Local Taxes

[nugnfutz]

This year for example, you may be assessed at $260k, but they're actually implying your property is worth $1m, since the JC "equalization" rate is 26%.

Can you clarify the equalization rate?  Cause I really have no idea how my taxes are calculated.  The assessed value seems meaningless.

duke

The City basically determines the market value of your home, either the purchase price, or does a revaluation every few years - they seem to have done one for 2009. They then multiply this by the "equalization" rate determined by the county to come up with an assessment value. I think the idea behind the equalization rates is to distribute the property tax burden fairly across the county.

See http://www.hudsoncountytax.com/html/RatesRatios.aspx

Here's the my result from easytaxfix.com for my property, which helps illustrate the process. "A" is what appears on my property tax bill, which implies the City thinks my property is worth  $962,559. Easytaxfix thinks it's worth even more, however I recently received an indepedent appraisal for $600k. This means I have a good basis for an appeal.

Your potential savings based on THREE preliminary recent comparable sales in your municipality:
     
A. Your current assessment (Edit)           $246,800
B. JERSEY CITY  county equalization rate   26%
C. Market value, per the County (A / B)   $962,559

--------------------------------------------------------------------------------
 
D. Avg. per square foot of selected comparables (from below)   $447
E. Your property square footage   2,385
F. The proposed market value (D x E)   $1,065,406

--------------------------------------------------------------------------------
 
G. The proposed assessment (F x B)   $273,170 
H. Assessed value difference (A - G)   ($26,370)
 
I. Estimated JERSEY CITY  Property Taxes   5.55% 

--------------------------------------------------------------------------------
 
Estimated Annual Savings (H x I)    NO SAVINGS 

[duke_of_earl]

This year for example, you may be assessed at $260k, but they're actually implying your property is worth $1m, since the JC "equalization" rate is 26%.

Can you clarify the equalization rate?  Cause I really have no idea how my taxes are calculated.  The assessed value seems meaningless.

duke

[nugnfutz]

What bugs me is the way property tax is assessed is designed to confuse the individual taxpayer. So for example, on the tax bill they say your property is assessed at given value. They tell you the assessed value, but not the implied property value.

This year for example, you may be assessed at $260k, but they're actually implying your property is worth $1m, since the JC "equalization" rate is 26%.

I'd encourage everyone to check out the links below. It's not worth appealing if the actual market value is within 15% of the implied assessment value.

WWW.EASYTAXFIX.COM

Note both the City and easytaxfix can get the house valuations badly wrong. Both valued my property at around $1m, but it appraised for $600k when I refinanced.

To prepare my tax appeal I plan to compare recent sales and City valuations of near equivalent properties in the area. In my case I walked around JC and noted addresses of similarly constructed properties, then used the Hudson county website to figure their assessments. (Its better than jerseycityonline since it shows more details on class/age of building, etc). Zillow.com is also a useful resource.

http://www.hudsoncountytax.com/html/taxAppealFAQ.aspx

www.zillow.com

[bdlaw]

Surprise, surprise...

[Isilme]

Let's see, developers get better "hardship" abatements, someone on the city payroll gets "wage increases" and we get an 11.25% tax increase and THE SHAFT - again. 

[skwirrlking]

From the Jersey Journal:

Jersey City council votes 11.25% tax hike
Thursday, July 09, 2009

The Jersey City City Council last night passed an 11.25 percent tax hike by a vote of 8-1, with only Ward E Councilman Steve Fulop voting against the measure.

The council approved an estimated tax levy of $170 million, which will be used to calculate August and November tax bills. The amount is based on what city officials consider necessary to meet expenses, including salary increases and health insurance costs.

AMY SARA CLARK

--- who the f*** is getting a raise right now?

[Woodsy]

From the Jersey Journal:

Jersey City council votes 11.25% tax hike
Thursday, July 09, 2009

The Jersey City City Council last night passed an 11.25 percent tax hike by a vote of 8-1, with only Ward E Councilman Steve Fulop voting against the measure.

The council approved an estimated tax levy of $170 million, which will be used to calculate August and November tax bills. The amount is based on what city officials consider necessary to meet expenses, including salary increases and health insurance costs.

If city officials go the entire fiscal year without cutting $17.9 million from their anticipated spending plan, the result would be a tax hike of $450 for a home assessed at $100,000, said city Business Administrator Brian O'Reilly.

