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CY 2019 Budget Still Not Passed

The audience listens as the Council discusses the CY 2019 Municipal Budget *Photo by Katherine Massopust

5/29/19 Special Council Meeting

By: Katherine Massopust

PERTH AMBOY – There was a special City Council Meeting on 5/29/19 at 5:30 p.m. regarding the CY 2019 Budget. The first Resolution R-250 – Authorizing Emergency Temporary Appropriations to extend the CY 2019 Temporary Budget.

For public comments on agenda items only, Resident Ken Balut came up to speak first. “I got my tax bill. It’s up $77 per quarter. Multiply that by 4 (quarters) it’s over $250. The school taxes and all the taxes – we gave away $55 million in PILOTS to a Fortune 500 Company. We gave $4 million to Kushner instead of our citizens. We’re subsidizing the YMCA $22,000 a month. She (Mayor Wilda Diaz) gave big raises. A resident on Johnstone Street put siding on her house. Her taxes went up. The question here is are you going to vote for a budget. She (Diaz) ain’t doing anything about Kushner or the Y. So, pay the Police what they deserve. You have to start now for next year. Other lawyers we hired were incompetent. It’s time to cut that budget.”

Mayor Wilda Diaz

Mayor Wilda Diaz came up to speak, “Earlier, I had a meeting with the Council President (Petrick). I want to let you know I was recommended by the DCA (Department of Community Affairs) to sit down to have an open conversation. I have to point something out in R-251-5/19 – (Amending the CY 2019 Budget). No one wants a tax increase. A lot of analysis went into that budget. I wanted to clear up to everyone where that 1% is when we need 5%. We did such an analysis and went back to the Departments. I made it very clear to not layoff personnel in the Police, Fire, and DPW. I can’t understand we went back crossed that bridge back to 1%. No analysis was done to those positions. So many women are being targeted. All of those are dedicated employees. They were here long ago. These are critical positions for the City. It’s one thing going after me. I’m a big girl, I can take it. Some employees you targeted – its personal. Why is it important to target their positions? These are critical positions in our City.”

Diaz then read a letter from a Perth Amboy Judge stating that the Council overstepped their bounds by attempting to cut court personnel.

Resident Lisette Lebron came up next. She read a letter in response to the elimination of the Public Information Officer. She stated that the Public Information Officer is vital to how communication is conveyed to the public. “We rely on media to convey what information is open and equal access to the public. The Public Information Officer plays a critical role in information management.”

A Rector Street Resident came up to speak next, “I think the budget cuts are unfair. The Board is male dominated and is cutting minority women, particularly Hispanic women. Make cuts to your benefits, Mr. Petrick instead.”

After the public comments were closed, Councilman Fernando Irizarry stated, “I don’t agree with what this (R-250) is proposing. I want to take out to vote separately. In the Office of the Mayor taking $3000 + $5400 out (the Mayor’s car). I believe the City needs a full-time Mayor – not a part-time Mayor. Some of these cuts are beyond the table.”

Irizarry’s comments were met with applause from those in attendance.

Irizarry stated, “I don’t agree with everyone the Mayor appointed, but taking away her car and being able to go to conventions – sooner or later the shoe’s going to be on the other foot. I want bills of the City to be paid. I don’t agree with this part of the resolution. I don’t want the City to shut down. It will be embarrassing.” Irizarry made a motion to remove the $3000 from the resolution.

Council President
William Petrick

Council President Bill Petrick stated, “The City can’t afford a tax increase. We can’t say yes to everything. We are working to not have a tax increase. We don’t’ want to cut the Police, Fire, and DPW. We have grandmothers on fixed income. The solution is not a tax increase. The solution is to make cuts. We’re not going to hurt essential services.”

There was a spout between Council President Petrick and Councilman Irizarry over clarifying what is being voted on. Irizarry took offense to Petrick’s remarks.

To amend R-250, the vote “Yes” was Councilmen  Irizarry and Pabon. Tejeda, Caba, and Petrick voted, “No.” The motion did not pass.

When it came to vote on R-250, All Council Members voted “Yes” R-250. Irizarry reluctantly said, “Yes” stating he didn’t want the City to shut down.

When it came to R-251, Councilmen Fernando Irizarry and Joel Pabon both voted “No” and Councilwoman Milady Tejeda, Councilman Helmin Caba, and Council President Petrick voted, “Yes.” Since the Resolution on the Budget needs 4 “Yes” votes to pass, the Resolution failed.

This was met with applause by those in attendance.

