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Resident Michael urges town to reconsider proposed fund balance policy, warns of large tax increases
Summary
At the Sept. 30 Mamaroneck town board meeting, resident Michael urged the board to delay adopting a revised fund balance policy, arguing Moody's-driven increases could force large tax-levy hikes and urging greater public notice and a clearer draft with redlines.
Michael, a resident who addressed the town board during the public-comment period, urged the board to slow consideration of a proposed change to the town's fund balance policy and publish clearer draft materials for public review. He said the draft circulated for the work session lacked notation that it was a draft and did not show redline changes, and he asked the board to make revisions and supporting exhibits available before adoption.
Michael raised questions about how much weight the town should place on a Moody's recommendation, asking whether other rating agencies (S&P, Fitch) had offered similar advice. "Fund balance is taxes in another form," Michael said, arguing that raising the fund balance target shifts tax burdens to current taxpayers to benefit future ones. He presented calculations he said showed the proposed change could require substantial tax-levy increases under some bases, citing illustrative figures he described as a 21.6% or 24% levy increase compared with the town's prior 5.56% levy change.
Board members acknowledged the concerns and asked staff to analyze the trade-offs. Several members noted that a AAA bond rating brings financial benefits; one board member referenced a premium that previously equated to about $600,000. Michael suggested alternative approaches to avoid large tax increases, including reviewing existing appropriations (he cited a $1 million appropriation for a pool project that he said has no design or budget) and considering repatriating commission-held balances.
Town staff did not adopt or reject Michael's proposals on the spot. Tracy, the town's budget/finance staff member, said she would review the Moody's guidance and prepare comparative analyses of the rating-related premium versus potential tax impacts so the board could make an informed decision.
The board thanked Michael for the input and asked staff to provide the requested analysis before any final action on the fund balance policy. No final vote on the fund balance policy occurred at the Sept. 30 meeting; the matter remained under study.