Fulop said he voted against the measure because raising taxes at the beginning of the fiscal year is like "admitting failure right out of the gate."

O'Reilly said raising taxes now would prevent steep hikes in the second half.

Before his re-election on May 12, Mayor Jerramiah T. Healy presented the City Council with a budget for the fiscal year that ended June 30 with virtually no tax increase.

Yesterday, his spokeswoman, Jennifer Morrill, defended the post-election tax hike.

"He is committed to continuing to work to minimize any tax increase, but everyone must bear in mind how severe the national economic situation is," she said.

To save money, Morrill said, Healy has instituted a voluntary furlough program in which employees are allowed to take up to 30 unpaid days off; instructed department directors to cut their budgets by 10 percent; continued a hiring freeze and a no-overtime policy unless absolutely necessary; and has continued to hunt for outside revenue.

During the public comment portion of last night's meeting, Jersey City resident Fletcher Gensamer, who was laid off last fall, said residents can't afford another tax hike.

AMY SARA CLARK

[duke_of_earl]

Hey City Council! GO FUCK YOURSELF WITH YOUR TAX INCREASE!

The Jersey City 11.25 percent tax increase passed by a vote of 8-1 tonight with Ward E Councilman Steve Fulop the only council member to vote against the measure.

Ooh man, what a call!  I should have taken bets.  Either I'm prescient or the city council members were lying about not knowing what was going to happen.

Although the rest of the council voted for the increase, they promised to work on cutting the budget to bring taxes back down for the second two quarters.

"It should not be classified of a tax increase yet," said Ward D Councilman Bill Gaughan. "I think I can say confidently that members of the City Council will work diligently to cut the budget."

Heard after the meeting...."Well, work's done!  On to more tax abatements!"  I can promise you two things. 1) There will be no cuts in the budget and 2) there will be an increase in budget next year.

Mayor Jerramiah T. Healy said he has has already taken steps to cut next year's budget including:

    • instituting a voluntary furlough program where employees are allowed to take up to 30 unpaid days off

    • instructing all directors to cut their budgets by 10 percent

    • continue his hiring freeze and no-overtime-unless-absolutely-necessary policy

    • continue to look for outside revenue sources such as grants and stimulus funds

Let me guess how many employees are going to take unpaid leave....ZERO.  Who in their right mind would turn away money in this economy??  No director is going to cut a budget unless forced.   By it's very nature, all overtime is necessary.  And looking for grants??  Yes, surely free money is available that nobody else has asked for!  Genius!

"The mayor ran on a platform that touted his record of keeping municipal taxes stable for three years in a row," said Healy spokeswoman Jennifer Morrill. "He is committed to continuing to work to minimize any tax increase, but everyone must bear in mind how severe the national economic situation is."

What is she talking about?  The economic situation doesn't seem so bad for the Jersey City municipal budget.  Unemployment is at record levels and the taxes keep going up to support a rising budget?

duke

[fasteddie]

Hey City Council! GO FUCK YOURSELF WITH YOUR TAX INCREASE!

The Jersey City 11.25 percent tax increase passed by a vote of 8-1 tonight with Ward E Councilman Steve Fulop the only council member to vote against the measure.

Fulop said raising taxes at the beginning of the year is like "admitting failure right out of the gate."

But Jersey City Business Administrator Brian O'Reilly said raising taxes at the beginning of the year only made sense.

Why?

He says that in past years the city has kept taxes low for the first half of the fiscal year and then dramatically raised them in the second half to make up for shortfalls. This year he wants to try to keep taxes even throughout the four quarters.

He also said that in past years Jersey City hasn't had enough money to pay its expenses in the first half of the year, causing the city to borrow money from other accounts (such as an account for capitol funds). This kind of borrowing lowers the city's credit rating, he said.

Although the rest of the council voted for the increase, they promised to work on cutting the budget to bring taxes back down for the second two quarters.

"It should not be classified of a tax increase yet," said Ward D Councilman Bill Gaughan. "I think I can say confidently that members of the City Council will work diligently to cut the budget."

Despite an early meeting time of 5 p.m., about two dozen members of the public came to the meeting and a handful spoke against the tax hike.

"I ask the council to realize that people are hurting," said Fletcher Gensamer, who said he was laid off in the fall and is struggling to pay his tax bill.

