NYC Council meetings, chaptered and linked by time.
Created by Uzair Qadir
Inspired by Vikram Oberoi's City Meetings
New York City Council
Read summaries and jump into the video at the segment start.
Council Member Linda Lee opens the third hearing of the day, welcoming Commissioner Richard Lee and his team. She reminds attendees about public testimony scheduled for the next day starting at 9:30 AM.
Committee counsel Brian Salfo swears in Commissioner Richard Lee, First Deputy Commissioner Jeffrey Shear, and Deputy Commissioner Jacqueline James before they begin testimony.
Commissioner Richard Lee introduces himself and his team, outlines DOF's central role collecting over $50 billion in revenue, and describes his guiding values of fairness, customer service, clarity, and accuracy.
Lee reports DOF completed a comprehensive review of ECB debt collections, recovering over $9 million from Amazon for unpaid vehicle idling violations, and outlines plans for an ECB amnesty program in FY27 pending council authorization.
Lee details $22 million in FY26 and $29 million in FY27 savings, the final property tax roll of 1.2 million properties, the new Mayor's Office of Deed Theft Prevention, and new DOF leadership appointments including Sheriff Edwin Raymond.
Lee outlines the $373.85 million FY27 executive budget, onboarding 50 auditors increasing audit revenue by $50 million, the paused 2026 tax lien sale, and plans to implement the pied-a-terre surcharge.
Linda Lee notes the arrival of Deputy Speaker Williams, Majority Whip Hanks, and Councilmembers Brewer, Maloney, Wong, and Narcisse. She then opens questioning on property tax reform, noting promises by successive mayors have gone unfulfilled.
Lee asks when a property tax reform plan will be released. Commissioner Lee says the administration is building off the advisory commission's recommendations and hopes to advance reform in the next state legislative session, confirming state legislative changes are needed.
Lee asks about $4.9 million in PS savings and a baseline reduction of 12 positions. Commissioner Lee and CFO Jackie James explain the savings reflect timing adjustments from delayed hiring, and the position cuts are non-revenue-generating managerial roles absorbed internally.
Lee asks about $13 million in additional revenue from co-op condo mailings. Commissioner Lee explains DOF identified recipients who may not qualify as primary residents and sent notices requesting proof of residency to ensure the abatement targets intended owners.
Lee questions the breakdown of $573 million collectible and $744 million uncollectible ECB debt. Commissioner Lee explains uncollectible debt involves respondents who cannot be identified, bankrupt businesses, or those lacking financial ability to pay.
Lee asks about the $70.1 million collection target and whether DOF will set higher targets. Commissioner Lee explains the FY27 target plus $25 million from the amnesty program, and describes the 30-day review as an internal brainstorming to improve collections and compliance.
Lee asks what findings emerged from the 30-day review. Commissioner Lee describes better targeting and classification, coordination with sister agencies like DOB, potential state legislation, and focusing outreach within the first year of violation issuance when collections are most responsive.
Lee asks about actual rental payments received from the Port Authority for FY26, noting the preliminary budget included only $162.4 million. Commissioner Lee says he has the report and will pull it up, offering to work with OMB on any needed adjustments.
Lee asks about a 10-year miscalculation of Section 1127 returns that resulted in over $100 million in lost revenue. Commissioner Lee explains the STAR benefit was incorrectly applied on both state and city sides after a 2016 shift, the error was discovered during an internal review, and corrections apply only to tax year 2025 with no clawback for prior years.
Lee asks about ongoing business tax refund processing for FY26 and FY25. Commissioner Lee confirms DOF expects to continue issuing refunds, with about 304 potential refunds totaling approximately $81 million by year's end, depending on timing and audit resolutions.
Lee asks why it took DOF years to reflect 2019 rent stabilization law changes in valuations. Commissioner Lee explains market factors and reporting lags, and notes DOF increased capitalization rates by 50 basis points for FY27, reducing rent-regulated building market values by 3.3% and taxes by 1.3%.
Lee asks how much additional relief rent-regulated buildings will receive in future years from the capitalization rate change. Commissioner Lee says he cannot specify future dollar amounts due to many interacting factors but commits to continued monitoring and fair assessment of rent-regulated properties.
Lee asks about a 4% decline in Class A office parcels and whether it signals office-to-residential conversion trends. Commissioner Lee says only 3 of 30 known office-to-residential conversions were Class A buildings, with most conversions going to other Class 4 uses, and the impact on class shares will be minimal.
Deputy Speaker Williams presses on whether the administration has formally submitted property tax reform proposals to the state. Commissioner Lee confirms no formal submission has been made yet but says reform remains a priority and the administration is building proposals off the advisory commission's recommendations.
