Local Taxes

[MCA™]

Members of Jersey City MUA and Incinerator Authority likely will have to start paying toward health insurance
By Melissa Hayes/The Jersey Journal
February 26, 2010, 7:55AM

Members of the Jersey City Municipal Utilities Authority and Jersey City Incinerator Authority may have to start paying for their health benefits.

Councilman Steven Fulop tried to introduce ordinances Wednesday night that would have eliminated the benefits altogether, but failed to muster the necessary votes. The council instead introduced a measure, backed by Mayor Jerramiah T. Healy, that would limit health insurance to the member and eliminate family coverage. The board members would also have to pay 20 percent of the cost of the premium. Currently, the agency foots the entire bill.

"This ordinance is a compromise ordinance in that it allows for a substantial savings while at the same time allowing the commissioners to pay a portion of their premium to maintain health coverage," Healy said in a statement yesterday. According to a memo Healy sent council members, Fulop's proposal would have saved $287,569 and the "compromise ordinances" would save $155,294.

Healy spokeswoman Jennifer Morrill said the MUA is spending $151,171.20 annually on health benefits for board members and the JCIA is spending $126,398. With the reductions, the MUA would spend $61,221.22 and the JCIA will spend $65,344.08. The board members receive no other benefit.

"It is absolutely shameful in a time when the lowest level city employees were laid off, they grant health benefits to politically connected cronies that the taxpayers fund," Fulop said. "Most of the City Council and administration clearly do not understand how they are hurting the regular taxpayers."

But Eileen Gaughan, chairwoman of the MUA, disagreed with Fulop and said commissioners are on call 24 hours a day to serve the public. "Despite what Councilman Fulop is leading the public to believe, the hours that are put in during the meetings are just the tip of the iceberg as far as being commissioners and serving the public," she said.

Fulop and Councilwoman Viola Richardson voted against Healy's ordinances.

Councilman Bill Gaughan abstained on the MUA vote since his daughter, Eileen, is chairwoman and Councilwoman Willie Flood abstained on the JCIA vote because her husband is chairman.

[nugnfutz]

Regarding throwing out centuries of contract law, then I, Grego, Dealy, and scores of firefighters clearly need better legal advice.  Cause we think it's going to happen.

duke

If you're in that situation, get yourself a better lawyer. Seriously. They pretty much can't rewrite your employment contracts retroactively.

[CeeDub]

If the liberrary has $$ to spare, then why is the Pavonia branch closed daily from 1300-1400 "due to budget shortfalls [sic]"?

[duke_of_earl]

They were not gambling. They could have accepted alternative employment contracts outside the City.  They've worked and saved and planned their retirement under a contract of employment with JC. Changing that contract after the fact is wrong - and would likely expose the City to litigation. I agree the rules must change. And I think the rehire as consultants needs a closer look.

But you cannot throw out centuries of contract law just because you don't think it's fair after the fact. You can ask people to sign a new contract from a given date, but I've never heard of asking people to sign a back-dated employment contract.

The rehire as consultants is a flagrant money shuffle.  If you read the article carefully, you'll notice that Grego will be working on the library budget, but doing the same work.  Presumably because the library has money to spare, but woe to the politician who proposes cutting the budget of a public library...

Regarding throwing out centuries of contract law, then I, Grego, Dealy, and scores of firefighters clearly need better legal advice.  Cause we think it's going to happen.

duke

[MCA™]

Angry Jersey City residents confront council on tax hikes, layoffs, retirees rehired as consultants; suggest cutting top jobs, threaten recalls
Thursday, February 25, 2010
By MELISSA HAYES
JOURNAL STAFF WRITER

Journal Square business owner Raju Patel summed up the sentiments of the hundreds of Jersey City residents at last night's council meeting. "Look after us as a taxpayer," he said. "We do not have such deep pockets." The comment drew applause from a standing-room-only crowd in City Hall for a public hearing on the proposed municipal budget for the fiscal year ending June 30.

"You chose to lay off 280 low-level and seasonal employees, people who are most vulnerable to this economy," resident Esther Wintner said. "You shielded your friends and kept your unmarked municipal cars for your pleasure at our expense. Did you think this would go unnoticed? You tried to pacify us and hoped we would fade away. We are here, and we are angry."

Wintner reminded City Council members that they are elected by the voters and are supposed to represent their constituents. "We are left with no other recourse but to defend our homes and future," she said, speaking to the council. "We are united and will work to dismantle the beast before us, limb by limb, door by door, ward by ward."

The rowdy crowd chanted "recall" and "no more taxes" during a lengthy public hearing.

Resident Amy Ertle said residents have collected about 2,000 signatures protesting the tax hike they plan to send to Gov. Chris Christie. Residents offered suggestions like freezing borrowing, reducing overtime, cutting higher-paid positions, sharing services and making city buildings more energy efficient.

