Tough Times Ahead for Property Tax Payers....and Renters

And workers and business owners. People are losing their jobs, pension funds are shrinking, shopping is down and development has slowed almost to a halt. The impact in Plainfield is showing with an increase in home mortgage foreclosures. Increasing unemployment will surely hurt Plainfielders and we in city government will have to reckon with dipping property values.

Watching the actions of elected officials prior to my election to city council, I've been most interested in decisions made under difficult circumstances. Why did Governor Jim Florio raise income taxes knowing the price he would pay politically? Why did Governor Whitman raid the pension funds, knowing that New Jersey citizens would eventually see a day of reckoning? In Plainfield, why did the City Council squander in one year a huge payment from other towns for the sale of the sewer system?

The simple answer is that when elected officials are between a rock and a hard place, they often blink. The rock is usually angry tax payers who vote and the hard place is often workers protecting their hard won wages and benefits.

Where does that leave us in Plainfield? We are facing a 9.5% tax increase on the municipal budget and the school tax increase will continue to rise after decades of remaining flat. County taxes, the third component of our tax bill, have also increased most every year.

I will only speak to the municipal portion of the tax bill because it is the major part of the total. Also, the school tax increase, which started in 2008, is mandated as a decision made in Trenton regarding Abbott school districts. The City Council is deliberating on proposed cuts that could reduce the tax increase to around 7%. Beyond that, proposals for further budget reductions have been strenuously opposed by City Administrator Marc Dashield. These further cuts, he rightfully says, would have to be the elimination of jobs and consequently, services to residents.

The other side of the coin is property owners and renters, some of whom will get squeezed out of their homes by taxes and rents that exceed their incomes and ability to pay. So to blink or not to blink. Here is my version of the two options:

• If the state legislature approves the pension payment deferral plan and the City Council actually defers a payment - that's a blink. Putting expenses off for future Mayors, Councils and taxpayers has a long history in our state but it is unfair and bad policy.


• If the Council requires that non essential city workers go to a reduced work week for the last few months of this fiscal year (ending June 30, 2009), we will save money - it would be very unpopular among many city workers but that's not a blink.


• If Plainfield elected officials continue to say "there are no sacred cows in our budget" but refuse to consider cuts in our police and fire division budgets - that's a blink.
• If we eliminate out of state travel for staff and elected officials and food for staff and public meetings - that's not a blink.
• If we freeze salaries of non union employees earning $80,000 or more - that's not a blink.

A good principle for budget action is that everyone shares the pain.

All budget decisions will be made knowing that the all important primary election is coming in June. This is an opportunity for Plainfield stakeholders to make your feelings known. The local budget process has not generally had as much input from the people who pay the property taxes as from the employees of government. This years budget advisory committee has stimulated some advocacy from residents. Lets see what the new year brings.

Going Green

No, I am not referring to an elected official. Green is the new buzz word in New Jersey government, referring to anything about sustainable, healthy communities. It means a lot for the future of Plainfield. That is why, come January, I will be working with my City Council colleagues to move Plainfield in the "green" direction.
There are many aspects to sustainability:

• preserving open and public spaces
• growing the local economy and keeping local money in the community
• local jobs for our residents
• energy saving buildings and vehicles
• recycling
• transit oriented development
• walkable downtowns
• teaching our young people to live sustainably

One of the first steps is to do energy audits of Plainfield's public buildings. This is a really good deal for Plainfield as the audit will lead to saving money every year. Money wasted on heat and air-conditioning leaking through windows, doors and poorly insulated walls can be re-invested in services that residents need, or tax relief. We will ask the Public Schools, the Housing Authority and the PMUA to join the city on this initiative. Along this line, we need a better plan for selecting city vehicles, ones that are fuel efficient.

We have already taken some steps in the right direction with energy savings. Look for Plainfield and other communities to pick up the pace in 2009. We can't afford not to.

Solar panels could be in Plainfield's future. Last Monday I attended a meeting to organize Union County towns for a group purchasing arrangement. Solar technology has improved to the point where the up front cost of the panels is recovered in about 7 years in the Northeastern USA. Under a creative new financing arrangement, a "purchase power agreement" would eliminate all costs for purchase, installation and maintenance of the panels. Plainfield would still save money on the monthly energy bills but we would share some of the savings with the solar panel installer, who would own and maintain the panels. Plus, having a group of towns and school districts do this together would help us negotiate a better deal. I spoke with School Superintendent Dr Gallon and he is interested in exploring this with the city.

Going green is not just about acting locally to help the planet. Its about making Plainfield a better place to live, work and visit. Creating local jobs for our people reduces traffic congestion and greenhouse gases but more local jobs also strengthen our tax base and stimulate local businesses. Each aspect of sustainability is connected in a synergistic way.

Imagine this: we hire an energy audit firm for our municipal and school buildings. The contract states that Plainfield High School students will taught to participate in energy audits. They also learn about the growing green economy and green jobs. Then they go home and help their families save money on the PSE&G bill.

Hot Topics for New Jersey Municipalities

I attended the NJ League of Municipalities Convention this week. Two areas of interest stood out from the rest for the thousands of local officials.

