The Middletown budget has been the subject of quite a bit of discussion lately. Some of the information I have heard from folks around town is based on very false and misleading data. To try and clear things up, I thought I would put together a fact sheet to give people the reality of all things associated with the 2010 budget, as well as the situation at the state level. As always, if you have any further questions or need additional information, don't hesitate to contact me. Also, please look over the attached FAQs - they are quite sobering.
Here are the facts:
- the proposed municipal tax increase is 2.8% which means the municipal increase on a $5000 tax bill will be $140 per year, a $10,000 tax bill will be $280 per year and so on. This will go down prior to adoption, thanks to legislation the governor has signed that will allow us to make additional cuts.
- 98% of all of the municipalities in the state had to do estimated tax bills this year. This is due to the state budget and the uncertainty of state aid to the municipalities.
- it is a mistake to multiply the third quarter estimated tax bill by four - THAT IS NOT THE PROPERTY TAXES FOR THE YEAR! When people get their fourth quarter bill, that will be accurate and will also be much lower than the third quarter bill.
- Middletown has one of the lowest tax rates in the region. While we are currently at 35 cents, Fair Haven, for example, is almost 49 cents and Little Silver is over 50 cents.
- Middletown has one of the lowest worker per capita in the state (305 for 70,000 residents and 41.4 square miles) and one of the lowest spending per capita (around $880 per person).
Below are some of the drivers of the budget and how we've addressed them. Get rid of binding arbitration, civil service and unions and we could really do some cutting. For now, we are legally prohibited from doing what is really needed to make deep, significant cuts.
While there were many factors that contributed to this year’s budget problems, the main ones were:
$1,564,911 loss in 2010 state aid. This loss comes after a $640,000 reduction in 2008, $184,000 in 2009.
$1.4 million for prior year’s salary increases from resolved labor contracts;
$1 million increase in health care costs,
$900,000 for snow and rain storms clean up,
$900,000 for unexpected retirements. Cost includes payments for unused sick and vacation time.
$1.8 million increase in pension payments mandated by the state.
$400,000 loss in recycling revenues
To address these, the Township Committee instituted:
40 staff/position reductions since January 1, 2010.
A 15% reduction in 2010 department funding requests.
Purchasing natural gas and electricity as part of a collective of 119 government entities known as the New Jersey Sustainable Energy Joint Meeting (NJSEM) instead of from the utility company. The move is slated to save approximately $160,000 this year.
Funding the 2010 Summer Concert Series with community and business sponsors.
Canceling Middletown Day unless sufficient private sponsorship is found.
Closing the township’s skateboard park and mini-golf course.
Closing the Police Department’s Community Relations Bureau and suspending the DARE program.
Limiting lifeguards on municipal beaches to weekends only.
Continued limitation of overtime for non-essential personnel without approval of the Township Administrator.
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29 comments:
Privatization, was it considered in any areas? Shared services considered in any areas?
Middletown has over 30 shared service agreements already and working on another which Byrnes has opposed.
Why is it that wherever the Dems
are in control--Newark, Camden,
Trenton,etc--they are bankrupt,
crime-infested, broken schools,
and places like Middletown run
by conservatives is consistently
voted among the best places to live? Just luck l guess.
Art - this is just the type of information the taxpayers need to know. New Jersey, as a whole is saddled with a tax burden that is way too high. As a proud resident of Middletown, I think the town is doing a spectacular job within the system in place in this state.
A few quick comments, I might return later. Taxman Scharfenbrger does not articulate what the "false and misleading data" are.
The proposed overall (county, schools and municipal combined) tax increse is 2.8%. Middletown's municipal tax increase is a proposed 12.9%.
Who cares if 98% of municipalities did estimated tax bills. Middletown is 8 months late with its budget.
If Middletown has such a great per capita ratio regarding spending, imagine how much better it would be if there was competent elected leadership in the majority, good management and better budget planning.
