Category Archives: City Council

City officials now openly at odds

If you thought last month’s disagreement over the mayor’s request for two support staff might be a rare public spat, now it’s just open warfare among the administration and City Council — despite the fact that all members of the same political party (Democrat). Monday’s public meeting brought more allegations, complaints and condemnations, a day after reports about the city’s lack of a full-time health officer.

Continue reading City officials now openly at odds

Council rejects mayor’s request for two staff

The City Council on Monday night rebuffed Mayor Rick Proctor’s move to add two positions to his office, a proposal that wasn’t supported by his own business administrator.

The mayor had sought a full-time executive secretary with a salary range of $45,000-$55,000 and a part-time chief of staff with a salary of $45,000. The two positions were removed from the salary ordinance (which sets the range for a variety of titles within the city) during the governing body’s pre-meeting conference and later voted unanimously to introduce the measure at its regular meeting. A public hearing and final approval will be held during the council’s Sept. 12 regular meeting.

City Administrator and Redevelopment Director Peter Pelissier told council members Monday night that he was not in favor of the two positions “in light of the fact that we’re trying to control taxes and spending.” He did not understand the need for a chief of staff, though he “understood somewhat” the secretary’s position, adding that the mayor could be accommodate with existing staff. “It’s not in our best interest to move a secretary from another department to the mayor’s office,” Pelissier said.

If $100,000 is added to the city budget, Pelissier said it would be better spent hiring firefighters and making promotions, as has been debated in the past, though there’s a question whether even that is sustainable. Last month, representatives of Firemen’s Mutual Benevolent Association (FMBA) Local 33 appeared before the City Council to increase staffing levels. Several council members expressed a desire to hire two firefighters over two administrative posts.

Whether there is $100,000 available in the budget remains to be seen, as planning on the 2012 budget moves ahead this fall. City Attorney Louis Rainone reminded council members that the ordinance merely authorizes the city to pay these salaries. Whether there are funds available, that decision comes when the budget is deliberated.

The executive secretary post has been vacant for five or six years and Proctor said the previous mayor at one time or another had a chief of staff or executive secretary during his tenure. A chief of staff is a more of a policy aide and with all that’s going on with economic development and the Arts District, “there’s a lot to get a handle on,” he said, adding that there have been a few items he hasn’t been able to implement since taking office. Existing staff could be moved from another office to fill the executive secretary post, so it’s not necessarily adding a position but just result in some bumping, he said.

The chief of staff would be new but Proctor said he has the duty to spend money responsibly, and as needs of the city evolve, he must respond appropriately. A chief of staff would help to move the city forward more effectively. The position more focused on policy development and planning while a city administrator handles day-to-day operations and assists in the planning the budget and other business functions.

There were no objections raised, according to Proctor, when he discussed it with the administrator on Friday. He was “very disappointed that City Council members did not seek additional information” on the positions before removing them from the ordinance. “It felt like the whole thing was a little orchestrated,” Proctor said in a telephone interview Tuesday. The mayor said he’s been evaluating city operations and has attempted to change the “business as usual attitude,” but when he tries to implement changes, he gets “a lot of pushback.”

Second Ward Councilman Michael Cox asked what impact there might be if the measure was tabled. Pelissier said most management employees are expecting a 2-percent salary increase (unless it’s been adjusted for specific reasons), and if the ordinance were table, approval would not come until October, with payment retroactive to July.

The motion to remove the positions and vote on the ordinance was made by 6th Ward Councilman Samson Steinman and seconded by 5th Ward Councilwoman Jennifer Wenson-Maier. The ordinance was introduced unanimously. The ordinance set a rate of $65,000 for the mayor; $110,000-$163,344 for the city administrator, and $8,043 for council members ($9,676 for council president). The council’s rate represents an increase from $7,740 ($303, or 4 percent).

During the public portion of the meeting, representatives of FMBA Local 33 lobbied for hiring three firefighters and promoting two others.

Proctor said the need exists and he will continue to press to improve outreach, and though he wasn’t sure what form it would take, he would continue to push for the position. “Hopefully with the business administrator and City Council’s cooperation.”

In general, it’s uncommon for an administration to disagree so publicly, especially when they’re all from the same party (in this case, Democrats). Even for the City Council, it’s been rare to see members break from the administration or voice much dissent on most issues in recent years.

Asked how he would describe his relationship with the city administrator, Proctor said: “Developing.” Proctor took office in January, reappointing Pelissier to another four-year term following many years as administrator to former Mayor James Kennedy, who did not seek re-election last year.

Council moves forward on Water’s Edge project

The City Council last night introduced an ordinance (O-26-11) to amend the Lower Main Street Urban Renewal Plan for the Meridia Water’s Edge project.

The Planning Board is expected to take up the matter later this month (Aug. 30) and provide a recommendation to the City Council before the governing body holds a public hearing and final vote on the ordinance next month (Sept. 12). The Planning Board then would consider a site plan, as early as its September meeting (Sept. 27).

Can you find the rainbow?

Capodagli Property Company of Pompton Plains has proposed 108 units on the 0.75-acre property (Block 305, Lot 5.04) adjacent to Rahway Public Library, Center Circle sports complex and Rahway Plaza Apartments. Capodagli last week presented the Redevelopment Agency with a revised project 108 units compared with the 116 units presented in the spring. The five-story, 108-unit proposal includes 52 two-bedroom units and 56 one-bedrooms compared with a 20/96 split in the earlier version. Since the plan currently only includes 90 parking spaces, some arrangement would be necessary for the project to use upward of 18 spaces in adjacent parking lots.

