulers said they’d have to guess themselves how many laborers and what kinds of vehicles, garbage trucks or bulldozers, would be needed, put a price on that extra service and write it into the contract
There should be a cost effective way to handle large items. Instead of one any time per any month and a big free-for-all month why not just the beginning of every month? It would seem to be more cost effective than special trips year round. Construction debris should still be the separate responsibility of the home owner or contractor. What else could there be to worry about on a large scale?

7/21/2009

New Small-Biz Opportunity Zones

Posted by Anonymous

(Image: Main St. Lockport at Dusk)

The Buffalo News reports a new policy by the Niagara County IDA for its three cities.

New small businesses in parts of Niagara County’s three cities will have a chance at tax breaks normally reserved for the big boys, under terms of a new policy at the Industrial Development Agency.  At the County Legislature’s request, the IDA worked out a plan for “opportunity zones,” which gives eligible businesses five years of exemption from all property taxes.
--------
In Niagara Falls, the opportunity zones are along Main and Niagara streets and Pine and Highland avenues. Peter Kay, the city’s director of economic development and planning, said under the IDA’s criteria, the zones could have been “practically the whole city, because it was [distressed] census tracts and census tracts adjacent to them. Even DeVeaux Woods would have qualified.” So Niagara Falls decided to limit the zones, too.
“By throwing the whole city into the mix, it would actually harm the intent, because people who were on those [designated] streets could say, ‘I want to go down near the water and I’ll get all these tax breaks,’ ” Kay said.

---------
In Lockport, Tucker isn’t limiting the available areas, but he’s hoping the opportunity zones will help him fill Harrison Place, the former auto parts plant at Walnut and Washburn streets that the city owns after foreclosing on the previous owner.
“I think it certainly can’t hurt,” said Tucker, who also is vice chairman of the IDA. “In these tough times I think it gives us an edge.”
 
It is nice to see a new policy targeting small business in areas of need. As wonderful as it would be to land a Hail Mary of a large new business, it is the small ones that really form the foundation of our economic health.

Some thoughts:

1) Will a portion of the investment be tied in permanent infrastructure improvement? Or in other words, even if the business does not make it, or decides to pick up and leave once the taxes kick in, will we be left with a new or updated building in the city?

2) What do we do to reward those who already took the chance? The article says "new businesses". Is there some other policy that would reward the expansion or large investment in an existing small business?

3) How will this be marketed? Is there a larger plan for what type of development we want to see and where? The article lays out how separate mayors are implimenting the policy. The fact that the entire areas of some are eligible (distressed or near distressed areas) should be eye opening to the need of short range tax sacrifices for long term growth. The growth still will not happen automatically. Focused plans are needed.

4) A system like this is needed for major house renovations etc. The low income housing programs are nice but a middle class is sorely needed for a healthy city and should also be proactively fostered. Move vacant city owned homes for $1 and offer similar tax breaks to reward those who have the means and are willing to take the risk at restoring a home. Strong contracts laying out the obligations a must. The structures are generating zero tax revenue as thay stand and surpressing those nearby.

I've sent an e-mail for more information. I'll post again if I find out anything else.

7/16/2009

Recycling Update

Posted by Anonymous



Both the LUSJ  and the Buffalo News have articles on the city's quest to institute a more comprehensive recycling program. Each paints a different picture on the impact of the cost estimates.

The Buffalo News mentions a creation of a garbage district to more fairly distribute the costs between single and multiple residences.

Alderman Patrick W. Schrader, D-4th Ward, said he’d like to see multiple dwellings and businesses pay more than ordinary homeowners for recycling. The only legal way to accomplish that is to establish a city garbage district, a proposal that has been floated occasionally for two decades
I have no problem with districts. Most see them as added taxation and thus "bad" and this is not unreasonable at first glance. The populace would have to see detailed numbers showing the reduced tax levy in the general fund. What special districts do allow is the ability for residents to more easily see where their money is going. As is shown with home owner association fees, people are willing to pay extra when they can readily see the results and what is being done with their money.
Other committee members said they want to work on making recycling the more attractive option to property owners. The city has no limits on what, or how much, trash it will collect or who’s allowed to dump; until it does, they suspect, the majority won’t have any economic incentives to recycle. Whether it’s limiting the number of bags per property per week, or requiring every property use a set-size trash can, or limiting municipal pickup for residences only, not businesses or tax-exempt entities, the city’s approach to trash handling needs radical change, they said.




“Where else do you see sinks, couches, mountains of trash set out to the curb and know it’ll all be picked up? It’s like anything goes,” said Dawn Walczak, Niagara County director of environment/solid waste management. “Recycling looks way better (economically) when reduce and reuse go alongside it.”
I was surprised by how encompassing Lockport's garbage pickup still is when I moved here. It is nice but is it the right thing to do, even from just a cost standpoint? The costs have to add up. Also, with how liberal the pickup standards are, I am always curious why people still find a reason to dump things in empty lots etc.

-MJ

7/07/2009

Reassasment on hold again...

Posted by Black Phillip

Nice.


According to The Buffalo News, reassessment is on hold again (still?).
The city’s long-postponed property reassessment probably won’t happen until 2011, Mayor Michael W. Tucker and acting Assessor Joseph Macaluso agreed last week.

Before it happens, the city needs to hire a private company to carry out field work on every property, Macaluso said.
With the boondoggle that was the last round of assessments, the longer we wait, the better. Because that gives me the hope that it will be done right. Not a scatter shot of assessments. Not assessments that use houses that are in better neighborhoods for a comparison value. An honest and fair assessment. That's all we wanted before, and that's all we want now.

(Of course, I'd rather property taxes be based on the actual property, not the structures on the property, because the current way does not encourage development and improvements, but I digress.)

