TESTIMONY
Preston Niblack, Commissioner, NYC Department of Finance on the Fiscal Year 2025 Preliminary Budget and Department Innovations
5:15:40
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10 min
Preston Niblack, Commissioner of the NYC Department of Finance, outlines the preliminary budget for fiscal year 2025, with focus on customer service improvements and future plans.
- Niblack, joined by Deirdre Schneider, highlights the Department's role in generating over $47 billion annually for the city budget.
- He shares advancements in technology and process enhancements aimed at improving customer interactions with the Department.
- Niblack reviews the fiscal year's tentative assessment role, revealing modest growth in market values and vigorous construction and renovation activities.
- The commissioner emphasizes efforts to recover from staffing challenges due to pandemic-era attrition, detailing hiring progress.
- He concludes by discussing online service enhancements, efforts to crack down on illegal smoke shops, and the initiative to modernize tax collection and customer service processes.
Preston Niblack
5:15:40
Alright.
5:15:41
Good afternoon, Chairman and members of the finance committee, of which there were more when I first got here, but I don't know if there's something My name is Preston Niblack.
5:15:49
I'm the commissioner of the New York City Department of Finance.
5:15:51
I'm joined by Deirdre Schneider, assistant commissioner for financial management.
5:15:55
Thank you for the opportunity to testify on our fiscal year 2025 preliminary budget.
5:16:01
Few city agencies have the reach and impact of the Department of Finance.
5:16:05
We collect over $47,000,000,000 annually in taxes and other revenues, which amounts to 40% of the city budget.
5:16:12
And most importantly, we interact with millions of New Yorkers every year.
5:16:17
As I've testified in the past, I see my role is continually improving our customer service by evaluating our existing operations, leveraging new technologies, and giving our incredible staff the tools they need to serve the public to the best of their ability.
5:16:32
We may not be everyone's favorite agency to interact with, but we do promise to always strive to make paying your taxes and other charges as straightforward and painless as possible.
5:16:42
Much of what I'll have to say today will be focused on our efforts to better serve our customers, and I'll update you on what we have done, what we plan to do, to continue improving our service to the public.
5:16:52
But first, I'll give you a brief review of this year's tentative assessment role released in January as well as an overview of our proposed fiscal year 2025 budget.
5:17:02
As you know, DAF is required to determine market and assessed values for all properties in the city each year and issue a tentative property tax assessment role by January 15th.
5:17:12
The tentative assessment role for fiscal year 2025 showed a small increase in market value of just 0.7 percent over last year to $1,491,000,000,000.
5:17:24
Assessed values, which tax rates are played, rose by 4.2 percent to $299,000,000,000, reflecting the continued phase in our prior year market value growth.
5:17:35
As I said when we release the rollers, overall very modest growth in market value subsumes a range of different recovery patterns in the very segments of the city's real estate market.
5:17:45
Encouragingly, a resurgence in construction and renovation spending after 3 years of decline generated almost $14,000,000,000 in new market value, more than offsetting an overall decline of nearly $6,000,000,000 in changes in value attributable to market forces.
5:18:01
The decline in value due to market forces was driven by Class 1, which saw an overall decrease in market value of 3.4%.
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This primarily reflects the rise in interest rates, which helped slow sales activity, which fell off by nearly 30% between calendar years 202223.
5:18:20
Class II market values rose 5.3% on the tentative roll.
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For rental, apartment buildings recovery in terms of both lower vacancy rates and higher rents were partially offset by rising expenses.
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This is another area where we saw robust investment with physical changes counting for 71% of overall market value growth.
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The office building picture is more mixed with strong demand for modern high quality space, but continued weakness unless sought after segments of the office market.
5:18:52
Stand alone retail stores and hotels continued to recover from the dramatic hits they took at the peak of the pandemic.
5:19:00
Next, I'd like to give you a brief overview of the department's proposed budget for the coming fiscal year.
5:19:05
Our preliminary budget for 2025 is $340,200,000.
5:19:11
That includes $182,700,000 in personal services funds, to support an authorized headcount of 1932 full time staff to 157,500,000 for other than personal services.
5:19:25
Like all city agencies, the past few years have presented off with challenges from a staffing perspective.
5:19:31
When I was appointed commissioner 2 years ago, one of our pressing challenges was recovering from pandemic era attrition, particularly retirements.
5:19:39
Progress has been slow, but steady.
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I'm pleased to report that we filled 168 vacancies in fiscal year 2023.
5:19:47
The highest in any year since fiscal year 2020.
5:19:51
For the first half of fiscal year 24, the agencies filled 101 vacancies and were currently working towards filling critical vacancies, including city tax auditors, deputy city sheriffs, and principal administrative associates.
5:20:04
We still have a ways to go before we are at full strength, but we are very pleased with how far we have come with support from the mayor and this council.