The crowd criticized the council for voting to hire back retired employees as consultants and also turned the blame on themselves for not being involved enough. About 30,000 of the city's roughly 240,000 residents voted in the May election.

"That's the essential problem here. It's not just that the council doesn't care. We have a lot of people out here who do care," resident Andrew Velwest said. "The problem as somebody already stated is the citizens of Jersey City as a whole are either ignorant or apathetic about their government."

The budget hearing came after the council declined to introduce ordinances sponsored by Councilman Steven Fulop that would eliminate health benefits for members of the Municipal Utilities Authority and Jersey City Incinerator Authority, a move that angered many in attendance.

City officials originally said the budget would hike taxes $800 for the owner of a home assessed at $100,000. Last night, Business Administrator Brian O'Reilly said the increase for a $100,000 home now stands at $640.

[nugnfutz]

I don't think its fair to these folks at the end of their term of service to rewrite the rules. The same with people currently in employment. You can't change their terms of employment retroactively. Put yourself in their shoes - they have probably based their life and retirement planning on contractual obligations. They're not to blame nor to victimize if the City got things wrong. Change the rules by all means, but don't hit those people that have given service to the City in good faith.

Okay, I put myself in their shoes.  And I thought to myself, "Holy shit!  Rules are rewritten all the time!  Maybe I shouldn't place the future of myself and my family in a politician's hands.  Perhaps I shouldn't stock up years of sick and vacation days for a final massive payout at my maximum retirement pay rate."

I don't blame them.  They are gambling (wisely it turns out) that they will get a large payoff and are maximizing their gains off the system.  Gambles win and lose.  I'm confused on the part about good faith and giving service.  Were they volunteers?

duke

They were not gambling. They could have accepted alternative employment contracts outside the City.  They've worked and saved and planned their retirement under a contract of employment with JC. Changing that contract after the fact is wrong - and would likely expose the City to litigation. I agree the rules must change. And I think the rehire as consultants needs a closer look.

But you cannot throw out centuries of contract law just because you don't think it's fair after the fact. You can ask people to sign a new contract from a given date, but I've never heard of asking people to sign a back-dated employment contract.

[duke_of_earl]

I don't think its fair to these folks at the end of their term of service to rewrite the rules. The same with people currently in employment. You can't change their terms of employment retroactively. Put yourself in their shoes - they have probably based their life and retirement planning on contractual obligations. They're not to blame nor to victimize if the City got things wrong. Change the rules by all means, but don't hit those people that have given service to the City in good faith.

Okay, I put myself in their shoes.  And I thought to myself, "Holy shit!  Rules are rewritten all the time!  Maybe I shouldn't place the future of myself and my family in a politician's hands.  Perhaps I shouldn't stock up years of sick and vacation days for a final massive payout at my maximum retirement pay rate."

I don't blame them.  They are gambling (wisely it turns out) that they will get a large payoff and are maximizing their gains off the system.  Gambles win and lose.  I'm confused on the part about good faith and giving service.  Were they volunteers?

duke

[Binky]

Team Healy council members growing a backbone, or just paying lip-service?

I think they're getting nervous now that they realize people are paying attention.

[MCA™]

Team Healy council members growing a backbone, or just paying lip-service?


Jersey City council dismisses Healy-backed ordinances for part-time commissioners' health benefits
By Tom Shortell
February 23, 2010, 9:10PM

The Jersey City City Council sent back ordinances tonight endorsed by Mayor Jerramiah Healy that would have allowed the commissioners of some politically appointed boards to keep some health benefits.

The ordinances would have allowed commissioners of the Municipal Utilities Authority and the city Incinerator Authority to collect benefits for themselves but not their families. Ordinances proposed by Ward E Councilman Steven Fulop would cut all benefits to the two boards.

Complaints by Fulop, Ward A Councilman Michael Sottalono, and Ward F Councilwoman Viola Richardson put a quick end to the debate over the ordinances.

Fulop argued that the commissioners do 20 hours of work, and that taxpayers shouldn't have to foot 80 percent of their health benefits for it. "I think this is shameful," Fulop said. 

"I respectfully ask that (the ordinances) be withdrawn," Sottalono said.

According to figures provided by Jennifer Morrill, city spokeswoman, the MUA spends $151,171 on the board's benefits while the JCIA spends $136,398. The MUA's figure would be reduced to $61,500 if commissioners picked up 20 percent of the premium cost, Morrill said.

The reductions for the JCIA were not immediately available.