(And as a second digression, according to the Buffalo News Sunday paper, they will be allowing comments on all articles. Humm. Now I wonder what newspaper values me as a consumer of their product? But again, I'm digressing.)

Erik.

4/17/2009

Tonawanda Beats Us to Lofts/Mixed Use.

Posted by Anonymous

Image - N. Tonawanda Factory undergoing loft conversion
I read in the Buffalo News that Tonawanda has beat Lockport to a lofts project. Maybe we can inherit it like we did the concert series?

With the tax breaks for mixed use: and county tax breaks for new stores: opportunities are there to make it work (along with existing historic tax credits etc).

The western old Harrison Building is crying out for this. ;) For those who rather own and put in the elbow grease the opportunities exist right next door on South St. and Genessee St. A modern loft anchoring it would provide stability to enable those investments plus put more consumers within walking distance of Main St.

It should be apparent by now that the facility is too large for single use business. Lay the ground work to encourage mixing it up and diversifying. The master plan from '99 calls for it. DT will be stronger because of it.


Image - Old Harrison Building, Walnut St. Lockport NY

2/10/2009

Union Rules, Civil Pensions and Bankruptcy

Posted by Anonymous

(Image - Feeding at the Trough - Dalton PA)
Today involved a LUSJ article about the assessor quiting over lack of ability to get anything accomplished and a Forbes article making the rounds at work about the burden of public sector pensions.


From the LUSJ:

...It’s fair to say Peter is leaving because of a combination of office politics and my unhappiness with the pace of reassessment,” Tucker said. Galarneau has butted heads repeatedly with assessing department employees Lena Villella, real property appraiser, and Jessica Stopa, appraiser associate. Since last fall, Tucker said, one or both employees have accused Galarneau of: Violating union-set workplace rules that limit the amount of time the assessor is allowed to perform keyboarding work. While Villella was on vacation last year, Tucker said, Galarneau input photos of property into the city data base and surpassed his keyboarding time limit. Villella filed a grievance over it....
I would also feel the need to move on under conditions such as these. It feels like a lost cause when one is given the task of accomplishing something only to have efficiencies etc stifled. I have also been curious why elected officials would agree to "rules" that often prohibit the efficiencies that tax payers are constantly asking for. I have often wondered what filing for bankruptcy and the voiding of these contracts and restructuring them to mimic the private sector would do to our government budget and tax structures.


Then the Forbes article landed on my desk. It discusses the guaranteed public benefit packages and their cost to taxpayers.

...For New York City's 281,000 employees, average compensation has risen 63% since 2000 to $107,000 a year. New Jersey teaching veterans receive $80,000 to $100,000 for ten months' work. In California prison guards can sock away $300,000 a year with overtime pay. Four in five public-sector workers have lifetime pensions, versus only one in five in the private sector. The difference shifts huge risks from government to private-sector workers.

NYC socked away $20,000 per employee last year for pension benefits. Since 2000 its pension funding bill has risen nine fold, from $615 million to $5.6 billion in 2008.
That's more than the city spends on transport, health care, parks, libraries, museums and City University of New York combined, says the Citizens Budget Commission....

...Despite its huge contributions, New York City's five pension plans had only 74% of that actuaries said a year ago they need to pay future benefits. The recent financial meltdown lopped another 30% off the funds' value. If markets fail to roar back, taxpayers will have to save the day. After all, public pension benefits are enshrined in law. Don't you wish your 401(k) was?...

The recent market meltdown erased $1 trillion from municipal pension funds, Boston College's Center for Retirement Research figures. That has left the average public plan 35% underfunded. With benefits inexorably rising, the shortfall will balloon to 41% by 2013 if stocks and bonds stay at current levels, representing an unfunded liability of roughly $1.7 trillion, according to the Boston College center.

That's a lot less than Social Security's $11 trillion unfunded liability. But the feds have lots of wiggle room to lessen their burden by, say, raising the age at which you become eligible to draw benefits. Most public employees' benefits, by contrast, are set in stone.

"The tax hikes you face [to fully fund public pensions] will have a much more tangible impact on your financial life than anything a Social Security fix will entail," says Alicia Munnell, who runs Boston College's retirement center....
I never thought that bankruptcy was an option for municipalities but a side bar When City Hall Goes Bust to the article mentioned otherwise:

The last straw for the finances of Vallejo, Calif. came early last year when 18 cops and firefighters unexpectedly retired early. Under their contracts the city of 120,000 was immediately forced to pay them a total of $3.4 million. Already straining under an unpaid $219 million tab for pensions and health care, the city did something that may soon sound all too familiar: It filed for bankruptcy.


When government employees lobby for lavish pensions, it's typically under the notion that once granted the benefits can never be cut. A course in constitutional law would teach them that the Tenth Amendment limits federal officials' ability to order around local governments--a proscription that applies to U.S. Bankruptcy Court judges.

Under Chapter 9 of the bankruptcy code, cities can propose their own reorganization plans and void union contracts without fear that they will ever be forced to liquidate assets.

Chapter 9 filings have been rare in the past. New York City drew up Chapter 9 papers in 1975 and only backed away when its unions agreed to concessions. Orange County, Calif. filed in 1994 after a derivatives debacle.


With municipal governments under unusual stress, 2009 may see a spate of new filings, or threatened filings. If so, public pensions are likely to be lumped in with general obligations and everyone may be forced to live with less than 100 cents on the dollar. One observer who expects as much: Vallejo's bankruptcy attorney, Marc Levinson.


"Many municipalities are in deep trouble," he says. "What we don't know is how many will file Chapter 9."

One is left to wonder what an overhaul of city/state/etc gov't from top to bottom could accomplish in our unenviable standing in tax rankings.