TIPS AND SNIPPETS: LOSAP, Pay Raises for Police Chiefs, New Business for Westville
Wednesday, July 15, 2009
BY BILL CLEARY
SNIPPET-The City of Gloucester City has passed an ordinance on first reading that creates a Length of Service Awards Program (LOSAP). The program rewards members of the volunteer firefighter organization for their loyal, diligent and devoted services to the residents of Gloucester City.
The LOSAP shall provide for fixed annual contributions to a deferred income account for each volunteer member that meets the criteria as follows:
Must attend 50 percent of fire calls, drills and training. Five years of required for vesting; and active with five or more of eligible prior service shall receive $1000 for 5 years, payable at the rate of $200 per year.
The estimated cost of the program has been calculated at $25,000 per year. Membership start date shall be November 1 and the firefighter must serve one full year to be eligible. This ordinance shall not take effect unless it is approved by voters as a public question at the next general election. November 3, 2009.
Second reading of the ordinance is scheduled for July 23, at 8 PM in the City Hall, 313 Monmouth Street.
On January 18, 1998, the “Emergency Services Volunteer Length of Service Award Program was signed into law. This program is more commonly known by the acronym “LOSAP.” The statute defines a LOSAP as “a system established to provide tax-deferred income benefits to active volunteer members of an emergency service organization.” An emergency service organization generally includes all forms of volunteer fire and first aid organizations. For the purposes of administering the law, this definition includes those volunteer first aid organizations that charge for their services.
The tax-deferred income benefits for emergency services volunteers come from contributions made solely by the governing body of the municipality or fire district, on behalf of those volunteers who meet the criteria of a plan created by that governing body. The contributions are deposited into a plan similar to the deferred compensation plans permitted for county and municipal employees (N.J.S.A. 43:15B-1 et seq.). These plans permit the governing body or the volunteer to direct the investment of funds in the different investment vehicles that may be permitted under the plan adopted by the governing body. The investment options may includedifferent types of mutual funds or annuities. Read more about LOSAP
Although this program has been around since 1998 most volunteer firemen that I spoke to in Gloucester City, Brooklawn and Mt. Ephraim never heard of it. Sad isn’t it that the City’s governing bodies hasn’t offered this to the volunteers before now. I am hoping that those governments in other communities will follow Gloucester City’s example.
It wasn’t that long ago the City had 100 or more volunteer firemen. Today there are approximately 25. Sometime ago Councilman Nick Marchese told me that Mayor and council wanted to offer the LOSAP locally to entice more people to become volunteers. Hopefully this will be an incentive.
Because of the approximated $4 million operating cost of the fire department there has been suggestions to cut expenses by using the paid men during the day and the volunteers at night. Under this plan the EMT Department would remain on 24-hour status.
Although it sounds like a great idea, the plan seems to be obsolete now since six provisional firemen took the oath of office at the June council meeting. Council also hired a new fireman who is presently undergoing training. According to Fire Chief Brian Hagan there are 33 employees in his department, 23 full-time firemen and 10 full-time officers including him. A total of $190,000 is set aside for the fire department’s overtime in this year’s budget.
TIP-July 6 Gloucester City Mayor and Council passed an ordinance on first reading increasing the salaries of Police Chief William Crothers to $120,292 and the salary of Deputy Chief Michael Kaye to $115,528. In 2005 the salary for the Chief position was $101,000, while the salary for Deputy Chief was $97,000.
The totaling operating budget for the police department is about $4 million. The total number of employees, 28, which includes 7 supervisors. Salaries and wages for all 28 employees is $2,900,500 or approximately 71 % of the total department budget.
Public hearing and second reading is scheduled for July 23, at 8 PM in Council Chambers, 313 Monmouth Street. To read both ordinances click here.
TIP- NEW BUSINESS COMING TO WESTVILLE… According to an article in NJBIZ.com posted July 14 the New Jersey Economic Development Authority board approved tax incentives for six companies to add jobs in the state.
Business Employment Incentive Program applicants must either increase or relocate jobs in the state to be eligible for the incentives, which are based on the amount of income taxes that would be paid to the state by the new employees.
JVK Operations Ltd. of NJ, a new company whose owners operate a Long Island, N.Y., laundry for health-care linens. It plans to open a Westville facility and add 75 jobs, with state incentives estimated at $225,000.