Category Archives: City Council

City Council gives OK for Water’s Edge

The City Council last month approved the proposed Meridia Water’s Edge project for inclusion in the Lower Main Street Redevelopment Plan, paving the way for an application to be heard by the Planning Board later this month.

Fifth Ward Councilwoman Jennifer Wenson-Maier was the lone dissenter during a special meeting Oct. 24 when the council adopted the ordinance (O-26-11) by an 8-1 vote. An ordinance (O-29-11) regarding a Payment In Lieu of Taxes (PILOT) for the Water’s Edge project is scheduled to be introduced at Monday’s regular meeting of the City Council.

Capodagli Property Company has proposed 108 units adjacent to the city library and The Center Circle. The Planning Board is scheduled to take up the application at its Nov. 29 meeting and a redevelopment agreement is expected before the Redevelopment Agency at its Dec. 7 meeting.

(File photo)

Wenson-Maier was among the council members who raised concerns in September about density and size of units, pushing to have the ordinance tabled. While there may be a trend for smaller units in new developments, she said she didn’t like the room sizes but understood the concept. The proximity of Water’s Edge to the library, recreation center and downtown restaurants could address locally some of the amenities offered at similar projects around the country, such as lounges, pools and party rooms, she said.

“What was unacceptable for me as a registered architect and liaison to the Environmental Commission was that the developer refused to obtain a silver LEED rating,” which she said is very attainable. “LEED eventually will become a requirement of the international building code,” Wenson-Mailer, who sites on the Environmental Commission, said via email. The sustainablilty element of the city’s master plan, adopted by the Planning Board in spring 2010, encourages LEED building elements.

Redevelopment Agency attorney Frank Regan said the developer has a loan commitment and is trying to close by the end of the year. “Weather permitting, he’s anxious to get into the ground,” Regan said. The Redevelopment Agency last month extended its memorandum of understanding (MOU) with the Water’s Edge project.

Council adopts transitional budget

The City Council last month adopted a transition year municipal budget, covering July to December 2011, as the city moves from a fiscal year (July-June) to a calendar year (January-December).

The increase in the municipal portion of the tax bill for the two quarters ending in August and November are expected to be about $18 compared with the same two quarters in the previous year, Chief Financial Officer Frank Ruggiero told council members at the Oct. 11 meeting. The upcoming February and May quarters likely will see an $18 increase from the previous year as well, he said.

The average home in Rahway, assessed at $133,000, will pay approximately $1,522 in municipal taxes for the half-year, according to Ruggiero. In the last full year budget (July 2010-June 2011), municipal taxes for the average home were about $2,416 (Remember, municipal taxes make up about a quarter of your overall property bill, with county taxes comprising about another quarter and school taxes making up about half). The transitional year budget totals $23.396 million, with a tax levy of $16.326 million. The total state Fiscal Year 2011 budget is $44.91 million, with a tax levy of $31.166 million.

Some line-items in the budget show jumps of 50 percent, Ruggiero said, as a result of some departments being more seasonal. For example, the Recreation Department has more expenses during July and August while the Department of Public Works might have more expenses during the fall relate to leaf pickup. Ruggiero said he expects the city to go for an accelerated tax sale sometime in the late spring of 2012, as the state doesn’t allow a tax sale for a transitional year.

The City Council voted 8-0-1 to adopt the budget, which included the Special Improvement District (SID) budget and SID properties. The lone abstention was by 6th Ward Councilman Samson Steinman, who said he abstained to avoid any appearance of a conflict of interest since he’s executive director of the Union County Performing Arts Center (UCPAC) and sits on the board of the Arts District, which now receives SID funds.

5% water rate hike coming in 2012

Water rates are likely to increase by 5 percent starting Jan. 1, 2012 to help close a nearly $1.2-million deficit in the city’s water utility. The base rate would rise from $29.64 to $31.12 per thousand cubic feet. A typical residential meter (5/8 inches) would see an increase from $32.60 to $34.23 in the base rate.

