There’s a new business administrator for Jersey City. John “Jack” Kelly was confirmed by a 7-1 City Council vote at their Wednesday meeting.
The city’s outgoing business administrator, Brian O’Reilly, will remain employed at City Hall until July 31 as an assistant business administrator to help train Kelly.
“Although I just won your confidence this evening, I need to earn your respect.” – John Kelly
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Kelly’s background, good and questionable
Kelly, 52, will start Tuesday. He has served as the chief financial officer for the city of Orange for 21 years, as well as city administrator for three months this year. He also worked in the Essex County Office of Management and Budget from 1980-1988.
Kelly was chosen from among 25 candidates found during a statewide search to replace O’Reilly. Kelly will earn a salary of $131,966 per year, the stipulated salary for the Jersey City business administrator’s post as set by ordinance.
O’Reilly has been the city’s business administrator since November 2004 and will stay on the city’s payroll as an “assistant business administrator” for a salary of $150,441, which equals the business administrator’s salary plus pay increase for longevity. O’Reilly has worked for the city for over 25 years.
City spokeswoman Jennifer Morrill did not provide information on the amount of the payout that O’Reilly will get for sick and vacation time when he retires, since city officials “cannot anticipate that in advance.”
Morrill also declined to say who else was considered for Kelly’s new post. She said it was “a personnel matter.”
So why was Kelly chosen over 24 other candidates?
According to a city press release issued days before Wednesday’s council meeting, it was his “experience in municipal budgets, bonding, labor negotiations, as well as streamlining health benefits costs” while CFO in Orange.
More importantly, Kelly had overseen four property tax revaluations in his previous post, a valuable experience since Jersey City is about to undertake its first one since 1988.
Allegations in state report
However, some of Kelly’s other experiences brought dissent from the public.
One resident, during the meeting’s public speaking portion, brought up Kelly’s recent part-time work as a tax assessor in Caldwell and Essex Falls, and questioned his ability to serve in the BA job full-time. Kelly acknowledged after the meeting he plans to keep the assessor jobs.
And downtown Jersey City resident Dale Hardman mentioned a 1998 report by the State Commission of Investigation, a state body that conducts investigations of state and local agencies. The SCI looked into the city of Orange and released a report stating that between 1988 and 1995 – Kelly was CFO for six of those seven years – “officials failed to enforce a proper system for purchasing” and there were examples of “widespread failure to adhere to proper financial procedures dictated by statute and by the Orange Municipal Code.”
Hardman then said Kelly was “bad news” and encouraged the council not to vote for him.
Also unconvinced Kelly was the man for the job was City Councilman Steven Fulop, who cast the only opposing vote against his hire.
Fulop said that he met with Kelly directly, and that Kelly was looking to “move forward” on the city’s tax revaluation process, while Fulop did not agree with the process.
However, it was Kelly’s past experience with revaluations and his responses to questions posed by Fulop’s council colleagues – who also met with Kelly – that prompted them to vote for him.
Reacting to the SCI report
City Council President Peter Brennan said Kelly’s work as an assessor swayed him to vote, and because he received a letter from the mayor’s office about the charges in the 1998 report that assured him that Kelly was not involved in any of the wrongdoing cited.
Mayor Jerramiah Healy also issued a statement last week regarding the report. “Mr. Kelly made us aware of this report; we reviewed it, did our own research and were satisfied with the results of our questioning,”
After the vote, Kelly addressed the council as he alluded to doubts raised about him during the council meeting.
“Although I just won your confidence this evening, I need to earn your respect,” Kelly told them. “And not only the respect of you and your peers but all the citizens of Jersey City, all those people who spoke this evening.”
Kelly said after the meeting that he had hopes to put the 1998 report behind him, calling it a “smear campaign” and that it is his “scarlet letter.”