Arriving at the halfway point in the fiscal year, the mayor’s office delivered a municipal budget of $324 million at a City Council caucus meeting on Monday. Mayor Glenn Cunningham stated that the 2003 budget fulfils his pledge not to increase city property taxes.
“I will introduce a budget that holds the line on spending and does not increase taxes,” said Cunningham.
Included in the proposed municipal budget are provisions for the hiring of 36 new fire fighters and 60 additional police officers.
Speaking from his office on Monday, Cunningham said the portion of taxes paid to the Jersey City Board of Education would also be frozen. In addition, taxes paid to the County of Hudson have not, as yet, changed.
The budget estimates a reduction in debt service by $4 million after the refinancing of the city’s debt has been accomplished. Speaking before the City Council on Tuesday night, Jersey City Business Administrator Carlton McGee recommended the debt refinancing to the council.
“Now is good time to refinance the city’s debt with interest rates being so low,” said McGee.
With the exception of Mariano Vega, the council voted to approve the resolution Tuesday calling for the issuance and sale of $80 million in refunding bonds.
“We got the budget yesterday,” protested Vega. “There should be more time to look at the document.”
“My vote against the refinancing resolution was one of principle,” Vega continued. “I did not do it to hurt anyone.”
The vote to refinance the debt was passed 7-1. Councilman Peter Brennan was not at the Tuesday night meeting. According to figures in the 2003 budget, the cost of debt service will be reduced from $42.3 million in 2002 to $38.5 million for 2003.
Total appropriations for the police department for 2003 are $73 million. This is in comparison to the figure for 2002, which was $78.4 million. Fire and emergency services is budgeted for $49.8 million, down slightly from $50.8 million last year.
Cunningham stated the budgets for the two departments would equal the budgets for last year when the costs of the Sept. 11 attacks are factored in.
The hiring of the 36 additional firefighters has been some time in coming. Since early April of this year, the appointment of the new fire fighters has been on hold. Two of the new candidates, Maureen Nally and Carmen Zapella, will be the first women firefighters in the history of Jersey City. After much wrangling, the city secured the funding for the new fire department hires early in November.
The revenues projected to come from the city’s Special Improvement Districts was also included in the budget projections. The Historic Downtown SID will turn in $145,382 this year. The Central Avenue SID will yield $92,762 for the year 2003, compared to $78,380 for last year. A Special Improvement District is a collection of area businesses that make improvements to the physical surroundings in their business district. These improvements are implemented through funds contributed by the participating businesses.
Taking a ‘long look’
Cunningham urged the City Council on Monday to keep politics out of the budgetary process.
“Some people would like to make the budget political,” said Cunningham, alluding to the problems between himself and the council over appointments to city agencies (see cover story). “The council and the administration must support each other with the common goal of making Jersey City the shinning star of our state.”
“I’m going to be taking a long look at this budget,” said Councilman E. Junior Maldonado.
Maldonado added he hoped the budget was not “too imaginative” in the way it raised money through sales of city property. Included in the budget is the sale of city property on Summit Avenue in the Heights to the Jersey City Board of Education. According to Stan Eason, director of communications for the mayor’s office, no price has yet been set for the sale.
“A few years ago, the city sold the Caven Point recreation facility to the Board of Education,” said Maldonado. “That is a facility that we could have for our kids, which we don’t have anymore.”
Councilman Steve Lipski suggested a number of points the mayor and Council could work together to improve Jersey City.
“Something has to be done with The Hotel in the Square,” said Lipski. The hotel is an abandoned building in Journal Square, the area Lipski represents in the council. Lipski believes the structure should be torn down and be utilized for retail and residential purposes.