Tag Archives: budget

City Council

New poll: Should the mayor’s salary be reduced?

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Since it’s a slow, holiday week, and it’s been too long since we had a poll up on the blog, what better time to unveil a new poll question? Completely unscientific, of course.

The City Council introduced a salary ordinance this month that would reduce the mayor’s salary from $65,000 to less than $21,000, a cut of 68 percent. City Council members are paid $8,043, with the Council President earning slightly more, at $9,676. Both are considered part-time positions.

Should the City Council reduce the mayor’s salary?
* Yes.
* Yes, but they should all be cut, including Council members.
* Not only cut, but salaries for all elected officials, and then some, should be cut.
* Times are tough, make cuts wherever you can.
* No; you get what you pay for; they should be paid something to attract worthy candidates.
* No.

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City Council

City Council moves to slash mayor’s salary

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The City Council introduced a salary ordinance Monday night that would slash the mayor’s salary by 68 percent, drawing a 5-minute rebuke from Mayor Rick Proctor in which he called the move an abuse of legislative power and political retribution.

The ordinance (O-38-11), which will be up for a final vote and public hearing at the Dec. 12 meeting, would set an annual salary for the mayor’s position of $20,809 — a 68-percent reduction from $65,000. The salary ordinance passed 8-0 (one absent) and would take effect Jan. 1. City Council members, who received a roughly 2 percent increase in the previous salary ordinance adopted in September, would remain at the same pay level of $8,043 in the new ordinance ($9,676 for the council president).

“This isn’t about Rahway. This is about a political falling out and an abuse of legislative power. This is a personal vendetta, not public policy. This is not about Rahway, this is about vindictiveness. Am I bitter? Yeah, I am. I’m human,” said Proctor, adding that he took a $50,000 pay cut to run for mayor.

Proctor said $50,000 could be saved if City Council members cut their salary by 68 percent. He rattled off figures indicating that from 2005 to 2011, certain department heads saw their salaries rise as much as 30 to 40 percent. During the same six-year period, the mayor said City Council increased its own salary by 18 percent. “That’s preposterous, and sends a very clear message to the public that you’re either going to sleep through this recession or feel entitled to inflict economic pain to insulate yourself from sacrifices,” said Proctor. “I’m certain that the public will recognize that this ordinance stinks of retribution,” he said.

“Every day the people of Rahway suffering from economic hardship and the only solution you can come up with is to pick my pocket,” said Proctor. “That is inspired leadership.”

The mayor has been at odds with the City Council, as well as City Administrator and Redevelopment Director Peter Pelissier, since at least the summer, when the governing body rejected his bid to add staff within his office, and claimed he tried to have his wife hired as health officer.

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City Council, taxes

Council adopts transitional budget

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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.

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City Council

5% water rate hike coming in 2012

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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.

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City Council

City officials now openly at odds

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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.

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City Council

Council rejects mayor’s request for two staff

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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.

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City Council, tax appeals, taxes

Merck tax appeal adds $66 to municipal tax bill

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A tax appeal settlement with the city’s largest taxpayer, Merck & Co., will cost the average taxpayer another $66 this year, on top of what was expected to be a $146 municipal tax hike for the average Rahway home. The City Council approved the settlement by a 6-0-1 vote during its meeting last week.

Continue reading Merck tax appeal adds $66 to municipal tax bill →

City Council, taxes

City Council vote on budget Monday

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After holding a public hearing on the municipal budget last month, the City Council is expected to vote on the spending plan at its meeting on Monday at 7 p.m.

The 2011 budget, which runs through June, is $44.9 million, with approximately $31.1 million (up from $29.7 million last year) coming from property taxes. The governing body held a public hearing on the budget at its January meeting but tabled approval of the spending plan until the February meeting. The overall budget is up about 1.3 percent from last year while last year’s budget was up about 4.5 percent.

The average home, assessed at $133,000, paid roughly $2,280 in municipal taxes last year, and that total is expected to rise by about 6 percent, according to City Administrator and Redevelopment Director Peter Pelissier. A 6-percent increase would bump last year’s average municipal taxes paid by about $136, for a total of almost $2,416.

Municipal taxes generally make up about a quarter of the overall tax bill, with another quarter from county taxes and half from school taxes.

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In case you missed it, the Merck-Schering-Plough merger, announced almost two years ago, looks like it will mean some of Merck’s Rahway employees, as well as some in Summit and Union, will be moved to Kenilworth eventually. The firm plans to convert its Kenilworth campus into a research center focused on biologics, according to this Star-Ledger report last month. Some 580 manufacturing jobs will be lost while another 900 employees in marketing, HR and legal will move to the headquarters in Whitehouse Station.

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