vernon nj taxpayers association

Vernon Township Board of Education Meeting 12/8/12

2011-12-09T16:32:00.000-05:00

Quick Notes on BOE work session 12/8/12

The first discussion centered around allowing home schooled children to participate in after school activities ( sports etc.). There was some discussion of the consequences of this and concern over current school students who may be bumped from teams.

There will be a meeting of the Mayor and the school board at their next meeting. Apparently the states Best Practices Plan has a requirement for this and it has to happen in 2011, hence the rush. They may discuss shared use of the Weather service bulletins ( $6,000 cost ).

The board was requested to allow overnight trips for students. Apparently there is a Science student trip to Costa Rico that the Board was unaware of and the trip will last 5 days. Comments were made that this trip is worthy but there are concerns over school liability on overnight trips. These trips have been going on for years and why this is a crisis now is unknown. When my kid went to France on a French class trip there were some memorable tales that would turn the board’s hair grey.

Discussed various fees charged to students including parking fee and activity fee. Appears the parking fee has not been uniformly implemented and the activity fee may be costing the school monies due to loaning passes to friends etc.

Discussed stipends for teachers involved in after school activities and how they are starting to increase.

It was proposed that a new requirement for HS graduation be 50 hours of community service with perhaps an opt out clause. Yes that would be one more thing that parents could drive their kids to. There may also be a new course next year called Forensic Technician which is probably due to all the CSI shows not job opportunities.

New generator will cost $110,000 more than the original $250,000 budgeted due to air pollution requirements. The generator will be used by Sussex Rural as a load generator for which the BOE will receive $53,000 in reduced electric bills. Permit fees, maintenance and fuel will be provided by Sussex Rural. NORESCO project bids will occur on Tuesday.

There was discussion on the new bill in the legislature that would put the BOE elections in November. It was mentioned that the counties political leaders were against this and it would take away the ability to vote on budgets that stay within caps.

Currently there are 388 employees in the school system which is up from the previous 378. Six new kindergarten teachers and 4 new special education teachers account for this. All day kindergarten and bringing back special education students to Vernon was stated reason for the teacher increases.

Budget Meeting Notes 12/3/12

2011-12-03T20:24:00.001-05:00

Budget Meeting few quick notes

The meeting started promptly at 9 am and unfortunately there was no coffee or donuts (there is an item in the budget for refreshments). This marks the 8^th annual budget meetings that we ( Vernon Taxpayers Association ) have covered and we rate this budget meeting as average. Its only rated as average because the discussion were only about Dept operating expenses excluding salaries (employee contracts have not been finalized). As the reader knows salaries constitute 80% of Dept budgets which left not a lot to talk about. Various Dept heads attending were prepared to talk about their budgets and Dept. needs. The Mayor also was prepared and knowledgeable about this budget which allowed him to run the meeting with confidence.

Police Dept currently have 23 vehicles 9 of which are used for patrol. Two of the patrol vehicles have over 100,000 miles and they requested the replacement of these vehicles. In 2010 the Dept got four new vehicles but the priority is to replace the patrol vehicles. There was a lot of talk about pursuit SUV, software changes ( freeware ) , contracts for IT maintenance, Crime statistics ( surprise here is that thievery at MC skews the towns theft numbers, then again maybe not), Police will be going to twelve hour shifts which should reduce over time expenses ( in the last contract they went to ten hour shifts ). Education expenses will be increasing ( yup that has been in contract for years)

All in all this was a fairly typical Police presentation.

DPW will supply snow removal materials to the lake communities which will increase their budget by 200,000. Mayor mentioned that the 1 million Irene bond has not been totally spent so $400,000 will be re paid (approx 143,000 spent on Cedar Ridge bridge and another 150,000 for Baldwin drainage improvements, set for the spring). The Mayor stated that the Town will not sell the DPW garage so we need to start fixing it ( heat, lighting etc), he also state that the Vernon flats road will be closed soon to all traffic ( may last two years ) and reroute traffic to Church St., truck repairs that are currently outsourced will go to the County and he is not reducing DPW in house repair work. Kelly Bill payments for 2010 will be made in two payments in 2012. Town will apply for a grant to finish Cannistaer paving ( est $520,000) of which the towns share is $220,000.

DPW brought up the fact that Lake Wallkill road needs repair and suggests the town consider reviving the Oil +Stone program ( previous councils raided these funds on a regular basis).

Tax Collection

Politely suggest we disband this Dept. and its functions. Actually their position is against an accelerated tax sale because the town would then own the property and get no taxes ( never really understood this agreement since the properties are not paying taxes now). The regular tax sale will be held in March and it is assumed the delinquents will then pay their taxes since March is a better month to pay delinquent property taxes in.

Tax assessor

Politly suggest we disband this Dept. and its functions. Talked about increase fund to defend against tax appeals to $33,000, Currently the contractual employee makes $48,000 and it was talked about hiring a permanent employee for $55,000 which should work better. Residential tax appeals pending are 25 properties and Commercial properties there are 5 pending. Approx loss of total property values is projected at 30 million.

Finance talked about shared service with MUA which will bring in an extra $25,000 to the town.

Animal Control said their guests have enough food and they get donations from Walmart etc.

Mayor office talked about purchasing a new printer and moving the purchasing agent from Finance to the Mayor office ( Auditor recommendation and perhaps State Statue?)

(During conversations of the various Dept you are always amazed at how they various accounts are mingles which does not allow true break outs of cost or tracking. )

Budget Decisions

2011-12-02T12:09:00.000-05:00

Budget decisions

As the council progresses through the year decisions are made that will impact the next years annual budget and thus services and property taxes. At the last meeting they could have passed a resolution requesting an accelerated tax lien take place but they did not.
What is an accelerated tax sale, well there are two types of property tax lien sales which are the standard sale or an accelerated sale. The accelerated sale can be done in the fiscal year in which the property taxes are not paid. The standard sale is done after the end of the fiscal year the property taxes are not paid. Accelerated sales are done in the tax year so the total property tax collection rate is boosted thus negating having to raise extra revenue in the next years town budget. The date to advertise and have an accelerated tax sale was November 11, 2011, instead the town will have a standard tax sale sometime in April 2012. Apparently the town is satisfied with 96.7 % tax collection rate and has decided an accelerated tax sale is not needed to improve the tax collection rate.

The Mayor must also hold meetings with the Department heads in November and get their budget requests. January 15, 2012 is the date that the Mayors budget has to be presented to the Council for their review. It will be interesting to see how that budget handles the property tax collection rate.

It was also announced at the last meeting that the Police and DPW employee contracts have been negotiated. Those contracts will now be taken back to the employees who will vote them up or down. Once the employees have voted the council will be given the contracts to approve or disapprove. These contracts should be viewed as a bench mark for this council and mayors job performance. The second job performance criteria will be found on page/sheet 11 , line 6A of the annual town budget.

http://www.vernontwp.com/egov/docs/1296502424_981445.pdf
http://www.vernontwp.com/egov/docs/1276027914_17578.pdf
http://www.vernontwp.com/egov/docs/1312820490_395507.pdf

One of the bench marks that can be used to gauge the effectiveness of the current government is the employee contracts. Currently the town employees have more holidays ( 14 total ) than any other government employee in NJ. Municipal employees have increased their pay over the last 7 years by 21.75% and also increasing their fringe benefits. What makes the increases hard to understand is that while these salaries were increasing the population that pays for them was dwindling and the number of total employees was increasing. Now if you add a dwindling population and a dwindling tax base ( loss in property values ) then you have the beginning of a perfect tax storm.

Fortunately the governor has a soft cap of property tax increases. Exemptions to the cap are pension, health and debt payments which allows the government to shift payments into debt which then gets them out of the cap guidelines. The new guidelines also prohibit municipal governments from entering into contracts that would necessitate increasing property taxes above 2%. Now if you raise employees salaries by more than 2% then the effect on future municipal budgets will be interesting.

Labor Contracts for AFCME and UAW 2005 to 2011

Contract 2005-2008

1. 3% salary increase per year ( 2005,2006, & 2007)
2. 15 Sick days
3. 12 to 25 vacation days
4. 4 personal days
5. 13 Holidays
6. Health insurance and Life insurance

Changes under new Contract 08 -11

1. Salary Increases 2008 2.75%, 2009 3%, 210 3.5%, 2011 3.5% Professional Contract ( AFCME)

2. Extra Holiday ( Christmas Eve) total now is 14 days

3. Tuition reimbursement added to this contract (can be used during the work day and the employee will be compensated as if they worked.)

4. Extend the contract from 3 years to 4 years

5. Longevity pay clause has been removed ( prior contract stopped longevity pay for anyone hire after 1996 and longevity payments was limited to $4,000. per year for those employees)

6. Defined the work day for DPW workers as 06:30AM to 3:00PM ( prior contract allowed DPW MGR to set the work hours)

7. Remove step three of the grievance procedure ( this step allowed the employee to petition the mayor and council)

8. Starting January 1, 2010 for the professional contract and January 1, 2008 for the non professional contract. Any new employees will receive an ARRP policy for their Retirement health care benefits not covered by Medicare.

9. Capped the payment of unused sick days a $5,500. when retiring.

10. Non Professional Contract (UAW) gets 2.5% per year salary increases.

11. Increase Tool and Clothing reimbursement by $250. per year

Position Paper

2011-06-30T15:48:00.000-05:00

Vernon Taxpayers Association

Position Statement

The Vernon Taxpayers Association advocates for good government and value for the tax dollar. We realize that in initiating and promoting a change in government we have not taken the politics out of government, but rather what we have achieved is a clear line of accountability so the public will know who is responsible for government’s actions. The person responsible will be an elected mayor—not the hired manager, not the council, and not the administrator. All concerns, whether about property taxes, road conditions, parks and recreation, should be directed to the mayor, who is responsible for the overall condition of the municipality.

Government is founded upon Integrity and Trust. Without these two, a government is not representative of the people. Integrity and trust are garnered by the simple premise that elected officials tell the truth. We simply ask for truth in statements and in actions of our government representatives. We ask also for a government that values the monies entrusted to it by the taxpayers.

The new government is starting on July 1, 2011 with a clean slate, but our position statement addresses a number of inherited problems that need attention. We have studied the finances and organizational structure of municipal government for six years and submit the following platform of ideas for action. The theme throughout this platform is the dysfunction of prior municipal governments and the ideas expressed herein are probably the tip of the problems with the operational values of municipal government.

Core Services

Given that the amount of property taxes the residential tax base can pay is finite. We need to define who uses those municipal services (voters, property taxpayers, residents, and tourists are the stakeholders) and then prioritize spending. By prioritizing spending to the core services used by the majority of stakeholders, we can maximize value of the tax dollar. The intent should be to adequately fund those services used by the residential property taxpayers. Those services used intermittently by tourists should be assessed to determine if we could recoup costs. Services that do not serve a majority of the stakeholders should be funded with any residual funds left in the budget, if at all.

The annual Budget must include 20% funding for the 5-year capital improvement budget.

In the past there has been no monies put into the capital improvement budget, which has been funded through bonding and debt.

Shared services with the Board of Education and the County should also be used to maximize the value of the tax dollar.

Personnel

Township employees should be compensated fairly for the work they do, but should have annual performance assessments. Currently the township does not know if the compensation is average or above average for municipal positions, nor does the township have specific job descriptions and performance criteria for each employee. We suggest the township use the civil service title job descriptions available from the Department of Personnel. The compensation for municipal employees should be compared to other towns in the area. We need to hold employees and consultants responsible and accountable for their actions. If employees or consultants recommend, initiate, or fail to take actions that cost the township monies over $50,000, they should be held accountable up to and including termination.

Example

A former manager entered into a contract with a vendor without the council’s knowledge or approval. The contract resulted in the loss of $360,000. to the township. The Manager received a 3.5% raise and was not held accountable.

Example

Under the Council-Manager form of government the township has been operating under for the past 14 years, the Manager would oversee the daily operations and was responsible for making decisions when the council is not in session. In the new government, the Mayor makes the decisions and the responsibilities of the business administrator are limited. Therefore, less responsibly should equate to significantly less pay for the position of business administrator.

Example

In 2008, the manager laid off two part-time workers at the Animal Shelter, resulting in a savings of less than $20,000. The animal control personnel service taxpayers, which we would define as a Core Service. It became apparent that other than the “window dressing” layoffs, the manager had no insightful budget plans. Consequently, that council and manager raised property taxes 28% in three years, which is unacceptable. Hired consultants (grant consultant $50,000, etc.), executed contracts ($360,000 loss to Ameripay), deferred pension payments (at an additional $940,000 cost to taxpayers), and other spending policies resulted in an increase of millions of dollars in taxpayer funds that were irresponsibly spent. All this leads the observer to the proposition that she had no idea how to plan a budget and the Council at the time was just as unprofessional. The new Mayor and Council should rehire the two animal control employees that the manager fired merely to assuage the anger of her tax increases.

Transparency in Government

Given that municipal government is founded on Integrity and Trust the new government has to be dynamic in its transparency. We are now in the Internet age and suggest that we use it to shatter the opaqueness of prior councils. Simple ideas such as when an item is not resolved at a meeting should be tracked so the public knows the resolution. Adopt conflict of interest rules that are more specific than state regulations. Grants should be tracked on the website so the public knows if we have spent the monies. Various boards should have inter-board meetings so that common concerns and interests can be discussed and resolved. All work sessions and Saturday meetings should be open to the public. All proposed ordinances should be discussed in work session meetings first, and there should be clear procedures on how ordinances will be introduced. Council agendas and all information for those meetings must be given to the council 3 days prior to the meeting. There should be no last-minute changes to the agenda as was customary in recent years and throughout the past ten months.

Annual Report

Many municipalities produce printed annual reports that are available to all taxpayers. We suggest that such a report be put on the website. It should include a description of the various departments along with contact names and number, functions, etc. The report should list all employee names, job titles, and base salaries (current and previous year) by department. The report should also include how tax monies were spent and what the future financial plans of the town are. Any ongoing projects are summarized and future projects are outlined so the public has a sense of town planning. All of this information and more is put in plain English so taxpayers can understands were their monies went.

Town Center Redevelopment Zone

Currently we have spent $13 million on the Town Center and have guaranteed payment of another $13 million. Yet we still do not have a plan for the Town Center that encompasses past actions and future actions needed to bring it to conclusion. Most towns have a site on their web page detailing planning/construction phases with maps and graphs. In Vernon, we have a vague memory of what was originally promised and where we are in the completion of this center. After $26 million in costs, we need to finally conceive a plan that encompasses all aspects of this center. Appropriate outside consultants (planner, financial, legal) to give the town a history of and process to complete this center. Other than the expenditure for those consultants, we the public should not pay one more dime for this center. Part of the review of the process should include were the Township stands with the state in the Town Center Designation approval, as it is now known that designation approval has expired. Discussion of Payment In Lieu of Taxes (PILOTS) should include the provision that they must be put before the voters in a referendum. PILOTS should also be restricted to commercial properties only, not residential. This will ensure there will be no negative impact on residential property values outside the redevelopment areas as a result of low tax areas in the town center.

Referendum Items

Our position is that any increase in town debt greater than $500,000, either singularly or cumulative in the annual years, should be put before the voters. All PILOTS should be put before the voters.

Conclusion

We have not touched on many topics that the council will be addressing this year. Instead we trust and rely on the integrity of the incoming Mayor and Council to resolve these topics beneficially for the taxpayer. Municipal Utilities Authority, Municipal Debt, Kelly Bill monies, working with the county so Vernon receives its share tax monies paid to the County are our priorities. We entrust to the Mayor and Council our hopes that after a long struggle we the public will be better served by our public servants.

Restructuring Town Debt and What that Means

2011-01-17T12:53:00.002-05:00

Re: Resolutions 10-226 & 10-227 Bonding 13.4 Million

As you know the soft 2% cap on the budget takes affect on January 1, 2011. The exceptions to the cap are pension, health and debt costs. The proposal which have been approved in the above resolutions will convert the existing Bond Anticipation Notes (BANs) into long term Bonds. The proposal will take a number of different issue (2005/2007) Bans and put them into 16 year Bonds. The collection will have different maturity dates (principal payments & interest rates) with interest payments on January 1 and July 1 starting in 2011. The principal payments will be made on January 1 of each year starting on January 1 2012 and will increase as the term of the Bond increases.

Principal payments are:

Payment Amount	Due Date
$595,000	January 1, 2012
$640,000	January 1, 2013
$680,000	January 1, 2014
$720,000	January 1, 2015
$765,000	January 1, 2016
$810,000	January 1, 2017
$850,000	January 1, 2018
$890,000	January 1, 2019
$935,000	January 1, 2020
$980,000	January 1, 2021
$1,020,000	January 1, 2022
$1,065,000	January 1, 2023
$1,105,000	January 1, 2024
$1,150,000	January 1, 2025
$1,190,000	January 1, 2026

The following example is for discussion purposes only:

The first years interest on 13.4 million at 4% (average rate) is $536,000 half of which is payable on July 1, 2011 ($268,000 July 1, 2011) with the rest due on January 1 2012 plus $595,000 principal payment total $868,000 on Jan 1, 2012. For the first year of the Bond you will pay $1,131,000 which is ten thousand less than the Ban payment of 2010 which was $1,142,605. The reason why it appears as you are saving $780,000 in the first year is because you are transferring the debt to 2012. Note that any average interest rate greater than 4% will cost the township more in debt payments.

In 2010 we paid $593,222.00 in principal on the BANs and $456,616.20 in interest. Total payments on the BANs in 2010 were $1,049,838.20. The proposal saves the town $781,838.00 in the first year (2011) and saving does not recur leaving the town down $781,838.00 in 2012 budget. By postponing the principal payment and one interest payment we create a one time budget benefit which shifts the budget crisis to 2012. In 2012 you will see an increase in SCMUA payments and we will have start paying back the $450,000. in deferred pension payments. Those increases along with any pension or insurance increases will create a double digit property tax increase in 2012.

The following technical difficulties may hinder the proposed financial plan

1. The years the money spent in BANs affects the term on of the Bonds which is not accounted for in the proposal.

2. The CFO not some other designated employee must appear before the council and give the facts on the sale of the Bonds.