Dick Shephard, who grew up in Jersey City but now lives in New York City, said voting for the tax increase was perpetuating a system of no-show jobs and double dipping.

Mayor Jerramiah T. Healy said he has has already taken steps to cut next year's budget including:

    • instituting a voluntary furlough program where employees are allowed to take up to 30 unpaid days off

    • instructing all directors to cut their budgets by 10 percent

    • continue his hiring freeze and no-overtime-unless-absolutely-necessary policy

    • continue to look for outside revenue sources such as grants and stimulus funds

"The mayor ran on a platform that touted his record of keeping municipal taxes stable for three years in a row," said Healy spokeswoman Jennifer Morrill. "He is committed to continuing to work to minimize any tax increase, but everyone must bear in mind how severe the national economic situation is."

[Woodsy]

But whether taxes go up will depend on the amount of new ratables and other revenue coming into the city, officials said.

Let's see...record numbers of people challenging their property taxes, a city council that can't manage to create enough tax abatements, a predicted $62 million decrease in tax revenue, and increasing annual budgets while in the midst of a global financial crisis....

I'm going to go out on a limb here and guess that taxes are going to go up.

duke

P.S.  I'll go one step further and predict a vote of 8-1 for raising taxes.

You left off "reductions in the percentage of annual gross revenue payed to the city from PILOT payments."  Much as I think that tax abatements have been misused and mismanaged in the past, this takes the cake.  If you don't like the tax abatement you negotiated then you can decline the payment and pay your regularly scheduled taxes.  It's not the city's responsibility to make sure that you make a profit on your business dealings.

[duke_of_earl]

But whether taxes go up will depend on the amount of new ratables and other revenue coming into the city, officials said.

Let's see...record numbers of people challenging their property taxes, a city council that can't manage to create enough tax abatements, a predicted $62 million decrease in tax revenue, and increasing annual budgets while in the midst of a global financial crisis....

I'm going to go out on a limb here and guess that taxes are going to go up.

duke

P.S.  I'll go one step further and predict a vote of 8-1 for raising taxes.

[MCA™]

Should city brace for a tax hike?
Tuesday, July 07, 2009
By AMY SARA CLARK
JOURNAL STAFF WRITER

The Jersey City City Council is scheduled to vote on a new tax rate for the next two fiscal quarters at tomorrow night's meeting. But officials yesterday were mum on how much taxes will go up - if at all - if the measure passes.

The council is being asked to approve a $170 million tax levy for the fiscal year that began July 1 - $17.9 million more than last year's tax levy.

But whether taxes go up will depend on the amount of new ratables and other revenue coming into the city, officials said.

Jennifer Morrill, a spokeswoman for Jersey City Mayor Jerramiah Healy, said yesterday she didn't know if taxes are going up. Calls to Business Administrator Brian O'Reilly and Tax Collector Maureen Cosgrove were not returned.

Even City Council members seemed to be in the dark.

Ward D Councilman Bill Gaughan and Ward E Councilman Steven Fulop said they didn't know what to expect at tomorrow's vote.

A City Hall source said Jersey City is heading into the new fiscal year with an expected $62 million less in revenue than last year.

This special meeting is scheduled for tomorrow at 5 p.m. at City Hall, 280 Grove St.

[MCA™]

No tax hike for Jersey City residents this year
by Amy Sara Clark / The Jersey Journal
Thursday May 07, 2009, 9:34 PM

Jersey City property taxpayers will see virtually no tax increase in the bills they are due to receive late next week.

The average taxpayer, who has a property assessed between $100,000 and $110,000 will see an increase of about $3 over last year, said Brian O'Reilly, the city's business administrator at at a special City Council meeting held last night.

The City Council unanimously adopted the $474 million budget for the fiscal year that ends June 30, with words of congratulations for O'Reilly and his staff, and a few for themselves as well.

"When you read in the newspaper about tax revolts in West NY and Hoboken it's a real pleasure to serve here," said Ward C Councilman Steve Lipski. "To raise municipal taxes $3, this is not only 'change you can see,' this is dollars and sense you can feel,"

Last month, city officials had to amend the budget after learning that it only received $5 million of the $7.2 million it received in state aid. The city made up the shortfall through leftover revenue from last year that was unexpected and by applying for, and receiving monies for grants it was due in past year but never received.

"It is a late budget," said O'Reilly. "But at the end of the day, since we're not raising taxes, the ultimate goal has been met.

