Local Taxes

[duke_of_earl]

Although he agreed that reducing crime is a major priority, Vega said the only way to significantly reduce spending is to cut personnel.

That, or reducing the pay of the current personnel like private industry has been busy doing.

In 2008, the police budget was $91 million, or 19 percent of the city's overall $475.7 million budget. The proposed 2009-2010 Police Department budget is $101.5 million, or 22 percent of the $460.2 million proposed total budget.

There are currently 893 police officers in Jersey City, according to city records; that's roughly 100 more than when Healy took office in November 2004.[/size]

Am I reading that the average police officer in JC makes $101,903 per year? ($91million divided by 893)  Or does that number include benefits paid to past officers?  I assume it must...

Also, since the police budget increased 22% over 2008 and the council is asking for a 5% cut then isn't this still a 17% increase in police budget?  Why are we talking about cutting personnel?

duke

[MCA]

Budget cuts at Jersey City Police Department might mean freeze on hiring cops
by Amy Sara Clark/The Jersey Journal
Monday March 16, 2009, 9:39 PM

The president of the Jersey City City Council might have bad news for community groups clamoring for more cops on the streets.

City Council President Mariano Vega Jr. asked police brass to plan for a 5 percent cut in their 2009-10 department budget at a Feb. 26 public hearing.

"I'm predicting next year's economic conditions are going to be bad. If that's going to happen we should look at what we can do," Vega said during a follow-up interview.

The recession is likely to lead to a drop in Urban Enterprise Zone, hotel and parking tax revenues, he added.

Vega said he plans to make the same request of all city departments.

Although he agreed that reducing crime is a major priority, Vega said the only way to significantly reduce spending is to cut personnel.

"The rubber hits the road with the Police and Fire departments," he said. "That's where all the money is at."

Roughly 75 percent of the money the city spends on its employees it spends on police and fire personnel, officials have said.

At the hearing, Police Director Samuel Jefferson said the cuts could be made up by government grants.

"But in the worst-case scenario, it would be two cycles (or one year) of not hiring a Jersey City cop," Jefferson said.

In a statement, Jersey City Mayor Jerramiah T. Healy called the suggestion to reduce municipal spending by 5 percent "a valid one."

But he added: "We will never reduce funding for public safety. We will continue to maintain the same, or greater, level of service in the Police and Fire departments to protect the lives and well-being of our residents."

Earlier this month, city officials learned they would receive a $1.83 million grant from the federal stimulus package through the Department of Justice -- money that would be used "to maintain the current level of service of public safety," Healy said.

In 2008, the police budget was $91 million, or 19 percent of the city's overall $475.7 million budget. The proposed 2009-2010 Police Department budget is $101.5 million, or 22 percent of the $460.2 million proposed total budget.

There are currently 893 police officers in Jersey City, according to city records; that's roughly 100 more than when Healy took office in November 2004.

[jwhiten]

Yesterday, the city council passed the 2008-2009 fiscal year budget.  The budget should have been in placed last July 1, 2008 but as usual the money is already spent and the council must "rubber stamp" the approval of the budget.

A quick correction: The budget was not passed last night at council. The public hearing on the budget happened. The budget will be brought back as a second-read ordinance at the next council meeting (3/25), and if it is approved, then it will be "passed."

[speaknj]

Yesterday, the city council passed the 2008-2009 fiscal year budget.  The budget should have been in placed last July 1, 2008 but as usual the money is already spent and the council must "rubber stamp" the approval of the budget.
Jersey City was on a calendar year (January to December) but JC changed in 1991 to a fiscal year and bonded $128.9 Million called the fiscal year adjustment for missing state aid.  We are still paying millions every year on that fiscal year gimmick.
The idea of having a fiscal year instead of a calendar year was to match the state calendar so Jersey City would know how much money it would receive from the state.  It never happened.
On Wednesday, our government approved a budget without fully funding the pension. The Healy administration is hoping Trenton will pass legislation that will allow municipalities to fund 50% of pension obligation for this fiscal year, meaning $ 14.8 Million is missing from the budget.  What happens it Trenton does not pass this legislation?  Former Governor Whitman also played with the pension obligations and many towns and county governments were hurt by the process.  Many legislators in Trenton will put up a fight to stop this gimmick. 
The city is hoping to pay this $14.8 million in bonds payable over fifteen years, but my question is how will the city fund the pension obligations next year?
What is Plan B, if Trenton stops this gimmick?  By the way, fiscal year 2009-2010 is already in a $20 Million hole.  Due to the slow economy, the pre-payments of abatements are drying up and other one-shot deals that are in this budget will not be available next year?  Jersey City is heading in the same direction as Hoboken and West New York.
Yvonne

[speaknj]

Jersey Journal Feb. 23, 2009

Dear Commissioner Doria:

The City of Jersey City has introduced a budget that proposes to eliminate an approximate $15M expenditure for municipal employee contributions obligated by the city.