3. The current resolution by implication (loose designation of responsibilities) allows the town clerk to issue bonds.

	2010	2010
Payment of Bond Principal	$1,409,610.00	$1,409,610.00
Payment of Bond Anticipation Notes and Capital Notes	593,222.00	476,116.00
Interest on Bonds	438,512.00	494,896.51
Interest on Notes	456,616.20	549,383.00

The following is a discussion of the history of the Budget process.

In 2008 the budget was balanced precariously by RIF of part time employees, transferring the health dept to county, found monies (monies allocated for other purposes) and a 12% property tax increase. In 2009 the budget was balanced by deferring $450,000. In pension payments, found monies and an 11% tax increase. In 2010 the budget was balanced by a RIF (engineering, personnel) and a 5.6 % tax increase. As you may know the resolution in November to make additional payments for unemployment insurance was because the town self insures unemployment insurance. So all the RIF have reduced the line item for salaries and increases the line item for unemployment insurance requiring additional cost saving elsewhere in the budget. For example the manager was terminated in January received three months severance pay and unemployment payments of $600.00 per week from day one of termination. The cover these cost we transfer monies from the DPW /police line item.

As we move forward in 2011 since as a priority any cost saving should occur on January 1, 2011 we propose the following.

1. Any cost saving that will involve employees should start on as early in 2011 as possible and preferably starting on January 1. As you know the f2% cap covers employee salaries and you have negotiated a 3.5% approx. ( $270,000) pay increase for the employees. Remember that 2% cap allows you an increase of $320,000 which when the salary increases are deducted leaves you $50,000 to cover any other increases in your budget. The council should be asking the manager how he intends to control salary increases in 2011, are we negotiating with the unions? Have we notified employees of any RIFs (required 45 day notice)?

2. We need to identify the core services of the town and who benefits from those services.

Change in Vernon Government

2010-09-22T20:01:00.001-05:00

As this process moves forward to a vote by the people of Vernon we have to explain the why, how and when of the change. The why is explained with the following history of government in Vernon which we give as reasons for the change. As many of you know the government of Vernon has a long history of not representing the majority of the residents. Government in Vernon is practiced for the benefit of an inner circle that controls the election process. Control of the process insulates the candidates and town professionals from moral hazard. We use the following definition for moral hazard

"Moral hazard is the prospect that a party insulated from risk may behave differently from the way it would behave if it were fully exposed to the risk. Moral hazard arises because an individual or institution does not bear the full consequences of its actions, and therefore has a tendency to act less carefully than it otherwise would, leaving another party to bear some responsibility for the consequences of those actions."

Brief Note

By now we all know who is against the change in form of Government and question is why am I trying to change their position? Well I’m not because it is easier to inform the public about why we should change the government. You will also note, that the politicians and their followers did not even suggest a solution to absentee political and professional oversight until the referendum for change garnered three thousand seven hundred twenty one voter signatures. Yes a former councilman became aware of a problem when the petitioners had gathered all the signatures required to pass their petition for change. His suggest solution was to have a charter study which happened 12 years ago.

Reason Number 2

1.2 Million is cost overruns for the town center project? Yes folks that’s 1.2 million that the people in charge didn’t even know that, the 1.2 Million tax payer dollars was missing.
The cost for the Town Center is 13 Million, 8 Million for the town road and 5 Million for the sewers and water pipes. Yes the politicians and their professionals told you it would be Free paid for by grants from State, County and Federal governments.

Reason Number 3

Yes the town overspent on the town center project and initially both council and its professionals could not say how much was spent to date. The first estimate was in the 10 million range which was later revised to 12 million. The actual number is 13 million spent to date on a project that was supposed to be free. It was not the cost overruns of 1.2 million nor the manager hiring relatives to work for the township. Nor was the fact the manger was having an affair with his executive assistant that propelled the manager to flee. The manager only problem was the falsification of travel vouchers, conference vouchers ect to the tune of $12,000. that got him into trouble. He then took a powder to Belgium without his executive assistant or his wife.
During all of this, the absence of even a preliminary budget for a major project, cost overruns, numerous conferences attended ect , the council remained blissfully unaware of anything. Yes they were a stellar lot those council persons, manager and various town professionals.

Reason Number 4

So far the town has spent 13 million on the town center, guaranteed 13 million in sewer bonds for Intrawest, guaranteed 1.2 million in annual payments to the SCMUA, and is proposing to spend another 2.5 million for drinking water in the town center. Future plans for the town center include moving the DPW, recycling, animal shelter, town hall and the Fire Department. All of this was done without even a preliminary budget representing the various costs of the actions or how to pay for them. Nor was a cost benefit analysis of the project done so no one can tell you when this project will pay for itself. No company or business would take these actions but the councils and managers of Vernon have.

Reason Number 5

“Our audit found the city had almost no accounting controls, no checks or balances, and the general fund was run like a petty cash drawer," state Controller John Chiang said in a statement. "The city's purse strings were tied to only one individual, resulting in a perfect breeding ground for fraudulent, wasteful spending." Yes the poster child for the Manger Council form of government is Bell, California. Fortunately we are not that bad but we did spend 1 million in consulting fees for the our Town Center. We like Bell also hide consulting fees by taking monies from escrow accounts to mask how much consultants are paid.
http://www.aolnews.com/nation/article/residents-of-bell-california-cheer-arrests-in-corruption-scandal/19643907

Petion to change the form of municipal Government

2010-09-01T21:42:00.000-05:00

Council Meeting 7-22 Speech

2010-07-25T18:57:00.000-05:00

It is a time, when everyone here tonight knows someone or has heard of someone losing their house, job or having their work hours reduced.
It is a time, when we have expended millions on a project that was risky and the full extent of those risks was never disclosed to the taxpayers.
It is a time, when the taxpayers are told the town center project is to big to fail because the politicians have taken the public trust and guaranteed millions in payments.
It is a time, of hardship for sectors of the taxpayers you council persons were elected to help.

In these times, you have judged the time opportune to use tax payer monies to sue the taxpayers.
In these times, you have consistently lowered moral and ethical standards, and constantly broken those low standards
In these times, of uncertainty, 8.5 million unemployed and the greatest recession since 1929; you have judged it appropriate to squander tax payer monies on internal partisanship.
In these times, of greater expectations for leadership and sense that the tax dollar is valued; you practice back room politics

We the taxpayers, demand better from our politicians and employees
We the taxpayers, say you should bring the community together; not fractionalize it as you have
We the taxpayers, say we do not need politicians or employees who support the Banana Republic Gestapo politics, of the actions alleged in the Rico suit
We the taxpayers, say it is time to put aside the politics of pettiness and vindictiveness

Courage can be defined by: the actions of ordinary people who act extraordinarily in the face of adversity, thank you Mr. Carson
Character can be defined by; actions in response to small everyday events, the lack of character can be defined by the smallness of the actions, thank you Mr Shortway, Katz, Ursin and Ms Seufert
Politics is the art of compromise and leadership, thank you Ms Rinker
Honesty is in transparency, Goodness is in trust and we the taxpayers have given you our trust, and demand honesty from you

Politics in Vernon

2010-07-11T08:47:00.000-05:00

What is Vernon politics all about? Well, it’s where up is down, black is white and nothing is what it seems to be. It’s a place were friendships, character and ethics are used to run the town and mostly it’s the lack of character and ethics that wins. It’s a place where the former mayor Mr. Carew can attack the current mayor Ms. Rinker on a proposed open space land deal, about a property she owns. First, our bias is for people that don’t raise our property taxes by 30% during their tenure. Second, as to credibility we believe people who were driving a bus blindfolded (and crashed it) should never be given a new one. Mr. Carew had four years to establish some creds and he consistently squandered all chances that he encountered. Yes, we have advocated that Open Space monies be used to actually buy land that will remain Open Space forever, and the Rinker property not only fits into this but has been offered at a fair price. End of story. As to other properties bought by the Township, well the Attorney General is supposedly looking into those purchases and we support looking into the waste of taxpayer monies.

Currently, there is a move by the Deputy Mayor to take the monies gathered by the Open Space Property Taxes and use the money for a grab bag of projects (lighting, new fields, new recreation programs, tea for grandma,) Yes, this fits nicely with the last ten years of tax and spend on frivolous projects, which reminds us of the Town Center money pit project. Basically, this idea of spending any money we have without a financial plan or how we will address escalating property taxes is nonsense. The era of fractured financial planning, of constantly going to the residents of the town and asking for more money, should come to an end.

2010 State Aid to Vernon

2010-03-22T13:29:00.000-05:00

EXPALANTION OF THE STATE AID TO VERNON

Every once in awhile you have to chuckle at the supposed experts ( former CFO Bernicke and Manager Carlton) and former politicians ( Carew, Gray et al) and here’s why. As you know the Vernon Taxpayers Association was against last years pension deferral for two reasons, the payback costs of the deferral and the failure to apply for extraordinary Aid. Well it turns out there is a third reason and that is State Aid to Vernon will be reduced forever by the deferral amount. Apparently neither the CFO or the Mayor and Council new this even though it is spelled out in how State Aid formulas will be determined, posted in 2009. The basis for all of the following is found at http://www.state.nj.us/dca/lgs/ under CY 2010 State Aid Certification. The town is slated to lose 20.4 % in state aid and here’s a breakdown of the areas that will be reduced:

--------------------------------------------------------2009 ------ 2010

Consolidated Municipal Property Tax Relief -208,447--------98,792

Total Energy Tax Receipts Distribution ------- 2,132,531-- 1,763,456

Garden State Trust ------- 164,928-------- 158,945

Watershed Moratorium Offset -------- 294,455 ---------0

Total Formula Aid ------- 2,800,361------ 2,021,193

ETR Allocation Breakdown ----2009 -------- 2010

2009 Allocation ---------- 2,132,531

Less: Budget Reduction ------- -436,103

Subtotal Before Hold Harmless Transfer ---138,166---- 67,028

Final Aid ---2,132,531 --- 1,763,456

Yes the -436,103 Budget Reduction refers to the 2009 pension deferral.

The rest of the CY 2010 State Aid bulletin goes on to give few other caveats in budget adoption. One is that the Council decides to

“As a means of encouraging and rewarding local adoption of basic best government practices, the budget proposes that the final five percent CMPTRA/ETR aid payment will be withheld unless the municipality certifies that they meet a variety of pre-selected best practice standards, including adoption of a budget without use of a levy cap adjustment for formula aid reductions. “

Some other caveats are these:

• Considering not only how services are provided, but the need for them;
• Sharing services with neighboring governments, schools, and county agencies;
• Reviewing all employee contracts and benefits policies for consistency with the economy and government financial conditions; and,
• Taking advantage of all opportunities to reduce costs before exercising their local authority to increase property taxes.

• Considering not only how services are provided, but the need for them;
• Sharing services with neighboring governments, schools, and county agencies;
• Reviewing all employee contracts and benefits policies for consistency with the economy and government financial conditions; and,
• Taking advantage of all opportunities to reduce costs before exercising their local authority to increase property taxes.

Currently the township is considered a medium rate/medium income municipality which gets it a 20.4 % deduction in State Aid.

March 11, 2010 Council Mtg

2010-03-13T10:25:00.000-05:00

Summary of the March 11, 2010 Council Mtg

Presentation by the Economic Development Committee

This presentation was a summary of returned questionnaires. The committee sent out 275 questionnaires to local businesses and 40 were filled out and returned. Some of the highlights were: there are to many rules that business have to follow, business is impeded by the Highland Act and stream buffer regulations, tourists come to Vernon for the rural atmosphere and we are a four season recreation community, there is negativity in the community;

Presentation by the Environmental Commission

They recommend buying the Masker Marsh property. This property is located north of the town park on Maple Grange Rd.

Open to the Public session

Numerous individuals and labor unions gave presentation during this period.. Majority of the comments centered on the proposed layoff plan. DPW union stated that it would only take a monthly payment of $5.34 per average assessed house to avoid any layoffs.
PBA gave a presentation and have hired an auditor to go over the town’s budget and determine how much money the Town has. They also stated that the police force is under staffed and should be at 50 to 70 police. Members of the public and employees gave various comments on the layoff plan.

An attorney for various buyers and sellers of underwater mortgage properties gave comments on the towns writing violations on properties. Apparently the fire inspector goes out to check the functionality of smoke detectors then somehow the properties are given violations for various other infractions resulting in penalties of 30 to $60,000 being levied. Since the owners of the properties and the buyers do not have monies to pay the fines the property is left vacant.

Various member of the public gave comments on the proposed buying of the Masker Marsh Property.

Member of the PBA stated that officer Herring was trying to paid for Holidays not Vacation time in 2010 as reported in the Herald.

Manager commented that the medium police pay is $110,000 and the medium DPW pay is mid 60s. This drew a negative reaction from various employees in the audience.

Resolutions to enlarge the redevelopment areas were tabled for this meeting.

An additional payment of $16,800 was paid to HLCC for the ice storm of 2008. HLCC had submitted the request fro reimbursement in July of 09 and nothing was done on it.

There has been no reimbursement to Homeowner associations for the year of 09 for Kelly Bill monies.

The town attorney has drafted a uniform contract ( Kelly Bill ) for all Homeowner association that will standardize reimbursements and various contracts with Homeowner associations.

Council executed a contract with the PAL for certain services, and will pay the PAL $20,000, and allow the use of the artificial fields (Maple Grange Park) at no cost to the PAL. All monies collected by the PAL in running various programs will be kept by the PAL. Typically when a parent registers a child for a program they pay a fee that covers the expense of the program which the PAL will keep, then the Town pays the PAL to run the program and allow the use of Town fields at no cost to the PAL.

Layoff plan was approved by the Council. Plan does not have to be implemented if there are concessions from various unions. Certain positions will be subject to layoff irregardless of union concessions.

Manger will put a resolution opposing Senate Bill 458 on the agenda for discussion at a later meeting. The Bill wants to consolidate Tax Collection and Assessment into the County Gov.

Sally Rinker, Harry Shortway, Mary Ellen Vichiconti Vernon Candidates Survey 2009

2009-10-19T07:52:00.000-05:00

Vernon Taxpayers Assoc Candidates Survey 2009

Mr. Pier and Mr. Benda declined to answer the Survey.

1. What would you do differently than the current Manger and Council are doing that would reduce property taxes.

Rinker

The reduction of property taxes is achieved by a multitude of efforts.
First and foremost, is the halt to all unnecessary spending. My opinion of unnecessary
is anything that does not pertain to health and safety issues. Someday we may have the luxury to spend for desirable things, but not now. As taxes directly relate to expenditures
of the town, I would diligently assess each and every line item of our budget for ways
to combine, adjust or eliminate where it is reasonable to do so. Another component that
contributes to the tax burden on our residents is the heavy percentage we rely on from
residential property tax versus commercial tax. I believe it is approximately 92% versus
8%. A healthy balance for a town should be about 60% residential versus 40% commercial. We have less opportunity than other parts of our State due to the restrictions of preservation and the majority of our town is in preservation. Therefore, we need persons on our town council that understand how to properly assess our development potential and work towards maximizing the benefit for tax ratables, while keeping the integrity and rural character of our town. I believe I have that experience to offer.

Shortway

I do not believe we can reduce property taxes at this time without decreasing services. We must make every effort to maintain the current tax rate and prevent increases. All expenditures require careful consideration within a system of checks and balances.
I will explore sources of additional revenue without relying on our current taxpayer base and relying on an influx on new incoming businesses. The reality is that we are limited by our infrastructure, and to where additional construction can take place.
Vernon should explore implementing an emergency billing program that has successfully been in affect in Bergen County Municipalities. We can implement third party billing to all patients who are treated and transported by our ambulance. We will use a third party billing company to bill a patient’s insurance company. Township residents or employees will not have to pay anything beyond what the insurance company provides. Non-residents will receive up to three bills, at which point the Township will have the option of canceling the debt.

If no treatment was provided, there will not be a bill. If treatment is provided without transportation, a reduced bill may be issued. This program will collect money from a patient’s insurance company and not from the patients themselves. The Township will collect payments from the insurance company and will not seek co-payments from our residents.

Treatment will be provided prior to asking for any insurance information. No patient will be denied treatment or transportation. If the patient does not have insurance, a bill will still be sent; however, the Township will have the discretion to cancel the debt.

This program will allow the Township to generate funds to help cover the budget for our Emergency Services. We should consider restructuring our services to implement a program. This can only be accomplished with the full cooperation of our volunteer services. All funds generated through billing will be used to support the ambulances, emergency service programs, and our volunteers.

Vichiconti

In a word, EVERYTHING!
A. - Do we need a refreshment stand with bathrooms at the town field now? Do we need a community building or a continuation of any town construction at this point including sewers and water and a bike path that we know will all be botched? It doesn’t matter what kind of grant we get, any supervision of any building under Lou Kneip is doomed to be a failure at our expense. Haven’t we learned from the town center disaster? Do we need these items now?
B. - Only essential funding for essential services. If it is not considered essential for the functioning of the town, don’t put money into it. If it is essential to the best functioning of the town, including keeping the animal control officers and health department- they could have scaled down with the health department if there was really a fiscal problem. No more committees should be formed. The answer to solve problems is not to make more committees which cost us money, but to get their priorities straight and take into consideration that the citizens of Vernonites are struggling to pay their bills, Sorry, but I have been opposed to practically every vote that has been cast in the last 8 years since paying attention to the town council leadership. I think that they need to change their mindset. Find items in the budget that can be cut not support ideas for building more projects.
C. - Have employee furloughs. At a time when private industry is taking a 10% cut in wages and paying more of their healthcare, state workers have 5 furlough days, town councils and mayors are not accepting their stipends, we should do the same. I am particularly interested in the 5 furlough days since my quarterly taxes are up; I get no homestead rebate and now have 5 furlough days in our household. Several municipalities are doing this instead of having layoffs. We can do this on the municipal level.
D.- Consolidation of services with the school district in terms of maintenance. Grass cutting and snow removal could be 2 areas where consolidation of services within the township could occur. Purchasing of office equipment and supplies. That would mean working closer with the school board. Since this is where most of our property tax money goes, this could be an area of savings. Also, spending a million dollars a year in utilities at the high school seems almost unbelievable. We need to look at other energy sources.
There is so much more that could be said. Let’s face it our town is in a financial meltdown and they act as if nothing is wrong.

