Property taxes going down!

7/14/2009:

Good news, and more good news to come…

hoboken-property-taxes-reduced-by-5-percent

Hoboken Property taxes decrease by 5%

Further Declines Expected in Future Quarters

“Hoboken Mayor Peter J. Cammarano today announced that the municipal portion of the upcoming estimated First and Second Quarter property tax bill will decline by five percent.

“We have tightened our fiscal belt and Hoboken taxpayers will see some relief on the municipal portion of their bills,” Mayor Cammarano said. “This reduction represents a down payment on my campaign pledge to lower taxes and is the first of several anticipated reductions in future quarters,” he said.

“Hoboken’s tax bill is comprised of the municipal, school district and county portions of the tax levy. The municipal portion fell by five percent, schools dropped by two percent, while the county portion rose by approximately five percent,” said the City’s Fiscal Monitor Judith Tripodi.

As the City has yet to adopt a budget for fiscal year 2010, the bills for the first and second quarters are on an estimated basis. The City’s fiscal budget year runs from July 1st to June 30th.

By State law, the estimated bills can neither increase nor decrease by more than five percent. Mayor Cammarano said that he anticipates a further significant reduction in the municipal portion of the tax levy through elimination of State-mandated costs, as well as new efficiencies and debt restructuring.

“The reduction of local spending, while maintaining and improving programs and services for all Hoboken residents, is a paramount goal of this Administration. We are constantly monitoring all fiscal expenditures to ensure the best value for taxpayers,” he said.

The estimated quarterly tax bills will be sent to property owners later this week.”

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12 Comments on "Property taxes going down!"

estevens
Member

Just listened to the last council meeting. Tripodi and Trasente explained that estimated taxes cannot decrease (or increase) more than 5% from that billed the previous year. So…the 5% drop is the maximum allowable by law until the budget is introduced and it is possible that taxes will drop lower still in the subsequent two quarters. The FY2010 budget is expected to be about $90M, which is pretty much what I’d predicted. It’s $1M higher than last year’s once you cut away all the accounting biz and one-time transactions. So no, no significant reduction in spending, other than cuts in increases. Ha!

mookie
Member
mookie

And don’t forget about the liability of the hospital, which Roberts made the City the guarantor it is ~$60Mish bonds…and somehow it was hidden for months that the hospital has been losing money – duh?!?!!??! How many hospitals are making money these days?

Also, realize, the real estate, both residential and commercial is only really beginning in Hoboken (and NYC) – the area is always a lagger and this could/is gonna get a lot uglier and tax dollars are gonna start plummeting.

Tick tock, tick tock.

strand tramp
Member
strand tramp

so in his first 10 days Scammarranno has already lied to the taxpayers of Hoboken. well done petey boy!
and he has posed as Santaa Claus handing out State provided food vouchers to seniors, appeared at a childrens music show, bought some kids some hot dogs and jumped on a trampoline. this is what you voted in folks; another f’ng liar who does nothing for the city. all those that said this would happen please raise your hands.

oceanbloo
Member
oceanbloo

Ugh. I think you are right.

Estevens, thanks, as always, for the detailed breakdown (which we should be getting from city hall, instead of the misrepresentations that we seem to be given).

In response to strand tramp who said:
so in his first 10 days Scammarranno has already lied to the taxpayers of Hoboken. well done petey boy!
and he has posed as Santaa Claus handing out State provided food vouchers to seniors, appeared at a childrens music show, bought some kids some hot dogs and jumped on a trampoline. this is what you voted in folks; another f’ng liar who does nothing for the city. all those that said this would happen please raise your hands.

estevens
Member

As for the 5% decrease: It’s nothing.

Again: Last year’s $60.4M tax levy (the portion of the budget funded directly by local property taxes) included the $6.7M reserve for uncollected taxes (artificially high due to late tax billings last year). That reserve is typically less than $400K in an average year. As this year’s reserve will return to normal, at least $6M from that line item will become surplus (available for tax reduction).

In addition to the $6M surplus that should be available, that $6M figure will not be included in this year’s tax levy. Altogether, that’s more than a $12M potential reduction in the tax levy – 20% less than last year – without lifting a finger. That only a 5% reduction is anticipated suggests that the spending spree continues.

estevens
Member
We won’t really know what we’re dealing with until the FY2010 budget is introduces (August?). 1st and 2nd quarter bills are guesstimates as to how the year will shake out. In any case, when Cammarano said that he believes he can get the budget down to $95M within a year, he’s not promising much. The FY2009 $124M budget was inflated by a number of accounting mechanisms that exist on paper only and disappear in the following year. Consider this: $124,360,228 = Total budget revenues/appropriations for FY2009 Subtract $24,807,584 – Delinquent taxes received – these are simply tax payments for last fiscal year received this year. The city runs on a cash accounting basis – the $24M is attributed to this year’s budget, though used for last year’s expenses. It was not an increase in spending and taxation for 2009, merely an accounting mechanism. Subtract $6,665,072 – Reserve for uncollected taxes – increased taxation for the current year based on taxes not collected the prior year and artificially high due to late tax billings (receipts after end of fiscal year). This will decrease significantly and the funds from the line item will become surplus. Subtract $ $4,113,420 – Grant money for 1600 Park placed in a special account – strictly a pass-through, added to the overall budget numbers but not taxation or spending. Add $105,000 – Average delinquent taxes based on last several year’s numbers. Add $362,000 – Average reserve for uncollected taxes based on last several year’s numbers. Do that… Read more »
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