Jersey City is one of many municipalities under the DCA’s distressed city program – requiring DCA guidance and approval for financial decisions and strategies.

City officials are quoted in news items regarding the budget introduction as stating they are anticipating that the state legislature will be passing a bill that will provide municipalities with the authority to defer their pension funding obligation for workers.

The city obviously has chosen a strategy that will enable it to send out lower quarterly tax bills in May, based upon the uncertainty of the passage of legislation.  If the legislation isn’t passed, Jersey City taxpayers will be slammed hard in the next quarterly tax statements.

Most recently, Jersey City’s neighbor, Hoboken, was penalized by the State DCA for making decisions on state pension related matters without state approval.  I, therefore, assume the city has received the permission of the DCA to waive its pension obligation and that  taxpayers wont be penalized should the legislation permitting such action does not pass.

I would further note that the city has proposed an ordinance to exceed the state budget cap by 1%.  This, also, I assume, is with DCA permission.

The Governor in his recent State of the State address spoke of further cuts to state aid for municipalities.  How can the DCA allow for the city’s budget to proceed with a questionable $15M expenditure being written off and a 1% cap increase?

Can the DCA assure city taxpayers that Trenton will issue additional state aid to cover the budget shortfalls or increases being proposed by the city?

Thank you for a prompt response to my concerns.

Respectfully,



Louis M. Manzo
Former State Assemblyman

[MCA]

Healy introduces 2009 budget
by Amy Sara Clark / The Jersey Journal
Monday February 09, 2009, 10:58 PM

Jersey City Business Administrator Brian O'Reilly introduced Mayor Jerramiah T. Healy's 2009 budget at a special City Council meeting tonight. It calls for $460.2 million in appropriations, $15.7 million less than last year's budget.

In the budget, $151.2 million will be raised by local property taxes -- the same amount as in last year's budget.

The budget includes a $14.8 million savings from a deferral in pension payments, assuming the New Jersey state government will pass a proposal now under consideration allowing such deferments. If it doesn't, the city will have to find a way to make up the shortfall, O'Reilly said.

The budget has a shortfall of $800,000, said O'Reilly, which will be made up either in cuts suggested by the City Council, "or in additional revenues if we can find them."

The City Council accepted the budget introduction by a vote of 8-0 with Councilwoman Willie Flood absent.

A public hearing on the budget is scheduled for March 11.

[MCA]

JJ:


Taxes on the way up for Hudson County
Monday, July 14, 2008
By LYSA CHEN
JOURNAL STAFF WRITER

The Hudson County Board of Taxation has raised tax rates for Bayonne, Jersey City and Kearny, county officials said.

For homes valued at $100,000, Kearny tax bills will increase $500, Bayonne tax bills will increase $355 and Jersey City tax bills will increase $3, according to board data.

The county will likely set tax rates for the remaining municipalities by the end of the summer as municipalities pass their own budgets, Tax Administrator Donald Kenny said.

Municipal taxes make up a large portion of the tax hike in Kearny - $423 of the $500 increase. County and school taxes will increase $3 and $74 respectively.

Kearny Mayor Alberto Santos said the town, which operates on a fiscal year while the county operates on a calendar year, has sent out all 2008 tax bills, so residents have already felt the brunt of the tax increase. Santos attributed the municipal tax hike to rising health insurance premiums for employees, state pension payments and labor contracts.

He added that Kearny finished the fiscal year, which ended June 30, with a surplus.

"The August and November bills that just went out this week are flat compared to the beginning of this year," Santos said. "I'd much prefer the position we're in now, tightening our belts, as opposed to finishing the year with a deficit."

In Bayonne, county taxes will increase $35 per $100,000 of assessed value, school taxes will increase $215 and municipal taxes will increase $105.

Bayonne Mayor Terrence Malloy said at a special council meeting Wednesday the increase was not a surprise. But Bayonne City Councilman Anthony Chiappone said the increase in county taxes is unacceptable.

He encouraged the council to make a statement by only paying last year's county tab, but recognized possible legal action as retribution. The council's agenda for next Wednesday's meeting will include a resolution "objecting to the amount of money allocated by the county."

Jersey City also saw a $25 increase in county taxes, but school and municipal taxes decreased $14 and $8 respectively.

"The increase in the county's portion of the tax bill does not come as a surprise," city spokeswoman Jennifer Morrill said. "However, due to Jersey City's increase in ratables and a decrease in our own municipal tax rate, we were able to absorb most of the county increase."

[Woodsy]

The council also authorized hiring of a firm to appraise a parcel of land at the old PJP landfill site. The city wants to relocate the Jersey City Incinerator Authority and the Department of Public Works to that site.

