Tax Hike Brings Backlash From Gloucester Township Residents

Gloucester Township, NJ -- Residents packed the meeting room at the Gloucester Township Municipal Building to confront council members about the radical increase in their tax bills Monday night.

In April, township council approved a 12 percent municipal tax hike as part of its $57,950,948 budget. Residents have also seen increases from both school districts and the county.

Residents chiefly complained about tax increases at a time when their property values are dropping. Some mentioned increased school taxes when school ratings are down, asked about a tax rebate for seniors, asked about possible state aid, and suggested a reassessment.

“The township has my house valued at $193,600, and Trulia has my house listed at $176,000,” resident David Hague said. “It’s time for a reassessment.”

The township’s last reassessment was in 2010, and the state mandates a reassessment every 10 years, Council President Orlando Mercado said.

“The oppressive tax rate is hurting those of us who want to stay and retire in Gloucester Township,” resident David Gentile said.

“Real estate is in the toilet and you’re creating more empty houses by raising taxes,” resident Joe Williams said.

“Why didn’t we get a letter informing us ahead of time?” resident Judy Murphy asked. “ … A lot of people don’t come to the meetings, read the public notices in the paper and aren’t aware of the township’s website. I’ve lived here 20 years, and we used to get a courtesy letter when rates were going up.”

Mercado made a statement prior to the start of the meeting in anticipation of tax questions following a backlash on social media in the days after residents began receiving their recent tax bill.

He explained that municipalities are permitted to exceed the state’s 2 percent cap due to mitigating circumstances, including emergencies, pension and health benefit increases and construction.

He pointed to the services the township provides, including police, public works and recreation, such as concerts and movies in the park.

“Unfortunately the budget has passed and we can’t do anything to correct that budget this year,” Mercado said at the end of the meeting. “But going forward, we’re going to have to take a closer look at our budget, and there may have to be cuts in services.”

He added the township has already begun working on next year’s budget, well ahead of when municipalities typically begin working on budgets.

The township previously cited two storms that hit the region over the last year, including a storm that devastated the region last summer and a winter storm in January.

The township is eligible for a total of between $1.6 and $1.7 million in federal aid for both storms, including $1.2-$1.3 million for last summer’s storm and about $600,000 for the winter storm.

Business Administrator Tom Cardis said the township spent more on the clean up following the storms, but is not eligible for the full reimbursement.

On Monday night, Cardis said there is enough money in the storm budget to cover three storms of snow, but one resident questioned why more money couldn’t be set aside in the case of storms. Cardis explained that once that year’s budget is done, the money is gone, so money the township will transfer it to other areas in need.

The township is $174,722 below the state’s tax cap.

Other reasons for tax increases included a decrease in expected surplus from $4,840,000 to $3,175,830. Salaries and wages increased from $21,919,548.60 to $22,847,883.

The township also saw an increase in tax appeals, costing the township another $41 million. The net result of that is a $36 million decrease in ratables, despite additional revenues coming to town,

About 20 people spoke at a council meeting that lasted roughly three hours.

Council members responded at the end of the meeting.

“I had a conversation with a gentleman in the waiting room, and what that did was give me his view on what it’s like to live in impoverished situations vs. what we have (on council),” Council Member Dan Hutchison said. “We have to challenge ourselves next year to take that into consideration, how this will affect someone who is impoverished and doesn’t have air conditioning when preparing the budget.”

Council members addressed residents who said it seemed as if council didn’t care about their predicament throughout the course of the meeting, with Councilwoman Tracey Trotto assuring residents their voices were heard during the meeting.

“This is not just in Gloucester Township, this is a New Jersey issue,” said Councilwoman Andrea Stubbs, who said she’s lived in Gloucester Township for 15 years and was emotional as she gave her comments. “We’re not here to railroad you or damage the township. We live here too.”

“I care about this township,” Councilman Michael Mignone said. “I’m sorry taxes went up. It stinks. I understand.”