Preview: November 12 Council meeting

Proposals to move municipal elections from May to November, approve another $158,630 in tax appeal payouts, borrow $3.5 million to pay for the avalanche of successful tax appeals so far this year, and give 2% raises to senior managers head the agenda for the November 12, 2013, council meeting.

The meeting agendas and related materials are here.

The agenda also includes a proposal to loosen the ordinance governing the scheduling of council meetings.

The proposal to move council and mayoral elections from May to the November general election is on the agenda for first reading. If approved, the proposal will be advertised and be set for second reading and public hearing, probably at the December 3 meeting (after Council President McCartney cancelled the November 26 meeting).

A 2010 state law allowed municipalities such as West Orange with charters that require separate, non-partisan local elections to change these dates to coincide with general elections. The law has prompted debate and some date switches among affected municipalities, including the West Orange Board of Education changing its elections last year from April to the November general election.

Approval of the ordinance would likely extend the terms of the mayor and two councilmembers whose terms would ordinarily expire shortly after the May election. Under the new schedule, elected officials would take office January 1 of the following year.

Council is asked to approve another $158,630 in tax appeal payouts – bringing this year’s total, including a net $278,292 settlement of the long-running litigation over the city of Orange reservoir, to more than $3.5 million.

The majority of the appeal payouts are to Rock Spring Club, including $120,053 in the 2010 tax year and another $20,909 for 2012. The 2010 assessed value was reduced 21 percent, adding another 4% decline last year to bring the assessed value to $13.09 million.

(Generally, successful tax appeals reduce the town’s cash to pay for refunds and also decrease future tax revenue because of lower assessed values. At the 2013 general tax rate of $3.648 per $100 of assessed value, a $1 million reduction in assessed value cuts tax revenue by $36,480, including $9,210 from the municipal budget. West Orange has lost approximately $1.4 billion, or 20%, of its tax base since 2008.)

In related matters, council is asked to approve a resolution authorizing the town to apply to the state Local Finance Board for authority to issue $3.5 million in debt to pay for tax appeals. The LFB would also specify the term of the payback, between three and seven years. This would likely represent significant increases in our debt service and upward pressure on taxes.

In addition, an ordinance to authorize this borrowing is on the agenda for first reading.

The proposal to loosen the ordinance on scheduling council meetings followed debate at the October 29 council meeting. Council President Susan McCartney had recently cancelled the second meeting of the year without consulting councilmembers and also without authority in the ordinance to do so. To see the 25 minutes of discussion, please see the video excerpt here.  

The proposed modifications include:

-  Changing the cycle from the first and third Tuesdays of each month (except once a month in July and August) to any Tuesdays of the month separated by at least two weeks.

-  Changing the allowances for different scheduling from a legal or national holiday to “holidays, special events and anticipated vacation schedules.”

-  Now allowing cancellations by majority vote of the council and also authorizing the mayor, business administrator or council president to cancel a meeting “summarily,” in an emergency.

The council will discuss the 2014 council meeting schedule at the Conference Agenda, which starts at 6:30 p.m.

Council will also consider an ordinance on second and final reading to provide 2% raises to 14 senior managers. It was held over from the previous meeting because of an error in the public advertisement.

The other proposed ordinance on first reading would require non-resident property owners of one- and two-unit rentals to register contact information, holders of mortgages and the fuel-oil service on the property. The ordinance would comply with a state mandate.

Other resolutions of interest include:

-  An executive session to consider potential litigation, which isn’t further specified.

-  A proposal to “re-retain” an expert to provide testimony in the litigation between the town and Link Communications over the alleged failure of technology in town police cars.

If you’d like to contact the council with your thoughts on any of these issues, please send an e-mail to council@westorange.org or call 973.325.4155 to leave a message.

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