When the city introduces its new budget on Wednesday, it will contain some good news for Hoboken taxpayers. According to Mayor Dawn Zimmer, there will be a decrease in city taxes when the six month budget is introduced at the Sept. 1 council meeting.
Councilman Michael Lenz also said there will be a five percent decrease in taxes.
“The mayor, Finance Committee, and the council are committed to giving taxpayers a five percent tax cut,” Lenz said. “To give any more in a transition year would require state approval, and until we’ve had our fiscal house in order for some time, it’s very unlikely we could get such approval.”
“The mayor, finance committee, and the council are committed to giving taxpayers a five percent tax cut.” – Councilman Michael Lenz
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Decrease thanks to the surplus?
Hoboken is currently operating with an $11.8 million unrestricted surplus, which has caused some council members, such as Councilwoman Beth Mason, to call for the money to be returned to the taxpayers.
According to Lenz, some of the surplus may be used in the new budget to lower taxes. This is contrary to what was said by Business Administrator Arch Liston in a report on NJ.com, which reported that Liston said Mason’s suggestion to return the $11.8 million to the taxpayers would be totally irresponsible.
“I expect it will be using some of the surplus for the purposes of getting us to the point of the five percent tax reduction,” Lenz said. “We will make every effort to fund reserves that we expect to pay, like tax appeals and termination payments when employees retire.”
Mason called on the administration to return the surplus to the taxpayers in an Aug. 17 letter to her supporters.
“This surplus belongs to you, the taxpayers,” Mason said in the letter. “I am calling on Mayor Zimmer to return this money to you immediately in property tax relief.”
On Thursday, Mason reiterated her stance.
“My position is we should return a portion of the money in the form of tax relief and cut the tax rate immediately,” Mason said.
The five percent cuts may not be enough for some, since one of Zimmer’s campaign promises was a 25 percent tax cut.
“During the campaign for office both the mayor and her running mates repeatedly played off residents’ emotions by pointing out that taxes increased 47 percent overall and 84 percent on the municipal side of the tax bill,” Mason said. “They promised to stand up for taxpayers and cut 25 percent in their first year alone, claiming they had a specific plan to do so.”
Public hearing coming soon
The budget will fund city government from July 1, 2010 to Dec. 31, 2010. The six month budget will be slightly over $50 million, according to Lenz, but it was still being worked on as of press time.
By law, a public hearing can take place only after 28 days have passed from the introduction date. With the introduction date for the budget scheduled for the Sept. 1 council meeting, the city is hopeful that the public hearing can be held on Sept. 29, according to Lenz.
Layoffs questioned again
The city’s financial operations attracted some attention from the National Association for the Advancement of Colored People (NAACP) earlier this week when a letter from Hakeem Washington of the Hoboken NAACP asked the mayor to reconsider her proposed plans to lay off and demote police officers. The letter was in response to the city announcing plans to lay off 18 city workers, 18 police officers, and to demote 19 senior police officers earlier this month.
The budget will be introduced at the Sept. 1 Hoboken City Council meeting, which begins at 7 p.m.
How do you feel about the effort the mayor and council are making to reduce taxes and control costs? To have your say, go to www.hudsonreporter.com and cast your vote in the online version of this story.
Ray Smith can be reached at RSmith@hudsonreporter.com.
(Poll closes Friday, Sept. 3.)