You don't happen to know who voted for this measure do you?

[MCA]

City Council takes $8M in state aid
Friday, May 16, 2008
By EARL MORGAN
JOURNAL STAFF WRITER

By an 8-1 vote, the Jersey City City Council approved a resolution to accept $8 million in "Special Municipal Aid," from the state on Wednesday.

Approval of the resolution to accept the $8 million in state aid means the city agrees to impose a hiring, promotion and salary freeze, although Business Administrator Brian O'Reilly has said the state has agreed to grant permission to hire public safety workers.

Ward E Councilman Steve Fulop voted against the resolution, arguing the measure flies in the face of the administration's boasts that job creation and real estate development is lifting the city's fortunes.

The council also approved a resolution appointing Carlo Abad to a full-time position as a Jersey City Municipal Court judge.

The council also authorized hiring of a firm to appraise a parcel of land at the old PJP landfill site. The city wants to relocate the Jersey City Incinerator Authority and the Department of Public Works to that site.

[MCA]

JC Reporter with more details:


City finally passes $463.9M budget
Hiring freeze, department mergers may result

Ricardo Kaulessar
Reporter staff writer | 04/27/2008

Nine months late! That's how far into the 2007-2008 Fiscal Year that Jersey City's $463.9 million municipal budget was approved. The budget covers spending from last July 1 to June 30 of the following year.

Local towns often have to wait several months to pass their budgets because they need to find out the amount of aid they are getting from the state.

On April 18, the City Council adopted the budget at a special meeting just one day after the city was informed that it would receive $8 million in supplemental state aid. The $8 million was necessary for the city to bridge the remaining gap in their budget and avoid raising taxes on a municipal level.

As a result, the municipal tax rate will stay at $25.47 per $1,000 of assessed property, which means a property owner will pay $2,547 in municipal taxes this year for a building they own assessed at $100,000.

The current overall tax rate for residents in Jersey City is $55.49 per $1,000, which also includes the county tax rate and the school tax. Those other taxes come from the county and school budgets.

City Business Administrator Brian O'Reilly said last week that the school tax levy portion of the overall tax rate will be increased by 31 cents as the result of city funding for schools increasing from $82 million to $86.1 million. Also, the county tax levy portion is expected to increase by 25 cents.

While the Jersey City school system has passed its budget for next year, the county government is expected to pass its next budget by June.

The increases would have an impact on the quarterly tax bills going out on July 1, with the overall tax rate estimated to jump from $55.49 to $56.05.

Earlier budget next year
O'Reilly said the other reason for this year's budget being so late was that the city had to wait for a $15 million payment from Honeywell International after the company settled a lawsuit with the city to bring about the cleanup of chromium on the city's west side.

O'Reilly said that he expects the 2008-2009 municipal budget to be introduced by September, and it will be adopted "much earlier than this year." "Adoption of the budget has been historically late," O'Reilly said. "In the three prior years, I have introduced the budget in September, October, and November. Usually, we introduce the budget and fill it as we go along." O'Reilly said receiving the $8 million in state aid will have some impact on how the next fiscal year's budget will be devised.

In order to qualify for and receive the $8 million for the current fiscal year, Jersey City had to sign a memorandum of understanding with the state's Department of Community Affairs (through its Division of Local Government Services) agreeing to various conditions, requirements, and restrictions.

State now monitoring hiring
These include such things as a hiring and promotion freeze, with certain exceptions. The hiring of new employees must have approval from the state. There will also be a freeze on promotions and transfers involving salary increases, unless required by contractual obligations or unless the promotion/transfer results in no increased cost to the city.

And the city must submit to the state detailed monthly revenue and expenditure budget reports, and copies of budget transfer resolutions. O'Reilly said that the city will consider hires only for revenue-producing city positions, and public safety jobs such as police and fire.

Urge to merge
Also, the city will consider merging several city departments including the Department of Finance with the Department of Business Administration, and the Division of Engineering with the Division of Traffic and Transportation Maintenance. O'Reilly said these mergers, which have been discussed with the state, will save the city money as jobs will be scaled down and employees are trained to take on additional responsibilities.

O'Reilly said the mergers are being considered because the city may not be so lucky in the next fiscal year to get another $8 million in state aid. The merger plan is scheduled to be introduced to the City Council for possible approval in either May or June.

©The Hudson Reporter 2008

[MCA]

JJ:


Jersey City tax bite is kept to status quo
Tuesday, April 22, 2008

Jersey City property taxpayers have been spared a municipal tax bump - at least until the next fiscal year begins July 1.

The City Council adopted a no-tax increase spending plan last Friday - the day after state honchos gave thumbs up to an $8 million supplemental aid grant to the city.

Without the grant - which formerly was called distressed cities aid - and $15 million in a deal with Honeywell International, city officials had said they would have to raise taxes.