[nugnfutz]

I don't think its fair to these folks at the end of their term of service to rewrite the rules. The same with people currently in employment. You can't change their terms of employment retroactively. Put yourself in their shoes - they have probably based their life and retirement planning on contractual obligations. They're not to blame nor to victimize if the City got things wrong. Change the rules by all means, but don't hit those people that have given service to the City in good faith.

[jehu]

Simple way to fix this issue that will benefit both sides.

Allow the employees to sell back a week of sick days back yearly. This will negate the financial impact to the city when someone retires.

As for rehiring of a retiree? Tell them to get to the back of the line....

[fasteddie]

Jersey City honchos receive huge retirement payouts, and stay on payroll
By Melissa Hayes/The Jersey Journal
February 21, 2010, 4:25PM

Worried about pending state legislation, two municipal honchos in the administration of Jersey City Mayor Jerramiah T. Healy have received huge retirement payouts -- and will remain on the city payroll.
Legislation backed by the governor that would cap retirement payouts didn't come soon enough to stop two longtime Jersey City employees from leaving with large checks.

Assistant Business Administrator Roger Grego and Chief of Administrative Services Kathy Dealy retired Feb. 1.

Grego walked away with $238,138.11 for 127 unused vacation days, 356 sick days and six personal days. Dealy was paid $133,447.26 for 60 unused vacation days, 269 sick days and six personal days.

But even through they are retiring from their current jobs with hefty pensions, they will continue to bring home city paychecks.

The Jersey City Council approved resolutions Wednesday to create shared services agreements with the Jersey City Municipal Utilities Authority and Jersey City Library, which have hired Dealy and Grego as consultants.

Councilman Steven Fulop and Councilwoman Viola Richardson abstained from voting on the resolutions, which passed 7-0-2.

"I like both as employees and they are great assets, however if you retire and take the payout, then you retire," Fulop said. "I don't believe one can have it both ways regardless of how good of an employee one is, especially when they are laying other employees off."

Business Administrator Brian O'Reilly's memo to the council said that Grego, who worked on labor contract negotiations, the budget and capital project development for the city, will be paid by the library as a consultant, but through the agreement will continue to work for the city. City officials didn't immediately say how much Grego was to be paid as consultant.

Daniel Becht, executive director of the MUA, said Dealy, who worked on the budget, capital accounts and fiscal matters related to the MUA, would work on financial issues and on the city's budget through the shared services agreement.

He said she would be paid hourly, for no more than 20 hours per week for a total of 90 to 120 days. Becht said the rate of pay has not been set.

Grego, who worked for the city for just over 38 years, was earning $127,104 when he retired and will be paid a $83,024.55 pension annually, city officials said.

Dealy, who worked for the city for 27 years, was earning $103,969 and will be paid a $62,972.16 pension annually.

In a memo to the council, O'Reilly noted that pending state legislation pushed by Gov. Chris Christie would cap retirement payouts at $15,000.

"As a result...the city is experiencing a sudden loss of knowledgeable senior employees," O'Reilly said, adding that the city hasn't had time to train replacements. "The shared services agreements will address the immediate needs," he said.

The city budgeted for the payouts after the legislation was introduced last year. The current fiscal year's budget, which will be voted on Wednesday, contains $7 million for accumulated absence payouts.

[nugnfutz]

I am under the belief that a lot of the people who are demanding pension reform and healthcare reform think that the city/state employees are getting a free ride. They aren't.

 
I know people will volunteer for free for City positions. Fire, Police and other positions. A lot of jobless folks would be more than happy to give their services to the City. Without pay and without pensions. I think we need to give them the opportunity. I'd like to see the council set this up.

You cannot "volunteer and get a pension"

There is much confusion about the pension system in some of these posts. Each employee pays a % of their current salary into their retirement pension. It's automatically deducted from their paycheck. I think you are confusing this with health benefits.

RIF, folks.

It doesn't say "volunteer and get a pension"; in fact it says exactly the opposite.  Fill some positions with unpaid, no benefits volunteers.

Exactly BD. The best way for a lot of unemployed to get back into the labor market is to keep up to date with their skills. Working for free for JC can't hurt. And JC should leverage this for 2 reasons...reduced costs...and to help those unemployed get back into the labor market...win-win.

[jehu]

I think we should start with city council members... Make it a volunteer position with NO benefits...

[bdlaw]

I am under the belief that a lot of the people who are demanding pension reform and healthcare reform think that the city/state employees are getting a free ride. They aren't.

 
I know people will volunteer for free for City positions. Fire, Police and other positions. A lot of jobless folks would be more than happy to give their services to the City. Without pay and without pensions. I think we need to give them the opportunity. I'd like to see the council set this up.

You cannot "volunteer and get a pension"

There is much confusion about the pension system in some of these posts. Each employee pays a % of their current salary into their retirement pension. It's automatically deducted from their paycheck. I think you are confusing this with health benefits.

