At Wednesday’s Hoboken City Council meeting, the city briefly discussed its upcoming budget, which will affect property taxes. Some council members say that the city has a $20 million surplus which should bring taxes down, while others dispute the amount of the extra money.
Meanwhile, flyers critical of the decision to lay off members of the Police Department sat in pews when residents came into the meeting, but the city’s controversial layoff plan was barely discussed.
Taxpayers and the budget
Hoboken has suffered for the last few years from ballooning budgets, forcing a major tax increase two years ago. The new administration of Mayor Dawn Zimmer has pledged to cut taxes, and recently said that their upcoming layoff plan will slash $2.5 million from the city budget.
However, recent rumors said that the city failed to realize until recently that it has a large surplus – a surplus that was neither used to bring down taxes nor to save employees. The amount was revealed in the city’s financial statement for the end of the fiscal year, recently submitted to the state.
“The reason we are spending less is because we realize the tax burden is excessive.” – Councilman Michael Lenz
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“The surplus is represented in one article on the web as $33 million with $20 million unrestricted,” Lenz said. “That is false. The surplus, according to the financial statement, is approaching $20 million total, of which about $12 million is unrestricted.”
He said that the state requires the city to set aside a certain amount because of budget problems in past years, so only “unrestricted” money can be spent.
However, the city still has a significant surplus that can be spent. After the meeting, Lenz acknowledged that there is a “cash surplus” – $11.8 million.
So should some of the money be used to bring down taxes?
“If you keep the surplus, you save money so you don’t have to borrow during the year,” Lenz said Thursday. “You also lower costs because when you bond, and we do a substantial amount, your interest rates are dramatically lower.”
Lenz said the surplus speaks well of what the administration is doing. The city has increased the surplus by around $6.4 million over the past year, most of which comes from the courts (tickets), more taxes collected than anticipated, and other unanticipated revenues.
“We are on sound financial footing,” he said. “We are doing the things we are supposed to be doing. The reason we are spending less is because we realize the tax burden is excessive.”
But Councilwoman Beth Mason, a frequent critic of the administration, disagrees. She thinks residents who suffered from huge tax increases recently should now get some of the money back.
She sent out a letter to constituents last week saying, “Recently the city of Hoboken filed its year-end financial statement with the Department of Local Government Services, which revealed a budget surplus of almost $20 million. This surplus belongs to you, the taxpayers. I am calling on Mayor Zimmer to return this money to you immediately in property tax relief.”
Residents will know soon whether their taxes will be rising or falling this year. The city has been working on its next budget, which normally would cover July 1, 2010 through next June 30, 2011. However, the city is switching to a calendar year rather than a fiscal year budget, so the next budget will run from last month until Jan. 1.
Arch Liston, the city’s business administrator, said at the meeting that he is expecting to have a new budget completed by Sept. 1, the date of the next council meeting.
At that meeting, the council will introduce the budget. Then its members can look for further cuts before a public hearing and vote are held at a subsequent meeting.
$75K in overtime last month
The city’s payroll included approximately $75,000 in overtime pay over the last month, from July 8 through Aug. 11. Members of the council wanted to know why this was happening, especially during a time when layoffs are anticipated.
Different directors were called to the microphone to defend their departments’ need for overtime.
Director of Environmental Services Jennifer Maier spoke about her department, stating that they are a seven-day operation, always cleaning the parks, even on weekends.
But Councilwoman Beth Mason said that this wasn’t unusual or special. “I see government as a 24/7 operation,” Mason said. “That’s a mindset we should get into thinking about.”
Public Safety Director Angel Alicea was questioned by Councilman Michael Russo regarding $18,500 in overtime pay for the police.
Alicea stated that the overtime comes from arrests and court duties. The arresting officer sometimes has to stay past his or her shift in order to complete the processing of a suspect.
“If the arrest requires the officer to be there for a certain amount of time, that’s what we have to do,” Alicea said.
A spokesperson for the parking department stated that the overtime is paying for itself in that department, as extra enforcement is resulting in more fines and increased revenue for the city.
Layoffs a footnote
Despite recent controversy over a plan to lay off 18 police offers and 18 city workers, no residents addressed that issue at Wednesday’s meeting.
However, flyers had been left on the chairs at the meeting protesting the layoffs.
The flyers reiterated points that the police had made before. They noted that two of Mayor Zimmer’s administrative aides received raises the same week the cuts were announced. The flyer said that the plan will have a negative impact on the Police Department’s effectiveness.
Other council issues
Several other issues came up at Wednesday’s council meeting besides financial ones, including speeding and car sharing.
Speeding through the city
At Wednesday’s meeting, council members engaged in a lively discussion brought about by resident Patricia Waiters’ comments about pedestrian safety in the city.
During the portion of the meeting when residents can speak out, Waiters said, “School is opening in two weeks and I’ve seen a boy get hit on 11th and Park Avenue,” Waiters said, before asking for more to be done about safety. “The cars are speeding to get to the Lincoln Tunnel in the morning. They put a speed bump there but it ate away from the wear and tear. They will not slow down. There are two stop signs there but they do not slow down…More needs to be done.”
Councilwoman Beth Mason mentioned problems with traffic and pedestrian safety in her ward and beyond, specifically on 15th Street near the Tea Building and near Elysian Park.
“In [Elysian Park] we have school kids crossing there,” Mason said. “Now that we paved the roads, we’ve got a throughway. [Parking] Director [Ian] Sacs had said he was going to look into it. I have seen nothing. There is an issue there, and paint is not going to cure this problem.”
Councilman David Mello responded to the problems of speeding in the city.
“I think there is a feeling that although paint might not be the ultimate solution, it is a starting point,” Mello said.
Waiters also thanked Police Chief Anthony Falco for a “wonderful job at police night out.”
Car share program
Councilman Michael Russo inquired about the number of parking permits that were turned in because of new users in the city’s recently implemented car-share program.
In June, the city partnered with Hertz to provide a car-sharing service that would place vehicles in reserved spots on city streets for members to drive. The hope is that the program will ease parking in the city as more residents take part in the program.
Russo said that the city should be tracking whether the program really is going to eliminate 750 cars from the street, as Director Sacs has said in the past, and observing the number of parking permits that have been turned in due to the program.
The numbers that were provided were low, approximately three or four permits, officials said. Mello believes the numbers will rise in the long-term.
“People who came up to me [who were] really stressed that we should have an expansion of car sharing in the city,” Mello said. “Almost every one of these people was leasing a car and said, ‘When this lease runs out I want to have other options.’ This is important to consider in the long term.”
Eateries honored
Local businesses past and present were honored at the meeting.
Russo presented a resolution to name the corner of Fifth and Adams Street “Gustoso’s Bread Way” to honor Gustoso’s Bread, which served Hoboken for more than 70 years. The bakery is no longer there.
Russo said, “If you walk down Fifth and Adams, close your eyes and smell, you can still smell the bread.”
Linda Gustoso talked about the family business, and then exclaimed, “Yes, thank you!” when the resolution was passed unanimously.
The council also delivered a proclamation congratulating Empire Coffee and Tea Company of 338 Bloomfield St. on being cited for having the “Best Coffee in New Jersey” by a statewide magazine.