The first was not surprising. When I showed up for the "Multi Year and Long Range Financial Planning" session (in the unpopular 9:00 am time slot!), I could not get in. Correction - I could not get near the door. Several hundred people were crowding in to hear about the scary prospects for city budgets and taxes and how to project expenses and revenues to anticipate problems. Walking towards the next hot topic workshop, it occurred to me that this is a job for the 2009 City Council Finance Committee.

Up next, the session on "The Green Future Roadmap - How to Go Green in NJ". Actually there were many workshops on sustainability and going green throughout the three day convention. I attended most of them and was happy to see my council colleagues Burney and Simmons in attendance as well. As Trenton Mayor Palmer said, this is not a fad. And its not just about polar bears and climate change. Its about changing the climate in our neighborhoods and making our communities sustainable. What does that really mean?

• keeping residents money in the local economy
• creating local jobs for our residents
• city government and the Board of Education leading the way to energy efficient buildings and vehicles
• educating our young people to live sustainably and prepare to join the green economy that President-elect Obama is talking about
• using transit oriented development to maximize pedestrian friendly living, shopping and working

I also learned about Citi-Stat, a data driven city management system that measures the effectiveness and efficiency of city services and helps government become more accountable to the people. Neighboring Union Township is using this tool. We need this kind of change in Plainfield and 2009 is right around the corner.

A session on affordable housing detailed the convoluted and not very effective process of meeting New Jersey's demand for housing for working and lower income families. An important regulation for Plainfield is "Growth Share". Even if we think we have our fair share of affordable housing, we will create new obligations when we build new housing units - 1 new affordable unit for every 4 new units - and another affordable unit for every 8 new jobs created. Clearly, we will have to move away from our developer driven approach. What is needed is a city wide comprehensive plan that integrates the housing, job creation and business development elements. And residents and business owners will have to be welcomed into the planning process.

I will also share some information on property tax exemptions, immigration and language access, road paving (by far the most exciting topic) and energy audits. That will have to wait for my next blog.

The Obama Administration and its Influence on Plainfield

"The Obama Administration" - words that still have me smiling 5 days after this historic election. Enough time for some of the euphoria to wear off and get me thinking about impact on Plainfield. Here is what I see in my crystal ball:

1. Young people of color will become more interested in public service, government and politics. Look for more Annie McWilliamses at the local, state and national levels.

2. Much credit is due to some local elected officials for helping turn out huge numbers of voters for Obama. Rashid Burney was there from the beginning. Will this help his political career? One can hope so, for his sake and for the sake of our city.

3. Obama ran for change. What does that mean at the local level? Certainly not the municipal budget mess we are currently dealing with. Certainly not the inadequate website and overall communications between the city and Plainfield residents. Not the inability to move on a shared services agreement with the Board of Education. I hope Obama's recent words about the economic downturn - "swift action needed" - is heeded in Plainfield, 3 years into the Mayors 4 year term.

4. Obama ran on tax relief for poor and middle class citizens. In Plainfield, we are facing property tax increases that are double the cost of living. The people who struggle the most are retired homeowners and working people in the middle income brackets. Will the City Council face up to some hard budget decisions this year and for the foreseeable future? I believe President Obama will. Will we in Plainfield have the courage to think out of the box about police, fire, inspections and public works services? Two new Council members, Adrian Mapp and Ms McWilliams, will help.

5. I think the tone of political campaigns is changing. The McCain campaign tried some desperate negative messages, especially near the end of the race. The people didn't buy it and Obama remained focused on his positive message. In Plainfield, it's the same. Dirty tricks, whisper campaigns and last minute smears will backfire on those who are foolish enough to try.

Plainfield was a leader in providing a huge plurality for Obama, for change. Can we now show leadership for change within local government? I urge you to listen carefully to elected officials. Important elections are coming in June 2009 that will decide Plainfield's leadership for years to come. Lets support the elected officials and candidates who are for the kinds of changes that Obama embodies:

• environment friendly strategies that create jobs, save on energy bills and make our cities healthier places to live
• using electronic media for meaningful communication with the people
• grassroots campaign fundraising that shifts the balance away from big business and towards the average citizen who can give $10, $25 or $50 for the candidate he or she believes in
• making public service a commitment to the greater good rather than a private club for pay to play contributors, family and friends

Plainfielders take note: November 4 is now glorious history. The all important June 2009 primary is before us. Everything said and done by local officials will be influenced by that event. We will select a Mayor and all 68 Democratic City Committee seats. This Committee selects a chairman who becomes the most powerful person in Plainfield, bar none. Lets hope the 2009 primary election results are as good for Plainfield as the November 4, 2008 result. Plainfield deserves it.

Plainfield Budget 2009: Information Technology

Our city is far behind when it comes to the efficiencies created by information technology (IT). We have yet to enter the tail end of the 20th century, to put it kindly. The current administration acknowledges this and has spoken about the need for an IT plan and a major investment to bring us up to speed.