Councilman Joel Pabon stated, “My vote is to sit down and look at the agenda. The biggest issue now is not talking to each other without hurting everybody else.

Councilman Helmin Caba stated, “I will not vote any expense over 1%. There are 50,000 to 60,000 people out there and property owners who are not happy with a tax increase. When she (Diaz) runs again in 2020, she will not mention taxation. It’s not fair to the City of Perth Amboy to pay any more taxes. It’s not fair. I will not penalize the residents of Perth Amboy for mismanagement. Going into the red – that’s the situation we’re in.”

Councilwoman Milady Tejeda added her thoughts, “I know we cannot have a 5.5% tax increase. I know how hard people work and how it is to support their families and what is needed in the community.”

Councilman Pabon stated, “We need to let people know not like we’re selling out at 5.5%”

Business Administrator Frederick Carr stated, “We need to set up and get to 1%. How do we get to that 1%? We (all of us) need to sit down and have this conversation.”

Law Director Peter King stated, “The Council and Administration must work together to get it done.”

Councilman Helmin Caba stated, “I don’t want to see any cuts for the Police, Fire, and DPW. The cuts should be to nonessential workers. The tax increase should be 1%. I don’t see any other solution.”

B.A. Carr stated, “This is the 10th or 12th time we came back with an amended budget that perhaps meets the guidelines of the Council.”

Fernando Irizarry stated, “No one here agreed on a 5.5% tax increase. We do have that in common. A 2.5% tax increase and at one time – our Mayor was in favor of that. When we spoke in private a majority here was in favor of that. Me personally – I don’t want this tax increase. Where Belmar is there now – they had no tax increase for 8 years. A new Mayor came in and proposed a 21% tax increase. We can do it if some of that is fiscally responsible. Sooner or later we will have to pay the piper. We want services – someone has to pay for that – it’s not free. I live in this community. I get it. That’s why I serve on the Council.”

During the Public Portion, Resident Dorothy Daniel came up first. “I’ve been talking to individuals in the City who are concerned the City government is not working for them. Sitting here tonight, I’m getting it. I understand budgets. I’ve sat on boards in this town and I get that. I’ve come here before for Fire and Police (Departments) not to get cut. Leadership means working together. Find a way to compromise. It’s about working together for the citizens of the town. It’s not about the next election. Ask God for guidance to work together for the citizens of the town. Why in God’s name was a meeting with the Mayor not already done? We can’t be willy-nilly. I teach sportsmanship all over the County. You can do better. You can work with one and for my sake and everyone who resides in this town.” Daniel got a few laughs when she added, “Don’t make me run against you – because I’d win!”

Resident and former Councilman Ken Balut came up to speak next. “Millions of dollars in PILOTS are given away. Kushner, the Y you are subsidizing. There’s a problem. Who negotiates the PILOTS? No one looked to the future. It’s complete total incompetency. You negotiate to give away millions of dollars. Taxes went up because of school taxes. You promised to give tax cuts to the rich. What did we do with these Fortune500 companies? Target? Why did she give Kushner $4 million? His project is garbage. Why did she get extra time to Kushner’s contract? She spent tax dollars to support Kushner. $51 million to $71 million she gave away to companies. She (Diaz) gave away to rich corporations. People can’t live here anymore. You can move to Delaware and pay less taxes. The way you’re going, Perth Amboy is going to be a rental place.”

Mayor Wilda Diaz came up to speak, “I extend appreciation to the work you’ve done today. Let me reiterate Fernando Irizarry’s statement. These are facts. Fire, Police, and DPW – right now there’s a hiring freeze. We’re not filling these positions. I want to make it clear – I won’t layoff Police, Fire, and DPW. They are critical to the safety and cleaning to the City. Fernando Irizarry makes a point. Everything comes with a cost. We have to make adjustments. I stated this in 2017, 2018, and 2019. We have to make adjustments with our figures. It’s not wise to use the surplus. God forbid we have a disaster. People send children to schools. No one likes to pay taxes. New Jersey is the most expensive state in the Country. We constantly hear about PILOTS. We did a study. We can turn around the City of Perth Amboy by working and cooperating. If we take all the money from surplus, we will have nothing. I thank Fernando Irizarry and Joel Pabon. We cannot terminate certain employees.”