The $463.9 million budget represents a $20.8 million hike over last year's $443.1 million spending plan.

"It's been a long budget cycle this year," said Business Administrator Brian O'Reilly. "The city was able to take some initiative in reducing costs such as health benefits. We will continue to look at measures to increase revenues and decrease costs of the municipal operations."

The municipal tax rate remains at $25.47, meaning a property owner with a building assessed at $100,000 will pay $2,547 in municipal taxes this year.

Jersey City also received a boost with an increase of roughly $200 million in non-tax-abated ratables, city officials said. Using the city's tax rate, that would add a little more than $5 million to the city's coffers.

The county is expected to announce its budget in the next couple of weeks. The school tax levy has moved up from roughly $82 million to $86.1 million, representing a $38 annual increase to the average taxpayer, according to city officials.

The money from Honeywell is part of a settlement to develop chromium-tainted land on the city's west side. The city also saved about $4 million this year by opting out of the state-run health insurance plan.

[MCA]

Hearing tonight, then vote on city's 'no tax hike' budget
Thursday, April 10, 2008

A public hearing on Jersey City's proposed $463.9 million municipal operating budget is scheduled for tonight at 6 at School 4, 107 Bright St.

This budget covers the fiscal year that ends June 30 and represents a $20.8 million spending boost over the last fiscal year's budget.

But due to an increase in non-tax-abated ratables in the city, property owners should be spared a tax hike - at least on the municipal portion of their tax bills, city officials have said.

The budget calls for raising $151.2 million from local taxpayers - roughly $11 million more than the last certified budget.

Given the $200 million increase in non-tax-abated ratables, the municipal tax rate should remain $25.47 for each $1,000 worth of assessed value; meaning a property owner with a building assessed at $100,000 would pay $2,547 a year in municipal taxes, officials said.

The school tax levy has risen roughly $4 million, to $86.1 million, for the fiscal year that begins July 1, which will cost the average taxpayer roughly $38 more per year, officials said.

County officials haven't yet announced their budget figures.

The proposed budget is reliant on an $8 million supplemental aid grant from the state and $15 million from Honeywell International as part of a settlement that calls for developing chromium-tainted land on the city's west side.

City Council members are expected to adopt the proposed budget after public comment.

KEN THORBOURNE

[Woodsy]

Got the bill in the mail yesterday.  My taxes went up 5.1% (comparing 1st quarter this year to 1st quarter last year); hardly what I would call "stable" and far more than the rate of inflation or the percent increase in my salary from 2007 to 2008.  Moreover, this is on top of a 7.2% increase in taxes between 2006 and 2007!  Yeah yeah, the Drunken Naked Mayor blames it all on increases in school taxes.  I don't care what caused it, that money is still coming out of my pocket.  Even if he's right, he's still at fault for handing out PILOTs like they're candy (as PILOTs do not contribute to county or school taxes). 

DRUNKEN NAKED MAYOR YOU'RE ON NOTICE!

As a side note, the school expenditure figure in that article scared the shit out of me.  I don't know how people are going to make ends meet if Jersey City is ever forced to pay that entire amount.

[Woodsy]

From The Jersey Journal:

TAX BILLS: MORE
City: We're holding the line
Friday, January 11, 2008

You'd better be seated when you open the first-quarter tax bill just sent out by Jersey City.

According to Tax Collector Maureen Cosgrove, property owners with houses assessed at $100,000 can expect to receive a bill roughly $100 higher than last quarter's bill.
 
Mayor Jerramiah Healy sent out a letter with the tax bills stating the hike is due to "higher county and Board of Education taxes," but that his administration has "kept municipal taxes stable."

But according to city officials who explained the tax bill more fully yesterday, the total tax revenue to be raised by the city has risen $4 million since July and $9 million since tax bills were sent out this time last year.

City officials said yesterday that hope is on the way as far as the municipal portion of the bill is concerned. Due to an increase of $200 million in ratables in the city, local taxpayers should see the municipal portion of their bills shrink for the next two quarters.

When the new budget is introduced - it is expected in the next few weeks - the tax rate for the municipal portion is going to be $2,533 for every $100,000 of assessed value, or $130 less than it is now, said Business Administrator Brian O'Reilly.

"The city for the second year in a row is keeping taxes stable," O'Reilly said. "(But) school taxes are up $10 million in two years, county taxes are up from $65 million to $80 million."

As state school aid has decreased over the past two years, the local school tax levy has risen. But Jersey City taxpayers are still paying only $81.2 million of the $600 million public school budget due to its status as a "special needs" district.

As far as the county bill goes, Hudson County spokesman Jim Kennelly called Jersey City "a victim of its own success."

"Its property values have gone through the roof. Under state law, the formula that controls county taxation puts the burden on the communities that are growing."

KEN THORBOURNE