The City Council introduced an ordinance (O-30-11) at its Oct. 11 meeting which is scheduled for a public hearing and final adoption on Nov. 14. Also on tap for the Nov. 14 City Council meeting is a public hearing and final adoption of at the Oct. 11 meeting, the governing body adopted the city budget, which this year is a transitional budget as the city goes from a calendar year (Jan-Dec) to a fiscal year (July-June). More on the transitional year budget in an upcoming blog post. [CORRECTION: The public hearing and final adoption of the transitional year budget occurred at the Oct. 11 council meeting; there will not be a public hearing on the budget at the Nov. 14 meeting, only a public hearing on the new water rate ordinance.]

The city purchased additional water for a variety of reasons, according to Chief Financial Officer Frank Ruggiero, including construction and dilution (the heavy snowfall led to a need to dilute water because of the salt). In total, the city spent about $450,000, of which $217,000 was funded through an emergency appropriation and raised in the budget during the transitional year, he said.

The last increase in water rates occurred in 2009, he said, and the proposed rate hike will generate about $231,000 annually.
The water utility carried a prior year operating deficit of $322,000, which needs to be raised in the transitional year. The $217,000 and $322,000 [total: $539,000], plus the amount needed to balance the water utility budget “due to lack of water rent revenue,” Ruggiero said, will require the Current Fund to supplement the utility’s budget by $1.145 million.
The water utility in 2010 ran an operating deficit of about $170,000, with total appropriations of $5.355 million (Page 8 of .pdf of city’s ’11 budget). The proposed 2011 transitional budget (scheduled for adoption Nov. 14) lists appropriations of $5.467 million for the water utility, projecting an operating deficit of about $5,000.
Several council members at the October meeting asked about the possibility of limiting any rate hike to 2 percent in 2012, or revisiting the issue annually. City Administrator and Redevelopment Director Peter Pelissier recommended the increase be 5 percent for three years but if the City Council would prefer an annual analysis, “that makes sense.” In that case, he preferred to see the rate hike higher this year, “but I know people are struggling,” he said.
In the late ’90s, the city hired United Water to manage its water utility for 20 years. Pelissier said the savings to the city over that time are estimated to be $32 million. The city still owns and maintains the facility, he said, paying a fee to United Water to manage it. The fee now is at its highest point but by 2014 will drop below $1 million, he said. The city will realize that drop in the operating budget, Pelissier said, adding that water utility surpluses in the past have gone back into the city budget.
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Readers who live near the border of Colonia/Woodbridge might be interested in this bit of news from Woodbridge Patch: “Woodbridge Buys Land Development Rights of Colonia Country Club.” Here’s MyCentralJersey.com’s take on the same story.

City Council tables Water’s Edge plan

The City Council on Monday tabled an ordinance (0-26-11) that would amend a redevelopment plan to include a 108-unit, five-story rental complex proposed near the library. Concerns were raised about the size of apartments and the density of units as proposed.

The governing body will take up the ordinance to amend the Lower Main Street Urban Renewal Plan at its meeting on Oct. 11 but some council members had concerns about the density and overall plans for the surrounding area.

The day after Hurricane Irene. (By D. Palmer)

Representatives of Capodagli Property Company appeared before the council during its pre-meeting conference last week to present their plan, which includes a request for a Payment In Lieu of Taxes (PILOT) for the project.

Fifth Ward Councilwoman Jennifer Wenson-Maier said Monday night that she thought the units seem too small and the density of the project too high for the three-quarter-acre site. The 56 two-bedroom units would be 816 square feet as currently proposed, with 14 one-bedroom units of 672 square feet, and another 42 one-bedrooms of 720 square feet since they feature an office area.

There’s no master plan for that parcel or the three acres around it, Wenson-Maier said, adding that she’d like to aim for a “better product” and a more complete plan for the area, even if it means delaying the project. In addition to density, Councilman At-large James Baker raised concerns about potential future flooding, and also preferred to include some retail and commercial components, as was the case with the Town Center project. (The photo of the site above was taken the day after Hurricane Irene).

The Water’s Edge application was to go before the Planning Board on Sept. 27 but now will be delayed until the ordinance is approved by City Council.

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NJ Transit issued an advisory that the outbound stairs on the east end of the Rahway Train Station will close Monday, until mid-October.

It would appear that the main/center stairs on the inbound platform are almost completely rebuilt — after being closed for more than 18 months. The Rahway Chamber of Commerce had an attorney send a letter to NJ Transit this week about the deplorable conditions and glacial pace of repairs to the inbound main stairs and the outbound elevator.

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).

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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.