Amended Tax Hike Approved In Gloucester Township

GLOUCESTER TOWNSHIP, NJ — Gloucester Township Council reduced the amount of a proposed tax increase to less than 10 cents before approving the new budget with a 6-1 vote Monday night.

Council approved a resolution to amend its proposed budget from $67,378,269.44 to $67,176,117.22, and reduced the tax rate increase from 10.47 percent cents to 9.75 percent at its meeting Monday night. The total amount to be collected by taxation will be $52,386,269.36, down from the proposed $52,838,421.58.

The amendment included a $452,152.22 decrease in the tax levy, which dropped the increase by 1 percent, or $443,000, according to Business Administrator Tom Cardis.

There was a $100,000 increase in the amount of surplus the township will use; a $100,000 increase in the amount of revenue generated from tax abatements; a $50,000 increase in interest on investments; a $100,000 reduction in the amount of money for the Parks and Recreation Department; and a decrease of $100,000 for federal insurance contributions (FICA).

Gloucester Township Council President Orlando also asked for a cap on overtime and a hiring freeze, as well as a closer look at attrition among township employees. He also pointed out that the municipality only accounts for 28 percent of the township's taxes, so their increase is only on 28 percent of the total tax bill.

"If you pay $10,000 in taxes, and we raise the municipal tax 10 percent, that doesn't mean you're paying an extra $1,000," Mercado said. "It's only 10 percent on the $2,800 for the township."

He said the township was also looking at canceling some events, including Gloucester Township Day and the Pumpkin Festival, at least for this year. These events might not be able to take place anyway due to social distancing guidelines and the current limit on large gatherings due to the coronavirus pandemic.

Even with the reduction, more than 20 residents spoke out against a tax increase at a time when residents across the country are out of work due to the coronavirus pandemic. Among council members, the vote was 6-1, with Councilwoman Andrea Stubbs casting the dissenting vote.

“I’m just voting no,” Stubbs said during the vote.

Stubbs was a member of the three-person subcommittee council assembled to look at amending the proposed budget. The subcommittee also included Council Vice President Tracey Trotto and Councilman Michael Mignone. Read more here: Proposed Tax Hike In Gloucester Township Meets With Public Outcry

It was put together after the initial proposal was greeted with public outcry. Read more here: Tax Increase Proposed In Gloucester Township Amid Pandemic

The subcommittee went line-by-line through the proposed budget. They submitted their amendments to the state on Thursday, and received approval on Monday, about four hours before the public hearing on the budget.

“The $450,000 in cuts were quite painless,” resident Pete Heinbaugh said during the public hearing, saying the township should go through another few times. “It might be painful the second or third time around, but we should do that.”

A group of citizens led by Sam Sweet put together their own budget proposal that they said reduced the tax levy by $3.2 million. They proposed increasing the amount of revenue used from tax abatements up to the full amount of $2,584,503, but Cardis said he didn’t want to use the full amount because some abatements will end this year and the township wants to have money remaining. As an example, this is the last year the Gloucester Premium Outlets will have a tax abatement.

The citizens budget examines areas where the township didn’t recognize their full amount it set aside for specific items last year, but didn’t realize the full amount, including gasoline, where the average for the last two years was $472,460, but $480,000 was budgeted. Community development, snow removal, tax assess professional fees and matching social security were also among the proposed cuts in the citizens budget.

But Cardis said that while these cuts looked at areas in which the township underspent, it didn’t consider areas where the township exceeded what it was expected to spend. In an email, Sweet said the citizens did consider that when making their proposal.

Many residents asked the council to continue to cut the budget during the public hearing, with some suggesting they take a specific look at the Mayor’s Office and the Police Department. They asked that township employees not get raises this year, as many residents aren’t getting raises and some are out of work altogether.

Officials said those raises have already been negotiated. Salaries and wages are expected to increase overall from $25,764,667 to $27,125,095. The township is expecting a drop in revenues from the sale of alcoholic beverages ($55,000 to $52,000), fees and permits ($540,150 to $536,000), and recreation ($200,000 to $195,000).

The township anticipates $5,106,459 in state aid, but that number is based on the state budget address given by Gov. Phil Murphy in February, before the coronavirus pandemic threw the economy into complete disarray nationwide.

Another budget address will take place in late August. Officials said it wasn’t clear how that might impact local budgets, but bonds may be issued.

“It’s never a good time to raise taxes,” Mercado said. “I’ve been on council since 2004. This is my 16th budget, and I’ve voted yes every time because we need to continue to provide services for our residents.”