Friday, May 23, 2014

Commentary on the Budget

It's too bad that those involved in the budget process could not or did not include considerations such as the fact that the new administration is taking various steps to bring in money that will ultimately influence the bottom line, such as a special tax lien sale to bring in $617,726.

Asked whether the revenues from the liens on the 14 properties would go toward surplus, Mayor Adrian O. Mapp said, "It will have a positive impact on year end results from operations and will help to boost our surplus. The more we collect from the sale of municipal liens the better. It also helps with the tax collection rate."

The "Jones Act" tax lien sale allows a municipality to sell off problematic liens held by the city. There will also be a regular tax lien sale (the kind with delinquent property owners' names in it) in October, which will help stabilize the city's finances. Having an astute finance director and, as Mapp says, one of the best chief financial officers in the state will result in the use of any and all possible means to improve the city's fiscal standing. It certainly is a big step up from having a previous finance director who could not even state the tax rate when asked at a public meeting.

The council was determined to pass the budget before June, which makes sense because by now the city has already been paying employees and spending money since January out of temporary appropriations. But adjustments will take place as revenues continue to come in through the remaining months of 2014. Maybe for next year there could be a budget tutorial so that council members feel more comfortable with the overall process, although that would still not obviate political moves to damage the administration.

--Bernice

17 comments:

  1. When I read "tax lien" I imagine we're in for another debate concerning interest rates. The higher the rate, all else being equal, the more attractive the lien is for investors and the greater the inducement for delinquent property owners to make payments or else risk foreclosure. Plainfield's rate is 18%, which is very common for NJ municipalities. It has has been portrayed as usurious and unfair by several Council members, but a lower rate makes the lien less attractive for investors who might take their money elsewhere, leaving the City and PMUA with unpaid IOUs. This puts a greater burden on the majority who make timely payments, as they then become targets for higher taxes and fees to make up for the shortfall. Earlier this year the interest rate became a matter of contention, and though unchanged from prior years when no argument was heard, was used as a political ploy to tarnish the Administration in typical fashion.

    In other news that would impact the budget in a positive way and improve the prospects for the city as a whole, there is talk of developer interest in the South Ave. business district from C-Town and continuing west, along with rumors that NJ Transit may have plans for a bus depot on the west side near Grant Ave. This could mean jobs and new revenue for the city as we move forward with Transit Oriented Development projects.

    Or not! A large part of turning around Plainfield's fortunes consists of outreach, coordination, and publicity. Unfortunately, a majority faction on the City Council pictures only hard times and faces challenges with complacency. Their amended budget proposal, which comes for a public hearing and final vote on Tuesday, leaves all the fat, while cutting the administrative muscle, planning, and communication functions needed to carry the city forward. The green tobacco they are smoking is harmful to everyone's health, particularly those most in need of a leg up. They are the true 'lords of the manor' keeping the serfs below in bondage and squalor. Primary voters should consider this when they go to the polls on June 3rd.

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    1. @ Alan, I love that reference you made to the budget cuts "leaves all the fat, while cutting the administrative muscle" :)

      I think the pending development that you referenced is across from C-Town (unless a developer is looking at the C-Town parcels too). The one that recently came in front of the Planning Board for a conceptual approval would purchase the properties from the left (east) side of the Netherwood Bar and Grill (Vivaces) to the existing five story apartment building. They would also purchase the properties to the right (west) of Netherwood Grill to the Netherwood Apartment complex, which would include the old Sweet Lews bakery and the former deli, Anthony's place.

      Each complex would house 100 apartments for a total of 200 apartments. They would be set back from the street with lots of green areas in the front. The proposal does not include mixed use. Mixed use is not required to the left of the Netherwood Grill but is required to the right of the restaurant. The proposed buildings would be four stories.

      The developer is also looking to vacate Old South Ave.

      The developer is Joseph Forgione if anyone would like to look at some of his other projects.

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    2. Thanks for the clarification Jim. Four stories sounds a little tall, though overall it looks like a good thing. These plans don't come out of a vacuum. It involves a great deal legwork, as Mr. Cimino of Arkad Group related to the Council last Tuesday at the budget amendment meeting. The city needs the components in place to prospect for such ventures and smooth their way through the red tape and approval process. It's not a one person show, and maybe the Council will see the light, reject its own budget, and re-amend it in way that makes sense.

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    3. Old South is an 'informal' name for that section of South Ave. It is really just South Ave, with an island in it. This came up years ago when it was suggested that it be offically renamed "Plainwood Square Street", but it turned out that would require everyone living in those apartments would need to make a change of address on their licenses, etc. Also make sure to check on the sanitary sewer connections in that area, they were oddly rearranged years ago.