About six years ago, a day care center was proposed in the area (.pdf) at Block 305/Lot 5.03 (.pdf). The majority of the City Hall Plaza complex and adjacent lots at one time was planned as the Town Center project, a massive mix of residential, retail and parking (circa 2007).

***

The latest from NJ Transit on the center stair repairs at the Train Station: Closed through September 2011. It really doesn’t even look like much work has been done of late, so I think I can speak for a majority of you when I say: WTF?!?!

The advisory comes on the the heels of another one earlier this week that repairs to the elevator on the westbound side “are scheduled to continue through September.”

S&P gives Rahway AA rating; debt ‘moderate’

Standard & Poor’s Ratings Service assigned a AA rating and stable outlook to Rahway in advance of its $11.65-million bond sale this past spring. “The city’s tax base has experienced, what we consider, limited, but stable, growth; it increased by 2.1 percent since fiscal 2007 to $1.55 billion in fiscal 2010.

This equates to a per-capita market value of $134,775, a level we consider extremely strong.” That net debt as a percentage of average equalized valuation was 1.4 percent, as of March 1, while the statutory limit is 3.5 percent.

“The city’s overall debt burden, which includes overlapping governmental units, is a moderate $4,943 per capita, or 3.7 percent of market value, and debt service accounts for a moderate 8 percent of operating expenditures. Other than the bond issuance for the Merck tax appeal repayment, officials do not plan to issue additional debt in the near future,” according to the report.

Here’s a breakdown of the city’s valuation, by class. Notice that “Industrial” used to be about 24 percent of the total and this year is down to about 21 percent. The total for “Residential” has remained largely unchanged in recent years but still jumped from 64 percent of the city’s total to 66 percent this year, while “Apartment” is up by more than 12 percent, jumping to more than 3 percent of the city’s total.

The almost 4-percent decline in the tax base in 2011, according to S&P, is likely the result of the tax appeal by Merck, as well as the general economic downturn. It appears that the valuation is expected to drop another 1.3 percent next year as a result of the tax appeal, barring any other new changes.

The tax appeal settlement knocked off $62.7 million from Merck’s 2011 assessment to $249.75 million, which totaled property taxes of $27.7 million, according to the mayor’s February letter regarding the appeal. The company’s 2012 assessment will be reduced by $82.4 million, to $230 million. A review of property tax records shows Merck owns different 19 parcels in Rahway, ranging in size from less than an acre to 37 acres for a total 91 acres and broken down in this Google spreadsheet.

If any other interesting tidbits come out of the bond sale documents, I’ll post them.

Bond sale included $7.8M for redevelopment

It’s long overdue for some details about the city’s bond sale this past spring that I promised last month when I posted the city’s top 10 property taxpayers.

The city borrowed almost $12 million in general improvement bonds, including almost $8 million for redevelopment- and arts-related items.

Ten of the 22 items in the $11.765 million bond sale were related to redevelopment, totaling $7.78 million for redevelopment, more than half of it related to the Hamilton Street arts projects. About $783,750 was authorized in 2007, which covered architectural concept plans, planning and engineering, surveying, DEP permitting, floor plans and elevations, and demolition of the Hamilton Laundry building. Another $4.5 million was authorized last year, but only $3 million borrowed so far, for the Arts District’s amphitheater, which would cover the renovation of the Bell Building (now referred to as the Hamilton Stage), construction of the amphitheater, acquisition of arts related equipment and eventual acquisition of the Elizabethtown Gas building (Block 167, Lot 1).

A breakdown of the 10 items, some dating back to 2000, can be found in this Excel file, including the amounts authorized and bonds issued, along with a brief description. At the April bond sale, the city secured a rate just below 4.51 percent over 20 years from J.P. Morgan (UBS Financial was the other bidder, coming in at under 4.59 percent). The bonds mature annually on April, beginning in 2012 at $350,000, increasing to $450,000 in 2015, $550,000 in 2016, $560,000 in 2017 and $640,000 in 2018, before leveling out at $700,000 annually through 2030. The complete maturity schedule can be found in this Excel file.

In tomorrow’s post, we’ll take a look at what Standard & Poor’s had to say in its report on the city.

***

NJ Monthly magazine’s Table Hopping with Rosie paid a visit to Patria Restaurant and Mixology Lounge. She called it “a place in NJ that should be on your must-try list.” Overall, she had quite a few good things to say, calling the garlic shrimp better than anything found in Newark, and advising not to miss some entrees (including Patria pork, and I must agree) as well as dessert.

East Cherry Street demolition tab = $75,000

The City Council tonight approved an emergency contract for the demolition of 65 E. Cherry St., which occurred last month. Frank Lurch Demolition Co. of Asbury Park was awarded the $75,000 contract.

Continue reading East Cherry Street demolition tab = $75,000

Almost $42k in property taxes canceled

Almost $42,000 in property taxes have been canceled for 2011 in connection with redevelopment projects downtown and the Arts District.

Continue reading Almost $42k in property taxes canceled

Bell Building a shell of its former self

Construction began last month to turn the Bell Building on Hamilton Street into a black box theater, a little at a time (photo left), until last week when several of walls were knocked out (photo below).

Continue reading Bell Building a shell of its former self