Middletown Township officials are opting to bring the work involved in a countywide property reassessment program in house and terminate a contract with an outside firm, citing cost savings.
During the Oct. 19 meeting, the Middletown Township Committee opted to terminate a contract with Realty Data Systems (RDS), the company contracted to conduct assessments for the Real Property Assessment Demonstration Program (ADP) in the majority of Monmouth County municipalities, citing concerns over the bid process, in addition to cost factors.
“We started looking at the program ourselves to see how it was functioning and we decided given there is some turmoil … and the fact that we don’t really know where this program is headed, now that we have some experience with it, we can do it ourselves and not have to worry about what RDS is doing,” Business Administrator Anthony Mercantante said.
“We decided in the scheme of things we can do it less expensive ourselves.”
The county’s assessment program, which began in 2014, is designed to reduce costs for municipalities by replacing costly town-wide property revaluations with annual assessments that adjust property values based on sales data.
According to a Monmouth County press release, in 2015, 33 percent, or 70,995 properties, had a decrease in their tax bill with 7 percent, or 14,880 properties experiencing a tax increase of more than $1,000.
Mercantante said because Middletown already has two assessors there would only be a need to hire seasonal, part-time employees to conduct the actual inspections.
“When we started this program, we hired a second assessor because we knew we were going to be busier with the constant turnaround of doing 20 percent inspections each year,” he said. “So we anticipated it being busier anyway. “Now we’ve really gotten comfortable with how the program works and, given the issues going on in the county, we just decided to do it on our own.”
While towns can opt to perform the assessments outlined in the program in-house, because it was established by legislation, municipalities cannot opt out of the program.
“What we did tonight we can do, we have the right and the ability to direct our attorney to cancel that contract [with RDS] and terminate that relationship,” Committeemen Anthony Fiore said. “We have the right to seek other arrangements, including an in-house arrangement.
“We took the action tonight that we can take and we are going to hope for the best and continue to pursue every avenue we can to mitigate the tax burden for us, for you and everybody in town.”
In addition, after being contacted by local mayors, the Monmouth County Board of Chosen Freeholders has requested the program be suspended until Jan. 1.
“Numerous mayors have contacted the freeholders over the past few days with concerns over the uncertainty of this program and the recent negative media coverage surrounding it,” Freeholder Thomas Arnone said in a statement on behalf of the entire board. “While we all did our best to alleviate those concerns, we also understand the tough position it puts most of them in. Without making judgments on the program, its administrator or county tax board members, we believe it may be best to put this program on hold until all questions are answered and the mayors can explain the long-term tax benefit to the residents of Monmouth County.”
It is not clear whether the Monmouth County Tax Board has authority to suspend the program.
Middletown Mayor Stephanie Murray said the township would attempt to duplicate the work done by RDS in-house.
“We will be looking to take that process in-house, and there will be higher accountability and better cost savings to the taxpayers,” she said.
Another component of the law is that tax appeals are now filed and heard prior to municipal budgets being struck. Previously the appeals were finalized after the budgets were adopted, and towns were left scrambling to make up the difference in tax revenues, an aspect of the ADP that has been universally praised by municipal officials.
RDS managing partner Michael Panter addressed speculation about the fact that the firm secured contracts with the majority of Monmouth County municipalities.
“We have been the lowest bidder in every contract we’ve earned and are proud of the taxpayer savings that have resulted,” he said.
According to Panter, on a countywide basis, the average annual tax increase was only $124, which is 30 percent below the statewide average for 2014.
Panter, a former assemblyman, contended that much of the criticism of the program and RDS has been politically motivated.
“Those opposed to the ADP include tax appeal attorneys and revaluation firms which stand to lose millions in taxpayer funds,” he said. “Our firm is completely non-political, and one of the few that makes no campaign contributions.”
Fiore said the township must remain in the program despite terminating the contract with RDS.
“We have for a number of years called upon Trenton to address the issue of tax appeals,” he said. “The jury is still out about this program that we are now statutorily forced to do.
“This governing body can’t just jump out of this program and break the state law.”
While they came short of terminating the contract, the Ocean Township Council is considering all options in the wake of questions about the program and RDS.
“I think we need to get a handle on what the legalities are because I just don’t know if we can,” Township Manager Andrew Brannen said at the Oct. 15 meeting. “As we speak, our assessor’s office is coming up with the new assessments for 2016, which are due to the county tax board by the end of the month.”
Brannen suggested the council schedule a meeting with Monmouth County Tax Administrator Matthew Clark to discuss the program.
“I think we really should have a sitdown with him and say based on everything we’ve heard we have some concerns,” he said.