City Council unanimously adopted the 2022 municipal budget during a special meeting held via Zoom on July 28 that’s expected to decrease the municipal portion of property taxes by about $3 on the average home.
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The 2022 municipal budget was introduced in June. The $61.8-million spending plan will raise some $38.3 million via property taxes.
Two residents spoke during the public hearing on the budget. Andrew Garcia Phillips of Campbell Street asked for explanations about increases in general administration expenses, almost doubled from $400,000 in 2021 — “That’s a lot of mother’s day cards,” he quipped — Payments In Lieu Of Taxes (PILOT) and water and sewer connection fees of recent developments, and the library budget.
“You don’t have to vote yes tonight, but I know you will,” Garcia Phillips said. “You can vote no and ask questions.”
Chief Financial Officer Frank Ruggiero explained the the city had not cut the library board budget but maintained it at $1.7 million because last year and this year, the library board agreed to use cash surplus on hand of $400,000 and $300,000 respectively, to offset what the city paid, which was still in excess of the state minimum. “There’s no reason to charge the taxpayer twice for money the library is sitting on and not using,” he said.
PILOTs have been paid in accordance with financial agreements with developers. Ruggiero said the city likes to have a full year of financial revenue to properly calculate PILOTs from new developments, to anticipate a valid estimate. When a building is completed partially through the year, the city doesn’t want to speculate how fast it will be a full rental capacity, he said, adding that the city gets an audit for full year revenue and collect payments accordingly.
Lisa Vandever of Oak Street reiterated the inquiry about the budget increase in the administration’s expenses.
City Administrator Jacqueline Foushee said the increase in the administration’s budget was to jumpstart activity within the city behind “a number of events and different opportunities for nonprofits.” the budget allotted funds to “get people out and about in the community as well as businesses there.”
Ultimately, the budget passed by an 8-0 vote, with some council members absent or muted during the Zoom meeting.
Water and sewer connection fees are normally collected the year services are applied for, Foushee said. In the case of recent developments that opened in the past year or two, like Reva Rahway or The Gramercy, it would be reflected in this year’s budget but would have been paid several years ago when the lines were constructed and installed. Meridia Brownstones was the only project that asked to divide sewer and water connection fees over several years, she said.
City Council members offered little comment on the budget but to thank and congratulate the administration on the spending plan. “It’s a working document we all have a hand in,” said Councilman At Large Jermey Mojica. “If we’re not asking a million questions now, it’s because we have,” he said.
Behind the scenes, City Council speaks with the administration and receives briefings the week before and day of meetings, 2nd Ward Councilman Michael Cox said. “We’re aware of what’s going on and formulate questions and opinions,” Cox said, “if we get to ask and the information is always furnished to us.”
“No person on this council would vote on something we don’t believe in,” said Council President Joanna Miles, who’s up for re-election in November running on a slate with Mayor Ray Giacobbe, Jr., Mojica and Councilman At-Large Jeff Brooks. “It’s not a yes, yes, yes. We discuss these different resolutions and ordinances before we vote on them,” she said.
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