Yonkers Budget Would Make Madoff Blush By RICHARD MARTINELLI

eHezi Archives 23 Comments

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$40 MILLION in One Shot Deals-Push Yonkers to the Brink

Letter delivered to all members of the Yonkers City Council this afternoon, June 13, 2011:

Dear City Council President:

I am writing today to raise questions about the fiduciary responsibility you have to the taxpayers of Yonkers in the discussion and formulation of the city’s budget for fiscal year 2011-2012.

 

In these tough economic times Yonkers residents, and in fact all New Yorkers, are suffering under one of the highest tax burdens in the nation. They are at the breaking point and simply can’t afford to pay any more.

That is why I am very concerned with the lack of transparency and forthrightness being exhibited by our City Council in a variety of areas related to the budget.

The City of Yonkers is no stranger to fiscal mismanagement. Twenty-three years ago this August theNew York State Emergency Financial Control Board declared Yonkers to be in a fiscal crisis and on the verge of bankruptcy.  Today, we are headed down that path once again.

The municipal and school budget total slightly over $918,000,000; with a total annual debt service of nearly $67,000,000.  This figure does not include the debt service on the $20,000,000 in new debt that would be created by the Transitional Finance Authority as proposed by Mayor Amicone.

When you look closely at the revenue side of the ledger and see that $40,000,000 of revenue is produced by “one shot deals” such as Payments in Lieu of Taxes (PILOT) and sale of city property, your jaw drops.

You don’t have to have an MBA to understand the level of our debt service is unsustainable and this city is perilously close to financial disaster. In future years, where will we find the $40,000,000 needed to bridge this gap?

In addition the Property Tax Rate is projected to jump by nearly 5%, the Sewer Tax Rate by 15%, and the Water Tax Rate by 20%. Increases which, the average taxpayer can ill afford and which many will simply be unable to pay.

It’s about time the Yonkers City Council came clean with the taxpayers and fully explains the tough financial future we face, including shortfalls in future years that are conservatively expected to reach over $90,000,000.  This budget is a roadmap to disaster.  Its one-shot deals, deficit financing and accounting chicanery would make Bernie Madoff blush!

Two members of the City Council plan to run for Mayor this year; Mr. Lesnick and Mr. Murtagh need to explain to the voters how than can seek that office when they are involved in the creation of a budget that will ultimately lead to the financial instability of our city and will break the back of its taxpayers.

 

Richard Martinelli is a candidate for Mayor of the City of Yonkers.

eHeziYonkers Budget Would Make Madoff Blush By RICHARD MARTINELLI

Comments 23

  1. Well then maybe it should have been in your backyard.Give us directions to your house and we’ll conduct tours from Ridge Hill. Oh, that’s right, you don’t live in Yonkers.
    The issue was not “only” traffic. It was the tax breaks, the granting of a new mixed use development zoning (80 acres needed, already being challenged), (obtained by illegal means to boot), the skewed traffic study, the minimal return to the city in the form of a PILOT, the total disregard of the taxpayers in this city by granting of “corporate welfare”, the total disdain for the County’s land use plans, and the behind the scenes pay-offs for votes. etc.
    Those evil doers, how dare they question where and how their tax dollars are being spent.
    “A Nation Of Sheep Will Beget A Government Of Wolves” – Edward R. Murrow

  2. also there is one last point to be made regarding
    ridge hill..the opposition to the project didn’t
    come from those who thought there was a better alternative or that the city was giving fcr too
    good a deal.the opposition was for totally selfish
    reasons…TRAFFIC….nevermind the good of the city
    nevermind expanding the tax base..nevermind future
    revenues..just make sure that tuckahoe road remains
    the same for the next 100 years…had this project
    not been delayed the revenues would already be in
    stream..and the city would have less of a problem
    but who cares about that..just NOT IN MY BACKYARD

  3. first of all my client list is none of your business..
    having said that I am not being paid by anyone this
    year…your problem is you can’t deal with the facts
    so like many others on this site you resort to ad hominem attacks…(go look it up)when the mayor ran
    I did place some tv foor him..however i was not his
    main consultant…and the math is still the math
    murtaugh cannot win a general against either democrat
    without the conservative line…and you can take
    that to the bank if you have one

  4. My point is that you are a paid political lackey. You spew pure opinion with no basis in fact. And don’t say it’s “math”, it’s still your OPINION. Are you being paid to support Martinelli this time around? If so, everytime you post one of your nonsensical analysises kindly post a disclaimer under it that you are being paid by Martinelli to support him otherwise I will be forced to report you to the Board of Ethics. Thank you.