Resident Louis Cruz came up to speak, I sat here and listened to both sides. The focus of the problem is very concerning. You go back and forth – where’s the future going to be for our kids? As a homeowner, business owner and for the kids in this City. Car insurance, taxes, my house – the cost adds up to $30,000 a year. I have to gross from $70,000 – $80,000 a year (to cover my costs). Not everyone of my investors – around 30%-40% are born and raised in Perth Amboy. They are taking their investments someplace else. Why if you are born in Perth Amboy and in the community private investments are made everyplace else but Perth Amboy? I want to say – what can you envision in Perth Amboy? I cannot convince investors to come in Perth Amboy. Stop this (bickering). We need commercial and different investors to come here. The Council is not working with the Administration. All they are thinking about is 2020 (the election). The future is not bright. There is no future here. All we do is go back and forth with no thought to our future.”

Resident and former Councilwoman Lisa Nanton came up to speak next. She asked several questions regarding the DCA. “Who met with the DCA.”

B.A. Carr answered, “Myself, CFO (Jill Goldy) and Mayor Diaz. Also in attendance were Melanie Walter, the Director of Government Office, and a Staff Member, The Council Members were invited but did not come. The Meeting was at 9:30 a.m.”

Nanton pointed out that the Council have jobs and a morning meeting is difficult for them to attend. She suggested a meeting time in the evening.

B.A. Carr answered, “I can’t speak for the DCA.”

Nanton then asked about the tax bill she received. 

Carr answered, “It’s based on 105% of the estimated bill. We don’t have a rate from the school or City. The next quote will true out for the last two quarters. Without a tax bill, the City has a cash flow problem. We will be forced to send out estimated tax bill to pay bills.”

Nanton then mentioned a proposed pipeline in Raritan Bay. “The North East Supply Enhancement Program – New York voted against it. This pipeline will go through Raritan Bay. May 2, 2019 was the last day to sign the petition.” Nanton then changed the subject, “Does any of our tax bill have everything to do with the water in Runyon? The Collapsing Dunes? The water is the #1 health issue and our City does nothing, unless the EPA came forward to tell us. The closing of Runyon will give us all kinds of issues.”

Attorney and Perth Amboy Resident Billy Delgado came up next, “The City Council has lost significant credibility. They show finger pointing, everybody throws red lines. We are not talking with the Administration. The best example is cutting the Prosecutor’s Office without notifying us. We are benefiting the City (creating funds). Take responsibility for the City. A tax increase we know is coming. We need an answer. We encourage the City Council to follow the lead of Joel Pabon and we got to respect one another and get it done.”

Resident Maria Vera spoke next, “I’ve been living in this town for 38 years. Every year, taxes has never gone up 5.5% There are too many kids in town. People had raises. You can run the City without raises. It happens with corporations. If you do it, you can do it. Why do we have to this? The middle class will not be here. This town is so overcrowded – there’s no place to park. Why are we wasting money on warehouses? We can’t fit anymore kids. Why do we have to suffer? Work together and work things out. I didn’t get a raise. I still get the same check.”

Council Comments:

Councilman Helmin Caba spoke first: “There’s a lot of people here and we know why. I ran in 2016. We had a competent campaign manager. Why did the Mayor make him an employee with a $100,000 a year salary and pension? It’s about what is right for the City. The Mayor hired her campaign manager to work on the City’s website. It still looks the same as it did in 2009. Decisions like this cost the City money. We could hire three Police Officers with one position. It’s not political. It’s stating facts. No one wants to talk about the decisions being made. I’m not going to vote for a huge tax increase for Perth Amboy. Our school budget is almost $300 million. $25 million to $26 million comes from the City. Most comes from the State. Imagine if it didn’t. Former Governor Christie tried twice to take away (the extra funding). If he could have been successful – we would have felt it. It’s not impossible. That’s why we have to be careful about raising taxes. People pay rent. If we raise taxes, landlords raise the rent. People can’t afford to live in Perth Amboy. We need to be careful. I feel 1% will do that.”

Councilman Joel Pabon was next: “Ms. Daniel made it clear very early on willing to sit down. What we’ve got to do is it to be able to work together – bottom line. If we don’t sit on the main table – we’re done – nothing! We have to sit down. How do we get there? The five of us need to work on it. We may not be able to fix the issue in one day. We need to get a job done for the City of Perth Amboy.”

Councilwoman Milady Tejeda gave her comments: “I agree to work and talk to be respectful of each other. I do not and won’t be disrespected. We are elected to protect the community of Perth Amboy.”

Council President Bill Petrick thanked everyone for coming. “We all have to work on it,” he stated. The Meeting adjourned at 7:01 p.m.

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