Lee asks how DOF measures progress toward its goal of making 100% of services accessible to underserved communities by 2026. Commissioner Lee and CFO James describe outreach efforts and note the report is not yet finalized, with tracking initiatives in development alongside the new deed theft prevention office.
Lee asks how DOF ensures digital systems don't create barriers for seniors and those with limited internet access. Commissioner Lee highlights business centers providing language access and disability services, and increased in-person community affairs outreach events.
Lee asks what barriers DOF has identified and what changes have been implemented. Commissioner Lee emphasizes information equity, noting that documents like the Notice of Property Value are difficult to understand, and commits to improving clarity in mailings and website communications.
Lee asks how DOF incorporates the history of redlining into current assessment policies. Commissioner Lee and First Deputy Commissioner Shear explain the consistent sales-based valuation methodology, and Shear notes that assessment caps disproportionately impact non-gentrifying neighborhoods with higher effective tax rates, underscoring the need for reform.
Lee asks about additional protections beyond the current notice of recorded document program, referencing her bill passed last year. Commissioner Lee says the Deed Theft Prevention Office is examining recording processes and needed legislative changes to pause suspicious recordings, and offers to review her legislation.
Council Member Kamillah Hanks asks about the timeline for the administration's review of tax lien sale enforcement. Commissioner Lee says the six-month review ends this summer and the administration is ready to work with the council on creating a land bank, with board nominees due July 28th.
Hanks asks whether the lien sale pause has impacted the current tax lien trust and if the city will make up the revenue shortfall. Commissioner Lee says existing liens in the trust are unaffected, and that behavior changes from enforcement take time to appear in collections data.
Hanks asks whether the new administration will continue Operation Padlock to Protect against illegal cannabis shops. Commissioner Lee says the city remains committed to enforcement against unlicensed cannabis sales, with the sheriff leading operations and new Sheriff Raymond reassessing the approach.
Council Member Mercedes Narcisse asks about staffing for the new Office of Deed Prevention. Commissioner Lee reports one of five positions filled (director Peter White), with a deed ombudsperson pending and two more positions to be posted, and describes outreach to HPD, DYTA, district attorneys, and the state attorney general.
Narcisse asks what homeowners, especially seniors, can do if they believe their assessment is wrong and how fast the process takes. First Deputy Commissioner Shear explains the notice of property value and appeal process, and says he will follow up on turnaround times for clerical error corrections.
Narcisse asks what role DOF plays in flagging suspicious ownership transfers. Commissioner Lee says statutorily DOF cannot prevent deed recordings meeting legal requirements, and hopes for state legislation to provide more authority. Shear adds that property owners can sign up for a notification program alerting them when deeds are recorded against their property.
Narcisse asks if DOF is ready to administer the pied-a-terre surcharge and how it affects seniors on fixed incomes. Commissioner Lee confirms DOF expects to meet the $500 million revenue target, and Shear clarifies the surcharge applies to second homes of non-residents, with payment plans available for those facing difficulty.
Council Member Phil Wong asks about delays in trash bin reimbursement for STAR recipients and whether outreach was sufficient. Commissioner Lee says the program has been extended to September 8th and DOF is working with the sanitation department, and will provide the number of Queens homeowners who received relief.
Wong asks how much of the $13 million co-op condo abatement compliance revenue is anti-fraud enforcement versus aggressive compliance against ordinary owners. Commissioner Lee explains it was a qualification review identifying non-qualifying recipients, with an opportunity for owners to prove compliance and be reinstated.
Wong asks about enforcement and compliance plans for the pied-a-terre surcharge, especially for properties held through LLCs or trusts. Commissioner Lee says DOF is promulgating rules and the legislation provides a range of enforcement actions, with Shear noting the surcharge will appear on property tax bills to drive voluntary compliance.
Council Member Gale Brewer asks about the SCRIE/DRIE increase from $50,000 to $75,000 and how it will be implemented. Commissioner Lee defers to City Hall and OMB on the budget action, noting local law is required, but says DOF already runs the program and expects to administer it quickly once adopted.
Brewer asks about the land bank working group timeline. Commissioner Lee says nominees are due July 28th and the process will follow, though he cannot give a full timeline. Brewer then asks about ECB amnesty and collection agency effectiveness, with Lee describing the Amazon collection approach and plans to work down the list of highest violators.
Brewer asks about other roles the sheriff might play and whether there are vacancies. Commissioner Lee describes the sheriff's broad responsibilities including civil judgments, child support, and evictions. CFO James reports 52 vacancies out of 320 positions, with 31 being deputy sheriffs and an active headcount of 260.