2. How would you communicate our current budget to the taxpayers?

Rinker

I have read and analyzed the 2009 Budget and it makes me very eager to
be a part of the process next year. As I have stated to the Council at Council meetings, I
feel the residents of Vernon deserve to be included on all issues and especially large and important ones such as the spending of THEIR money. I would definitely initiate the
start of open forums and public work sessions to reach out for inclusion by our residents,
as well as the sharing of information by our government that is so sorely yearned for. When our government is puzzled by the fact that they feel disrespected, they are forgetting respect is earned. I plan to earn respect. The Budget should be posted on the town website BEFORE the public session for discussion at the Council meeting. The
2009 Budget has many items of concern. The time frame in which it took to present it was overdue, especially as that relates to the tax rate. The pension contribution deferral
and how that relates to the Tax Levy Cap is troubling to me. I consider this a manipulation by which the taxpayers are the eventual losers, once again. This deferred payment helped this Budget “look better” for now but this deferral will be very costly
to us going forward. I find line items in the 2009 Budget which are duplicating and in some cases completely unnecessary. As I previously stated, I am eager to be involved with the next budget.

Shortway

Research has shown:
Internet use by Americans is rapidly increasing. As of 2006, approximately 70% of American adults used the internet, compared with 53% in 2000. In addition, 67% of internet users are getting their news online. Along with increased internet usage and news gathering, more Americans are visiting government websites. In 2006, 66% of Americans had visited a government website, while only 47% had visited one in 2000. As more Americans continue to use the internet, government entities will see a corresponding increase in online contact with citizens.
A local government website is primarily a communication tool, disseminating information and providing an avenue for contact. With technological advances, a local government has more options to effectively use its website to communicate with citizens. One channel is the web log or blog. As of 2006, 39% of internet users have read someone else’s blog. (ENHANCING LOCAL GOVERNMENT COMMUNICATION: MANAGERS WHO BLOG By RYAN A. DAVIDSON)

I believe we can make the current web site more user friendly including the location of e-mail addresses. Those that are computer literate can simply e-mail their request or find it on the web site. Considering a web log or blog is warranted.
The incoming Council should direct the Township Manager to evaluate all current employee titles and responsibilities. A restructuring of the municipal government work force may be feasible to prevent duplication of services and to create a position of community communications officer. The CCO would be an additional position within our current employee structure charged with communication. It will not be an additional employee.
CCO duties will include:
• investigating market potential for new or improved services;
• developing marketing strategies outlining relevant objectives;
• working closely with other departments;
• consulting with members of the community via focus groups and questionnaires;
• planning and organizing market research campaigns –
• co-coordinating marketing campaigns and monitoring the results;
• writing the material, deciding on timing, and arranging printing and distribution;
• organizing promotional and publicity activities to increase visitor numbers to local attractions;
• choosing the most suitable media to publicize events and liaising with them;
• developing promotional materials – leaflets, brochures, posters, websites;
• producing newsletters;
• reviewing performance and making changes if things are not going to plan;
• writing reports and presenting ideas/findings;
• providing content for the council’s web pages.

Vichiconti

For the average person on the street:
“ It is very complicated reading our municipal budget, but approximately 75% of it is already accounted for via funding for the schools, police, and municipal workers and their pensions, utilities, etc. It is like that in most towns. Over the years, over extending ourselves on the town center project, bonding for heavy machinery, general mismanagement when we were 18 million in debt in 2000, current debt services, and obligations of previous misguided commitments leaves us with basically a few thousand dollars right now in surplus. For all intensive purposes we are in bankruptcy! However, since I don’t trust the town manager and people can always do creative accounting, there is some money somewhere since we just hired a deputy manager. All of us should be asking for total accountability of every dollar spent.”

3. Do you support tax abatement's for the redevelopment zones?

Rinker

I support well planned, fair agreements that will promote business growth for our town. This is one aspect of the necessary effort to reduce the tax burden from our residents. Tax abatements can be beneficial and I would support them but only ones that
are properly negotiated with Vernon Township being the biggest benefactor.

Shortway

Generally speaking I do not support tax abatements or PILOTS. However, short term programs warrant consideration with stipulations as considered in Hoboken NJ.
Our CFO will conduct a comparative financial analysis for all development seeking tax abatements. The analysis would compare a tax-abated property with how much they would pay under normal taxation, and whether the abatement would benefit other taxpayers.

The comparison would be made available to the Council and public 30 days before the vote. A resolution will mandate that if those PILOT payments are projected to be less than what would be collected normally, the developer would have to show some sort of giveback to the Township, such as a public park, (open space).

I agree with the NJPP report findings.
In addition to identifying shortcomings with the law, the report makes 11 recommendations NJPP believes would turn a program that benefits developers into one that targets abatements to projects that would benefit the municipality and its residents. The recommendations are:
1. Amend the long-term abatement law so abatements can only be granted in "blighted areas" where development would otherwise not take place.
2. Require that abatement negotiations between a municipality and a developer be made PUBLIC when they begin.
3. Limit the percent of a municipality's revenue that can come from PILOTS related to abatements so that municipalities do not rely on tax abatements to balance their budgets.
4. Municipalities should be required to continuously evaluate their tax abatement policy to determine if it benefits its residents.
5. Prohibit developers from receiving both a tax credit and other incentives from the state and abatement from the municipality.
6. Grant abatements for no longer than 10 years and phase out the amount of the abatement as the property is transferred from the first owner of a condominium or office building to later ones.
7. Require state review and approval of all property tax abatements over a certain value.
8. Make available online information regarding tax abatements including ordinances, agreements and compliance reports.
9. Bar elected officials from granting abatements to developers who have contributed to their campaigns.
10. Provide the county with a greater share of the money from PILOT agreements. School districts should also receive a proportionate share of the money.
11. Set financial penalties for developers who fail to hire local residents for at least half of the jobs on a project.
Rather than continuing a policy that awards abatements to developers simply because they ask, municipalities should carefully consider whether the abatement will benefit not only the Township but also the county and local schools.

Vichiconti

For development that we don’t need like hotels, condos, and vacation homes I will vote “NO”.
I would allow a break for some businesses who may want to come here? I would vote “YES” on a break, however I don’t see it happening right now. For instance another food store, chain store, a recreational building such as an indoor tennis facility, restaurants, batting range, sports venue, movie theatre, a junior college or satellite school or college, a corporate headquarters, etc., or any company that will provide goods and jobs. If things were fiscally better and Vernon had a better reputation, my answer would be different.
Basically, no legitimate business wants to do business with a corrupt town. This is why I say if someone wants to come in now, give them a break.

4. Would you support letting the voters decide on any bonding over $500,000 in a year.

Rinker

Yes. I feel this is necessary for our residents to have the voice they deserve
for the spending of their money. Again, the installation of open forums and town hall meetings become crucial so as to have a thorough understanding of the issues, both pros
and cons, so our residents can deliver an educated decision with their vote.

Shortway

I think the use of referendums must be studied and evaluated before an ordinance is introduced. Public opinion and insight is a must in any large scale project. However, referendums have draw backs. "Hearing from the public" is a must but other avenues must be explored.

• private interest groups could mount campaigns for or against the project.
• public referendums have met defeat--most often, not on the merits of the project but on the fear of rising taxes and a general negative feeling against new public programs.
• Block voting could defeat a project.
• It becomes nearly impossible to resurrect any portion of the referendum once a referendum is voted down.

Communities have lost referendums by including several different projects in a bond issue referendum, only later to hear from constituents that they would have voted yes to one project but no to another. (Lesson learned from our own Board of Education).

Implementing an aggressive educational campaign and public outreach program may be a better solution.

Vichiconti

Would you support letting the voters decide on any bonding over $500,000 in a year.

“YES” - absolutely! I believe in referendums and we should have more of them. Under the Faulkner Act we should and can have them. I guess half a million is a good number

5. Would you apply for extraordinary State Aid next year? How would you spend the money?

Rinker

Yes. Unless there is a more immediate need relating to the health and safety of our residents, I would use it to pay down our debt.

Shortway

We may qualify for extraordinary aid since we experienced unexpected problems such as the ice storm and the Ameripay theft.

An extraordinary aid application should be filed. However, should our current council and manager be shown to be at fault as some of the public allege regarding the Ameripay issue, then we may be disqualified for the lost.

A priority list of expenditures will be created. The list will include repairs to emergency vehicles, climate control system in Town Hall, and the deferred pension payments all merit careful evaluation. We may be forced to make payment to SCUMA for any contractual agreements made in the past.

Senator Kevin O’Toole has called on the State Auditor to conduct a performance audit regarding the program, alleging mismanagement of the funds. It will be interesting as to the findings of such an audit.

Vichiconti

“YES”. For property tax relief for lower income, seniors, disabled and other residents who might qualify and people out of work etc. I don’t know how much we would get because Vernon has a higher median income than most towns. As a volunteer at NORESCAP I see plenty of individuals who need help with their tax bills, energy bills and home mortgages. They should have a rebate and may be on the borderline of receiving government assistance. and are out of work. Many towns that have had nature related disaster damage have also applied. Any thing that reduces our property tax I’m for.

6. What are your specific ideas about making the Vernon Government more people friendly?

Rinker

This may seem like a small item, but I would abolish the 5 minute rule at
our Council meetings. I feel the meeting is chaired and the public speaking time can be adjusted as necessary. At the last meeting, our Mayor was rushing everyone with the threat of the 5 minute rule, while the meeting ended before 9:30 P.M., one of the earliest endings of the meetings I have attended. I do not wish to see the Council meetings continue on a Thursday night for two reasons. Business cannot be attended to nor continue the next day due to the municipal building being closed on Friday. Also the chance for continuity and follow-up is diminished as the next business day is 4 days away. I want to see more interaction and communication with our Board of Education so
therefore, we should also move to a different day because we conflict with their meetings. The most common complaint I hear and have experienced myself is the lack of follow-up and answers to questions. I find this behavior to be very disrespectful. When one says “I will get back to you” or “ get you that answer” and those promises are not fulfilled it creates an atmosphere of distrust. I completely oppose that behavior
and I will be certain to follow through with what I say.

Shortway

As discussed in question #2, implementation of technology is a consideration.
Community feedback is necessary to evaluate the cost savings in relations to any hardship(s) caused by the four day work week for the Township employees. The guiding question is; is the savings worth having services unavailable on Friday(s)?

Vichiconti

We need to start communicating in a whole new manner. First off, we need to get the microphones working better in the town council room. It took a long time to get the town council meetings televised and now that they are, the quality of sound is poor. We need coffee with the council and round tables. We need to provide mayor and town council reports. People still are not on the Internet – mostly seniors. The mayor should not be yelling at people. There should be one night a week or scheduled hours when people can come and talk to 2 members of the council or more with their concerns or Saturday’s when people can meet and speak to council members informally and it doesn’t have to be at the town hall. We should go to the A&P and talk to people and introduce ourselves so people get to know us. Nobody really knows enough about our government and who everyone is except a small minority of people. Where are the civic groups in Vernon? Everyone is working, commuting, and in their own little parochial area and perhaps not interested in civic matters. We need to at least try to be more visible to let the public feel more comfortable when they come to the town hall meetings and then we need to listen to what they are saying and then try to resolve problems. I don’t see any of this happening. It boils down to treating people with common decency. We need to rebuilt trust. This is going to be a monumental task, but a task worth doing.

7. How can we improve the function of the Council// Manger relationship?

Rinker

Both the Council and Manager MUST know their respective duties and follow through with them. There are specific obligations and responsibilities by statute by which the Council and Manager must follow. First is the clear knowledge of them and as important, is the energy and will to carry them out. As a sitting Council person, I will not accept the presentation and information of any issue of which I am expected to vote by receiving such information the same week of that meeting. My experience in planning and decision making has taught me to be thorough with having proper time for research.
I expect open and honest communication between the Manager and Council and I will accept nothing less. If the Council has a directive for the Manager, I would expect a timely and proper result. In short, I am all about everyone doing the best job they can for which they have either been hired or elected to do.

Shortway

• The Council needs to assess the issues confronting our Township.
• Create alternative solutions and policies.
• Provide clear guidelines and policies to the manager with the authority to complete the goals and objectives of the Council.
• The Council must assess progress and reevaluate the manager’s performance and their own performance to ensure that our residents are being served with the utmost professionalism and consideration.
• A system of checks and balances regarding expenditures.

Vichiconti

The function will not change unless everyone understands what exactly the council- manager from of government is under the Faulkner Act. Apparently it is NOT understood and we are not following the town charter. The town manager should be following the policies of the town council. I don’t see that happening. I also see the mayor yelling and the town manager making decisions on her own and she doesn’t have that power.
I hear that the mayor(s) had told people things that he had no right to. He doesn’t have that kind of power. He is the spokesperson at the town council meetings. He has no other power outside the town hall to give out information, wheel influence, and or make decisions.
We need to change the form of government. I have said that in March of 2008. This form of government is not for Vernon. We keep shooting ourselves in the foot!

8. What are your ideas about creating a Financial Master Plan for the Township?

Rinker

A Financial Master Plan is a very big phrase but I feel this is key to the future of our Town. We now have a Finance Committee, an Economic Development Committee, a Land Use Board now working on Master Plan Revisions, a full time CFO and hopefully, some Council persons with business sense. I believe we need to look at all the components that will play a part in the future financial health of our town and
put together a strategic plan that will produce optimum results. The inclusion of budget,
revenue and expenditures, the issue of opting in or out in our planning areas under the Highlands Act, the development of our Redevelopment areas, the Town Center and the
sewer and water issues and a renewed relationship with our B.O.E are all crucial.

Shortway

The master plan is a document to guide the future growth and development of our Township. It will ensure and provide confidence that our Township becomes a desirable community in which to raise our families, work, or visit. This can be accomplished by preserving the natural beauty of Vernon and by making Vernon a more desired economic area to conduct business.
Careful deliberation must be given to the viewpoints and interests of all of our residents’ concerns. We must set goals and consistently review the Plan to ensure we are on the right track.
The entire community, not just residential, but business and agri-tourism interests must be incorporated.

Vichiconti

I’d say that that is probably a good idea. With the amount of debt that we owe, we should do it! Our government needs structure that it doesn’t have. The priorities should be paying down the debt putting money into surplus and making sure that we have essential services up and running like enough salt and sand or converting to a brine mixture which is cheaper and works better. Fuel and equipment for our volunteer forces and police. We have to have a plan that we can agree on and stick to it. The “mission” of our new CFO should be just that. When the dust settles on the recent news of an accounting system that uses no standard accounting protocols, we need to start from point A and start over to rebuild sound practices. I am not a financial expert. I am just someone who is infuriated by the behavior of our local governing body and know we need to start using common sense. I think that putting the budget on the Internet monthly would also be adding structure to this plan.
People want accountability. We should give it to them.

9. Would you be able to vote in the minority on a position?

Rinker

Absolutely and without a doubt, I would always vote what I believe is correct. The fact that I could be in the minority is non-consequential to me. As one who
has single-handedly operated my own business for 25 years, I have had to make unpopular decisions at times, but did so for the better end result.

Shortway

Absolutely, my vote will reflect my perception of the desires and needs of our residents regardless of how the other members of the Council vote.

Vichiconti

I will be the minority voter if I am elected. This is not a problem. If it were a problem, I wouldn’t be running for town council.

10. What are your spending priorities?

Rinker

My spending priorities would be #1. Health and Safety issues. #2. Pay
Down the Debt. #3. Expenditures that which would result in putting our town in position towards greater prosperity, in other words, where spending some money would yield
greater value in the result.

Shortway

• Emergency services
• Infra structure – transportation
• Town Hall climate control
• Municipal government
• Debt-service
• Economic development
• Senior Citizens, recreation and leisure

Vichiconti

Essential services and the rest goes into paying down the debt and surplus. What is essential? Police, DPW and Volunteer EMS Corps and Fire Fighter's and the necessary municipal workers. I also support opportunities to go green but not at the expense of blowing the budget. In the long run having alternative sources of energy makes sense, but we have to see what can be done. I would only agree on full grants from the state or federal sources that does not need to be paid back like the “click- it-or-ticket” grant from the federal government in order to go green. I am committed to paying down the debt and getting the municipal tax rate down. That is going to take a long time. I basically want to pay for our needs and that is it. Just say “NO” to schemes that sound too good to be true.

11. Where can the township save money in the budget?

Rinker

Wow, I love this question. I am interested in looking at eliminating any unnecessary line items. I do not want a continuation of hiring consultants where our employees are capable of doing the tasks. I want to see our employees maximize their talents so we are not duplicating expenses. Look at the departments to ascertain whether or not there is a need to adjust the employees or tasks, up or down. Look at salaries for parity and fairness as well as salaries that are comparative to the tasks. If we hire consultants, I would make certain we monitor and follow-up with them to be certain we
are getting the value for the dollars spent. I would love to spear head the research and
feasibility of “intaking” services. Perhaps as shared services is considered, we should be
the benefactors of offering services to others, thus keeping our own services and profiting by that. I believe in creating a beneficial relationship with our Board of Education whereby we can discuss and hopefully implement some shared situations with them as the cost of running the B.O.E. and our Municipal Government both go to our taxpayers. I would definitely call for complete and accurate information when making sweeping changes for our residents. Some of you may recall, I spoke to this Council against sending our Health Department to the County. I am NOT against studying the
facts and making changes which are beneficial for out town. However, I felt the issue
was poorly presented, with constantly changing “bottom line numbers” , while we had the opportunity to keep a smaller version of our own “in-house” health department.
Well, the numbers are in. It is costing Vernon residents approximately $311,000.00
to NOT have our own Health Department. While our current Manager was trying to convince our current Council that this was so beneficial for our budget, there was no appreciation by her to include the effects of this change on our town. Her mismanagement of our tax dollars with the Ameripay situation of $371, 000.00 far
negates any savings from outsourcing our Health Department. As a Councilperson, I
would be a watchdog over our budget and would take to task any and all proposals that would affect our budget and ultimately the health and welfare of our town.

