October 1 Town Council meeting - 2013 tax rate increases

Council approved proposals to bid out the town’s emergency medical services (EMS) and award a contract to purchase four shuttle buses for $237,008, as well as heard a presentation by the chief of police on crime and safety and clarification of 2013 property tax increases, at the October 1 meeting.

The meeting agendas and related materials are here. Video of the meeting, downloadable and indexed to make it easier to view selected discussions, is here.

During Public Comment, two residents asked about 2013 property taxes. One resident complained that the administration’s citing of the 1.47% increase in the municipal tax levy (the total dollar amount raised by the tax) rather than the higher tax rate increase at the September 17 council meeting was “misleading.”

(The tax rate, and thus the individual taxes for property owners not benefiting from a successful tax appeal, increases more than the levy because our tax base continues to shrink – down each year since 2008 a total of about 20%, or about $1.4 billion. The tax rate increases more to make up for revenue lost from lower assessed values at the same tax rate.)

A lengthy discussion, largely between me and John Gross, the town’s chief financial officer, further clarified the situation:

- The municipal property tax rate increased 2.47%, the first increase in three years

- The school rate increased 3.39%

- The county rate increased 1.89%

- The total property tax rate increased 2.89% 

(I’ve asked the CFO for additional detail and clarification, and I’ll amend this information if required.)

Council approved 3-1, with Councilwoman Patty Spango abstaining and me voting against the administration’s request to conduct competitive contracting to designate an EMS provider. The West Orange First Aid Squad (WOFAS) has provided the service for 50 years, but in recent years has had trouble attracting enough volunteers. The town’s fire department has stepped in and now provides a significant portion of the town’s EMS. Recently, WOFAS went to a hybrid paid-volunteer business model that includes billing insurance providers, paying per-diem employees to staff two ambulances while continuing to operate with volunteers.

At stake are hundreds of thousands of dollars in revenue from billing private and public health insurers for EMS. The town reports net revenue from EMS of $488,415 year to date. WOFAS, which had previously operated solely on contributions, began billing insurance in November to provide enough revenue to staff their ambulances.

The administration is citing the recommendation of a state procurement officer and state bidding law as requiring the town to bid the service through competitive contracting, a process that allows for flexibility in assessing qualifications. WOFAS has opposed the bidding process as unnecessary, citing other Essex towns that haven’t gone to bid where non-profit community EMS bills insurance.

Council postponed consideration of the administration proposal from the September 17 council meeting. The discussion of the proposal began with a presentation by WOFAS President Jim Troisi is part of the Conference Agenda and continued later in the meeting with consideration of the related resolution.

Also on the Conference Agenda, Police Chief Jim Abbott gave a presentation on the Conference Agenda on crime in town following the recent murder last month of a grandmother in her home on Chestnut Street.

Crime statistics for the first nine months of 2013 (excluding the last few days of September) show a slight decline (0.7%) to 547 incidents from 551 incidents in the same period in 2012. Aggravated assaults fell 18% to 23 from 28, robberies rose 52% to 35 from 23, burglaries fell 4% to 107 from 111, larcenies rose 3% to 337 from 326, and vehicle thefts fell 32% to 42 from 62. In the first six months of 2013, robberies using firearms increased 267% to 11 from 3 in the same period in 2012.  

Crime for all of 2012 fell 18% to 719 incidents from 878 incidents in 2011, which in turn was a 32% increase from 2010 with 666 incidents.

Council approved the administration’s request to award the contract for four jitney buses to Wolfington Body Co. of Mount Holly totaling $237,008 in a competitive bid. Wolfington was the highest bidder, but the town said the two other bids did not comply with the bid specifications including delivery within 90 days of receiving the purchase order. The buses – three with 25 seats and one with 20 seats and room for two wheelchairs -- are used for commuter jitney service to and from train stations and for senior transportation.

Council also approved a settlement of a long-running dispute with the City of Orange over the tax status of its reservoir, which is located in West Orange. The litigation, which dates back to 2004, was further complicated by the annual sale of tax-lien certificates to an investor. (The sale produces immediate revenue for the town and interest over time to the investor from the delinquent property owner.)

The settlement, which is subject to approval by Orange and the certificate investor, would require a net payment from the town of $278,292 (after Orange pays West Orange $100,000). (This also includes a $400,000 addition to the 2013 temporary emergency budget increase that could be borrowed to fund the settlement.)

According to the town’s attorney, West Orange is making this payment to the investor because the town incorrectly sold certificates when the issue of tax exemption was in dispute. The settlement reflects the likelihood that the property would be found tax exempt in a trial. West Orange therefore has to return the certificate proceeds with interest, according to the attorney, although the settlement amount is significantly less than the potential maximum that might be awarded at trial.

The enabling resolution (196-13), which was added to the agenda near the end of the meeting because of time constraints, is not yet on the town website.

The council approved three proposed ordinances on second and final reading. The revision to the Law Department ordinance passed 4-1. I offered an amendment that would have required independent review of the employment contracts of the town attorney and assistant town attorney, because the 2013 contracts approved at the previous council meeting had no independent legal review. The motion to amend failed 4-1, so I voted against the ordinance.

The other ordinances were approved to create health-related restricted parking spaces on Llewellyn and Virginia Avenues and Orange and Riggs Places, as well as changes to traffic standing and stopping on Stanford Avenue to reflect a car drop zone to the south of Pleasantdale Elementary School.

In other agenda items, the council:

- Approved the open-space purchase of unimproved land near the fire station on Ridgeway Avenue for $170,000, with half the funding from state Green Acres and the other from the town Open Space fund.

- Awarded a $426,677 contract to Grabowski Construction of West Orange for improvements to Mountain Drive and Highwood Road from among six competitive bidders.

- Approved a $20,000 settlement of litigation with the town’s former tax-appeal law firm, O’Donnell McCord of Morristown, over its claim that it was owed nearly $30,000.

- Approved an agreement with Life Christian Church to receive a certificate of occupancy for a portion of its new facility at 747 Northfield Ave. before construction is complete.

Three ordinances were approved on first reading and will have a public hearing at the October 29 council meeting:

- Amending the town’s salary ordinance to provide 2% raises to upper-level town managers, which passed 4-1. I voted against the ordinance as not prudent in a year of a significant tax increase.

- An ordinance subjecting landlords to additional responsibility for their properties and tenants, setting up a hearing process to adjudicate two or more violations within a 24-month period that could result in the posting of a bond by the landlord that is subject to forfeiture for continuing violations.

- Re-establishment of a town Environmental Commission.   

I’m a West Orange Township councilman since 2010, reachable at jkrakoviak@westorange.org. I'm a business communications consultant in my spare time.