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    4. "Plainwood Square", don't get me going on that name. . . .oh what the heck why not.

      I have never been a fan of that name as I have never been quite sure why it's used or what its roots refer to. I was told by a founding member of the merchant association that the "plain" is for Scotch Plains and the "wood" is for Fanwood. In essence hiding or embarrassed of being associated with Plainfield.

      I always hoped that wasn't the case and that the "plain" was for Plainfield and the "wood" was for Netherwood.

      Historical data shows that the Netherwood section of Plainfield runs from Watchung Avenue north to the Green Brook at the North Plainfield border. The historic Netherwood Heights area is south of the shopping district. The Netherwood train station, the Netherwood fire house, and the Netherwood post office lay within the shopping district. And Netherwood Avenue is to the north.

      The shopping area along South Avenue, the park, and the merchant association should be using the name long associated with Plainfield - NETHERWOOD.

      "the Netherwood Shopping District, the Netherwood Square Park, the Netherwood merchant association, the Netherwood section of Plainfield.



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  2. most layman will tell you the budget process is arduous, but it is simply a case of debits = credits .. investing in the future of the city is an impossible concept to a group that comes from SRB's corner that tried repeatedly to attack the library budget ---- THE ULTIMATE EXAMPLE OF INVESTING IN THE FUTURE.
    It is simple a case of their political dues and liabilities out weigh their common decency and shame at looking like a mindless puppet in public... Congrats to them for being able to look in the mirror every morning and say, "Wow.... how little self respect I must possess to behave this way repeatedly in public".. then, adjust the shirt and off they go.

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  3. Just be careful with an NJT bus depot and where it would be placed -- it would probably be tax exempt unless the city can implement a PILOT (payment in lieu of taxes); have very few on-site jobs; have impacts on residential neighborhoods; be a point source of air pollution from idling buses and possibly induce traffic congestion impacts...

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    1. All valid concerns, and I expect the Planning Board and both branches of the City government will exercise due diligence and take such matters into consideration if the project materializes.

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  4. I haven't heard anything about a bus depot, but improving train service and improving our city would be great. I hope the people on council who seem to want SRB back and don't want Plainfield to move forward will learn their lesson. It is not a matter of opinion, but a matter of fact when you look at how they handled SRB's budget requests and how they handle the same requests from the current administration. Let's get real, as it seems the voters now are.

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  5. An example of what Plainfield has missed is the massive apartment luxury complex being built on South Ave across from the RR station. Fanwood has new apartments and stores with more on the way also across from the RR station. Even Garwood has fully occupied delux condos and apartments right near their station. Our Transit villages in name or facts has been delayed through inaction too many years.

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  6. I agree with ANON 11:25, a bus depot does not necessarily benefit the area where it is place. If placed at Grant Avenue - it would create a traffic nighmare to anyone attempting to use Grant Avenue as a path to 22 or West into town. A reopening of the train station would be more beneficial to the West End. Once again the western end of town is being planned as a dumping ground. In order for Plainfield to improve the western end of town must have true investment and improvement. So let's not get excited about a bus depot - where noise, soot and traffic would be the result.

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    1. Several years ago when we had the Rutgers Planning Group-partly a student exercise in city planning- as consultants teh city was devided into three areas. I had advocated that the Grant Ave Station be rebuilt,not only to serve that part of town but the Grant Ave/West End Ave Axis was a natural corridor from 22 or South Plainfield NewMarket to bring people into the City. At the same time the old Wood site could be developed as a community indoor/outdoor recreation center. There could be residential/commercial development in the immediate RR track corridor.This did fall upon deaf ears but should but should given serious consideration

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  7. I have to disagree, the west end is not a dumping ground and a bus depot can be a great benefit.Today's buses are much cleaner running on clean diesel, natural gas, even hybrid electric models which have near zero emissions.Noise and traffic will have to be looked at as with any new development. There is a large population that use taxis and bus transportation in the west end already. A bus depot will expand transportation opportunities for residents, not only to the east but towards the west as well to cities like new brunswick, piscataway, etc giving more options for jobs and education. The depot may not provide many jobs on site but it would be mixed use and they would be job opportunities with other retail space.

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  8. What we would have to know is whether a bus depot is a transportation hub or a holding ground for the buses where drivers would begin and end their shift and there is no passenger boarding at that location????

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  9. Supposedly the buses would run along the railroad right of way, and could be dual use vehicles that can ride the rails and roads. See here for an example- http://www.wired.com/2008/05/half-bus-half-t/



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