It appears that North Bergen’s state-designated urban business district – with its ability to charge customers only 3.5 percent sales tax – will be able to remain in place, but the amount of funding it will receive from the state’s projected $29.4 billion budget is still uncertain.
North Bergen is one of several cities in the state that is allowed to charge half of the usual state sales tax in order to lure shoppers, and the money from that tax usually comes back from the state to beautiful the district, hire police, and make other capital improvements.
As part of his budget cuts, Gov. Christopher Christie froze those funds earlier this year.
Sacco does not like that the taxes raised in local areas will be more tightly controlled by the state.
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Sacco is concerned that Gov. Christopher Christie may be removing the ability for local municipalities to control and grow their UEZs, and is instead keeping a tighter grasp over the funds in Trenton.
“I foresee it as a disaster right now,” said Sacco.
Sacco said that he could deal with having funds cut because of the “bad economic times,” but that he does not like that the taxes raised in local areas will be more tightly controlled by the state.
Future of UEZ
Sacco said that so far, the governor has not announced a plan as to how funds will be allocated to the UEZs, other than they will have to apply to the state for funding.
He also said that there is no viable plan for the future and fears that UEZ funding could be cut even further in years to come.
Sacco said that they will not be able to bring in new businesses, fix roadways, or expand the zone further.
Right now, North Bergen has about $1 million in UEZ funds frozen. Also, the township supplements its approximately $76 million municipal budget with $2.5 million from the UEZ on an annual basis.
“The growth is hurt severely,” said Sacco. “This lays the ground work for the UEZ to disappear.”
Sacco said that some towns have settled on “accepting cash” rather than keeping the program and seeing what they can earn from sales.
“[The funds that come back are] no longer tied in to what we bring in,” said Sacco. “This is the greatest plunder.”
Tricia Tirella may be reached at TriciaT@hudsonreporter.com.
Also at Wednesday’s meeting…
At the June 23 North Bergen Commissioners Meeting, a resolution was passed that will bring more trees to the township.
New Jersey Transit – as a part of the new train tunnel it’s building under Hudson County into New York City – has promised to plant two trees for ever one it has to remove. According to Township Administrator Christopher Pianese, NJ Transit will give North Bergen funding to plant the trees.
North Bergen also renewed several contracts at the meeting.
Housing and Community Development Services, Inc., of South Orange, which assists the township with the Community Development Block Grant Entitlement Program, had its $25,000 one-year contract renewed.
The township’s professional appraiser, Hugh McGuire of Jersey City, was renewed with a contract that will not exceed $95,000.
The traffic consultants Dolan & Dean Consulting Engineers, LLC, of Martinsville, renewed their one-year contract, which is not to exceed $15,000.
The township’s emergency notification system contract with C3 Citizen Communication Center was renewed for one year at $2,000 per month.
All of the contracts span from July 1, 2010 until June 30, 2011.
Pianese said that he has made sure that all of the contracts this year are at the same rate as last year’s, if not less. – Tricia Tirella