RIF, folks.

It doesn't say "volunteer and get a pension"; in fact it says exactly the opposite.  Fill some positions with unpaid, no benefits volunteers.

[jehu]

I am under the belief that a lot of the people who are demanding pension reform and healthcare reform think that the city/state employees are getting a free ride. They aren't.

 
I know people will volunteer for free for City positions. Fire, Police and other positions. A lot of jobless folks would be more than happy to give their services to the City. Without pay and without pensions. I think we need to give them the opportunity. I'd like to see the council set this up.

You cannot "volunteer and get a pension"

There is much confusion about the pension system in some of these posts. Each employee pays a % of their current salary into their retirement pension. It's automatically deducted from their paycheck. I think you are confusing this with health benefits.

[MCA™]

Council members spar in filling Jersey City Incinerator Authority post; vote on stripping benefits looms
Thursday, February 18, 2010
By MELISSA HAYES
JOURNAL STAFF WRITER

A seemingly routine appointment to the Jersey City Incinerator Authority set off a heated debate between City Council members at last night's meeting.

While members of the Jersey City Incinerator Authority are not paid, they receive health benefits from the city. Among the dozens of boards in the city, the JCIA and Municipal Utilities Authority are the only ones that grant members benefits.

Councilman Steven Fulop introduced an ordinance last week that would eliminate those benefits. It was set to be voted on last Wednesday, but the meeting was canceled due to the snow storm.

Because ordinances must be advertised to the public, Fulop's ordinance couldn't be placed on last night's agenda and will instead be heard at next week's meeting.

When a resolution appointing Roger Hejazi to the JCIA came up, Fulop questioned whether he was willing to serve without benefits. Councilwoman Viola Richardson spoke with Hejazi, who told her he would be if the ordinance passes.

Fulop countered that the resolution should be amended to reflect that Hejazi would waive his benefits. But Richardson said she didn't ask Hejazi if he would waive benefits, in case Fulop's ordinance fails and the other members still have benefits.

Reached before the meeting, Hejazi said he already has health benefits and wasn't relying on the city benefits. But he did say it was a perk to serving.

"This is a no-pay job," he said. "So there has to be something for the time you spend being there. You have to do a lot of stuff. It's not just going to a meeting."

Fulop said eliminating benefits for both authorities would save nearly $400,000 annually and said even eliminating benefits for one member would make a difference.

The resolution appointing Hejazi passed 8-1 with Fulop voting against it.

[Pinky]

 
I know people will volunteer for free for City positions. Fire, Police and other positions. A lot of jobless folks would be more than happy to give their services to the City. Without pay and without pensions. I think we need to give them the opportunity. I'd like to see the council set this up.

You cannot "volunteer and get a pension"

There is much confusion about the pension system in some of these posts. Each employee pays a % of their current salary into their retirement pension. It's automatically deducted from their paycheck. I think you are confusing this with health benefits.

[jehu]

Might be insurance issues with that. Imagine a volunteer dog catcher bring home their work, only to have those dogs attack a neighbor... 

[nugnfutz]

Oh and why not make 10% of all City jobs voluntary? Not only Police and Fire....but all Jobs.

Ok. Healy has made a lot of publicity of hiring 260+ new members of the JCPD. Well, we taxpayers end up paying for that.  And Healy reaps the benefits with 260++ new people on his HCDO machine voter list. Every new City job created and every City job saved, keeps these idiots in power. It's why Healy will never go after job cuts, pension cuts nor anything that impacts his power base.

I know people will volunteer for free for City positions. Fire, Police and other positions. A lot of jobless folks would be more than happy to give their services to the City. Without pay and without pensions. I think we need to give them the opportunity. I'd like to see the council set this up.

[nugnfutz]

 
Oh and why not make 10% of all City jobs voluntary? Not only Police and Fire....but all Jobs.

[nugnfutz]

An Open Letter to Mayor Healy and the Jersey City Council regarding the FY 2010 Budget and impending tax increases that I will be mailing them on Monday.

..........

Best post of the year imo.

[gordonh]

The city has put the Petition of Appeal on their website.  I didn't realize that there is a filing fee for appealing.  Has anyone gone through this process before? 

[Pinky]

The employees do pay co-payments on prescriptions that are filled in a pharmacy and have always paid co-payments for all Doctor visits and Emergency room visits. All employees pay a % of their current salary into their retirement pension and it's deducted out of each paycheck.

[duke_of_earl]

Possibly the first use of the word humongous in a political letter that I've ever read.  Great analysis.  I'm glad someone read the budget critically.  You are dead on with "Other expenses", I imagine that category would disappear if the departments were forced to itemize.

duke