During the past two years, New Rochelle’s property tax schedule has been repeatedly reorganized by both the City and School District. Because the tax schedule must accommodate the different fiscal years and cash flow needs of three distinct government entities, creating a schedule that distributes the burden evenly throughout the calendar year has been a surprisingly difficult challenge. Our efforts to date have generated widespread public confusion and disapproval. Last night, the Council acted to adjust the schedule once again, hopefully with a more positive effect. The new schedule provides for four roughly equal payments spaced two to four months apart. It is made possible by the issuance of a tax anticipation note to finance the City’s tax obligations to the County. There is a modest interest cost associated with this action, but one justified, in my opinion, by the more equitable distribution of the tax burden for homeowners. The new (and, hopefully, permanent) tax schedule will be as follows:
October, 2004: 50% School District
January, 2005: 100% City
April, 2005: 50% School District
June, 2005: 100% County