Politics & Government

Eyeing a 1-Percent Tax Increase, Rye City Council Prepares to Raise Fees

This week, the Rye City Council changed a local law to raise fees for parking and snow removal, a measure intended to generate additional revenue in the city's 2011 budget.

Faced with one of the most difficult budgets in recent memory, the Rye City Council is inching its way toward a 1-percent tax rate increase, proposing to substantially raise fees for parking, recreation and snow removal, and decreasing budget allocations for everything from materials and supplies to sewer repairs.

On Wednesday, the council modified its proposed 2011 budget to lower the tax increase to .97 percent.

The budget modifications include cuts to expenses for drainage and sewage repairs, , fire vehicle supplies, and a $50,000 cut in funding for Rye Town Park, among others. The city also hopes to lower the tax rate by generating revenues through increased fees and fines.

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After not including an increase in merchant parking fees in its proposed budget, the council decided to propose raising the fee from $372 to $410 a year. It is also considering raising a surcharge fee in the recreation department from $5 to $15 to help defray the cost of field maintenance. The department also has to generate an additional $230,000 in revenues and cost savings. It provides a myriad of programs, but is a money-loser for the city with revenues of about $800,000 on a budget of $2.2 million.

The city is also looking to save $25,000 in payroll taxes by making its Corporation Counsel—the city's chief lawyer—an independent contractor.

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All the budget modifications discussed Wednesday would result in an additional $231,160 in savings in the city's proposed 2011 budget.

"Every proposed cut produced in here reduces our flexibility going forward," City Manager Scott Pickup said. "They don't move the needle in dramatic fashion but they do have operational impact."

Pickup said in certain areas the city may have to seek state grants as a source of funding, a feat that may be difficult considering the state's multi-billion dollar budget deficit and cutbacks in municipal aid. However, the city is already receiving some outside help with replacing fire equipment through state grants, Pickup said.

Aside from the grants, the other primary way the city can cover costs is to raise revenue. Increasing fees and fines will not even partially remedy the city's budget woes, but on Wednesday the City Council justified the move by saying some fees and fines have not been increased in decades.

The penalty for unlawfully parking in a handicap parking space or other space with a special designation could be raised from between $35 to $60 to between $50 and $200. The proposed fine for general parking offenses could be raised from between $25 to $50 to between $50 and $200. For snow removal, that figure could climb from $10 to between $50 and $100.

Several people argued against the budget modifications. Lisa Summa-Guarino, president of the Rye Chamber of Commerce, said she objected to any increase in the merchant parking fee. She added that the fee would not help Rye have a healthy and thriving downtown business district.

"In this difficult economic time, it is an additional burden placed on the merchants," she said. "This short-term decision will have long term effects."

Councilwoman Catherine Parker, who owns the travel store Parker's in Rye, said many business owners are struggling month to month to stay open. An increase in the merchant parking fee would put a bigger dent in the pockets of merchants and their employees, some of whom pay for the permit themselves, she said.

Rye Mayor Doug French said the city was facing some difficult choices and that it could not continue to entirely subsidize various services.

"The people who drive the most value [from these programs] should start to pay for some of these services," he said. 

Deputy Mayor Suzanna Keith echoed that point, saying increasing the fees coincides with the whole idea of "pay to play." She said the city is trying to determine what's equitable for the different user groups who enjoy various services, whether it's merchant parking, recreation or library use.

"The economic reality is that government cannot fund everything anymore," she said. 


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