  5. lots of people the mayor last election
    that’s why he won!….my point is only that john
    murtaugh mathmatically cannot win without the conservative line…which he cannot get…and richard
    martinelli can win the republican primary which would
    give him both lines…the only way a republican can
    win is martinelli….a murtaugh win on the republican
    line with martinelli on the consv line and calvi on
    the ind line is an automatic election of whatever democrat wins their primary…I fail to see what your
    point is

  6. “If you were watching Newsmakers two weeks ago, I did disclose I was working for the mayor… so I did it before you guys ever knew about it. There is absolutely no conflict… I support Phil Amicone” -Michael Edelman
    So Mike, you supported Amicone back then as the wise political guru you are. That seemed to have worked out. We definitely should all believe you again and vote for Martinelli if we want another 4 years of the wonders that Amicone has done continued!

  7. Richie please explain why you didn’t know how much money a 1% tax increase represented when Carlo asked you???????????????????
    Richie how is it that you can ask questions and provide NO SOLUTIONS????
    Richie be prepared to answer these questions in public without Liam writing your copy and Daddy paying for the mailings!
    WHERE is your Proposed solution Richie????
    WHERE????????????
    Oh, I guess Liam hasn’t told you yet.
    Is it uncomfortable to speak with Liam’s hand so far up your @$$!!!???

  8. I believe that is wrong. The TFA was to pay $20Million of our debt this year. So instead of The City paying $50Million towards its debt, it only had to pay $30Million. This “free’d up” $20 Million would have gone to schools. Next year however, we would start paying the $50Million again towards our current debt service. In addition, we now would also have to start repaying the $20Million the TFA would have fronted us this year. Being said, the TFA would allow us to repay that $20 Million at a cheaper rate than traditional financing, but we woudl still be paying interest on that money….So, while a REFI (if thats what they prefer to call it – or “restructured Debt”), its still costing us additional monies every year to pay it off….. And what do we do next year when were in the whole $56 Million…..The City is getting out of control..

  9. as I understood the TFA proposal it was a refinance
    which given the lower rates would produce for the
    same amount of debt service an additional 20 million
    similar to a cash out with a conventional commercial
    refinance..am i wrong?

  10. You folks have to get over the Papa Angelo thing…
    Should the Martinelli campaign start tying Carlo to the convicted former City worker who happens to be his relative?
    Try sticking to the issues folks.

  11. Actaully Anon, the new $20 million would add on to our debt service. While we would still need to pay off the current debt at over $55Million a year, we would now also have to start paying back about $5Million a year for the next five years to pay off this new $20Million from the TFA…so, in essence, it as if we borrowed $20Million….Doesnt matter now, as the whole deal was shutdown as of today…..

  12. If this is your idea of funny, then tell us a weiner joke.You are really clueless and if Madoff is your idea of a joke you are grasping at straws. Name one, just one budget you voted against in Yonkers? Right not one you were a rubber stamper for Spencer and the I’m and Italian your an Italian Clown. (Reference to the Amicone/Petrone scandal)
    Go away…far away.

  13. Richie please explain why you didn’t know how much money a 1% tax increase represented when Carlo asked you???????????????????
    Richie how is it that you can ask questions and provide NO SOLUTIONS????
    Richie be prepared to answer these uestions in public without Liam writing your copy and Daddy paying for the mailings!

  14. Murtagh never met a budget problem he didn’t tax and borrow his way out of. This year is no different. He has voted to raise the INCOME TAX Surcharge, PROPERTY TAXES, and the real estate TRANSFER TAX and has DOUBLED THE DEBT while on the council. Now he is voting for more DEBT and BORROWING! Where does it end? We are borrowing ourselves into oblivion. And Murtagh claims to be a fiscal conservative??? He is really a liberal elite tax and spender.

  15. angelo created no tax.he was not a strong mayor
    the city council created it…with the advise
    of the then city manager..

  16. This guy has voted for every one shot revenue budget in his entire career. He’s one of the main architects of the budget mess we now have.
    Crushing the taxpayer is a genetic thing for the Martinellis.
    Papa Angelo created the Frontage tax, Income tax Surcharge and Transfer Tax.
    These people never met a tax or a tax increase that they did not like.
    He ain’t no conservative.

  17. What a load of pandering crap.
    Richie Richie Richie….
    This has gone on for weeks. It took you THIS long to issue a pablum statement, conveniently just hours before a special Council meeting? Gee could there be politics involved instead of you just giving a damn?
    Did daddy kick your ass to say SOMETHING already?
    And Richie, the $20 mill in “new” debt REPLACES $20 mil in OLD debt. It does not add on to the debt service of Yonkers, it reduces it. Its a debt swap Richie. Ever heard of that??
    I am not saying its the right thing or the best that can be done. But do not misrepresent what it is.
    Weakling.

  18. you must be kidding..angelo martinelli was not a strong
    mayor…there was a city manager form of government
    if you will recall..council manager actually…so you
    could hardly blame angelo for the control board
    and taking it a step further even if you could richard
    was in his teens…but people like you love to vilify
    based on blood relation not on ideas…very nice

  19. Interesting that right before that control board came in, Mr. Martinelli’s father was the mayor. The lingering effects of his fiscal irresponsibility definitely had nothing to do with the need for a control board, right RICH? Must be a whole family of fiscal conservatives!

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