Shortway

We need to undertake a comprehensive study to assess our local government as discussed in question #2.

We need to consolidate services with other jurisdictions to reduce spending as with the health department.

We must do more with less. We must control spending and at the same time explore new avenues to obtain revenue without local tax increases.

Commissioning “studies” will be curtailed.

Only necessary capital improvement projects should be undertaken until we can get a handle on our debt.

Vichiconti

Stop spending on things we don’t need. Also as mentioned before, I am for municipal workers having furloughs instead of lay offs. We can still do this but police would be exempt. We are all scaling back. Vernon needs to face the reality of the real world.
We should have a moratorium on all town center projects. (There are enough homes for sale along Rte. 94 that if someone wanted to start a business, they could do so like the “OUTCAST” and Nordic House businesses.)
We could fire the township manager and get a new form of government with an administrator whose salary range would be less.
I think that you really have to go line by line and ask, “Do we really need this?” I would like a policy issue and a “direct mission” of the town CFO and Advisory Finance committee. We should be watching every dime. What is absolutely necessary for the town to function efficiently? That is what we should be asking ourselves at every town council meeting- “Do we need this now?? We have to be totally vigilant.
I was against hiring a grant writer, building the recreation building and town community building and streetscape, re-development zones (which technically are development zones.) I am against putting in the sewers and water. If that is to be done it should go on a referendum.
I would have voted “NO” for all the grants that are matching or partial. Also, I would like to let Lou Kneip go. I certainly think that we have enough information to justify him being fired.
I am also for the prosecution of anyone and everyone who knows anything about the missing tax dollars from the town center fiasco. They should be prosecuted to the fullest extent of the law.
The local government means self- governing. We must get our priorities straight.

We will not support specific candidates for office but will publish the results of this survey and the ranking its produces.

2009-10-01T22:25:00.000-05:00

In an effort to cut through the politicians non answers to the property tax issue we offer the following survey. It has been sent to all the candidates along with the offer of a debate in mid October. So far, candidates Rinker and Vichconti have indicated they are interested in both the offers. Candidate Shortway has replied that his schedule will preclude answering the survey or participating in a debate. Candidates Pier and Benda have not responded.
The survey will be graded thus, 20% for attendance and participation at council meeting. The remaining 80% will be graded on answers to the survey. Resulting grade will determine the property tax sensitivity of the candidates.

Introduction

The Vernon Taxpayers Assoc would like to rate the candidates on their property tax positions. We also invite all candidates to debate their positions on property taxes. Tentatively scheduled for the debate is the middle of October. Replies to this survey and the debate should be done by Oct 3, 2009.

Current state of the Towns finances as we see it.

The legislative branch (council) has abdicated its fundamental fiduciary responsibilities to the executive branch (manager). This has led to the municipal tax levy increase over 24% in two years. We the taxpayers have not seen any service increase for the extra 3 million we are paying in taxes nor are we content with the value we receive for our tax dollar.

Top Five Major Budget deficits for 2010

1. 505,000 in pension payments
2. 500,000 in pay raises to employees
3. 375,000 in increased health insurance payments
4. 371,000 for the Ameripay boondoggle
5. 250,000 increases in bond payments
Total 2 million

Survey Questions
1. What would you do differently than the current Manger and Council are doing that would reduce property taxes.

2. How would you communicate our current budget to the taxpayers?

3. Do you support tax abatement's for the redevelopment zones?

4. Would you support letting the voters decide on any bonding over $500,000 in a year?

5. Would you apply for extraordinary State Aid next year? How would you spend the money?

6. What are your specific ideas about making the Vernon Government more people friendly?

7. How can we improve the function of the Council// Manger relationship?

8. What are your ideas about creating a Financial Master Plan for the Township?

9. Would you be able to vote in the minority on a position?

10. What are your spending priorities?

11. Where can the township save money in the budget?

We will not support specific candidates for office but will publish the results of this survey and the ranking its produces.

2009-09-27T19:40:00.000-05:00

Labor Contract for Afcme and UAW 2009

Conditions of Existing Contract

1. 3% salary increase per year ( 2005,2006, & 2007)
2. 15 Sick days
3. 12 to 25 vacation days
4. 4 personal days
5. 13 Holidays
6. Health insurance and Life insurance

Changes under new Contract

1. Salary Increases 2008 2.75%, 2009 3%, 210 3.5%, 2011 3.5% Professional Contract ( AFCME)

2. Extra Holiday ( Christmas Eve) total now is 14 days

3. Tuition reimbursement added to this contract (can be used during the work day and the employee will be compensated as if they worked.)

4. Extend the contract from 3 years to 4 years

5. Longevity pay clause has been removed ( prior contract stopped longevity pay for anyone hire after 1996 and longevity payments was limited to $4,000. per year for those employees)

6. Defined the work day for DPW workers as 06:30AM to 3:00PM ( prior contract allowed DPW MGR to set the work hours)

7. Remove step three of the grievance procedure ( this step allowed the employee to petition the mayor and council)

8. Starting January 1, 2010 for the professional contract and January 1, 2008 for the non professional contract. Any new employees will receive an ARRP policy for their Retirement health care benefits not covered by Medicare.

9. Capped the payment of unused sick days a $5,500. when retiring.

10. Non Professional Contract (UAW) gets 2.5% per year salary increases.

11. Increase Tool and Clothing reimbursement by $250. per year

2009-09-04T21:09:00.002-05:00

Vernons Debt

As you go through the year township debt will fluctuate due to various factors such as new borrowing or town payments. The numbers in the chart below are taken from the annual Debt Statement that the Town has to send to the Department of Community Affairs at the end of each year. Whats interesting about all of this is the over the last two years ( 07/08) we have increased town debt by 2.6 million. We also paid 5.6 million in interest and principal payments on those bond during the two years. We also increased the property tax levy by 3 million or 24 % during those two years. Color it any way you like the outcome is this We cannot afford the ever increasing spiral of Debt and Property Tax Increases.

Vernons Debt

Year ------ Town Debt in millions ------ increase in millions

2000------- 18.4

2001 ----- 18.6 --- ----------------- .2

2002 ----- 19.8 --- -----------------1.2

2003 ------ 21 --------------------1.2

2004 ----- 24.5 --------------------3.5

2005 ------ 28.1 --------------------3.6

2006 ----- 28.9 -------------------.8

2007 ----- 30.7 -------------------1.8

2008----- 31.5 ----------- -------.8

2009-06-30T21:07:00.003-05:00

Survey of Property Revaluation

We conducted a brief survey of how the revaluation process impacted various parts of the Township. We took ten properties at random, in sections of the township, and averaged the numbers for each section. The data presented below is the outcome of that survey. Only properties with structures are included in the survey. 405 property owners have filed for tax appeals and probably everyone should do the same next year. The actual resale values of homes are as follows, 2006- $254,731., 2007---$260,961., 2008---$250,252. (http://www.state.nj.us/treasury/taxation/lpt/class2avgsales.shtml) which is approx a 10,700 decrease in one year. This is probably the first time in at least 25 years that actual property sales average has fallen. If this trend continues next years average sale price will be close to the average revaluation price of residential properties of $228,000, set by the township.

Highland Lakes Average Price Average Increase Percent Increase

. $ 234,950 $108,670 95%

Storm Estates Average Price Average Increase Percent Increase

. $ 452,840 $176,960 64%

Old Orchard Average Price Average Increase Percent Increase

. $ 412,067 $170,522 69%

Barry Lakes Average Price Average Increase Percent Increase

. $ 257,230 $ 107,060 73%

Harbour Estates Average Price Average Increase Percent Increase

. $395,390 $177,520 82%

Lake Wallkill Average Price Average Increase Percent Increase

. $ 196,810 $129,310 228%

Great Gorge Average Price Average Increase Percent Increase

. $125,550 $ 68,980 126%

Black Creek Average Price Average Increase Percent Increase

. $ 289,860 $ 47,080 20%

Vernon Valley Lake Average Price Average Increase Percent Increase

. $ 226,120 $ 109,390 93%

Commercial Properties
. 2008 2009 increase % inc .

Highlands Bank $ 1,085,600 $ 2,054,300 $ 968,700 89%

Lukoil $328,600 $ 508,000 $ 179,400 55%

house next Lukoil $ 104,900 $ 158,300 $ 53,400 51%

Saxony Bake $ 265,400 $ 522,800 $ 257,400 97%

Law office next Saxony $ 128,800 $ 237,000 $ 108,200 84%

Old Firehouse $ 212,800 $ 387,800 $ 175,000 82%

Lakeland Bank $ 856,100 $ 1,612,900 $ 756,800 88%

DS Mall $ 715,900 $1,293,900 $ 578,000 81%

A+P $ 6,500,000 $13,475,300 $ 6,975,300 107%

Burger King $ 538,500 $ 805,700 $ 267,200 50%

Bank next to BK $ 499,800 $ 964,000 $ 464,200 93%

Old pool hall $ 189,000 $ 285,000 $ 96,000 51%

$ 1,974,270 $ 973,150 78%

2009-05-21T22:42:00.000-05:00

On May 27, the Vernon Taxpayers Association is sponsoring a “Meet the Candidates” night for candidates running for Vernon Township Council in the June 2 Primary Election.
Meet the Candidates Night will be held at the Nordic House café on Route 94 in Vernon at 7:30 p.m. Four candidates are running for two available seats on the Vernon Township Council. The four candidates are Neil Desmond, Michael Pier, Sally Rinker, and Harry Shortway. They will discuss their candidacies and their platforms. There will also be a question and answer period.
The event is free and open to the public. For information, call the Vernon Taxpayers Association at 973-764-5659.

2009-05-13T05:32:00.001-05:00

Vernon’s Theft Budget 2009

It’s the silly time of year again for council members, town manager and the chief financial officer of Vernon Township. Spin and misinformation are the order of the day, along with the opaqueness of the town budget. Politicians and the manager like to point out that the budget is not increasing that much this year. Actually the part of the municipal portion of the budget that is supported by property taxes is going up 14% this year or in dollars 2 million. The municipal portion of the property tax levy will be $15.9 million this year if the council doesn’t get a waiver on $550,000 in pension payments. We assume that they won’t, but if they do it will lower the property tax increase to 11%. What all this means is that you are looking at, yet again, a double digit property tax increase or the highest tax increase Vernon has ever experienced.

In 2007 we searched for and hired a new town manger with financial expertise to address the town’s financial disarray. The property tax levy was $12.4 million in 2007 and in 2009 its $15.9 million or a 27% increase in two years. During the same time period the County taxes have gone up by 2% and the School taxes by 6%. We rate performance of the manager and the council members by the property tax levy increases and they receive an F minus for this budget. Yet again this year, they have spent a lot of money on things they want which they do not need: $50,000 for a grant writer, $90,000 for an Economic Commission, signed a contract with the police for $450,000 in pay increases over four years. Turns out that the pay increases are actually $880,000, and with pension increases will be (approx.) $1.2 million over four years for 28 police officers.

Currently we are paying $2.7 million in interest and principal for our $30.5 million town debt. Or you could say every two years we could build a new town park (Maple Grange) with the money we pay on our debt. The Economic Commission is composed of the same folks who brought you the Town Center. The grant writer’s contract was never put out to public bid but was awarded after he showed up at Council meeting. Seriously, folks, there are people out here on limited incomes and oh, yes, the economy is in the pits. All of this makes these property tax increases unsustainable.

When confronted with all this, the council and manager will offer platitudes such as trust us or we went through the budget line by line. Our opinion is that they put the lines in the budget, so what’s not to like? Trust works both ways. Give the Taxpayers the option of voting on your budget. You can trust us, too.

2009-04-01T20:33:00.001-05:00

Tax Rate

Ballpark figure and how we arrived at it.

Attended the school budget presentation last night and they gave out the following numbers. The property tax levy for the schools will be 39.2 million and the tax rate will be $1.412 per $100 ( assessed value of property). The other two parts of the property tax levy are the county portion which is unknown at this time so we took last years number 12.5 million and increased it by 4% ( budget increase limit) got 13 million. The municipal tax levy will be 14.5 million which has been given to us, by the town council on a number of occasions. Total for county and municipal tax levies is 27.5 million.
To find the multiplier for one million in taxes we took the $1.412 school tax rate and divided it by 39.2 and got 0.036 which is the tax rate per million. We then multiplied 0.036 by 27.5 and got 0.990 added that to the $1.412 rate for the schools and got $2.402.

The new tax rate will should be around 2.402 per hundred assessed value.

Just multiply your new valuation by 0.02402 and that’s your ballpark tax bill

Total tax levy would be 66.7 million for 2009
Last years total tax levy was 64.8 million (2008)

2009-02-25T07:51:00.001-05:00

Its about the Money

This letter is in reply to Mary Emelius’ recent letter to the editor. Mrs. Emelius makes three arguments in support of the current manager and town council. Mrs. Emelius argues that the manager is doing a good job, and that the council is also doing a good job. She also argues that the council and manager are fine people and we should all support them and stop filing these OPRA requests for such things as the town’s budget, debt statements, ect. Essentially what Mrs Emelius is trying to do here is take questions of expenditures and property tax increases and define them in the context of liking or disliking personalities. There are 25,011 people residing in Vernon and to presume that all of these people have a personal relation with the Council and Manager is unrealistic.
What the general public needs is a benchmark that gauges the council and manager’s performance, not their personalities. We suggest that the bench mark should be property taxes and debt.Yes, the municipal tax levy increased 12% last year and we increased bonding/debt by 4.1 million, and we believe that’s bad. Yes, the management style of (my way or the highway) and the reticence to share how taxpayers’ monies are spent is endemic in this council and manager actions. For example, during the past year we have asked the manager and council at each meeting how much resolutions and ordinances that they are voting on that night will cost. The answer we receive is that they don’t know but will look into it, and then they approve the ordinances and resolutions. Some of you may view this as perfectly acceptable, but we view it as nonsense. It’s about a tough job being done poorly or at best communicated poorly. It’s not personal.

We say if you like higher property taxes, financial disarray and a style that says “we’re doing the best job we can”, then you should love these folks and give ‘em a star for trying and failing. We would also suggest you might want to invest some money with Bernie Madoff ( Madoff Securities), who is also very personable and doesn’t like to communicate how your money is used.

2008-12-22T18:00:00.001-05:00

Its about the Money

This letter is in reply to Mary Emelius’ recent letter to the editor. Mrs. Emelius makes three arguments in support of the current manager and town council. Mrs. Emelius argues that the manager is doing a good job, and that the council is also doing a good job. She also argues that the council and manager are fine people and we should all support them and stop filing these OPRA requests for such things as the town’s budget, debt statements, ect. Essentially what Mrs Emelius is trying to do here is take questions of expenditures and property tax increases and define them in the context of liking or disliking personalities. There are 25,011 people residing in Vernon and to presume that all of these people have a personal relation with the Council and Manager is unrealistic. What the general public needs is a benchmark that gauges the council and manager’s performance, not their personalities. We suggest that the bench mark should be property taxes and debt.Yes, the municipal tax levy increased 12% last year and we increased bonding/debt by 4.1 million, and we believe that’s bad. Yes, the management style of (my way or the highway) and the reticence to share how taxpayers’ monies are spent is endemic in this council and manager actions. For example, during the past year we have asked the manager and council at each meeting how much resolutions and ordinances that they are voting on that night will cost. The answer we receive is that they don’t know but will look into it, and then they approve the ordinances and resolutions. Some of you may view this as perfectly acceptable, but we view it as nonsense. It’s about a tough job being done poorly or at best communicated poorly. It’s not personal.

We say if you like higher property taxes, financial disarray and a style that says “we’re doing the best job we can”, then you should love these folks and give ‘em a star for trying and failing. We would also suggest you might want to invest some money with Bernie Madoff ( Madoff Securities), who is also very personable and doesn’t like to communicate how your money is used.

2008-10-11T10:54:00.000-05:00

“It’s the Economy Stupid”

The Town Council’s idea of leadership during uncertain financial times for the residents of Vernon is to ignore the current financial meltdown and steer a steady course of spending and tax increases. As we have done many times in the past we object to paying ever increasing property taxes to support fields of dreams and lavish vacations.

Recently top executives at the failed insurance giant AIG spent more than $440,000 at a company retreat days after the federal government bailed out the company with $85 billion in taxpayer funds. Similarly, the town council has decided to start out the budget planning process by proposing to increase property taxes by 5% next year ( R 08-188). Our position is that process should have started out as a negative 10%, then see what we absolutely need to spend. What the township definitely didn’t need was the creation of a new bureau chief position which the council approved in ordinance 08-21.

During the open to public period of the council meeting we questioned the council on resolution (r-08-197 VALIC investment plan). The manager answered the inquiries by stating that it was a mandate new this year as January 1, 2008, and that it applied to one employee, the town manager, because of her salary. Once the meeting was closed to the public and the council was deciding the resolution, the manager went on to explain a few more things about the resolution. It was for the creation of a 401 A plan, it’s a statutory requirement, and it would cost about $3,000. Actually all those statements by the town manager seem to be incorrect upon review. We looked up AIG’s explanation (http://www.agc.com/valic2003/plansponsor.nsf/contents/plans_types-spp ).

This is not a mandate or statutory requirement.
It’s an option.
It’s not $3,000, but it’s up to $45,000 in employee and employer matching funds. It’s not new this year this plan was first introduced in 2002 and modified in January of this year to allow greater contributions.
It’s an IRS plan that lets the employee contribute and receive upon retirement or termination contributions to the plan without having to pay any taxes on the payout or pay in.
This plan is not income specific and can apply to all the town employees.

Fortunately the council didn’t attend the AIG retreat this year but they are sending our taxes to AIG for next year’s retreat.

So for eleven months of work, we the taxpayers have rewarded the manager with the following benefits which were in addition to her initial contract apparently.

Enrollment in the State Deferred Compensation Plan. This is investment vehicle for government employees and is open to all town employees.
Enrollment in the State Defined Contribution Plan. This is a $5,000 match by the township taxpayers for $5,000 contribution by the manager and is a statutory requirement, sort of. The council gets the manager into this plan by deciding she’s in an appointed position not a contractual position.
Enrollment in the VALIC plan. This is an investment vehicle that is limited to the town manager and has a $45,000. matching contribution limit.

