City Council

COUNCIL CONFERENCE MEETING MINUTES MARCH 3, 2009 CITY HALL – 5:00 PM A Conference Meeting of the City Council of the City of Trenton, New Jersey, was held on the above date at 5:21 p.m. in the Council Conference Room, City Hall. The meeting was called to order by Council President Paul M. Pintella. Council President announced that adequate public notice had been provided to the public specifying the time and place for this meeting in accordance with the Open Public Meeting Act. FY 2008-2009 annual notice was mailed to the Times and the Trentonian Newspapers, posted on the first floor bulletin board in City Hall, and filed in the City Clerk’s Office on June 19, 2008 by Resolution No. 08-341. The agenda for this meeting was mailed, posted and filed on February 27, 2009. ROLL CALL: PRESENT: Mr. Coston, Ms. Lartigue, Mr. Segura, Mr. Pintella – 4. ABSENT: Messrs. Bethea, Melone, Ms. Staton – 3. Council President Pintella announced that Ms. Lourdes E. Rodriguez would be acting as City Clerk in the place of Mrs. Juanita M. Joyner, Acting City Clerk. PRESENTATION: UPDATE ON PETITIONS AND WATER SALE Appearance: Honorable Mayor Douglas H. Palmer Dennis Gonzalez, Acting Business Administrator Edward J. McManimon, McManimon and Scotland Honorable Mayor Douglas H. Palmer read a prepared statement that included the following: Tonight I am coming before Council to update you - and the taxpayers of Trenton -on where we are as a result of the petition drive initiated by Michael McGrath against our water sale agreement. This agreement, approved after a diligent and long process involving the suburban townships and State Board of Public Utilities, is in danger of being stopped. The result of this effort would be catastrophic. Make no mistake about it: Because of this petition drive, every property taxpayer in this city is now faced with the likelihood of a tax increase unlike any we have ever seen, if Mr. McGrath gets his way. Here is where we are: As you know, 1,235 petitions were turned in last week. According to my administration's early review of the petitions, it appears that they may be a couple of hundred short of valid petitions. However, that matter is to be determined by the City Clerk. City Council Conference: Minutes March 3, 2009 1  If enough valid signatures are gathered, then this issue will once again come before this Council. If the Council affirms its original decision backing the agreement, then the City and taxpayers must pay for a costly special election to be held in May. However, the critical matter before us now is time. Tonight I am informing the Council of my intention to fight for the residents of our City with every means available to stop the irresponsible tax increase that is on track to happen. Regardless of our efforts to stop this catastrophic tax increase, the timeline that we are working with is perhaps our biggest concern. As you know, the City operates on a fiscal year from July 1st through June 30th• We have been on a very tight schedule to meet the approvals for both the water sale agreement and our budget. We had been in a position to move forward with a water deal designed to provide $20 million to help reduce the impact on our taxpayers. But instead, the McGrath effort to block the water deal now threatens a cascade of severe financial consequences for our taxpayers. If this petition drive succeeds, the $20 million that was to come from the water deal now must come from an enormous property tax increase. In addition, today the State Department of Community Affairs has advised us that the $11 million in revenues that we have anticipated from our annual accelerated tax sale are in jeopardy because of the petition. Because we will not be able to conduct our tax sale without an approved budget, we will not be able to anticipate the $11 million that the tax sale would produce for our current budget. Because we must have an approved budget before we can send out tax bills and ultimately conduct a tax sale, the petition drive has stopped our ability to move forward with that plan. As the State has informed us that we will not be able to include that item of revenue in our budget, this brings our total projected shortfall to $31 million, all as a result of Mr. McGrath's petition drive. I believe that the most responsible approach would be the one my administration initially proposed to you -a balanced budget with a 9 cent increase. Today, considering this petition and its potential for damaging consequences, state officials we conferred with were speechless. One reaction was ... "This makes no sense. What are these people thinking? Don't they understand what this is going to do to their taxes?" Tonight, I'm asking everyone to look at this and understand, because the consequences are dire and grossly irresponsible given the economic crisis, foreclosures, and rising jobless rates here and around the country. City Council Conference: Minutes March 3, 2009 2  Let me review once more the consequences we are facing: 1. Even if the petition does have enough legitimate signatures, a special election would not leave enough time to approve the water deal before the end of our budget year. 2. Compared to the $90 increase on a $100,000 property that would result from my proposed budget, without the water deal, the McGrath Tax due this spring would be $1,640 on that same $100,000 property. 