Jersey mayors respond to 12th annual survey

By: centraljersey.com
For the 12th consecutive year, over 200 mayors offered their views on several major policy areas in response to the New Jersey League of Municipalities’ annual Legislative Priority Survey.
Their responses to specific issues provide direction, the League said, and will assist the League Executive Board and staff during what could be a critical year for municipalities and property taxes.
Property taxes, the 2 percent cap, sharing services, and the costs that affect taxes are foremost on mayors’ minds as they are preparing their 2011 budget. The 2011 budget is the first municipal budget subject to the 2 percent cap.
Accordingly, when asked what action(s) they will likely take to meet the 2 percent cap the mayors ranked them as follows:
1. Share services; 2. Increase fees; 3. Reduce services; 4. Concessions from employees; 5. Deferral of capital improvements; 6. Increased health care contribution from employees; 7. Layoffs; 8. Reduce staff from full-time to part-time; 9. Furloughs; 10. Eliminate services; 11. Salary givebacks from employees (tie); 11. One-time revenue (i.e. sale of public property) (tie); 13. Examine consolidation with another municipality; 14. Initiate accelerated tax sale.
Sharing services was the top on the list. The mayors also ranked the obstacles to entering a shared service or consolidation of services with a neighboring community as follows: 1. Savings not immediately realized; 2. State laws and/or regulations (tie); 2. Implementation cost (tie); 4. Cost related to feasibility study (tie); 4. Demographics (tie); 5. Local politics.
Still the number one local budget stressor is state mandates, closely followed by the state’s underfunding of revenue replacement programs such as CMPTRA and Energy Receipt Tax. Personnel expenses, such as health benefits cost and pension cost, round out the top three.
While municipalities are unable to control their annual state pension bill they are able to control other personnel cost such as longevity and health benefits. In May, Gov. Chris Christie signed a series of pension and health benefits reforms. One of the reforms required employees to contribute 1.5 percent of their base salary toward their health benefits. This reform took effect on May 21, 2010, or at the expiration of the collective barging agreement. Thirty-nine percent of the mayors noted that they require their employees to contribute more than 1.5 percent of their base salary toward their health benefits premiums.
In regards to longevity, longevity is offered to PERS employees in 63 percent of the responding municipalities; and in 60 percent to PFRS employees. In both instances, the longevity is based on a fixed dollar amount by 35 percent of the respondents vs. a percentage of salary by 65 percent.
Another state mandate that impacts the municipal budget is COAH. A recent Appellate Division decision struck down the 3rd round regulations and ordered COAH to revert back to its 2nd round methodology. If COAH is not abolished, by legislation, two-thirds of the mayors would like a revision of a "growth share" methodology vs. a return to the 2nd round methodology.
The mayors also ranked the impediments to addressing property tax relief as follows: 1. Inability of governor and state Legislature to reach a political consensus; 2. The current recessionary economy; 3. Political strength of special interest and unions; 4. Too many local governments.
Eighty-two percent stated they support a citizens’ convention to exclusively address property taxes.
In recent months, the delivery of emergency medical services has been debate in both the Assembly and Senate. Legislation has been introduced that will change the delivery of emergency medical services. In light of the recent discussions, we asked exactly how municipalities are delivering EMS to their residents – Forty-five percent use volunteers, 24 percent share services, 11 percent have a part-time paid department and volunteers and 8 percent have a full time paid department. Interestingly 12 percent listed "other" and noted that EMS is provided by giving a local hospital a stipend for daytime coverage, using paid firefighters as secondary responders and contracting out with private companies.
In 2006, the League established a 13-member Mayors Committee for a Green Future to lead and inspire New Jersey’s sustainability agenda. The committee has been promoting greening New Jersey municipalities through education, outreach, leadership and support for municipal programs and practices that protect the environment and contribute to a better New Jersey overall.
Our efforts have begun to pay off – Over 64 percent of the mayors noted that they have implemented green technology. Municipalities have implemented cut and leave grass clipping programs; converted to natural gas; installed solar panels and amended zoning ordinance to become more solar friendly; established rain gardens; created recycling banks; and installed high efficiency lighting and LEDs.