Politics & Government

Letter to the Editor: Planning With the Taxpayer in Mind

New Jersey ranks # 1 in median property taxes of $6,384 and Summit's average of $15,500 is more than twice this amount.


From: Thomas M. Garvey, President, Summit Taxpayers Association


Re: Remarks regarding 2011 - 2012 Planning Goals for City of Summit
The purpose of the Summit Taxpayers Association (STA) is to advocate for fiscally responsible government and our MISSION is to reduce the rate of property tax increase to zero within three years, by 2014.


On Tuesday November 1, 2011 in public comments before the Summit City Council, Thomas M. Garvey, President of the Summit Taxpayers Association referenced the upcoming Summit City Council goal setting and planning meeting and implored City Council to adopt the mission of the Summit Taxpayers Association as the key planning goal over the next three years.

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The business case for this mission goal is compelling and critically important to the financial well being of every Summit resident. It could also become evidence of Summit's role as a thought leader among New Jersey towns and an anchor supporting Summit's legitimate claim to be among the most beautiful (we've got to get tree debris cleaned up) and livable cities in the country.

New Jersey ranks # 1 in median property taxes of $6,384 and Summit's average of $15,500 is more than twice this amount. Union County taxes rank in the top #5 out of 3,000 counties in the country, a sad statistic achievable only if you try really hard and benefit from the fact that no one seems to be watching.

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Unfortunately, this appears to be the case in Union County.
Every Summit resident will benefit in three very important ways when City Council adopts the mission of a "zero tax" increase. First, lower property taxes support diversity by helping our senior citizens continue living in Summit after their children have grown and left our schools. Home affordability also helps younger people who loved growing up in Summit and wish to stay. Second, reducing property taxes is a meaningful stimulus during a period of growing financial distress throughout the country. Third, lower property taxes equal higher property values and corresponding net worth.


Specifically, the STA requests City Council adopt a resolution which calls for measures to be taken to reduce Summit City, Summit School and Union County spending to levels which will require a zero increase in the property tax levy by 2014. To achieve this goal the STA recommends the following action items.
SUMMIT CITY BUDGET


> The City should immediately work to provide a non-binding consolidated "pro forma" City, School and County budget submission before each year end. Numbers not available for the City, School or County should be plugged and accompanied by assumptions and critical guidance from the City Council and School Board to those accountable for budget results.


> Critical budget costs like pension expense which has grown 400% in the past five years should be accompanied by a five year forecast.


> Every effort must be made to establish shared services agreements with other local municipalities including combined dispatch and some back office functions.


> Employee costs consume most of our budget and existing contract work rules exacerbate the challenge. Every productivity measure including the consolidation or elimination of high cost & low benefit activities should be reviewed. Part time vs. full time workforce options should be explored across the board.


SUMMIT SCHOOL BUDGET


> Our teachers are currently in arbitration but we must continue to promote more employee cost sharing for both health and pension expenses. Every effort should be made to mirror benefits available to taxpayers in the private sector ... no more, no less.


> A surplus of over $600,000 from unspent state aid last year should be used to keep the 2012 school budget flat year over year.


UNION COUNTY BUDGET


> Summit City Council representatives should agree to attend County Freeholder meetings on a rotating basis ... County spending must be watched!


> Summit City Council should propose a cap on the County tax levy not to exceed the City tax levy for each respective Union County municipality.


> Summit City Council direct an "Equalization Analysis Task Force Team" to manage the algebra equation used to calculate the County tax levy.
These recommendations represent the action items identified by the taxpayers of Summit as key mission drivers required to achieve our goal of a zero increase in property taxes within three years, by 2014.


Respectfully,
Thomas M. Garvey
President, Summit Taxpayers Association


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