Guttenberg may hold off on giving $200,000 in pension payments to the state so that the town can save money in its budget this year. Guttenberg’s Town Council approved possibly postponing the pension bills at their March 23 meeting.
The postponed payments are allowed because of a bill recently approved by the state Senate and Assembly. The bill allows New Jersey towns to defer half of their payments to the state’s pension system for one year. The annual contributions to the Public Employees’ Retirement System (PERS) and Police and Firemen’s Retirement System (PFRS) would be paid back over a 15-year period at 8.25 percent interest, starting next year. The state approved the bill in order to help out financially-strapped towns in a tough budget year.
Usually, towns would have to pay their pension bills by April 1, 2009 for the current fiscal year ending on June 30.
In Guttenberg’s case, they are not sure if they will go through with holding off on the payments, but submitted their application to the state just in case, to supplement the proposed $12.9 million budget they submitted.
“We need to pass this resolution tonight so we can submit it to the [state] financial board in Trenton, because if we did not do this, if we do not leave our option open with the pensions, we would be foregoing our right to get any extraordinary aid this year,” said Mayor Gerald Drasheff.
Drasheff said that if Guttenberg does not receive any aid from the state, they will consider whether putting off pension payments is the “most fiscally sound thing to do.”
Resident Vasilious Scoullos questioned the council during the public speaking portion of the meeting about why it has taken so long to pass a budget, and asked if there would be another estimated tax bill.
Drasheff said that they usually pass their 2008-2009 fiscal budget in December, and that this was the latest they had ever gone without adopting one.
Chief Financial Officer Vince Buono said that that the town will not be able to send out another tax bill until they pass their budget and set their tax rate.
Scoullos also questioned the yearly town audit, which showed more problems than the year before. Drasheff said that it was due to changes in staff, and that a corrective action plan would be made.
Hoping for grants
Through a resolution, Guttenberg announced that they will apply for $2 million from the Hudson County Community Development Block Grant fund, which will be put toward the construction and design of the community center that will be jointly used between the town and Anna L. Klein School.
During the public portion, Scoullos said that he heard a rumor that the town would eventually be looking to bond for $12 to $15 million for the project. He questioned why the school did not include a referendum of the project was not included for the upcoming school board election.
Drasheff said that it was because no one had been able to finalize their budgets because the hold-up on the state level. He said that the town will look into getting funding from every avenue possible, such as with the Hudson County Open Space Trust Fund, before thinking about what the taxpayers may have to contribute.
Officer of the month; promotions
Also at the meeting, Sgt. James D’Amore was reappointed as a deputy coordinator to the Hudson County Office of Emergency Management.
D’Amore was also named the police officer of the month. Director of Public Safety Michael Caliguiro said that D’Amore was instrumental not only as a officer, but in his role with the OEM.
“I’m especially happy to give this award this month because as many of you probably know, another hat I wear is with the county OEM [as a consultant],” said Drasheff. “As a result, I get to work a lot with Sgt. D’Amore, and believe me, compared to what goes on in some other towns, we’re very fortunate to have him.”
Caliguiro said that D’Amore was responsible for helping Guttenberg police get safety equipment through grants.
Michael Meawad, hired on April 2, 2007, and George Gunderman, hired on June 25, 2007 were promoted from temporary and probationary police officers to permanent hires.
New contracts
Guttenberg renewed their contract with the North Bergen Free Public Library at $154,669, which will be paid in monthly installments at $12,889. The contract will run from Jan. 1, 2009 until Dec. 31, 2010. The contract included at 4 percent increase from last year.
A contract with Gotthold Paving LLC was awarded $1,650 for emergency paving work on J.F.K. Boulevard East.
A new gasoline contract was also struck with Wright Express Financial Services Corp. for the police, public works, and fire prevention departments. The selected departments will now purchase their gas at the ExxonMobil station located at 60th Street.