Notice that there are actual numbers linked to the costs associated with the "factors that contributed". But, there are no numbers linked to the actions taken to resolve these costs. Probably because the revenue needed to resolve these costs is mostly obtained from an increase in municipal taxes. Very little revenue is obtained from the actions taken on Taxman Scharfenberger's part.
Of the 40 positions eliminated 16 were reductions in staff; all the others were retirements, which cost $900,000. There are another costs associated with this item that Taxman Gerry doesn't mention here.
Finally, for now, the $1.8 million in pension payments mandated by the state was a known factor and should have been planned for. The so called mandate was a stipulation by the state for permission to exceed the 2009 4% cap. No pension payment was the cost, or "fee", to get permission. This fee is due in 2010.
You see Art, it must be difficult being a Democrat in Middletown, what with Republican leadership being so successful and resulting in the town being named one of the top 100 places to live in the country three years in a row of eligibility. Correct me if I'm wrong Art, but what was the outcome of your question, "name a place that is better run than Middletown?" Also, do you notice how they can't refute the low number of workers, the low spending, the low debt, the low tax rate, etc. Funny how they can't dispute, as one poster rightly pointed out, why all of the worst, corrupt, crime-ridden, wasteful towns/cities are run by Democrats. Guess you just can't argue with success.
OK here is the question I always ask everyone who bitches about taxes. What services do you want cut?
My guess is that Anon 1:11 is Gerry 'Taxman' Scharfenberger, which explains the "spectacular job with the system in place" qualifier. This is a very subtle, crafty, way of shifting responsiblity and accountability away from the elected Republican majority (Scharfenberger, Fiore, Brightbill and Massell) for extremely poor fiscal management and blaming it on the "system". 'Taxman' Gerry loves the blame-game.
Gerry, any chance you might blame losing $94,000 in revenue three years in a row on the one time $850,000 cell tower lease sale, which has created a $850,000 hole in the 2009 and 2010 budgets. This was a move that Art himself critized in his blog.
Fair Haven's tax rate was 49.1 cents in 2007. Our rate is 45.8 in 2010. Over that same time frame state "aid" was cut nearly in half.
Comparing tax rates town to town does not give an idea of fiscal soundness, as every town is different. Middletown's budget is ten times Fair Haven's. They supply vastly different services. For example, FH does not have a swim club, housing authorities or facilities, etc. the list goes on and on.
Ha thanks for the compliment anon 3:17 but I'm just a person who has lived in enough places in this state to know the difference between living under Democrat and Republican leadership and to paraphrase Pearl Bailey, "I like Republican leadership a whole lot better." Maybe those of us without skin in the game can be more objective in our observations. You Democrats have an uphill battle this year so your only hope is to try and tear down the success of others.
Anon 2:24, Did you forget that Republican Ray O'Grady sat on the Middletown Township Committee with Scharfenberger, Hall, Parkinson and Peters, when he was arrested and later convicted of taking a bribe as a result of 'Operation Bid Rig'? Is that part of your definition of Republican "success" in Middletown? Does that "dispute" your claim of Republican dominated Middletown being free of corruption?
Unlike Fair Haven--see Mike Halfacre's response--Middletown's tax rate keeps moving up, not down.
Republican leadership has moved Middletown's ranking in the 'Top 100 Places' to Live from 50 in 2006to 89 in 2010, which is a 39% drop in its ranking. You can thank Scharfenberger and Brightbill for contributing to this drop. Like the tax rate it moves in the wrong direction. Another great example of "success" under a Republican majority?
The answer to Art's question: "name place that is better run than Middletown" was answered once before. It is: Fair Haven, Rumson, Millburn-Short Hills, Mendham and Bedminster.
The last time Standard & Poors rated Middletown was in 2004. I wonder if Middletown's AA rating would change if they were rated today?
Mayor Halfacre - why don't you urge your Republican friends in Middletown to shut down the arts center and the pool clubs. Government should NOT be paying for this. I agree with Byrnes.
