Gloucester City: $300,000 in State Aid will help reduce tax rate
Monday, July 28, 2008
By
Bill Cleary
The City of Gloucester City is one of seven communities in the immediate
area to receive extraordinary aid from the New Jersey State Property Relief Act.
The City received $300,000. The state notified the city earlier this month.
This year’s 2008-2009 proposed budget totals $16,439,000 or $613,313 more
than last year's budget of $15,825,687. Under the proposed plan introduced in
April the local purpose tax was to increase by 41 cents per $100 of assessed
valuation. At that time taxes were to rise to $287 on an average home assessed
at $70,000.
According to the
advertised budget in the April 10 issue of the Gloucester City News, the City
employs 105 fulltime workers and 74 part-time. The number of employees was the
same in 2007.
Councilman Nick Marchese, Finance Chairman, was asked what effect the
$300,000 would have on the taxes.
His prepared
statement reads, “The initial tax increase that
was submitted to the state showed an increase of approximately 41 cents per $100
of assessed value of a property. We are very happy to get the second highest
amount of extraordinary aid in the County, $300,000. That will directly reduce
taxes .09 cents leaving a new current increase of .32 cents per hundred of
assessed valuation.
“The
budget is not totally completed and could still see some substantial changes in
the next coming weeks.
“The City
also has to contend with changes in the new CAP laws and trying to keep the City
under the CAP as directed by the State. There are State limits imposed on the
amount of tax increase and expenditure increases that is allowed. We have
confirmed that many other communities have already submitted to the local
finance board, over the CAP numbers into six figures. The State has imposed
some unobtainable goals for communities of which many cannot achieve.
“We feel as though Gloucester City is doing its best to cut spending and increase income to the City while conforming as much as possible and doing what is expected of us by the State. We will give you more information as it unfolds.”