The $474.0 million budget represents a $10.1 million jump over last year's $463.9 million spending plan. But the tax levy is nearly identical to last year allowing the tax rate to remain virtually stable at $25.50, compared to $25.47 last year.

"The administration worked diligently to produce a budget that reflected no tax increase, in an effort to not create an additional burden on the Jersey City taxpayer," said Mayor Jerramiah T. Healy in a written statement.

There were only two speakers on the budget during the public portion.

Joe Krajnik, president of the Uniformed Fire Fighters Association of Jersey City, heartily praised the city for the lack of a tax increase, but added that he wished money had been allocated for more firefighters.

"The problem we have with this amendment is that it doesn't go far enough. We are understaffed in the fire service," he said.

Resident Yvonne Balcer pointed out that even if there is no tax hike, the budget is still high. "We are $26 million away from a half million dollar budget," she said. "Frightening."

[MCA™]

JJ:


Won't see tax bills until after election
Monday, April 27, 2009
By AMY SARA CLARK
JOURNAL STAFF WRITER

Jersey City taxpayers are not likely to receive second quarter tax bills until after they pull the lever in the May 12 municipal elections.

The bills are scheduled to be sent out on May 11 - the day before the elections and three weeks later than last year, city officials confirmed last week.

Why the delay?

City officials said it all has to do with the city's application for special municipal aid from the state, which delayed the introduction and adoption of a final spending plan for the fiscal year that began on July 1, 2008 and will end on June 30. The council introduced their budget on Feb 9.

The state announced on April 14 that the city would receive $5 million in special municipal aid, $2.2 million less than what the city had requested, city spokeswoman Jennifer Morrill said.

The city spent a week trying to get state officials to bump up the amount, she said. But state officials would not budge and the city had to cut its budget, get the City Council to approve the changes and then hold final budget hearings, Morrill said.

Because of the need to advertise the hearings properly under the state Sunshine Law, the public hearing and final vote is scheduled for May 7.

Officials said it takes about two business days to print and mail the bills, so they are not likely to be sent out until May 11. This means most taxpayers will receive the bills after the May 12 municipal election.

Taxpayers will then have 25 days to pay, city Tax Collector Maureen Cosgrove said.

City Clerk Robert Byrne said the public hearing could have been moved up if not for conflicts with the City Council Chambers, he only room large enough to hold public hearings. The Historic Preservation Commission has the room booked on May 4, the Planning Board on the 5th, and there is a graduation ceremony on the 6th, he said.

As to having the meeting elsewhere, Byrne said, "Then we would be criticized for holding a budget hearing in an alternate site."

Morrill - whose boss, Mayor Jerramiah T. Healy is up for re-election on May 12 - insisted there was no political reason for the delay because there is no municipal tax hike in the bill.

But at least one mayoral hopeful sees a politically-timed glitch.

"Clearly in the last month every action taken by the city has been geared toward the election," said David Cruz, a spokesman for Assemblyman Harvey Smith, who is a mayoral candidate.

"If it were going to be a tax cut," Cruz added, "then you can be sure that the mayor would have made sure that people would have gotten (the bills) already."

[G_Elkind]

I'm no fan of deferring Jersey City’s 2008 pension funding, but I've really grown tired of reflexive, ad hominem criticisms on the part of our Ward E councilman. It might make for entertaining sound bites, but it doesn’t point the way forward on how to fix Jersey City's perennial financial and budgetary problems.

So is it the "height of irresponsibility" and an election year gimmick?  What’s the alternative? Restore the $15 million pension fund payment to the budget? Would this be the politically correct reformist thing to do?

It always appears to be a win-win when you get to blame the powers that be no matter what they do. If they defer and keep taxes steady -- they're "irresponsible". If they don't defer and raise taxes -- they're "irresponsible". If they cut from the police, fire and other essential city service budgets, placing residents at greater risk -- they’re “irresponsible”.

If we’re going to hold the city administration accountable for budgetary outcomes, why should we give the legislative branch of city government a free pass when it comes to their legislative responsibility to critically and thoroughly examine every element of the city’s budget -- line-by-line, and on a holistic basis? Our council people should not get off the hook by pointing the finger in the other direction and saying it's not within their legislative prerogative to propose alternatives or it’s not their role to scrutinize the budget with greater care.