Brewer asks how much the pied-a-terre surcharge will raise and how many properties it impacts. Commissioner Lee confirms confidence in the $500 million target, affecting approximately 8,000 properties, with adjustments possible as DOF verifies residences through the engagement process.
Brewer asks whether letters to Section 1127-impacted employees clearly explained the miscalculation and amounts. Commissioner Lee says DOF notified through multiple channels including letters, website, and coordination with OLR on labor unions, and Shear notes the business tax and collection system provides a platform for direct contact.
Linda Lee wraps up the Department of Finance portion of the hearing, thanking Commissioner Lee and his team for their testimony and responses.
Linda Lee opens the final portion of the day's hearings, welcoming IBO Director Louisa Chafee and her team. Committee counsel swears in Chafee and officers Parker and Subramanian.
Chafee presents IBO's tax revenue forecast aligning with administration projections, noting a $1.1 billion gap in the $124.7 billion budget that can be addressed during adoption. She highlights the two-year extension of the class size law deadline and teacher bonus costs of $21 million.
Chafee reports 110,000 children receive child care vouchers with 25,000 on a waitlist since the portal closed in June 2025. She estimates the city needs $78 million more in 2027, rising to nearly $1 billion in 2028, and notes the state set up a separate housing voucher program yielding $33 million for about 900-1,100 vouchers.
Chafee says Tier 6 enhancements require $41 million more in 2027 growing to $69 million by 2030, and notes IBO cannot evaluate pied-a-terre revenue due to unknown variables. She highlights federal risks including 43,500 New Yorkers losing SNAP benefits and 450,000 statewide losing health insurance from Essential Plan changes.
Chafee reports the executive budget increases building energy funding by $376 million in 2027 rising to $477 million by 2030, bringing total energy costs to $1.3 billion. She notes the administration continues improving budget accuracy and IBO looks forward to analyzing chief savings officer proposals and the new Commission on Government Efficiency.
Lee asks whether IBO agrees with the administration's $122 million DOE plan for 70% class size compliance. Sarah Parker confirms alignment, and notes IBO has not updated its full cost estimate for 100% compliance by 2030 but plans to do so with new data.
Lee asks about IBO's Fair Fares expansion report. Sarah Parker explains five scenarios including expanded discounts and expanded eligibility to 200-400% of federal poverty line, using ridership trends and census data, noting that higher-income eligible individuals commute at higher rates than current participants.
Lee asks about the wide enrollment and utilization ranges in IBO's estimates and whether marketing funding is needed. Parker notes current usage is relatively low because eligible individuals are less likely to commute, and that Fair Fares already has one of the larger marketing budgets among HRA programs, with enrollment barriers in the Access NYC system.
Lee asks about natural partnerships to expand Fair Fares awareness. Parker suggests Department of Finance income data sharing as a potential option. Chafee raises concerns about Access NYC barriers and suggests automatic notification through tax filing, similar to how DOF handled earned income tax credit outreach.
Lee asks how the administration should assess budgetary needs for Fair Fares expansion given forecasting challenges. Chafee references a request for 35 additional headcount and $800,000 for Access NYC, and suggests using benefits calculators and technology to reduce paperwork assessment burdens.
Lee asks whether IBO identified key capital investment areas for NYCHA beyond the $90 million for vacant unit readiness. Sarita Subramanian explains NYCHA's separate federal capital funding and details the city's capital subsidies for public housing including asbestos abatement, elevator, boiler, and roof repairs.
Narcisse asks why the homeless services budget exceeds the migrant crisis peak despite falling arrivals, and whether H&H's financial plan can withstand federal cuts. Parker says daily shelter rates remain elevated, and Chafee notes concern about 450,000 people losing Essential Plan coverage and seeking care at H&H with no budgeted funds to address it.
Narcisse asks which agencies IBO believes are underfunded. Chafee identifies Department of Corrections as not having enough funding, and notes IBO's limited access to H&H financials but coordination to obtain detailed statements, with options like alternate insurance or expanded free clinics to fill coverage gaps.
Lee asks whether the mayor's block-by-block housing plan sufficiently addresses distressed housing. Parker describes IBO's analysis of financial and physical distress indicators, noting rent-stabilized buildings fare equal to or better than non-stabilized rentals, and distressed properties require different policy tools depending on their specific challenges.
Linda Lee wraps up the IBO portion and formally concludes all agency budget hearings for the FY2027 executive budget, thanking IBO for their thorough analysis and announcing follow-up on remaining questions.