By: Katherine Massopust

SOUTH AMBOY – Registered Municipal Accountant (and CPA) Gary Higgins submitted the Audit of the City of South Amboy for the Governing Body Certification of the Annual Report. Higgins gave his unmodified opinion of the highest level that the city can receive. “The city weathered Covid for 2021.” He then said, “You received what you gave and also added $190,000. The records maintained by your CFO (Dan Balka) are in good condition.”

Councilman Tom Reilly asked about the city’s bond rating.

Higgins answered that the State of New Jersey is hesitant to upgrade anybody, but at the minimum, the city will remain at the same level.

Reilly then asked about the prepaid PILOT.

Higgins answered that is the same as tax if prepaid the amount of money ahead of time.

Reilly stated, “The PILOT payment is based on rental units – the percentage of rental income.

Higgins said, “You have 5-6 PILOTS.”

Reilly asked, “Who is auditing the PILOTS?”

Business Administrator Glenn Skarzynski stated, “We are looking to audit all the PILOTS.”

Higgins noted that the library is not included in the city audit.

Reilly asked if Higgins felt comfortable with the assimilation of sick days. “The city has substantial dollars for sick days – $62,270.”

Higgins said, “It is not required by the state of New Jersey. Most municipalities are pay as you go.”

B.A. Skarzynski said, “There are $15,000 maximum for sick days. After 2 years payout if there is vacation time. There is an absolute statutory limit to sick time. A $15,000 cap.”

Reilly asked about tax abatements.

Higgins answered, “If you have PILOTS outstanding in the community, you are required to disclose based on for residential – the percentage of rentals; for warehouses – the amount of square feet – if fully taxed. Most would not be developed unless they had the benefit of a PILOT.”

Reilly said, “The city council is responsible of exceeding the threshold.”

Higgins said, “When you are trying to exceed the threshold which you should be, you accumulate by vendor.”

Reilly said, 862,000 property assessed value of accumulated properties. Reserves are down from 1.6 to 1.3.

Higgins stated, “Those are appropriate reserves.”

Reilly concluded, “It seems as if we are in good shape.”

Councilwoman Zusette Dato said, “Very good job and thank you for your report.”

Council President Mickey Gross asked about having $3 million in surplus.

Higgins answered, “I can give no guidance. I can’t make those decisions. Government Finances recommends 5% to 10% of the budget.”

Mayor Fred Henry had no questions. “Thank you. Great job. Financially, we are getting better and better.”

B.A. Skarzynski said, “Kudos to our CFO Dan Balka in his stewardship of the tax dollar.”

The council unanimously passed the certification of the annual report.

Council Comments:

Councilman Tom Reilly thanked the Food Pantry donors and volunteers, all the first responders. “There are lots of volunteers at the Food Pantry. We should put a proclamation for these people who put in tons of hours. It is long overdue.”

Reilly then stated that everyone should “Buy a Brick,” to help the Veterans. He noted the Veterans Park is going up and the old American Legion Building is being torn down. “The Friends of South Amboy have games that benefit needy residents.” Reilly stated everyone should support the local businesses in town. “Some are really struggling.” Reilly then stated that the New Jersey Business Action Center (1-800-JERSEY7) can be contacted if your business in need of assistance. “What are the PILOT numbers for Station Bay?” Reilly asked about the ongoing illegal palate operation. “It has been going on for years.” Reilly then asked about the infamous “Pigeon Palace,” and the blighted property on Roosevelt Avenue.

B.A. Glenn Skarzynski stated that as far as the demolition Pigeon Palace on Broadway is still in court, but for the dilapidated apartments on Roosevelt Avenue, the new property owner is going to file with Blue Acres to get reimbursed for demolition.

Council President Mickey Gross made it known that the ongoing saga of the Pigeon Palace has been going on too long. “Give us a date! Don’t leave us hanging!”

Councilman Brian McLaughlin thanked the volunteers. “Our fields are great. The land is being cleared for the warehouses Thank you Gary (Higgins) for the audit. “

Councilwoman Zusette Dato reminded everyone about the election. She gave the information about early voting and vote by mail. She then spoke about the jazz concert at the Dowdell Library. “They played Louie Armstrong music. Keep an eye on the library. Thank you, Gary Higgins and Dan Balka.”

Council President Mickey Gross said, “Give us a date on the PILOTS – is there a deal in place to do audits? If the public asked, how do we know? At least we can answer.”

Gary Higgins answered, “The summary of each PILOT is in response to each of your individual agreement.”

Councilman Tom Reilly asked, “Who should be performing the audit (of the PILOTS)?”

Higgins said, “Bond Counsel does that. Look at the agreement if based on assessed value, you have the same number.”

B.A. Skarzynski stated that it is based on adjusted gross revenue as are most residential PILOTS. The approve of a once-a-year assessment in the fall. IT is in the best interest of the taxpayers.”

Gross reminded everyone of the Irish Festival on Saturday, October 8, 2022.

Mayor Fred Henry requested 15-minute parking spaces by Krauzers. “I want to thank Elaine Graber (Dowdell Library Director). A lot of good things are going on in South Amboy.” Mayor Henry then said, “We had an interview with a woman from the New York Times. We walked around Broadway. She was really impressed with the way things are going. The article will be in the NY Times in late October.”

B.A. Skarzynski thanked Governor Murphy and Assembly Speaker Coughlin for a $8 million grant for the ferry terminal. He noted that the new computer system is being installed.

Public Portion:

Resident Mark Herdmen spoke, “Kudos to the auditor. He did a very good job.” He then asked about the American Legion.

Mayor Fred Henry said, “A project is in the works. Our American Legion will be a complex of apartments for homeless vets.”

The meeting adjourned at 6:48 p.m. Council Vice President Christine Noble was not present.