Jersey City’s financial and budgetary process has been broken for decades -- it’s a systemic problem we’ve let drag on for way too long. Like Bernie Madoff's Ponzi scheme, we always found enough quick cash from new sources to string us along from year-to-year, and we managed to duck the inevitable. This worked as long as the economy and market around us was growing. We’ve had a number of close calls over the years, but it’s taken a financial credit crisis of global proportions to make the cracks plainly visible.

The quick fix of choice in the flush years – accelerating new tax abatements – didn’t really come to the rescue in the 2008 budget, and it may fall farther short in 2009. I really hope I’m wrong, but with the real estate market still in turmoil, even previously agreed upon PILOT payments are at risk of falling short. It’s unfortunate, but the pension deferral for the 2008 budget year is perhaps an unavoidable best choice among alternatives that appear to range from poor to unacceptable. Call it what you want, election year or not, in the absence of better alternatives, the city probably made the right - but difficult call - to defer and avoid raising taxes.

Raising property taxes now would make a bad situation even worse. How callous would it be to raise taxes on those far less fortunate Jersey City residents who teeter on the edge of foreclosure?  Today’s article in the Jersey City independent comes to mind, and is an excellent read --> the Jersey City Independent. But we shouldn’t get too complacent. This year’s Hoboken property tax massacre could be the prequel for Jersey’s City’s own 2009 budget nightmare, especially if we continue accepting the status quo ante from our legislators

There is plenty of waste to be trimmed without materially affecting the quality, effectiveness and efficiency of essential city services. Candidates who claim to be reformers should be tackling these issues head on, and visibly – but they’re not. Are they too politically compromised or fearful of the deals they’ve made to risk an honest public discussion of how to fix our city’s budget? If so, then they are not very different than those they have railed against for the past four years.

Geoff Elkind

[MCA™]

Jersey City puts off $14.8M pension payment
Friday, March 27, 2009
By AMY SARA CLARK
JOURNAL STAFF WRITER

By an 8-1 vote, the Jersey City City Council passed a resolution Wednesday to ask the state Local Finance Board to allow Jersey City to defer $14.8 million in pension payments.

To help in these tough economic times, Gov. Jon Corzine signed a law last week to allow municipalities to defer up to half of their pension payments for the current fiscal year, which ends June 30. Councilman Steve Fulop cast the lone dissenting vote, calling the request for the deferral "the height of irresponsibility" and an election-year gimmick that only pushes the burden into the future.

Resident Yvonne Balcer spoke against the resolution during the public portion of the meeting.

"It's still borrowing and it's debt piled upon debt," she said. "It's going to come down and crash on people as it's crashing down on people in Hoboken and in West New York."

Mayor Jerramiah T. Healy defended the deferral.

"The pension program was unfunded for years during the (Christine Todd) Whitman and (Jim) McGreevey administrations, and now in the time of the new Great Depression we're deferring only 50 percent," Healy said.

"This is something that mayors and county leaders across the state have asked for and feel is critical due to the current economic situation our state and our nation face," he added.

[G_Elkind]

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...

Your assumption is incorrect.

Unfortunately, the current version of the city budget does not provide enough detail to back into the average cost per police department employee. There are fixed infrastructure costs and other expense line items unrelated to salary (eg. equipment, vests, cars, pension, etc. to name a few), which are included in the total number budget number you used. Without going into a budget reading lesson here, suffice it to say that your calculation results in a grossly overstated estimate. Even if you get a more detailed budget which identifies a salary line item -- this number itself may include other salary related costs (e.g., social security, insurance) which would need also to be backed out to derive an average salary estimate.

The public would be better served if the proposed detail behind the police and fire budgets were presented separately and transparently for public review as part of the city budget process.

Personally, I would disagree with Councilman Vega that cutting personnel is the only way to significantly cut spending, but managing a 5% reduction and maintaining current staffing levels should not be a problem for the police and fire departments.

At the end of the day, this still leaves perennial policy issues affecting costs such as staffing structure, overall departmental efficiency, deployment, overtime management and pension costs for future discussion.

Finally, Duke, the proposed 2009 budget increase of approximately 10.5 million is not a 22% increase over the 2008 budget. It's about 11.5% -- 10.5 million divided by 91 million. What exactly accounts for the increase would require a review of the detailed, proposed police department budget.

All the best.

Geoff

 

[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?