Not bad for eleven months work. We object to these expenditures, because in the future we will be asking town employees to take less, and the uncertainty of the current economic crisis.

2008-10-05T22:05:00.000-05:00

2008-10-05T21:25:00.001-05:00

What we have here is a failure to Communicate

Politicians like to frame their careers by pointing to what they have accomplished in their elected post. Typically this accomplishment will be in form of building, sewers, roads ect. Being lower tax advocates we like to frame all of this in how much did it cost us and will it increase property taxes. Of late we have noted that the manager and the council are trying to frame their year (2008) as a no budget increase, no new bonding and financial accountability and transparency. First the bad news as you probably guessed all of that is untrue and just plain fluff. This manager and council have spent $1.5 million from the budget surplus, raised property taxes by $1.5 million and spent that, found $ 2.2 million in unspent bond monies and spent that and last but not least they did bond for $2.8 million dollars this year increasing the town debt to $33 million. That’s $8 million in extra spending this year that they would like not to mention. The good news is that there’s only three months left in the year - how much more can they spend?

We believe that the town has to start preparing now for the trickle down to the municipal level of the current financial crisis. The trickle down will come in the form of less or static state aid for towns and schools, reduced valuations of real estate, reduced construction of new buildings and increased payments for debt already incurred. To minimize the impact on delivery of services to the public we must stop borrowing money through bonding now and we must stop spending non recurring revenues on budget gimmicks.

After adoption of the current budget, the manager was going to immediately start preparing for next year’s budget by gathering input from department heads and the financial committee. Currently there is no financial committee and there have been no reported meetings with department heads .While we were promised an on-time budget this year, it was delivered, late as usual. There is still time to start planning by meeting with department heads, now!

Part of the planning must include the town chief financial officer who was newly appointed at Thursday night’s meeting. The Chief Financial Officer (CFO) oversees all of the financial records of the Borough. The CFO assists in the development of the annual budget, invests idle funds and handles the borrowing of short and long term funds for capital improvements. While we disagree with the appointment of the individual who is the town’s redevelopment consultant, he should still be involved in planning now for next year’s budget. The first step he should take is to implement a monthly accounting system that resembles this Mr. Orho’s suggestion or try here ( http://www.haddontwp.com/township.php?page=financial ) .

Our objection to having Mr. Benecke serve as the Chief Financial Officer for the township is that he is the Redevelopment consultant for the township. Typically you would have your CFO review any financial projections given by consultants, and in this case Mr. Benecke gets to review his own work. We also disagreed with this appointment because the town already has a contract with Mr. Benecke for financial advice (r-8-25) and were now rehiring him 9 months later for another $23,500 for financial advice n(r -180&181). We would also like to point out that because Mr. Benecke is only appointed for one year, there will have to be another close out audit according to the town manger and that audit will cost $20,000, thus pushing the interim CFO salary to 50% higher than the resigning CFO.

In conclusion, we would like to point out that we the taxpayers allow these folks to frame the discussion and we should not. In time of great uncertainty we need some leadership that is clear, transparent and for the public. We should start with:
• Adopt a town code of ethics

• End no bid contracts (CFO, Auditor, Bond attorney ect.)

• Bonding over $500,000. should be voted on by the taxpayers

• Increases in budget should be voted on by the taxpayers

• Town employees insurance plans should be in the State plan not a private plan

• Form a financial committee to oversee towns finances .

Over the years we have presented all these suggestions to the town council as a way to reduce property taxes. Both old and new councils have firmly rejected these suggestions as nonsense and they could reduce taxes without outside help. In the last 8 years property taxes in Vernon have gone up over 80%, and with the revaluation that’s occurring - you the residential property tax payer will be paying significantly more in taxes.

2008-09-23T22:17:00.000-05:00

Irrational Exuberance gone Amok!

At the last town council meeting former Mayor Ira Weiner gave his view on the economy, which is that the economy would turn around. Please remember that town officials over the last eight have run up the town debt to its current level of 33 million dollars. While there is a lot of argument concerning Wall Street’s current dilemma we see its dilemma as a liquidity/cash crisis not a credit crisis. Yes there will be more turmoil in the markets and the Federal bailout will cause its own problems. Our focus remains on the Town’s finances and how it will weather its forthcoming liquidity/cash crisis, which the council can only address through higher taxes to pay down the town’s debt. This is why we currently have expanded the property tax levee by 12%, which will mean that you get to pay 11% more in property taxes. The problem is that these large tax increases will not stop there because the town has other risk exposures due to the actions of town officials.

Our opinion is that Mountain Creek will decide not to reimburse the township for the sewers (15.2 million dollars). There is legal precedent for this and with the economy in a nosedive the great gamble taken by town officials will have to be paid for by the taxpayers. Add to this the Redevelopment zones that are going nowhere fast but will benefit the developers more than the taxpayers. Then add an ongoing revaluation of properties which will shift more of the commercial property taxes onto the residential property taxpayers. Sprinkle on unfunded millions in COAH (council on affordable housing ) obligations and you have a perfect storm for sinking the residential property tax payer.

So where do we go from here! Well first we have to get a better accounting of how money is spent in the township and we have to be risk adverse. Yes this means that because of Political pandering that has gone on for eight years our town services will suffer. Frankly our view is that they already are and this council’s actions are doing nothing to alleviate the problems. The basis for better accounting should be the 2007 Town audit. We requested this document on August 8, through an OPRA request. The Annual Town Audit has to be completed within the first 6 months of the year, with the town council reading and approving the recommendation section within 45 days after completion of the Audit. Three different town employees gave us five different reasons why we had to wait for the Audit. On September 16 we received a sixth reason in a letter stating that the 2007 Town Audit does not exist, in plain English—oops, we didn’t do it.

Yes we know that our request for the Audit, prompted the town to start the Audit. Yes, in 2007 there was the discovery of 1.2 million in unauthorized spending and yes the Town Manager was indicted and sent to prison. Yes, this council sent a letter to the State requesting an Audit of town finances. The reply to the request stated that the town professionals were more than qualified to do an Audit. Yes, this council made a big brouhaha of possibly conducting a Forensic Audit of the Town Center Redevelopment zone finances. Yes, we hired a new manager who is a financial guru and would whip the town finances into shape pronto. Bad news is that the town’s finances are as murky as ever, the required Annual Town Audit was never done, and the town manager’s grasp of financial matters is not what it was advertised to be. Yes, it’s the town manager’s responsibility to tell the council members that the annual audit needs to be done this year, Yes town officials remedy to all of this is to appoint a new Chief Financial Officer who is the town consultant for the redevelopment zones.

In a time of great financial crisis and turmoil, town officials have decided to do what they have always done. Our opinion is that we have to review all the town officials’ prior decisions and weigh them in risk/ benefit equation that is biased to risk aversion. We need to keep monthly accounting of expenditures as Mr. Oroho suggested. We need to limit the impact of prior decisions made by town officials on the delivery of services to the public. In short we need to think anew and act anew in a financial world reminiscent of the Great Depression.

2008-08-25T22:09:00.000-05:00

2008-08-18T22:02:00.008-05:00

Town Debt Will Lower Property Taxes

Debt will also save town jobs, pave roads, remove snow from roads, increase town services and will make Town government transparent. Ok so maybe were not on the same planet as you but at least we have the Town Council for company. The Towns debt is an ever increasing drain on town services and the Town Council is not done yet. Next on the borrowing bonanza for the Town center is 1.9 million for a water utility( temporarily on hold) and 4 million for a sewer utility. Trust them, they know what their doing with your money ;which is what they told you in the past. Yes its deja vu all over again when it comes to borrowing money, don't worry someone else will pay for it; right. Well how much are we currently in debt for as of December 2007-- 30.7 million dollars to which you can tack on an extra 4 million dollars for the above noted necessities. How does this stack up to past borrowing of the Town council?

Year ------------Town Debt in millions --------net increase in Debt in millions

2000 -------------18.4

2001 -------------18.6 -----------------------------.2

2002 -------------19.8 -----------------------------1.2

2003 -------------21------------------------------- 1.2

2004-------------24.5 ------------------------------3.5

2005 ------------28.1 ------------------------------3.6

2006 ------------28.9 -------------------------------.8

2007 ------------30.7 ------------------------------1.8

While the growth in debt is obvious ,what is not is the surplus tax monies that were also spent during these seven years. We have just come through the largest building boom this country has seen in at least 70 years. While these extra taxable properties were being finished the town was busy spending this tax money, not paying down debt but frittering it away on the unknown. What is also troubling about the current Council, town Engineer and Manager is that they think the current national economic crisis is over or temporary at worst.

Our position on this is pretty standard financial doctrine and that is we must pay down debt not incur more debt. The way to start paying the debt down is stop borrowing first, second and third actions.
We do not think our property taxes will be reduced by laying of three part time animal shelter workers and increasing spending in other budget areas.

2008-08-16T19:46:00.001-05:00

So if you use the new tax rate of .909 and compare it to the .824 rate for a $150,000 you would get.

1500 x .824= 1236
1500 x .909= 1363.5

Tax increase of $127.5 for the municipal portion of your property taxes.

To the Town Council

Like most taxpayers we are struggling to balance our budgets with gas prices at $3.60 a gallon, bread at $3 a loaf, and $2 for a dozen eggs. As winter approaches a number of taxpayers, especially those on fixed incomes will face decisions of whether to pay $3.80 a gallon for heating oil or pay our property taxes. Your answer to this is to create a third option that is whether to buy a gallon of paint to satisfy the beautification committee who want the town to look like an island of the Carolina coast.

Our pay checks do not increase 12% a year so we do more with less. We hold that government has to also learn to do more with less, yet you have delivered a budget that does less with more. It is past time that government does as we have to do and learn to do more with less.

Yes it is also time to put away the credit cards like we have - its time to pay as you go. It is not time for the same old business as usual at town hall but a a time to rethink the spending practices of town hall. Your taxes take money from our pockets and from the value of houses which is a major investment for us and as we move forward you, like us, will have to adapt to a new national economy which will not accommodate higher taxes.

2008-08-15T21:54:00.001-05:00

Patriots VS Redcoats

The last council meeting had a few interesting votes and a dichotomy of opinions concerning referendums. The council did agree to transfer the Health Dept to the County, they exempted Crystal Springs from paying liquor license fees, and they decided not to buy a drinking water system for the town center. They voted to support the Martha Graham committee on beautification and stalemated on bonding for the town center sewer system. Resolution 08-164 was for a referendum to put the 4 million needed to buy the sewer collection system from United Water out to referendum. The council deadlocked on this issue with two factions. Carew and Seufert wanted a referendum and Desmond and McLaghlin did not. The nay referendum position is that they would be neglecting their positions if they didn’t take action on the sewers, and that the issue is too complicated for the public to understand.

Our bias is that all bonding over a total of $500,000 in one year should be put before the voters who will have to pay for it. If you ask politicians or paid consultants what they think of this idea, you’re likely to get negative responses. Our response is that asking the voters to approve debt is not a new idea to our state. In 1796 a few malcontent patriots banded together and proposed a state constitution (http://camlaw.rutgers.edu/statecon/njtaxconvpapers/report4.pdf) which has the following article in it :

State Constitution

Article VIII, § II, ¶ 3, the "debt limit" clause, limits the Legislature from creating any debts of the state exceeding one percent of the amount of the general appropriations law for that year, unless approved by a majority of the voters for "some single object or work distinctly specified therein." The New Jersey Supreme Court has ruled that contract debt (also called appropriation debt) incurred without a vote of the people is not "state debt" and therefore does not violate this provision. Still, as a practical matter, payments on such debts from annual appropriation must be considered the same as contractually-obligated appropriations to pay for state debt.

We think that the founding fathers had it right and that the township council should follow their leadership. As of December 31, 2007 the township debt was $30.7 million dollars and not one dollar of that debt was authorized by the voters.

2008-07-31T21:25:00.000-05:00

COUNCIL ON AFFORDABLE HOUSING (COAH)

Dear Residents

Earlier this month the council voted to join the New Jersey League of Municipalities legal appeal of the Affordable Housing regulations. Our position on this was to send a letter of support not a check. The Council decided to send a check. Since this whole process will be long and drawn out, there will be quite a bit of information flying around, some of it real and correct, some not. What we do know is this: for every 4 houses built you have build one Affordable Housing Unit, for every 16 jobs you create you must build one Affordable Housing unit. Create commercial space and you have an Affordable Housing obligation. As you may remember the Council voted to create two Redevelopment zones ( McAfee Village- Legends + Crystal Springs) earlier this year and if they come to fruition the Affordable Housing obligation will be financially disastrous to the Township Taxpayers. Our position is that the new regulations, which the Council had knowledge of but decided to disregard, create tremendous property tax implications that will negate any perceived benefit from development in these zones. The new regulations require commercial developers to pay only a fraction of the Affordable Housing obligation, which the council knew about at the time they approved these zones.

We attach a letter from the league for your review. The last paragraph supports our position on commercial development and how it will increase your property taxes.

A message from William G. Dressel, Jr., Executive Director of the League of Municipalities

On Tuesday, the League of Municipalities filed a notice of appeal with the Appellate Division of the Superior Court of New Jersey, appealing the regulations adopted by the New Jersey Council on Affordable Housing on June 2 of this year. League President Robert Bowser, Mayor of the City of East Orange, announced the challenge at a Statehouse press conference. Mayor Bowser was joined by League Board members Janice Miranov, Mayor of East Windsor, Gary Passanante, Mayor of Somerdale, Randy Brown, Mayor of Evesham Township, Gerald J. Tarantolo, Mayor of Eatontown, as well League Past President Peter Cantu, former League First Vice President and Morris County Freeholder Gene Feyl, Bridgewater Mayor Patricia Flannery, and League Assistant Counsel, Edward J. Buzak, Esq., who will represent the League in this matter. We thank them for their support and assistance.

In our press conference, the League stated explicitly that it supports the provision and purpose of affordable housing. Our actions are not meant to hinder the production of affordable housing. On the contrary, our actions are in support of achieving a sustainable affordable housing policy and in defense of our property taxpayers.

The League’s challenge focuses on the economic imbalances in the regulations, and the flawed methodology comprising the vacant land analysis, the computation of jobs and housing projections through 2018.

We hope that the end result will be a methodology that encourages the participation of local governments, accommodates and promotes the development of affordable housing and does so in a manner consistent with local and State planning efforts.

We also drew a distinction that our challenge is of the COAH regulations, and not the result of the passage of A-500. We certainly recognize, however, that the provisions of A-500 will make municipal compliance more difficult and its passage makes our challenge of the COAH regulations all that more important to our taxpayers. The Governor will sign A-500 into law today.

In light of the challenge to the regulations and the uncertainty regarding their continued validity, the League’s attorney will be seeking a limited and targeted stay from the New Jersey Council on Affordable Housing to suspend the December 31, 2008 deadline imposed by COAH for the completion and submission of the revised third round plans. If granted, it will allow municipalities to continue to satisfy their affordable housing obligations by imposing obligations on developers. The purpose of the stay is to prevent municipalities from again expending significant financial resources into plans when the regulations are being challenged, already being proposed for change by the agency and further regulations will be required in light of the approval of A-500.

If your municipality has not pledged towards our efforts, but would like to, please see the pledge form online at: http://www.njslom.org/COAH-3rd-round-pledge.pdf

Today is the deadline for stakeholders to file with the Court, and we anticipate more challenges forthcoming. We will continue to advise you of developments.

As noted above, Governor Corzine will sign A-500/S-1783 into law today. For more on these bills, please see our Dear Mayor letters of June 27 and June 20 . We continue to express our concerns over the elimination of a compliance tool for municipalities to comply with their housing obligations, as well as the fact that we have demonstrated that the new commercial development fee pays for a fraction of the housing currently projected by COAH. It would be naïve to believe that, left unaddressed, this will not negatively impact taxpayers.

2008-07-26T22:30:00.000-05:00

Stealth Budget Increases Taxes by 12%

The municipal property taxes in Vernon are increasing by 12% this year. That is $110 increase on an average assessment of $125,000. You may ask “How does this compare with the county and school tax increase?” Well, the county increase is 1%, and the school tax increase is 2% or $9 and $38 on the average assessment. The total for all three is $157 increase over last year’s property taxes. This municipal tax increase is the largest in 8 years.

When we question the town council and town manager on the budget during council meetings, they profess not to know what the property tax levy is. We have even questioned them during adoption of resolutions amending the town budget which include the property tax levy. The council, including the manager, profess not to know what’s in the resolution (08-131 includes property tax levy), then vote on it and pass it. While it may seem strange to the reader that the council would vote on a resolution that they don’t understand, it is not an unusual occurrence. The council and manager have a hard time with communicating clearly when it comes to accounting how your tax monies are spent. This is reminiscent of previous councils and managers.

Apparently the manager has chosen not to answer budget questions in public and prefers to answer them outside of public meetings. This course of action may have been appropriate in a town that does not have a record of sloppy accounting, mismanaged projects and tax payer-funded vacations. However, Vernon does have a record of non-accountability and tax payer funded vacations. On a biweekly basis, the council reveals more problems with the Town Center project. This time it’s the private land over which Main St was built. Or the manager reports that an employee spent over $50,000 above the amount authorized by the council in 2007. Or the council insists that bonding for 2.4 million is not really bonding since they found the money in other bonds that had not been spent. Or the council insists that they did not give the Chamber of Commerce $25,000. last year and the year before, this despite the Chamber’s president thanking them for the money last year and the year before. Or the town engineer and council’s idea to build a parking space shortage into the new town center and put additional parking spaces in lots out by RT 23. Or the council and its insistence that you can’t tell a private property owner what to do with their property, which is a fundamental position of the Redevelopment Zones and why we have a planning Board and Zoning Board which council members sit on.

The Vernon Taxpayers Association and the writer has been criticized by the council for always being negative. This is true, but we are lower tax advocates and it’s hard to be positive when the council increase taxes by 12%. The council increases taxes by 12% and fires a few part time animal control workers as a sop to reducing taxes. We are against firing these dedicated hard working people who provide a service that is used by the average taxpayer. Over the years we have given a number of proposals on how to reduce spending and tax increases, and we are willing to reiterate them to the council at any time.

