Nine months into the year, the City Council voted on Sept. 23 to approve Jersey City’s $515 million calendar year budget for 2014 by a 7 to 2 vote, with Councilmen Richard Boggiano and Michael Yun opposed. While the municipal tax levy reduces Jersey City taxes by 2.17 percent, taxpayers will see only a four tenths percent overall reduction in their tax bills after county and school taxes are taken into account.
The budget was late partly because the administration of Mayor Steven Fulop tried to include a takeover of the previously-autonomous Park Authority, and the effort got bogged down for months while the state reviewed the process.
The tax savings for property owners would have been greater if not for increased costs in several departments, something Councilwoman Candice Osborne was extremely critical about, charging that some departments overspent without getting council approval.
Councilman Yun said the Recreation Department overspent its approved budget by 21 percent, primarily due to a street clean up program that was not approved by the City Council. Yun voted against the budget based on this.
Osborne said Yun was right, saying that although she voted for the budget this year, she would not vote to approve future budgets if the problem of unauthorized over spending was not resolved.
She said departments which cannot control spending should be stripped of that power, and managed by the business administrator’s office instead. She also called for a hiring freeze, except to refill existing positions when workers leave.
“Departments spending more than they are authorized is not acceptable,” she said.
Obsorne, addressing the Parking Authority takeover and other changes that delayed the budget, said the City Council should introduce and pass the budget as early as possible in the calendar year, then make amendments later. This, she said, would avoid the debacle caused this year by the late state approval of the Parking Authority takeover.
Council President Rolando Lavarro said overtime costs were a problem that needed to be addressed, but he also noted that the budget had provided some good solutions, such as increasing hiring in the court system, which actually reduced court costs overall.
The mayor’s office was pleased
“We made a commitment to hire more police officers and firefighters, improve our parks, add more recreational opportunities and provide an overall enhanced delivery of city services,” said Mayor Steven Fulop in a statement issued after the vote. “But we also committed to lowering taxes. I am pleased to say we have done both – reduced taxes and provided residents with the high level of services they deserve.”
The mayor said that in addition to a tax decrease for 2014, the budget establishes a fiscal framework for the next several years as the administration continues to streamline services, which includes removing the duplicate functions of autonomous agencies.
With state approval in hand, the administration is finalizing the process of abolishing the Parking Authority and folding that service into the Department of Public Safety. Following the Parking Authority consolidation, the administration will complete the merger of the Incinerator Authority into the Department of Public Works. Lavarro said the council would take into account this year’s problems with the Parking Authority merger when reorganizing the Incinerator Authority next year.
More services despite reduced spending
Fulop said that reduced spending this year did not stop the city from hiring 42 new police officers and 27 firefighters, with additional hiring anticipated next year. The city has aggressively sought federal grant funding to add more police officers and firefighters because improved public safety has been a priority of the administration, Fulop said.
Even with the overspending, administration officials said, this year’s budget reflects a 25 percent increase in recreation spending from last year, with the current budget allocating $3.8 million toward a growing recreation lineup.
The city has added such programs as scuba, boxing, cricket, fitness programs for adults, and programs for special needs athletes such as soccer and an autism quiet swim, they said.
Utilizing a combination of grants and capital funds, the administration said this year they tripled the annual number of park projects, with renovations slated for 13 parks across all wards. They called this an investment of approximately $3.9 million of capital funds and the allocation of $1.475 million of Green Acres funding, as well as $435,000 in Hudson County Open Space dollars. The city is also utilizing $1.3 million of Green Acres funding to acquire the final parcels of lands to complete Berry Lane Park in Bergen-Lafayette, the mayor said.
“The budget process is about ensuring that the needs of the residents and taxpayers come first and that every dollar spent is working to improve the quality of life in our city,” said Fulop. “By aggressively seeking grants, increasing revenue streams, and ensuring that there are no duplications of government services, we are actually able to increase the number and quality of programs offered to our residents.”
Two residents, Yvonne Balcer and Rias Wahid commented on the budget.
Balcer asked about the use of $16 million in surplus that was left over from 2013, hoping that it would be used to lower taxes.
“It is the job of this council to control the purse strings,” she said. “I wish Congress was as kind as you are to this mayor.”
Al Sullivan may be reached at asullivan@hudsonreporter.com.