The problem has been hearing the words but seeing little action. There was cause for hope last year when the city announced a shared services agreement with the Plainfield Board of Education. This was a contract valued at $125,000 for a year of services including help desk and system maintenance. There was also an IT grant in our 2007 budget to help us move ahead. Then, just last week, the City Council heard that the agreement will not be renewed and that the Mayors team wants to go ahead without the help of our school district. We also heard that the grant hadn't come through. Unfortunately, the Council, including it's IT Committee, hadn't heard that news before. And the shared services agreement expired in June 2008. Left in the dark until the last meeting, I could only look on in amazement as the administration asked for a last minute budget change to let the city go it's own way for IT development. No plan was offered to get us on track.

At last weeks budget meeting, City Administrator Mark Dashield did not give a clear reason why the agreement was not renewed or why the grant was lost. I was left with the impression that the shared services agreement fell apart on the Board of Education's end. I decided to do my own research.

My sources at the Board of Ed tell me that there is interest in continuing the shared services agreement. Our Mayor even corresponded with the Board of Ed regarding a contract renewal. So what happened? We deserve answers, on the grant too. I hope they come at tonight's (Thursday) Council meeting. Unfortunately I am out of town and will have to catch up with this tomorrow.

We need a major investment in information technology for Plainfield. Speaking for myself, I will need to see a plan, not just for spending, but for a multi year roll out of hardware, software, staff development and technical assistance. I will also need to feel more confident in the ability of city government to spend our money effectively.

Plainfield Budget 2009: Dudley House

Dudley House is one of only two half way houses in Union County for people recovering from chemical dependency. The other one, Flynn House in Elizabeth, is privately funded and uses no government monies. They are both much needed.

Dudley House is disadvantaged in that it is run by a city. The kind of mission driven leadership, volunteers and private donations that are needed for an operation like Dudley House are most likely found within not for profit organizations. Dudley House, in the hands of Plainfield municipal government, has been able to tread water at best. This year Dudley House is experiencing city management at its worst. I feel strongly that Dudley House needs to either transition into a not for profit corporation or be taken over by an existing one.

Dudley House is facing a $150,000 operating deficit because it has lost two Union County grants that have sustained it for many years. Mayor Robinson Briggs and her team are proposing that Plainfield taxpayers take on this burden, even though not all of the half way house residents are from Plainfield. They propose this as bridge funding until we can get our county grants back. City Administrator Dashield recently assured the Council that "it looked very positive" to get the grants again. I decided to do my own research. My sources tell me that getting county grant funds back for 2008 will not happen. 2009 funds will only be available from the time of ADA compliance - so not anytime soon.

There are 15 organizations in Union County that receive alcohol-drug abuse services funding through the county. All were informed over 5 years ago that continued funding was contingent on obtaining a state license from the Division of Alcohol. Each was given until 2007 to comply. All the other grant recipients were able to get their licenses. Plainfield did not comply because Dudley House did not meet the handicapped access requirements of the Americans with Disabilities Act (ADA). Plainfield asked for an extension but was refused because no steps had been taken in the direction of compliance.

This problem came to light at a Council meeting in early 2008 when the Mayors team said the future of Dudley House was uncertain. This led to a groundswell of community support from half way house graduates who explained it's positive impact on their lives. At that time the Mayor made a promise to address the problem at hand. That was the last the City Council heard until last weeks budget presentation when the administration asked for $150,000 on top of the traditional city contribution of $28,000.

What is the future of Dudley House? How can we bring it from it's current budget crisis back to financial health. In the long term, the city must act quickly to engineer a take-over. I know some qualified organizations that are capable of running Dudley House. Failing that, a new not for profit can be formed. There are many people in the community who feel passionately about it.

Meanwhile, Dudley House needs to be sustained in the short run. Perhaps our state legislators can come up with emergency funds. Think of all the charity care dollars that are no longer available to Plainfield residents due to the closing of Muhlenberg Hospital. This is a cause worth fighting for but should Plainfield taxpayers shoulder the whole burden?

Plainfield's Money: Who's In Charge

Saturday's Courier News lead story was about the $1.66 million dollar mistake in the Plainfield 2009 proposed budget. This mistake is disturbing for two reasons. One is the potential tax increase, an additional 3% added on to the already high 9.5% proposed increase. The second problem is that our city administration's official position is that this is the fault of the audit firm that does Plainfield's municipal annual audit. Just when we all want to take responsibility for a serious problem, we get finger pointing. Who was checking the numbers? The Mayor and her team obviously did not.

Is she saying that our audit firm created the budget that the administration introduced to the City Council. Whatever she was thinking, this incorrect budget has been submitted to the Council. It is now our mess to deal with.

To make matters worse, our City Administrator stated that we will use surplus to address this mistake. That may well be but only the Council can decide that, not the Mayor or her staff. And the Council has not even been consulted, let alone requested by the Mayor, to use surplus to fix this huge budget hole.

When there are performance problems in city government, the first reaction should be to be constructive and not just critical. Some will want to close ranks around the underperforming city officials and do patch work. That may be fine for minor potholes but not when the road is in need of total reconstruction. That is where we are right now with the city's fiscal operations and budget.

This $1.66 million mistake is, unfortunately, indicative of the Mayor's budgeting process and more. I will provide details in my blog later this week to explain some of our problems and possible solutions.