2008-07-18T21:46:00.001-05:00

Vernon’s Stealth Budget

The budget as presented to the public in June is not one to rejoice about. The Council has reverted to the silent treatment when it comes to the annual budget. When you questioned them on the budget you are asked to call the town manager because they are not ready to discuss the budget. Typically the Town Council introduces the new annual budget by having the town auditor give an in depth description of the budget. This year it was introduced by title only and no one gave a summary of the budget. The Council has said that the annual municipal tax increase will be $100. On average but don’t know what percentage of increase that is over last years budget.

Here’s our summary of the 2008 municipal budget:

2007 tax levy $12,459,024

2008 tax levy $13,938,032

Tax increase $1,479,008

Average tax increase $110.

12% tax increase for 2008

Heres the average tax increases in dollars

$9. increase for county taxes

$38. increase for school taxes

$110. increase for municipal taxes

average municipal tax is $1260.00

Other highlights are:

An increase to the Chamber of Commerce from $25,000. To $45,000.

Increase in drainage projects by $300,000.

Increase in salaries by $330,000.

$2.5 million to pay interest and principal on Bonds.

$2.5 million for employee health plan

Council increased taxes to the maximum amount that does not require a voter referendum by state law.

Council applied to the state for the ability to increase taxes by an extra $210,000, to make up for loss in state aid.

Yes there’s enough pork in this budget to make two porky pigs.

2008-03-06T23:08:00.001-05:00

THE REASSESSMENT OF OUR COMMUNITY

Questions That Are Often Asked When A Municipality Is Undertaking A Reassessment

WHAT IS A REASSESSMENT?

A reassessment is a program undertaken by a municipality to appraise all real property inside its borders according to its “full and fair value.” A revaluation and a reassessment are synonymous, the difference between them is that a reassessment is completed by the municipal Tax Assessor and a revaluation is completed by an outside firm.

The goal of a reassessment program is to spread the tax burden equitably throughout a municipality. Real property must be assessed at the same value standard to ensure that every property owner is paying his or her fair share of the property tax. For example, two properties having essentially the same market value should be paying essentially the same amount in property taxes.

WHAT IS MEANT BY “FULL AND FAIR VALUE?”

“Full and fair value” is the price at which the municipal assessor believes a property would sell for at a fair and bona fide sale by a private contract on October 1 of the pretax year. The sale must be between a willing buyer and a willing seller where the buyer is not obligated to buy and the seller is not obligated to sell. New Jersey courts have held “full and fair value”, “true value” and “market value” to be the same.

WHY REASSESS NOW?

Reassessment may be needed when properties in a taxing district are being assessed substantially below or above true market value. The Sussex County Board of Taxation ordered the township to conduct a revaluation in January of 2007 to be completed by tax year 2009. The last reassessment in the township was in 1994. According to New Jersey Division of Taxation records, the average township property is assessed at only of its market value.

WHO WILL CONDUCT THE REASSESSMENT?

The reassessment will be completed by an outside firm. The inspections will be completed between February 1, 2008 and October 1, 2008.

WHAT OCCURS DURING THE REASSESSMENT PROCESS?

During a reassessment, both the interiors and exteriors of each property are physically inspected and building dimensions are noted. The exterior of the property may also be photographed by the inspector.

In addition, recent sales of comparable properties are analyzed and may be adjusted to estimate the value of property that has not been sold. Property, typically purchased for investment purposes, is studied in terms of its income-producing capability.

The Real Property Appraisal Manual for New Jersey Assessors, prepared by the New Jersey Division of Taxation, is used in estimating replacement cost values, especially for residential properties.

All information believed to influence value will be gathered, reviewed and analyzed in order to make a proper determination of each property’s full and fair value.

A word of caution: Each property inspector should have a photo identification visibly displayed. It should show the name of the municipality as well as the individual’s name. The inspector should provide a Letter of Introduction on municipal letterhead that contains a telephone number for questions or concerns. Ask to see the credentials of anyone seeking to enter your home and do not admit anyone who cannot produce this identification.

WHAT IS EXPECTED OF PROPERTY OWNERS?

Equitable reassessment depends on the cooperation of property owners.

Interior inspections, especially, require that residents cooperate with the property inspectors.

The validity of a market value depends on the collection of accurate data.

Property owners have a stake in the outcome of the reassessment program.

Any assistance a taxpayer can provide will aid in the total data collection process. If there is information you believe should be considered in the valuation, tell the inspector. Better yet, write it down and give the inspector a copy. We will make every effort to cause property owners the least possible inconvenience.

Remember, the property inspectors are not necessarily responsible for developing the market value estimate. Their job is usually to collect pertinent information to be used later to develop the property’s value.

WHAT WILL INSPECTORS LOOK FOR?

Inspectors will record such items as the type of interior wall construction, the number of bathrooms, type of heat, central air conditioning, size, and the percentage of finished attic and/or basement areas, in ground pools and number of fireplaces. The exterior inspection includes measurements of each structure, such as garages or other accessory buildings, determination of story height, roof structure, and type of foundation and exterior wall construction. The physical condition of the structure is noted to establish depreciation factors. All factors relative to market value are considered.

Examples of what would not be noted would be interior decorations, fences, window air conditioners, gas grills, and lawn furniture.

WHAT IF I'M NOT HOME?

If you’re not home on the inspector’s first visit, a notice will be left asking you to call for an appointment. If you don’t call for an appointment, a second visit to your property will take place within a few weeks of the initial visit. If the representative is unable to inspect your home or if you refuse entry, the interior information will be estimated. This may cause you home’s valuation to be at the highest level for your property type.

WILL MY TAXES GO UP?

Depending on the value of your property and relative tax levies, your taxes may increase, decrease or remain stable. Although a reassessment usually results in a change of nearly every individual assessment, it does not mean that all property taxes will increase. Assessments are the base used to apportion the tax burden. The tax burden is the amount that your municipality must raise for the operation of county and local government and the support of the school system.

A reassessment does not necessarily mean an increase in taxes for every homeowner. The tax rate will go down significantly in 2009 to compensate for the increase in the assessed values. Since not all properties have appreciated in value at the same rate, some tax bills will go up, some will stay the same and others will go down.

WHAT IS A TAX RATE?

The tax rate is determined by dividing the tax levy (annual amount to be raised through taxation by the county government, schools and the municipality) by the total assessed value within the municipality.

HOW ARE TAXES CALCULATED?

(Assessed value ÷ 100) x Tax Rate = Amount of Taxes

WILL TAXPAYERS BE INFORMED OF THEIR PROPOSED ASSESSMENT?

The notice of the new assessed values for each property will be mailed in the fall of 2008. The impact of the new assessments will not affect the property owner’s tax bill until the 2009 tax year.

WHAT IF A TAXPAYER IS DISSATISFIED WITH THE PROPOSED ASSESSMENT?

A notice with the new assessed value will explain how to arrange for a personal informal hearing with a representative from the tax assessor’s office to review the proposed assessment. Taxpayers attending the review should be prepared to support any disagreement regarding the appraised value of their property. For example, recent sales of similar or comparable properties are an indication of value. A recent purchase of the property may also help to support a view as to value. Also, the cost of recently constructed comparable buildings could support a belief of fair market value.

WHAT CAN A TAXPAYER DO IF HE IS UNSUCCESSFUL IN HAVING THE VALUATION OF HIS PROPERTY REVISED AT THE INFORMAL HEARING?

If the valuation dispute is not resolved prior to the filing and certification of the tax list on January 10, a formal appeal may be filed with the Sussex County Board of Taxation on or before April 1 of the tax year. The county board of taxation may be reached at:

http://www.sussex.nj.us/Cit-e-Access/webpage.cfm?TID=7&TPID=2173

Call the Sussex County Board of Taxation at 973-579-0970
or Send a self addressed envelope, with $.63 postage affixed to:
Sussex County Board of Taxation
83 Spring Street, Ste 301, Newton, NJ 07860

Further questions are answered here

http://www.co.bergen.nj.us/taxboard/appeal.html

glossary of Terms

http://www.tax.co.ocean.nj.us/glossary.htm

Inspection questions

http://www.montclairnjusa.org/content/category/25/186/440/

2008-03-02T00:01:00.003-05:00

Legends Redevelopment Meeting 2/28/08

This was a rather raucous meeting due to the high percentage of lawyers in the audience who were representing conflicting interests. At various times during the Council meeting lawyers would jump up and object. Unfortunately Al Pacino didn’t also jump up and say “You’re outa order… this whole thing is outa order”. It really was spinning out of control when you have lawyers contradicting each other, objecting to potential ethics violations ect.

First the facts of the meeting, that were given by both the attorneys for Legends and the towns redevelopment specialist. The facility is in property tax arrears and has been for 7 to 8 years. They pay their property taxes at the end of the year with interest as the tax laws allow. The town pays the an additional $25,000 yearly to make up difference due to tax increases by the county and schools. Legends lawyer also contend that the town cannot intervene of behalf of the timeshare owners because this is a hotel that is governed by the DCA rules which prohibit town intervention. The current owners are going to invest 110 million dollars and create a water world . They put the 110 million dollar number on the table and yet could not account for how the 30 million dollar in upgrades was spent. The town redevelopment specialist says that this ordinance is the best way to protect the time share owners, and that the developer’s agreement to be signed in July will give the town an out if it is not signed. Legends must drop its current lawsuit against the township, and the County (who is housing homeless people in the hotel) will be informed of the redevelopment. The current time share owners may or may not have use of the water park and Legends attorney didn’t know that they have deeds to their timeshares.

We tried to keep track of the various laws suits mentioned during the meeting and here they are : the timeshare owners have a group suit against Legends, the condo owners are suing Legends, various individual timeshare/condo owners are suing Legends, Legends is suing the township, Legends is suing private individuals, Legends lawyers allege ethics violation by the condo owners attorney.

The first reading of the ordinance was passed.

The principals involved in this development and the adjoining property are Mr. Mulvihill for the adjoining property, attorneys Mr. Collins and Harris for Legends, one of whose principals is Mr. Hilly Meyers, Father Boland for St Francis Redevelopment Corp., various other attorneys for the condo and timeshare holders. The time share owners contend that the owners have not kept their promises and there are 1400 time share owners who have invested 21 million dollars by purchasing these units. Attorneys for Legends contend that they have spent money on the hotel (30 Million) and it is actually losing money on the hotel - they need to build a water park and an addition to help the time share owners. Mr. Collins also stated that the township cannot insert into the ordinance, and we presume developer’s agreement, anything that mentions the time share holders because of the DCA rules.

Our position on this project has been stated before but we would like to project how this redevelopment may turn out. The developers agreement will not be signed in July, nor will the township be able to rescind this ordinance. Currently Legends and adjoining properties are arguing about the sewerage for the site, without which one will not be able to be built. Consequently Legends will sue the township again and the time share owners will have to wait another three of four years. If this development occurs the developer has the potential under the DCA rules to turn the new 2 or 3 bedroom units into condos claiming hardship. They will use town backed loans to finance the development and will get tax breaks in PILOTs which they will use to pay of some of the loans.

This another ordinance passed up to the council by the planning board that should have been reviewed not rubber stamped.

2008-02-26T22:25:00.002-05:00

Legends Town Council Meeting

The recent town council was devoted to the Legends Redevelopment. It gave the current owner of the property the opportunity to present their design concepts. Yes the design concepts are as real as your reflection in a funhouse mirror but it was entertaining. Swimming pool design firm presented glorious views of what could be, and architects presented artist renditions of if only. The show included input from the audience. Some pointed out that this was the third version of Promised Land they had heard from the owners; none of which have been built. The owners want the Town to pass the redevelopment ordinance for Legends so they can proceed with their visions of what could be.

Actually the two main problems with Legends are not addressed by this ordinance, nor does the Town’s redevelopment specialist see a need to address the problems at this point. While there are many things wrong with this redevelopment ordinance, the perennial problems of late property tax payments and the grievances of time-share holders are not mentioned in the ordinance. Supposedly, these problems will be addressed after passage of the redevelopment ordinance in the developer’s agreement phase of the redevelopment. Well, probably not since the developer will have 95% of what they are seeking, namely variances for such things as building height, building setbacks, density etc.

Our position on the redevelopment areas is that they are a tax drain on the Township and merely shift their taxes onto the residential property tax payer, while enriching the developers. Having said that, we offer our views on this redevelopment area:

The Municipal Land use Law of NJ requires each town to have a Master Plan and this plan is implemented by ordinances that are incorporated in the site plan approval process.

Ordinances are legally binding on the township and if a site plan has met the conditions of the ordinance the town cannot prohibit the developer from improving his/her property.

So once Legends has their ordinance approved they may not be so amenable to the problems of the time-share owners or to what the Town Council wants. Actually, this developer is already suing the township about their previous site plan process and that is the reason why they have a stenographer recording all testimony during the ordinance hearings. Hey, the council may figure we can trust these guys, but let’s make it a business deal and rectify the problems with the development in the ordinance rather than trusting the developer to do it later.

There should be a five year timeframe in the ordinance that dictates substantial completion of this redevelopment. While the township redevelopment specialist says he has never seen this condition in a redevelopment ordinance we quote from the Cranford Redevelopment agreement ( http://www.cranford.com/ ) The Redevelopment Agreement will include a firm project completion date and penalties

Prior planning boards would not have reviewed an application for a site where the property taxes were not paid up to date. We should not be taking any action on this ordinance if the property taxes are not paid up to date. Actually if the developer can’t pay his/her property taxes, how are they going to pay for the redevelopment?

This property meets the conditions of a blighted property and the current owners want to redevelop the site by adding an extra building. There are currently 672 apt/rooms at the facility and they intend to increase the size of these apartments so that even though the building will double in size the number of apartments will not change. The plan is to have two and three bedroom apartments with the current building being gutted floor by floor and the current apartments enlarged. What about the timeshare holders? Would they still be the owners? Doesn’t this need to be settled now, before an ordinance? Redevelopment allows a town to condemn blighted properties through eminent domain. Our position is that the Town should allow condemnation; because it is the biggest bargaining chip the township has to ensure the time share holders concerns are addressed.

The current ordinance has the following language with which we disagree:

arrange or contract with a public agency, to the extent that it is

within the scope of that agency's functions, to cause the services customarily

provided by such other agency to be rendered for the benefit of the occupants of

any development area, and to have such other agency provide and maintain parks,

recreation centers, schools, sewerage, transportation, water and other municipal

facilities adjacent to or in connection with redevelopment areas;

We prefer this which is found here ( http://www.boroughofroselle.com

Permits and approvals. The designated redeveloper will bear the responsibility of obtaining at its own cost, all permits, inspections and approval required from the Borough, County, State and other applicable entities.

Public improvements and infrastructure. The designated redeveloper , at the redeveloper’s cost and expense (i) shall provide all necessary engineering studies for, and construct or install all on- and off-site municipal infrastructure and capacity enhancements or upgrades required in connection with the provision of water, sanitary sewer, and storm water sewer service to the project, in addition to all required tie-in or connection fees; and (2) shall be responsible for providing all sidewalks, curbs, streetscape improvements (street trees and other landscaping), street lighting, and on- and off-site traffic controls and road improvements for the Project or required as a result of the impacts of the Project.

· Review of the proposed ordinance reveals that it is the intent of the Legend owners to use township secured loans to redevelop this property. We disagree with this option. If the owners can’t finance this redevelopment, it should go out for an RFQ (Request for Qualification). This means the township would review who was involved, what their financing is, banks and financial institution connections, etc. The township could ensure the developer has the financial resources so that the redevelopment actually occurs.

· The developer must meet all the COAH (Council on Affordable Housing) obligations incurred by this redevelopment and not put it on the township to pay these expenses. As you may remember in July of last year the then Mayor trumpeted the fact that Intrawest was contributing 2 million dollars for the COAH obligations. Turns out that those COAH obligations will cost the Township 30 million dollars (170 units x $180,000.) http://www.vernontwp.com/township/departments/manager/coah . Let’s not forget that the Town’s redevelopment specialist also endorsed the ordinance that allowed this to occur.

After you read this ordinance it’s hard to figure out what benefit the Township hopes to gain from this redeveloper that is worth the risk of the developer going bankrupt and leaving the township to pay off the bonds, guaranteed by the township.

2008-01-04T09:23:00.000-05:00

We reprint Jim Oroho's January 1, 2008 letter to the Town Council. Our only comments are that we support these positions and the letters sincerity speaks for itself.

Good Afternoon. Unfortunately due to personal

conflicts, I’m unable to attend today’s

reorganization meeting and I’m looking forward

to getting sworn in on Jan 10^thso we can get

started with a new leadership for the council

under Austin Carew and most importantly a new

direction for our community. Before Mayor

Carew reads my statement,   I would like to wish

each of you a healthy and happy new year.

As I reflect today, I am very proud that the

citizens of Vernon had the trust and

confidence in me to continue doing the job

that I started last year. The republican

voters made it very clear in the primaries

that they wanted a change in the leadership of

our community and the general election

confirmed that.

Since I joined the council, my goals were and remain simple.

· To look at our town as a business,

· the need for reliable and timely financial information to monitor the finances of our community

· and most importantly to have good transparency around our financial reporting so that the council has relevant information to make informed intelligent decisions and that the community has the same information available to them so that they can understand our decision making process.

I don't have to tell you that the town's operations, more than ever, needed this business approach given the recent announcements that took place over the past few years. We needed a structure in place that holds every elected official and township employee accountable for each dollar spent by town hall. Since I joined the council, we have led the efforts to deliver what I call "transparency", and what you call "honest government" to Vernon's citizens, and I am not finished. When you pick up any of our local newspapers, I am sure you realize that the results of these efforts have not come easily, and at times have been challenging. I believe the taxpayers of Vernon assume and expect that their elected officials are asking these questions as part of its fiduciary responsibility to the town and I will continue this mindset while I’m in office.

What has been the results of our efforts so far? This past year we discovered that $1.2 million was borrowed on the backs of taxpayers, your money, which was spent without proper authorizations and in violation of state regulations, and most recently the charges that have been filed by the prosecutors against our former town manager relating to potential corruption.

