Jersey City Ward C Councilman Tom Zuppa and Councilman at-Large Rolando Lavarro hosted a budget meeting at Our Lady of Mt. Caramel last night, seeking to offer solutions to residents that are angry over tax bills with major rate hikes.
By Daniel Ulloa/Hudson County View
Lavarro recounted the city’s over quarter billion dollar deficit, the need for $120 million in state aid, and the introduced $886.5 million budget that comes with a 15.5 percent tax increase.
“There is opportunity still for reducing the tax levy,” he claimed.
That goes against Finance Director/CFO Bill Viqueira’s claim that the New Jersey Department of Community Affairs (DCA) told him that further cuts would not affect this year’s tax rate during the council’s July 13th caucus.
Lavarro also noted that the council is eagerly awaiting the results of an audit of all the outstanding payment in lieu of taxes (PILOT) agreements through the city.
“They should have to pay the penalties and fines, and we should go after them strongly,” he declared.
Lavarro also said he’s specifically examining many contracts, arguing that “sacrifice starts at the top” as the city asks taxpayers to help fix their dire financial situation.
Zuppa noted he wanted to see the city’s budget before voting on a tax increase, also highlighting that he and Lavarro co-sponsored a measure asking the New Jersey Office of the State Comptroller audit former Mayor Steven Fulop administration’s between 2020 and 2025, as HCV first reported.
“You deserve to know how we got here, where the malfeasance was, and why our dollars were not properly spent: Now it’s our job as the City Council to see where we can cut,” the Journal Square councilman noted.
“Because the burden should fall on the city and city employees first before it goes to the taxpayers.”
He reminded those in attendance, along with those watching at home via livestream, there is a property tax estimate calculator on the city’s website.
Activist Charlene Burke endorsed a hiring freeze and furloughs since most of the budget is comprised of salaries.
“Why did we not negotiate those bills so we could pay them on an annual basis or maybe without any interest or secondarily reduce the amounts?” she asked.
Burke also thought they should have voted to investigate Fulop earlier.
“I would like nothing better than to spend my time investigating the last administration. There’s just other things we have to do as a City Council,” Lavarro, who ran with Fulop in 2013 and 2017 before becoming a political adversary of the ex-mayor, said.
“We thought we should reach out to the state comptroller: They have actual resources.”
Burke didn’t necessarily disagree, but asked why that resolution wasn’t put on a council agenda in February once the new electeds had been settled in.
Zuppa responded that they delved the issue and ultimately thought the city didn’t have the resources to do a proper investigation, so they asked the state instead.
To date, the comptroller’s office has not publicly acknowledged the resolution one way or another, which is not a surprise since they do not confirm or deny the existence of an investigation.
“The administration has never produced concrete evidence that we are actually in this hole,” Burke continued, lamenting that the high property tax proposal would make the city less affordable for homeowners.
“It’s my intention throughout this budget process to find every opportunity to find cost efficiencies and savings … I need to make sure that the state Division of Local Government Services will ultimately approve every single amendment that I propose,” Lavarro replied.
Another woman who did not identify herself complained about the property tax being a huge burden on the elderly, ultimately forcing people out of the city.
“Where are we to go?” she asked.
Zuppa noted there is a Senior Freeze, ANCHOR, and Stay NJ programs to get seniors financial incentives, noting that his aides could help residents apply.
“My advice would be for everyone to apply. After we get through this budget, there might be some remedies … loans the city could make … We need to get creative with our credit unions,” Lavarro added.
He also said the city’s Affordable Housing Trust Fund might help as well.
“You’re going to see a minimum 10 percent tax increase,” Lavarro admitted.
He said this was because Hudson County and the Jersey City Board of Education (BOE) have already approved tax increases to the tune of about 14-and-a-half percent.
“Even if we come in at 0, it would still come to 10 percent,” Lavarro explained.
“Why do we have to pay to resurface our roads when it’s construction?” a woman called out.
“The developers have to pay once it’s done,” Zuppa replied.
Councilman at-Large Michael Griffin was present and said they could create an escrow account that developers would pay into.
“I hope the administration and council will look into short-term rentals. You, as a property owner, have to live on that property. They’re like little hotels! They’re doing Airbnbs. You have to look into that!” exclaimed activist Esther Wintner.
“I agree,” Zuppa responded.
“HEDC (Housing, Economic Development, Commerce Department) has a deal with Airbnb where they cannot hold their property as an Airbnb until they register with the city and prove that they live there,” Griffin noted.
He further stated that Vrbo and others are likely to operate more like hotels.
“You cannot work in Jersey City unless you work with us. That’s what we’re looking to do,” he explained.
Another resident, who also didn’t give his name, asked why other revenue streams, such as an entertainment tax, had not been pursued. Zuppa said the council is open to that and other ideas and aren’t ruling anything out.
“ … Any revenue idea, as great as any idea is, would not benefit the tax bill this year. But please keep sharing your ideas. We’ve taken many of them into account already.”
Activist Kevin Davis criticized the late introduction of the city’s calendar year budget versus the state’s fiscal year, which begins July 1st.
“Has the city been looking into moving to a fiscal year to match the state? I’m not expecting you guys to do much with this budget /cause most of the year is over anyways,” Davis added.
“I raised it this time around. Part of it is an accounting gimmick, I think. I’m not an expert at that stuff,” Lavarro responded.
