Proposed Tax Hike In Gloucester Township Meets With Public Outcry

GLOUCESTER TOWNSHIP, NJ — Gloucester Township Council met with backlash from the public over its proposed 10.5 percent tax increase during its virtual meeting Wednesday night.

More than 15 residents dialed in to the council meeting Wednesday to express their concerns over the proposed $67,378,269.44 budget that includes a tax increase amid massive unemployment nationwide related to the coronavirus.

According to numbers provided by the township, the average Gloucester Township homeowner will see a total increase of $157.13 and a local increase of $203.51 in taxes annually if the proposed budget is passed on June 8.

In terms of cents, Business Administrator Tom Cardis has said the municipal increase will be 8.4 cents, with a penny on the tax rate equalling about $443,000. Read more here: Tax Increase Proposed In Gloucester Township Amid Pandemic

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Residents who called in called the proposed tax hike an “absolute disgrace” and questioned how residents can be asked to pay even more in taxes at a time when many residents are taking pay cuts and their families are going hungry.

“Our bank accounts are going down, and our anxiety is going up,” one resident said in an email sent to council that was read out loud during the meeting.

The temporary closure of small businesses in compliance with Gov. Phil Murphy's executive order to stem the spread of the coronavirus has left many residents unemployed. It's an issue occurring in states across the country, and some small businesses have had to close permanently, enhancing the problem.

Members of council told the public they also aren’t happy with the proposed increase. A subcommittee consisting of Council Vice President Tracey Trotto and Council Members Andrea Stubbs and Michael Mignone has been tasked with exploring the budget to see where cuts can be made.

“They have not met collectively yet,” Council President Orlando Mercado said. “There will be a subcommittee, but each member of council will also look at the budget and make recommendations.”

Mercado said council is open to changes before final approval, and that the budget situation is a fluid one. Stubbs, Mignone and Councilman Scott Owens also spoke during the meeting, saying they were uncomfortable with the proposed increase.

The budget is proposed by Gloucester Township Mayor David Mayer’s administration and submitted to the council for approval. It was introduced at the May 12 council meeting, and the public hearing and final vote will take place at the June 8 meeting. The budget was not on the agenda Wednesday night, but it was the only topic of conversation for the residents.

“The public is owed an explanation, and we haven’t heard one yet,” resident Pete Heinbaugh said.

“Appropriations are up, and revenues are down,” Cardis said. “Our debt service is up $1.8 million. FICA and pensions are up $500,000. The fund balance is down to $420,000. We don’t want to go down to zero because we would take a hit to our bond rating.”

According to the budget, which is posted on the township website and can be found here, salaries and wages are expected to increase overall from $25,764,667 to $27,125,095. Salaries and wages are negotiated, and the township is obligated to honor that agreement. The agreements are negotiated by the township administration before being submitted to council for approval.

“We need better bargaining so it doesn’t cost us on this end,” resident Joanne Karr said during the public comment portion of the meeting.

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. Many anticipated revenues and expenses are blank in the introduced budget. Another budget address will take place in late August, and officials expect it to impact state aid.

“We budgeted what the state directed us to,” Cardis said, acknowledging that it is likely that the state will reduce the proposed aid to the township.

He said he doesn't like the proposed increase, but also called the proposed budget, "a responsible budget that promotes the public welfare, safety and health.”

Residents Sam Sweet and Paul Kruge asked if they could sit in on the subcommittee meetings. While subcommittee meetings are generally closed to the public, Mercado said he would leave it up to Trotto to decide if anyone could sit in on the meetings. Trotto is the head of the committee.

Solicitor David Carlamere advised against having anyone sit in on the meetings, as it would open the debate as to why certain people were invited to sit in on the meetings and others weren’t. No decision was made Wednesday night.

Sweet sent an email with ideas for cuts in a citizens budget to members of the committee for their consideration following the meeting.

While the proposed operating budget has been introduced, the proposed capital budget has not yet been introduced to the public while council tackles the operating budget, Cardis said.

The public hearing on the budget proposal is June 8. Meetings typically begin at 7:30 p.m. and are streamed live on YouTube. Since the coronavirus pandemic began, residents have been able to participate via telephone, although some have complained of not being able to hear council members over the phone. Mercado said they would look at improving the technology before the June 8 meeting.

See related: NJ Coronavirus Updates: Here's What You Need To Know