In light of the recent events, the council will need to work quickly to restore the trust and confidence that you need to have in your elected officials. I am recommending that the following corrective steps be put in place:

· First, we need to change the auditor. I am requesting that the council consider having the incoming accounting firm to do a complete internal control assessment of our town operations, including the duties performed by our township employees as well as the oversight role that the town council is performing. We need to strengthen the internal controls within town hall immediately.

· Second, the Council needs to start receiving monthly financial information to monitor the financial condition of the town including analysis around township spending, the use of escrow accounts and any funds used from the issuance of debt.

· Third, we need to contract the services of a retired state judge or former prosecutor to perform a detail review of the township’s management and employee oversight on the recent corruption charges and to provide the council with an assessment of any weaknesses and a recommendation for any corrective actions.

· Lastly, in addition to requesting the State’s DCA to do a review of the $1.2 million change orders, I am requesting the council to consider asking the state to come in to do a complete fiscal audit of ALL spending and non-cash transactions that involves the town center project including the awarding of public contracts, review how fair market value was determine by the various parties involved and to determine if there were any conflicts of interest that may involved any township employees or elected officials.

Despite the recent issues that we are managing through and the ongoing investigations by the appropriate authorities, we need to press forward and to deliver on our promises. It is critical that we have our new manager and this council focus on the present and future while we leave the identification of past violations to the outside professionals and state officials. While I’m in office, I will continue to bring a financial discipline mindset to the town, view it as a business and ensure that we have accountability for every dollar received and spent. I promise to continue delivering the open, disciplined and progressive government Vernon deserves.

Best wishes and happy new year, Jim

2008-01-01T21:50:00.000-05:00

Corruption and Ethics

The latest brouhaha about the former town manager only reinforces the need for a code of ethics in town government. Currently the town follows the bare minimum of state ethics requirements, which does not clearly define ethics for town employees and politicians. At the recent League of Municipalities convention both the Attorney General for New Jersey and the Federal Prosecutor for New Jersey emphasized the need for municipalities to adopt an ethics code.

As you interact with town government and become familiar with town operations, you realize that the definition of ethical behavior is rather fluid and there are no penalties for unethical behavior. In the past, we have asked the town council to adopt an ethics code and we believe the current situation with the former town manager only reinforces the need for an ethics code.

What is interesting about the current situation is that all the presumed safeguards of auditor oversight, town attorney review, financial officer review and interactions with the Mayor failed to expose indictable offenses by the former Town Manager. Why did it take Mr. Oroho’s voluntary review of town expenses to expose actions that have been going on for years? Having attended all of last year’s meetings, we noted that Mr. Oroho got little if any support from Mayor Morrison or Deputy Mayor Desmond. Why? Over the last three town council meetings the Mayor and Deputy Mayor have pressed to have the council approve the previous cost overruns, thus making them appear legitimate. This may be premature, since the matter has been referred to the Department of Community Affairs and they have not completed their review. When you review what has been exposed so far, you would have to agree that there has been a stupendous lack of accountability for expenditures of tax payer dollars by previous Town Councils.

We expect that the current council will take a more strenuous actions to insure that tax dollars are spent wisely, and to try and restore voter trust in government. Our proposals are:

Within six months adopt an enforceable ethics code which should be based on this code: http://www.state.nj.us/ethics/docs/ethics/uniformcode.pdf

All employees should have to request permission for secondary employment and economic endeavors to preclude perception of favoritism for employees.

Other than their primary dwelling, town employees should not be trading in real estate in town. The former Town Manager had some real estate dealings in town ( http://php.app.com/websr1a07/search.php ) , one concerned a subdivision and another was in a Lake community. The sub division would have been approved by his subordinates, and the Lake community property involved joined two undersized lots together in a community that was divided on a dam issue. The manager was supposed to be representing both sides of the issue to the Town Council, but meanwhile he was buying property with a lake view in the community.

We should review employment of those persons responsible for oversight of expenditures in the town. Mr. Oroho quickly picked up on financial improprieties and poor financial practices related the former Town Manager’s problems and the 1.1 million in cost overruns. Why had the audit not picked up the issues?

5. Audit of town budget conducted by an outside agency.

6. The following is a break down on the hiring of employees over the last eight

years.

# of Employees as of 11/26/2007 – 116 Non-law enforcement titles

# of Police Officer titles (all levels) as of 11/26/07 –– 34

# of Special Law Enforcement Officers as of 11/26/07 – 11

# of new hires in 2007 – 2

# of separations in 2007 – 3

# of new hires in 2006 – 4

# of separations in 2006 – 8

# of new hires in 2005 – 12

# of separations in 2005 – 13 (1 of which was a Police Officer)

# of new hires in 2004 – 23 (5 of which were Police Officers)

# of separations in 2004 – 7

# of new hires in 2003 – 12 (4 of which were Police Officers)

# of separations in 2003 – 7 (1 of which was a Police Officer)

# of new hires in 2002 – 12 (3 of which were Police Officers)

# of separations in 2002 – 9 (2 of which were Police Officers)

# of new hires in 2001 – 15 (3 of which were Police Officers)

# of separations in 2001 – 17 (3 Police Officers, 1 Police Sergeant)

# of new hires in 2000 – 19 (4 of which were Police Officers)

# of separations in 2000 – 17 (1 Police Sergeant, 2 Police Lieutenants, 1 Special Law Enforcement Officer)

Were all these hiring done correctly by the former town manager?

7. The lighter side of Town politics http://www.youtube.com/watch?v=XOvKmUeLvVY

2007-11-04T17:41:00.000-05:00

The Vernon Power Process

We believe that the Redevelopment areas are the largest raid on the taxpayers monies ever perpetuated in the towns history. Money is power and free property tax money are profits that’s what drives political visions of Vernons future. The largest cash producing industry in Vernon is the taxation of residential properties and the aim is to allocate significant portions of property taxes to various factions within the town. Politics works by spinning their visions to suit their backers’ interests by spending tax monies or shifting costs to the residential taxpayers to enrich or enhance their backers’ positions.

The spin behind the redevelopment areas is that development will reduce property taxes for all of us, which refutes results of the last ten years of development in the county. Development in the last ten years has been unparalleled in the county’s 300 year history and not one town in the county has reduced property taxes. Well, one town did but it is encompassed by Federal lands and can’t develop. Our answer is to control spending, allocate expenses back to the developers, reduce size of developments and configure policies on the fact that we are a bedroom community first and perhaps vacation destination second. Proponents of orienting our policies toward the resort industry should visit the Libraries current exhibit on Palisades Amusement Park then visit Palisades Park to see what it is today.

We have all received political materials over the last two weeks outlining the contender’s positions. If you review these materials you will find no specific ideas on how to cut the budget nor were any specific ideas given during the debates. After reviewing our current budget and comparing it with other towns we came up with a few ideas on how to run a more efficient government. It’s really not that hard to save money and reduce taxes here’s our ideas:

1. Pages 31,32 and 33 of the budget are supposed to contain all information on sewer bonds and notes. These pages are not on the town’s website budget nor is a page describing why the pages were not filled out. Publish the town’s sewer debt now.

2. Page 44 of the budget is supposed to contain information on project Cost Overruns. There is no page 44 in this budget.

3. The Borough of Ramsey has ten more municipal employees than Vernon and pays $400,000. less for Health Care. We have pointed this out to Council members in the past and the Mayor’s position was that they would look into it. Well?

4. The town should shift to the State Health Care Plan.

5. ¾ of the towns’ budget is related to personnel compensation and we believe they should help out with their pensions. As you know the State worker recently accepted a 5% ( of base pay) contribution to their pensions. All the towns’ union contracts expire in December this year and we believe they should follow the lead of the State unions. This should be accompanied by raises in base pay over the three years to offset the financial impact on the employees.

6. Personnel hiring freeze now with reductions through retirement.

7. Sheet 40c contains projected bond payments and includes a 4 million dollar payment next year which will be on top of the 2.5 million we paid this year. Stop borrowing -Just Say No- throw away the credit card applications, cut up the cards and go see a credit counselor for crying out loud get a grip. We should also stop scheduling our bond payments to be light in election years and substantial payment the next year.

8. We paid the P.A.L. $60,000 of which $30,000. was for the use of the gymnasium if the town needs it.

Use a gymnasium in one of the five schools which are free and save the $30,000.

9. All bonding that amounts in part or in total to 1 million dollars in a year should be put before the voters in a referendum.

10. All redevelopment zones (current and future) should be put to the voters in a referendum.

11. The municipal auditing process in New Jersey is basically on the honor system there is no checking of audits. Either the CFO or the town auditor submits it to the DCA who only gives it a preliminary review. If mistakes are found the preparer is asked to correct them and in serious cases is given a rebuke. Hire a national firm to do a full fincial audit and a personnel efficiency audit.

12. We increased by $20,000 payment for Economic Development, this should be taken out of the budget next year.

13. Merge the Fire bureau into the Construction Inspection Bureau.

14. Merge the health Department into the Sussex County Health Department.

15. Conduct surveys of residents interactions with the town such as Sparta’s http://sparta.cit-e.net/apps/index.cfm . Then publish results of those surveys.

16. Allow online payment of property taxes such as Montvale’s and many other towns, example here http://www.montvale.org/subpage.asp?dep=TAXOFFICE&sub=AUTOPAYTAX&G=C&B=C&D=O .

17. We get $36,000 from the state for solid waste this should be used for curbside bulk waste pickup http://www.montvale.org/subpage.asp?dep=CURBSIDE&sub=CURBSIDEBULK&G=C&B=C&D=O .

18. The police contract stipulation limiting police car mileage to 100,000 miles should be upped to 200,000 miles as long as the vehicle is safe to use. Currently State police vehicles meet this and sometimes exceed this mileage.

19. Publish an accounting of all consultant fees in one place and take this back five years.

20. Publish a bond and note repayment schedule such as this http://www.montvale.org/Finance/Existing_Bonds_Schedule_2007.pdf .

21. Stop allowing developers from installing Belgium block curbing and require cement curbing on roads that will be given to the township. Maintenance of Belgium block curbing will cost far more than cement curbing that is required by county and State road projects. Make the developer pay not the residential property tax payer.

22. Review the COAH (Council on Affordable Housing) payment ordinance which currently covers only large scale developers and compare payment with what other adjacent towns are getting. Do not execute long term contracts with Developers for today’s fees on the assumption that construction prices may increase and the difference will have to be picked up by the taxpayer. Extend ordinance to any new construction…

23. Income taxes are used to offset school taxes and the formula used to decide how much a town gets includes the total taxable base. As we develop the amount in state aid given to the schools decreases which is an under appreciated aspect of development. The scale of all future development should take this into consideration and reduce the amount of reality improvement.

These are a few of our ideas which we put up for debate.

2007-10-18T23:13:00.000-05:00

Draft response to 2007 Budget

Sorry needed something to post and its late so here is the Draft.

What follows is a brief explanation of the town’s budget process and how it works. We are not experts in business nor do any of us possess a business degree, but we do our own household finances and slept at a Holiday Inn last night. All budgets have two components revenues, expenses and so does the towns budget. The town always presents the budget on forms they have to submit to the state which are not easily understood by taxpayers or the politicians. By state regulation there are two parts to the municipal budget the capped portion and the uncapped portion. The capped portion is limited by 2.5% increase annually or the town can raise the cap to 3.5% increase by passing an ordinance or letting the voters decide by referendum. Over the last seven years the town has passed ordinances annually to raise the capped portion to 3.5% increase over the last year’s budget. The capped portion of the budget includes such things as salaries, operating expenses, board expenses, pensions etc. This years capped portion amounts to approx. 15 million dollars with a 3.5% increase over last years capped portion. Last years capped portion did not include a number of items that were moved under the cap in this year’s budget thus pushing the 3.5% to $500,000 tax increase. The budget is also inflated in this portion by overestimating expenditures thus moving these monies into the budget surplus.

The uncapped portion of the municipal budget includes such things as funding for major projects, equipment purchase, bonding, revenues, health insurance costs, emergency spending etc. In years past this is were the politicians increased taxes by issuing bonds and bond notes. Beginning this year both portions of the municipal budget have a 4% soft cap on tax increases. Unfortunalty this 4% cap is very porous and you can still raise taxes beyond 4% a year. The council can also increase taxes beyond 4% a year if they ask the voters by referendum.

This year 12.4 million dollars will be raised by taxes for the municipal budget and some of the particulars follow. Total compensation for police and municipal employees is 8.7 million dollars which is a .5 million dollar increase over last year. Hotel occupancy tax brings in $215,000 and the budget includes 4 million in bonds for sewers along with $138,000 for the sewer utility. As you may remember Intrawest has agreed to pay 2.7 million for the sewers the rest is on the taxpayers. The budget states that it is $79,000 under the 3.5% cap of $500,000. actually the tax increase is $700,000. over last years budget (4.6%). Yes this budget and previous budgets have a lot of wiggle in them but then no one will know because the politicians aren’t volunteering the information. One of our positions is that the budget should be put into an easily comprehensible format and includes numbers from three to five years in the past.

2007-10-04T21:13:00.000-05:00

1.1 MILLION DOLLARS DOWN THE DRAIN

The town manager, Mr. Fehrenbach, reported in the September 24, 07 meeting that the council has spent 5.5 million on construction costs for the Town Center. Twenty percent of the 5.5 million cost was due to cost overruns and penalties amounting to 1.1 million. The 5.5 million number does not include the property acquisition costs of the Faline Building (527 RT 515), $420,000, purchased 2/17/05 or the proposed new site of the Vernon Firehouse purchased 01/06 for $450,000 (ORDINANCE #06-03) . Mr. Fehrenbach also stated that $6.8 million was the proposed total amount for the town center project.

To date the council has experienced 40 cost overruns on the Town Center project and these cost overruns were for : changing the color of cement blocks to a more harmonious one ($35,000.), painting the traffic signal poles black ($25,000.) and $199,000 in contractual penalties because the town had not acquired property right of ways etc. The mayor and certain council members assert that these overruns were discussed during council meeting. Neither the minutes of those meetings nor our notes of those meetings indicate any discussion occurred. We conclude that the Mayor and council members are trying to deflect responsibility for these cost overruns by saying they were discussed. However we did miss one meeting during the last two years and perhaps that’s where they discussed government bloat.

All of these cost overruns and penalties were brought to light by one man’s drive for financial accountability, and his name is Jim Oroho. While we disagree with Mr. Oroho on a number of issues, we strongly endorse his record on financial accountability. We believe that without Mr. Oroho the town’s financial mess would never have been addressed. Thank you, Mr. Oroho. We also think that the Democratic candidates have finally woken up to the town’s financial dilemmas and their consequences on property taxes.

2007-09-15T21:03:00.000-05:00

Politicians like to sidestep financial accountability by giving vague and incomprehensible replies to questions about property tax relief. Frankly, we have found that property tax relief is very simple; just ask the voters prior to spending all that money. With the fall season, we are also in the campaign season, and here are some questions for the candidates:

1. Do you support allowing the voters to decide on any bond issue greater than 1 million dollars?

2. Do you support allowing the voters to decide if we should increase the capped portion of the town budget from 2.5 to 3.5% annually? This currently allowed by State regulations.

3. Do you support restricting the tax abatements of the Redevelopment Areas to 5 years?

4. Do you support buying United Waters sewer system for 4 million dollars?

5. Do you support moving and building a new firehouse for the Vernon Fire Dept. for 4.3 million dollars?

6. Do you support moving the Municipal Building and DPW Building and having the tax payers pay for the moving (approx. 14 million dollars)? How much would you agree to spend on this?

7. Do you support allowing the voters to approve any additional Redevelopment Area designations?

8. The reason given for moving the DPW next to the County yard on rt 517 is that we could share facilites. Do you think we should ask the County if they agree to this?

9. Do you support asking the State Comptrollers office to do an audit and review of township operations?

2007-05-29T21:04:00.000-05:00

Year	Residential		Commercial		Industrial		Vacant		Apartment	Farm
2000	83.9%	134	7.9%	366	0.5%	341	5.1%	61	0.1%	1.8%
2001	84.5%	132	7.6%	376	0.6%	337	4.9%	59	0.1%	1.8%
2002	85.0%	129	7.6%	371	0.5%	337	4.5%	64	0.1%	1.7%
2003	85.3%	128	7.6%	373	0.6%	332	4.4%	55	0.1%	1.6%
2004	85.4%	132	7.6%	371	0.6%	325	4.3%	61	0.1%	1.6%
2005	86.2%	118	7.4%	370	0.6%	324	3.7%	76	0.1%	1.6%
2006	85.7%	140	7.3%	372	0.6%	322	4.0%	48	0.1%	1.5%

Where It Goes: A breakdown of property taxes by branch of government. It shows how much a house with the average assessment in Vernon Township pays, the share of taxes in the town that go to each branch, and the annual change in the townwide tax levy for each branch. down.
Year	County Bill	School Bill	Municipal Bill	County School Muni.	County Levy Chng.	School Levy Chng.	Municipal Levy Chng.
2000	$628	$2,205	$628		5%	9%	5%
2001	$700	$2,308	$686		11%	4%	9%
2002	$772	$2,451	$771		9%	5%	12%
2003	$782	$2,536	$815		5%	7%	9%
2004	$798	$2,682	$851		3%	6%	5%
2005	$842	$2,685	$883		6%	1%	4%
2006	$908	$2,847	$949		9%	7%	9%

Town Councils Report Card For 2006

Votes that affected taxes, yes vote indicates a vote to increase property taxes,

- --------------------YES VOTE -----------NO VOTE

Carew, Austin -------------25 ------------- 5

Desmond, Neal ------------24-------------- 4

McLaughlin, Glenn ---------7-------------- none

Morrison, Janet ----------- 30 -------------none

Oroho, Jim -----------------6-------------- none

The above information was given to the Town Council by our representative during the May 21, meeting. He also touched on the following;
1. New Jersey has the highest property taxes in the nation
2. On average we pay 6% of our income on property taxes
3. Last year property foreclosures increased 43%
4. Our municipal taxes have increase 53% in six years
5. There is a Structural Deficit built into this and future budgets. We define structural deficit as expenditures that far exceed revenues.
6. We have attended the meetings in 2006 and have been tracking your votes and how they impact taxes.