Anon 4:01, No success to tear down.
You can't compare tax rates from town to town ...only if they were reassessed the same year ! Little Silver and fair Haven municipal rates were increased ZERO % .....what say ye Middletown compare that !
Scharfenberger would make a great used car salesman.
Ray O'Grady was a Republican that was in bed with the dems in Middletown. So much so, he tried creating his own republican organization with the likes of john merla, terance wall, etc.
Middletown will be a good place to live again when the TAXMAN is gone!!
The "cheerleader" is full of shit and it's the same old refrain.
Who believes her anymore??
Make that a snake oil salesman !!!
Here we go again ....and the SPIN WILL BEGIN........
Never forget the shenanigans of the revaluation
"
Democracies rest upon fundamental principals,not uniform practices."
The constant attack against both parties is getting tiresome. The problem in this case is not so much the Republicans, but Scharfenberger.
Yes, the Republicans have have been in power for almost 30 years, so they have to be held accountable.
But this mayor has been mayor for 3 years and twice deputy mayor.
I liked Gerry when he first ran, but I gradually saw through the facade and realized he's really a wolf in sheep's clothing.
Just heard that the LFB canceled
Middletown's hearing due to the lack of a quorum.
Gee, what else can go wrong? We won't have a budget till Sept.
The soap opera continues.
Little Silver is led by a devoted "hometown gal" and has been for years, Given the limited commercial area to help the tax rate ,a stable tax rate in that town is commendable and the same is true of Fair Haven where the rate has declined.
Thanks,Mike Halfacre, for straightening out Middletown's Scharfenberger.
Little Silver, Fair Haven, Rumson and Colts Neck and are all considered premier places to live in Monmouth County and they do not make constant headlines because of lack of integrity in government.
Tues 12:08, 1:11. 2:24 ,4:01 and lots more anonymous comments by the "Ken and Barbie" routine, ....
Same tied old diatribe and it gets old.
Middletown will be a better place to live without this man in local government !!
If you take a look at Rush Holt’s most recent campaign disclosure records http://bit.ly/d60D9d you will see that he is well funded by corporate lobbyists and Washington D.C. insiders. Most of the money comes from outside the state, and, more specifically, Washington D.C. There are a few contributions from New Jersey. Mark Matzen http://bit.ly/aKb79d http://linkd.in/deZH3v is one of Rush Holt's corrupted cronies that is well rewarded, but not well known. He just received $7000 for campaign consulting through FiftyOne Percent, LLC, and has been crawling around Rush Holt’s web of power and influence for some time now. I wonder who in the relationship is in charge. It does not look like we are. Mr. Matzen is definitely a special favorite of our congressman, and is well rewarded http://bit.ly/bDVDWN, http://bit.ly/aE2OYO for his loyalty. He is a political operator for the Democrat Party and was involved with some disturbing political improprieties http://bit.ly/apDGKF, http://bit.ly/9acFe3, http://bit.ly/9I7aod. Mr. Matzen is part of the revolving door policy that has polluted Washington D.C., and New Jersey. His political alliance with Representative Holt, if we can even call him a representative, is well documented, and this is only a very small portion. Mr. Matzen is a professional corporate lobbyist that has peddled influence inside and outside of Rush Holt's office. Mr. Matzen and his friends at MWW Group http://bit.ly/cIUqtS, http://bit.ly/crR9AW have benefited from contributing to Mr. Holt’s campaign treasure chest over the years, using him as a special conduit to the halls of Congress.
What the hell does that have to do with Middletown's tax situation????? Or is it a smoke screen blown by the TAXMAN ??
Gee Art, who would have thought you'd have so many anonymous comments from Mouthpiece Mike and the Senile Senior of Swimming River?
Another anonymous inane comment from the only Scharfenberger cheerleader.
Middletown will be a better place to live without this man in local government.
A MUCH BETTER PLACE !!
Middletown will be a better place to live without this man in local government.
A MUCH BETTER PLACE !!
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