5:20:15
Department of Finance staff come to work each day ready to contribute to a culture of professionalism and excellence.
5:20:21
They believe as I do that our customers deserve to be treated with respect and courtesy.
5:20:26
We're proud of our many achievements in the area of customer service over the past year.
5:20:31
First, we're setting records in the number of in person outreach events with a 170 events thus far in fiscal year 2024.
5:20:39
We will hold over 50 in person knows of property value information sessions this season, our most ever.
5:20:46
In addition to being present in neighborhoods throughout New York, we have also opened our doors to make it easier for New Yorkers to come to us by offering extended hours at our business centers to assist with exemption applications and questions as we approach the March 15th application deadline.
5:21:03
And we are renewing in person engagement with the tax practitioner community, including the 1st tax representatives and practitioners program known as TaxRAP, since the pandemic last October.
5:21:15
In addition to our in person outreach, we've conducted several email and mail campaigns directed to households that may be eligible floor but did not claim various tax credits such as the senior and disabled homeowner exemptions, the earned income tax credit, the child tax credit, and the child independent care credit.
5:21:34
But there is perhaps no better indication of our commitment to customers and the redesign of the Department of Finance Web site, development partnership with OTI Digital Services.
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So I really have to commend for their excellent work with us.
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And my thanks to CTO Matt Fraser.
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DAF's website is one of the most highly trafficked municipal websites in the country, serving approximately 800,000 visitors who generate 2,500,000 hits each month.
5:22:01
Now we hope that it is also one of the best.
5:22:05
The new website launched in January reflects our commitment to making it easier and more convenient for the public to get the information they need and conduct their business with the Department of Finance.
5:22:15
The feedback so far has been very positive with users giving us high marks for ease of use and navigability, and not just on our desktop version, but also on the mobile phone compatible version.
5:22:26
Over the course of the coming year, we'll continue to improve the website in response to user feedback and through our own ongoing content review.
5:22:35
We've not only improved the usability of our website, but added new tools that will make it easier for customers access information and services.
5:22:44
First, I encourage council members and staff to visit the new and approved property information portal which connects property owners to all the DAF resources they need, including their NOPV, property tax account, Acres, and the new 3 d digital tax map.
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Through a single convenient point of entry.
5:23:02
2nd, our self serve parking judgment payment plans continue to help customers pay what they owe and avoid being booted or towed.
5:23:10
Since February 2023, some 70,000 customers have enrolled in payment plans online.
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And made down payments of $18,000,000 towards violations totaling $92,000,000.
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3rd, since October, rent freeze program purchased have been able to renew their benefits online rather than returning a paper application.
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So we can now accept both initial and renewal applications online.
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And starting today, actually starting Friday, I'm excited to announce.
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We've also made it possible for your constituents to easily look up the status of their benefit app locations online, which is one of the most common inquiries we receive.
5:23:47
New Yorkers who have applied for property tax exemptions can visit nyc.gov/exemption status to check the status of their applications.
5:23:57
And we are continuing to serve as leaders and partners in the effort to close down illegal smoke shops to ensure that legally licensed businesses have the chance to operate in a fair marketplace.
5:24:08
To date, the sheriff's office joint compliance task force has completed inspections at almost 1800 unique addresses sees $29,000,000 in illegal products.
5:24:18
We've mailed over 400 notices to landlords of illegal shops warning of possible penalties.
5:24:24
We will continue to be un flagging in our efforts and appreciate both the counsel and the state legislature support and strengthening the legal tools we have to close down illegal shop.
5:24:36
In the coming fiscal year, we look forward to delivering a number of new improvements to benefit our customers.
5:24:41
We continue to modernize our collection system, customers will find it easier than ever to pay their parking and camera violations and environmental control more debt including with an auto debit option.
5:24:52
We are also working to introduce VoiceBot Technology to streamline calls to our collections division's and provide better, faster customer service.
5:25:01
This year, we will enter his parking hearings by video.
5:25:04
So the customers can present their case directly to a judge from the comfort of home, the office, the coffee shop, or anywhere else.
5:25:12
With the addition of video hearings, customers will have a full range of options for disputing tickets, which can already be done via the web, by mail, in person, or through our payer dispute mobile app.
5:25:25
Finally, we are eager to work with the council to pass meaningful reforms to property tax enforcement enabling us to collect property taxes from those who won't pay while helping those who can't pay protect their homes and assets.
5:25:37
We're grateful for the council's input in guiding our proposal thus far and look forward to continuing this dialogue.
5:25:44
In summary, we remain committed to providing the best customer service in all city government.
5:25:49
We're grateful to the many for the many DAF initiatives you have supported in the past and know that we can continue to count on your support in the future.
5:25:57
Our door is always open to assist you with any needs that you or constituents might have.
5:26:02
Thank you for the opportunity to testify today, and we'll be happy to answer any questions.