2007-05-07T20:15:00.000-05:00

McAfee Redevelopment Area

We do not think the Town Council’s actions of late have been financially conservative or prudent. Some examples of this? They paid 3.8 million dollars for the Vernon town center firehouse, which was appraised at 1.3 million. They footed the bill for investigating the Whispering Woods developer’s problem. They paid an extra $500,000 for the initial phase of Maple Grange Park. These are part of a long list of the council’s problematic spending habits.

The proposed Redevelopment Plan submitted on April 30 to the town council continues the spending. Our position is that those property owners in the redevelopment areas will be subsidized by the other Vernon taxpayers. Most of Vernon home owners, not in the redevelopment zone, will be paying higher taxes than property owners in the redevelopment areas.

. The proposal was authored by the council’s redevelopment consultant Mr. Benecke and the developer’s lawyers. It was first introduced at the last meeting in March at which time Mr. Benecke suggested that the council take action on the proposal immediately. At the April meeting Mr. Benecke was joined by the planning board’s attorney Mr. McNamara, who argued for fast action on the proposal. Rationale given for the fast action was that the law may be changing and the proposed new law (S-1975 & A-3257) would require such things as a “Pay to play” disclosure provision. “Pay to play” means a person, consultant or contractor contributes to political campaigns and then gains lucrative contracts and other goodies. The provision would require the contributors to be listed publicly. There is also another provision requiring the developer to notify property owners and tenants of pending redevelopment. For example, apparently the tenants or time share owners at Legends hotel were not notified of the redevelopment area designation. Without knowing what was going on, they could not contest, or have control over their property. Under the proposed law they would have to be notified at every redevelopment step. This pending legislation was brought forth because of abuses under the redevelopment plans of other areas, and our position is that we should not undertake another large scale development until the new legislation is implemented. We further hold that the Council should concern itself with the two large redevelopment areas, Intrawest and the Town center, and these projects should be concluded prior to finding new areas to redevelop.

We found a number of concerns after reading the redevelopment plan. The proposed Redevelopment Plan contains language in section 6 supporting the following: 6 (a) allows use of eminent domain for taking properties, 6(b) seeks recommendations for additional Redevelopment Areas, 6(d) town pays for consultants ?, 6(e) arrange for an extension of credit or loans to the developer for any work at the site, 6(f) creates another public agency that provides parks, sewerage, recreation centers for the occupants of the development, 6(j) TAX abatements, Section 8 gives the developer what he is currently suing the township for, and that is 500 houses whose occupancy limitations are deed restricted until the council at a later date says there not.

We do not support any of these sections nor in our opinion is this ordinance financially beneficial to the tax payers of Vernon.

2007-02-25T17:37:00.000-05:00

Some Assembly Required

It’s midnight and the instructions said “Some Assembly Required” which we took to mean “No sweat. It’ll take 15 minutes.” Hey - even with the easy stuff you have to follow the directions step-by-step and have some common sense. The steps for reducing the residential tax burden need to be followed step-by-step. During the February 15, 2007 council meeting the Chamber of Commerce made a presentation to the council concerning the Hotel room tax monies. Currently, the town has collected $212,000 from this tax. The Chamber wants to form a committee of Chamber members which would make recommendations to the council on how to spend 60% of the Hotel room tax monies collected. They want to spend the money to enhance tourism. The council was in favor of this arrangement and assured the Chamber of their agreement.

Our opinion is that all of the Hotel Tax monies should be used to reduce the residential tax burden. Setting aside $127,000 for the Chamber of Commerce will increase the residential tax burden by 1.2%. As a result of setting up a committee that excludes the general public, we believe the council’s actions are counterproductive to open and transparent government. The commercial base currently pays approximately $840,000 in municipal taxes and the residential base pays 9.6 million in municipal taxes. It’s past time we took care of the people who pay the most in municipal taxes the residential property tax payers.
We can be reached at http://vernontaxpayers.blogspot.com.

Vernon Taxpayers Association

2007-01-31T22:08:00.000-05:00

Some new surprises, some old stories, or as TS Eliot said “to constantly strive and at the end of striving to arrive at were you started and understand it for the first time”. We had reported that the town center cost approximately 5.5 million and this month it was disclosed that it actually will cost approximately 11.5 million. Sometimes the free stuff gets expensive. The town center has the potential to get a lot more expensive than 11.5 million. This is because in order to get anyone to develop there, the council will hand out tax abatements for potential developers and for rehabbing/renovating current business properties, debt service on bonds, and there’s more SCMUA debt. So an idea that was originally portrayed as being a win/win scenario may not be such a win/win proposition. Over the coming year we will touch on the redevelopment zones which seem to be of importance to large developers in town. There are only three things you need to know about redevelopment zones. 1. They give 35 year tax abatements 2. They may be developed using municipal backed bonds 3. They were intended for urban areas that are blighted and highly taxed. Approximately six months (May 06) after we brought these three things to the attention of the town council, and were told that we were incorrect, a rep from the large-scale developer in town, arrives at the town hall with spread sheets indicating how much they want to pay in taxes and with a request for municipal backing of development bonds.

The council had its redevelopment specialist and the town auditor give a brief explanation of town finances and redevelopment zones at the January 8 meeting. The council and town auditor also spent some time extolling the virtues of development and increased tax ratables in Hardyston Township. When it comes to municipal consultants it’s a small world and our auditor is also the auditor of Hardyston and a number of other towns. During the open-to-the-public part of the meeting, we queried the auditor on how the property tax rate in Hardyston has fared over the last five years, and he did not know. We informed him that despite all the increased ratables, the property taxes in Hardyston have increased 37%. We were wrong then though, they have actually increased 43%. Here are few other town average property tax increases over the last 5 years: Jefferson 62.2%, Vernon 39%, Newton 47%, Hamburg 55%, Franklin 28%, West Milford 38.7% and Walpack negative 34.9%. The reason behind Walpack’s negative 34.9% tax decrease is that it’s prohibited from developing because most of it is Federal land.

The redevelopment specialist also said that once all three zones in Vernon are fully developed, and excluding any tax abatements, the township could expect between a 15 to 20 % decrease in taxes. After reviewing his numbers it becomes apparent that these numbers are based upon the premise that there will be no town debt, that there will be no increase in town services, and that there will be no tax abatements. Actually if the town does give out tax abatements and you factor in town debt service, town services etc. there will be large increases.

Intrawest and the Chamber of Commerce will be giving infomercials on the benefits of the redevelopment zones at places yet to be determined. Also, the county has advised the Council that by 2009, there will be a reassement done on property values. So if you have been in your house since the last reassement and have not done any improvements you can expect to pay more in taxes.
We can be contacted at http://vernontaxpayers.blogspot.com.

2007-01-28T19:08:00.000-05:00

Hotel, motel tax and the Chamber of Commerce

Over the last twelve months of attending public meetings this is what we have learned about the Hotel/Motel tax.
A. Tax is collected by the hotel/motel and sent to the State.
B. The room tax is 5% after 2004.
C. The state keeps 97% of the collected monies and has to spend a certain percentage of the collected room tax on tourism.
D. The town currently has 212,000 dollars from this tax.
E. The town has asked hotels/motels to verify how much they have sent the state so the town knows if it has all the monies due them.
F. Some large hotels in town have refused to submit this data because they want the monies to go to the Chamber of Commerce.
G. The Chamber of commerce has been asking the Council for the room tax monies.

Our position is that these monies should only be used for reducing the residential tax rate.
Redevelopment meetings
Intrawest and the Chamber of commerce will be holding infomercial meeting on the redevelopment zones. In case you don’t have time for the meetings here’s the only three things you need to know about redevelopment zones.
1. Redevelopment zones were created to rebuild urban areas that are rundown and subjected to high taxes.
2. Redevelopment zones have 35 years of tax abatements.
3. Redevelopment zones can have development financed through the issuance of municipal backed bonds.

We view redevelopment zones as a tax drain on the residential taxpayers outside the zones and that areas outside the zones will see a reduction in the selling price of houses.

2007-01-04T22:30:00.000-05:00

1. Bond anticipation notes (Notes) are issued with the presumption that the town will issue long term bonds or pay the Notes in full.

2. Notes only pay the interest on the proposed bonds.

3. you can issue Notes for up to ten years and have to renew them yearly.

4. After the third year Notes have to pay on the principal, approx. 1/2 of what would have been paid if bonds had been issued.

5. The time money spends in Notes is not included in the matrix used to determine how long the bonds are issued for.

6. the life of the bond is determined by what the bond is for, example, trucks 8 to 10 years or road improvements 18 years etc.

7. Notes are used short term if you expect to have an income from an asset in a short time. Usually one to three years.

8. If the Notes are for a combination of projects then a weighted average of the life span of those projects would be used to determine how long bonds would be issued for.

9. For twenty days after the council acts on the issuance of the notes anyone can go to court and have an estopple order put on the issuance.

In conclusion our opinion is that the towns use of Notes to fund debt is a bad idea and poor financial planning.

2007-01-01T20:16:00.000-05:00

The 2006 municipal year has come to an end and can best be summarized by the opening lines in a Tale of Two Cities or town centers. It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going directly to property tax increases.

It was a year of great debt - approximately 19 million in bond anticipation notes was authorized in 2006, and we may look forward to more of the same. The same themes that reverberated in 2006 are again to be revisited in 2007. It is the council’s desire to finish the town center (Vernon) and to start on the McAfee town center. The wish list extends to finishing the town park, establishing better relations with the town business community (who pay 7.8 % of property taxes in the town) and reinstituting the program to rehabilitate low income properties utilizing the hotel tax monies from the state, approx $212,000. In short, the list was long but vague on how we will finance these items.

During the meeting on January 1, 2007 the council gave their outlooks for the 2007 year and all were found laudable. Unfortunately I can’t afford to pay the property taxes that would be required to fulfill their outlooks and after a number of conversations during the holidays with other Vernon residents, no one else wants to pay increased property taxes. No, we’re not Scrooge, but we do believe that we are being squeezed by higher retail prices, energy prices, mortgage payments and higher gas prices, just as the municipality is. Unlike the municipality who can raise tax rates, our pay increases are not keeping pace with property tax increases. At some point we have to address the why of municipal property tax increases and that should be the main objective of the town council for 2007. When questioned on the why of property tax increases, the council likes to present the town budget showing how the money will be spent. When asked the why of our property tax increases, they say we need to increase our commercial base which requires spending tax monies. Actually the commercial tax base has remained at about the same 8% of total taxes for the last twenty years. In the past five years the commercial tax base has actually fallen approx. 2/10 of a percent.

The council also adopted a temporary budget for 2007, which totals 6 million dollars. Temporary budget includes the repayment of $407,000 in bond principal and $800,000 in interest. It also included the payment of $360,000 into the police fireman retirement system and $155,000 into the public employee retirement system. When questioned on why these monies were not included in the CAP portion of the temporary budget, council replied that in temporary budgets they can be put outside the CAP portion. There are two parts to a municipal budget one is the CAP portion of the budget which is subjected to a 2.5% CAP on tax increases and includes all employee wages and benefits. The other part of a municipal budget is the non CAP portion which is not subject to restraints on tax increases and cannot include employee wages or benefits. The other section that the council was questioned on was the payment of $620,000 in group insurance and $420,000 in other insurance. It was pointed out to the council that the Vernon Taxpayer’s Association review of audits performed by the State Dept of Treasury that reported townships that are not in the State Health System pay more for employee health insurance. The township manager replied that they have compared the private health insurance with the state’s plan and found the private plan to be cheaper.

The primary objective of the association will be to strive for better accountability of how and why tax monies are spent. What we’re advocating is a master financial plan for the township which should include data from the previous five years and project out five years of spending. For example, if we have data that shows that inspections of x ratable consumes a specific amount of employee time, then the cost of those inspections should be born by the ratable and not the entire tax base. We should be looking at what services the township has to do by state statue and what services we choose to provide. Instead of spending monies to rehabilitate low income housing we should hire an outside financial management firm to give us a plan that meets these general requirements and rehabilitates the town’s financial planning.

In future we plan to add audio files to our blog which will include interactions with the council’s professionals so you may acquaint yourself with tax topics. Our blog is http://vernontaxpayers.blogspot.com.

2006-12-16T21:46:00.000-05:00

What costs 14 million that Vernon got for free? Answer below. Yes your right that’s a teaser to get you to read about bonds and property taxes which are boring topics until you get your tax bill. Yes your municipal taxes are going up next year but not as much as when they skyrocket in 2008.

On Monday night the township council acted on the issuance of 14 million dollars in bond anticipation notes, yes fourteen million dollars. Issuance of these notes will incur approximately 500,000. dollars in interest payments during 2007 and will cost 10,000 dollars to issue.
The 14 million debt was incurred for such things as the free town center, free town sewers, free park and a number of other items which are acceptable to finance with bonds under state statues.
What is a bond anticipation note? Well that’s a financial instrument that presumes that at some date you will issue bonds for debt that you incur. They are issued for up to one year in duration and you can either reissue the notes at the end of a year, or turn them into long term bonds. For short durations it is cheaper to issue notes than it is to issue bonds thus precluding substantial property tax increases. Bond notes that are over three years old have to include payment on the principal as well as the interest. The difference between bonds and notes is that you pay on the principal of the bond from the beginning, and the term of the bond is limited by what you are bonding for which is not so with bond notes. Let’s say your bonding for the purchase of computers and the useful life of those computers is 5 years, and then the term of the bond can only be for 5 years. The time that is incurred during the term of bond notes is not used in the long term bond formula so you could issue a note for 5 years then turn it into a long term bond of 5 years meanwhile the computers are long since gone. Cost which is the payment of interest monies without any financial benefit is the primary reason most financial advisors would give for not issuing bond notes beyond three years.

So prior to the issuance of the bond notes the council must first have two reading of the proposal with the second reading being open to the public, then they must pass an ordinance authorizing the expenditure for bond notes.
The council had the town’s auditor on hand to present the proposal and answer questions from the public. I asked the auditor how much was the total current debt of the township and if the proposed 500,000. interest payment included or was additional to the 297,000. we paid in interest for fiscal year 2005. He could not answer these questions but did mention that it was always the council position that development at Intrawest would pay for these expenditures.
Essentially we believe, he inadvertently confirmed our position that the Payment in Lieu of Taxes (PILOT) aspect of the Redevelopment Zone will be used to fund town expenses thus leaving those not in the redevelopment zones to fund the schools. We believe that the Redevelopment Zone and its 35 year tax breaks will reduce property taxes for those properties in the Redevelopment Zones. It will increase taxes for the rest of us, and decrease the equity of our properties.
Why buy a house that has a hefty tax bill, when you can buy in the Redevelopment Zone and get a big break on the taxes. Our position which we presented to the council in June is that any debt incurred in one year that totals more than one million dollars should be put before the public to vote on. This is what occurs for the Board of Education expenditures and should occur for town expenses.

During this meeting Austin Carew questioned why he could not see a list and an accounting of bills presented to the council for approval. The council votes to approve expenditure of town monies for which they may not have all the information they need to approve the expenditures. Austin correctly pointed out that the Board of Education routinely lists amounts, check number and purpose for the expenditure before approval of the bills. The town should be following the example of former councils or the Board of Education which publish these expenses and should try to be as transparent as possible thus gaining public support for their decisions. We would also like to give a big thumbs up to Jim Oroho for questioning the use of 32 town cars which excludes town police vehicles.

Answer free sewers, free town center, free park and if we get anymore free stuff we will all be broke. Yes the teaser was just that or you could call it spin. We can be contacted at vernontaxpayers@gmail.com. or vernontaxpayers.blogspot.com.

2006-11-20T23:10:00.000-05:00

We like many of you are depressed by the constant property tax increases our town has imposed upon us in the recent past. Consequently we have revived the Vernon Taxpayers Association and we have one and only one agenda item - taxes.

Over the last ten months we have attended town council meetings and have often offered opposing view points on issues that cause tax increases.

While we realize that stabilizing and then reducing taxes is a long term proposition, we believe that staying the course as presently advocated by our elected officials will not reduce our taxes.

We believe that the Redevelopment Zone and its 35 year tax breaks will reduce property taxes for those properties in the Redevelopment Zones. It will increase taxes for the rest of us, and decrease the equity of our properties. Why buy a house that has a hefty tax bill, when you can buy in the Redevelopment Zone and get a big break on the taxes.

One of the payments in the redevelopment zone is called Land Use Management Fees, and it is divided up between the county, local schools and the municipality. The second payment is called Payment in Lieu of Taxes (PILOT) and each property owner will negotiate payments with the town rather than pay the current tax rate on property improvements. Property improvements are 67% of a normal tax bill. Redevelopment zone properties can pay as little as 5%. Is the town required to give any of the negotiated payments to the public schools, or the county? No. This shortfall in taxes will be made up by increasing residential taxes in the non redevelopment zones.

During the month of October the council had two meeting and all five council members attended. The Council also voted to increase your taxes on five different occasions during those two meeting, and voted to support legislation that would remove municipal budget caps. Here are some of their votes:

Increased salaries of town employees above what they were contractually obligated to give
Reduced development fees for Intrawest
By far the most egregious tax increase was a potential multi-hundred thousand dollar give away to Intrawest who is already slated to receive huge tax breaks. The new tax break was accomplished during the adoption of an ordinance appointing the council as a redevelopment entity (ord 06-35). Subsection 13 of that ordinance allows the developer to create a subdivision that has no road frontage, lot size or dimension requirements. We believe that the developer will use it to remove land from an improved property status to unimproved property status which translates into a net decrease in taxes of 50%.
Increased density of housing by increasing the developable slope of lots. Developers can use this allowance on other properties to build more on less land.
Voted their support of the complete removal of municipal budget caps (pending legislation)

We urge other taxpayers to become involved in tax issues and to pressure your elected and appointed officials to lower taxes now. Our intent is to advocate for lower taxes by creating a dialogue with the council and to keep the property tax issue on the table at each and every town council meeting.