3. Without the water deal, the City will not have the $20 million from the water sale or the $11 million from the tax sale, which will mean that $31 million will have to come from our property taxpayers –all payable in May. I am advising the Council tonight that because of these dire circumstances, we will be sending out notices that property owners will receive in the next tax bill if this petition process continues. Let me be very clear: This will happen unless the petitions are withdrawn by at least four of the five petitioners in enough time to allow the budget process and the water deal to proceed. He also stated that he has been blessed by being mayor of this city for almost nineteen years. He has lived in this city all of his life except when he was in college. He feels that this is potentially the worst catastrophe that will ever happen to this City. Honorable Mayor Palmer asked that if there was anyone who could talk to the individuals involved with this petition, to please do so. Honorable Mayor Palmer also stated that the State of New Jersey notified him today that they will never take over one of the best run cities in the State of New Jersey. Mr. Dennis Gonzalez, Acting Business Administrator, asked Mr. McManimon to talk about the legal process the city will be taking and why timing is of the essence. Mr. Edward J. McManimon, III, stated that the last BPU meeting that could approve the sale will be on May 14, 2009. Closing can not be sooner than 45 days after approval which will be June 29, 2009. Budget year ends on June 30, 2009 which means the city will be out of money for one month. City Council Conference: Minutes March 3, 2009 3 Discussion on time frame of a Referendum ensued and included the following information: • The City Clerk has twenty (20) days to certify petition • The Petitioners have ten (10) days from the day it is certified to withdraw petition (even if they have enough signatures) • If the City Clerks finds that signatures are insignificant the petitioners have ten (10) days to seek other signatures • The City Clerk has twenty (20) days to certify new petitions • The Petitioners have ten (10) days to withdraw the petition Mr. McManimon notified City Council which Statue the City will be filing the law suit under. Councilman Coston asked how long the legal process would take. Mr. McManimon stated that it would be about three (3) weeks. Councilman Coston stated that he felt that no one on Council would approve a tax increase that high. Mr. Ronald Zilinski, Finance Director stated that the State of New Jersey would set a tax rate increase. Mr. Gonzalez stated that the State of New Jersey could grant a waiver on the CAP. Councilwoman Lartigue asked Honorable Mayor Palmer what information he intended to provide to City residences. Honorable Mayor Palmer stated the following: • Explain the sale deal • What the asset is • What the City would do with the money • Impact to the budget • Answer any questions they may have Councilwoman Lartigue stated that what people want to know is how the City is going to sustain the water assets. Honorable Mayor Palmer said the following: • By having good water • Having a system that 2/3 of which will be paid for by the townships • Reduce the debt service by $20 million this year and $20 million next year Mayor Palmer stated that the State of New Jersey has to start paying the City of Trenton what they owe to us. City Council Conference: Minutes March 3, 2009 4  Councilwoman Lartigue stated that the following should be provided to the communities: • A plan of sustainability • A plan to show where the City would be with the sale of the water system, and without the sale. Mr. McManimon stated that when the City started looking into selling the water infrastructure the money was going to be used for a term of five years. The part the City is selling does not service any of the residents of Trenton. Councilman Coston stated that he had done a resolution for review by Law, to use some of the money from the sale of the water system to lower and pay off bond debt. He asked Administration to give him their thoughts on this matter in the near future. Councilman Coston suggested that Administration and the Mayor invite the five (5) petitioners to a workshop. Mr. Dennis Gonzalez, Acting Business Administrator announced that if the sale does not go through the Citizens of Trenton needed to know and be prepared for the tax increase. Honorable Mayor Palmer stated that whenever the City works together it accomplishes things. A detailed discussion was followed by a question and answer period. PUBLIC COMMENTS: Wendy Dean, 859 E. State Street – Read a list of names of individuals who have been injured due to domestic violence, and asked City Council members what they could do, or are willing to do, about the way the Courts handle domestic violence cases. Council President Pintella asked the City Clerk’s Office to send a letter to Judge Sancinito inviting him to appear before City Council on March 10, 2009. Paul Harris, 137 Centre Street – Stated that since the City was in a crisis all Council members should be in attendance at Council meetings; spoke about the water system sale petition. Dion Clark, 323 Walnut Avenue – He felt that the petition was a personal matter with Mr. McGrath; asked the Police Director about the status of the gentleman that was beaten on the corner of Walnut Avenue and S. Cook; asked for the tax status on abandoned privately owned properties in the City; spoke on the pit-bull dog problem. City Council Conference: Minutes March 3, 2009 5 Bea Perry, 27 Sylvester Avenue – Spoke about installing cameras in certain areas in Trenton and cleaning and cutting weeds. Joe Harrison, 15 Swan Street – Wanted to know when the City found out about the debt they were in, and if the City had a plan for next year’s budget. DOCKET REVIEW: Appearance: Renee Haynes, Chief of Staff Jane Feigenbaum, Business Administrator Council reviewed the docket items. CIVIC MATTERS: Councilman Coston – 1. Asked if there was a translator in the Municipal Court. 2. Wanted to know how the Court was going to keep up with the paper work for all the fines being issued. 3. Wanted to know what the savings would be if garbage pick up was reduced to one day per week. Councilman Segura – 1. Requested that the Mayor meet with City Council on how the City was going to use the stimulus money, and discuss how small businesses could be helped. Council President Pintella - Stated that the City needed to have a workshop to discuss stimulus funding. The meeting adjourned at 8:17 p.m. Respectfully submitted ___________________________ __________________________ PAUL M. PINTELLA JUANITA M. JOYNER CITY COUNCIL PRESIDENT ACTING CITY CLERK City Council Conference: Minutes March 3, 2009 6