The Truth about the Highlands Borough Budget and the Agreement with Highlands PBA

The following is an explanation of the facts surrounding the recent decision of the Highlands Borough Council on December 1, 2010.

The Borough Council asked the Highlands PBA to agree to a wage freeze to allow the Borough to evaluate our budgetary circumstances in light of the 2.0 cap imposed by the State of NJ upon Municipal budgets. After analysis of the Borough's budget, the Borough Council asked the PBA to find $420,000 in savings. The Highlands PBA contract had already been finalized and there was no obligation on the part of the Highlands PBA to negotiate. The Highlands PBA reviewed the State Health Benefits Plan recommended by the Borough and agreed to accept it. The Highlands PBA and the Highlands Chief of Police have regularly reduced overtime during my tenure as Mayor. Younger officers were hired in order to reduce exorbitant overtime costs necessary to cover State mandated shifts round the clock in the Borough. As of December 1, 2001 the Highlands PBA has agreed to forego overtime completely in exchange for compensatory time. This will guarantee over $100,000 permanent savings to the Borough per year.

The Agreement with the Highlands PBA for which I voted on December 1, 2010 includes:
1. Highlands PBA concession to accept the State Health Benefit Plan, amounting to $320,000 in savings to the Borough of Highlands.
2. Overtime savings in this budget of $66,668.
3. Court time savings in this budget of $8,140.
4. Overtime savings in 2011-2012 budget $106,205.
5. Court time savings in 2011-2012 budget $13,000.
6. Waiver of Retroactive contractual wages that the Borough owed the PBA from July 1, 2010 to December 1, 2010, a savings in this budget of $140,000.
7. The single raise of 4.25% for a six month period from January 1, 2011 until June 30, 2011 allows retirement eligible officers to retire at a wage level less than but nearer to what they would have received under the contract to which the Borough was obligated. This concession also produced a savings to the Borough in the 2011-2012 budget. If retirements which have been mentioned actually occur as verbally represented, substantial savings to the Borough will result.

In conclusion, we must support Governor Christie's tool kit. Toward that end we must ensure that in the 2011 election cycle, WE THE PEOPLE deliver to Governor Christie a State Legislature that will work with him on the Tool Kit and other tax saving initiatives. Until the Tool Kit is in place, agreements with bargaining units are the ONLY way to ensure savings to municipalities. Layoffs of three police officers in the Borough of Highlands surely would have resulted in additional overtime costs to the Borough because of State mandates. Initial calculations indicated that the Borough might have been charged up to $18,000 per month in overtime.

Therefore, the PBA Agreement for which I voted on December 1, 2010 and which secured savings to the Borough of $654,000 (not including the contractual reduction in raises and expected retirement of senior officers) was in the best interests of the People of the Borough of Highlands. It is the People and only the People whom I serve during my tenure in elected office.

Downtown Commercial Uses: Key to Reducing Property Tax Burden on Residents

The cost of Borough operations in Highlands has been the subject of much scrutiny over the past two years. Levy Cap restrictions have generated concern as reductions in State Aid produced a need for possible tax increases throughout the Borough. The Governing Body of the Borough of Highlands is proud of our work with the Budget Review Advisory Committee in scrutinizing our Borough budget, and in prioritizing actions to keep taxes from rising despite economic forces beyond our control. Every employee in the Borough has committed to seeking ways to reduce costs in each department. Understanding that Borough operations are already at a bare bones level, your Borough employees have worked with the Governing Body to reduce the Borough budget by 5%. Sadly, this was not enough to result in a budget with a zero increase this year, the goal of the Budget Committee.

However, your representatives are continuing to identify Council actions that will further reduce the Borough's budget while we look for ways to increase revenue to provide resident taxpayers some relief in troubled economic times. Improving the Downtown Business District is one solution which would provide significant additional revenue. Through renewed Code Enforcement efforts along Bay Avenue, Borough officials will assist property owners in cleaning up and ensuring a presentable appearance adding to property values in the Business District. By enacting new zoning ordinances with relaxed height restrictions, we have made it possible for new Commercial Uses to be established downtown. Professional offices provide pedestrian traffic and a demand for retail and restaurant services throughout the day. Such offices provide minimal negative impact to residents living in the mixed use environment on Bay Avenue.

Commercial uses in properties on Bay Avenue provide reliable rental income to property owners. The potential income realized from the operation of a business on the property increases the assessed value of commercial properties in the business district. Because Borough operations remain more or less the same, if businesses are paying more taxes, the resident portion of the tax levy should decrease. Targeting Bay Avenue for commercial uses that will increase property values is one way Highlands Governing Body can produce relief for resident taxpayers. The new Commercial Uses would also provide new or increased income to property owners.

During this difficult Economic time when people are losing their jobs and seeking alternatives to support their families, Highlands must be creative in providing every available opportunity for Borough residents and business owners to survive. The Economic downturn is causing many business owners in more expensive commercial districts to consider downsizing or closing their doors. The Highlands Business District provides an alternative for these businesses to reduce their costs and remain viable, saving jobs and maybe even producing a few for Borough residents.

The Governing Body of the Borough of Highlands reminds our resident taxpayers that successful businesses in Highlands keep your residential tax bill low. When businesses leave Highlands, resident taxes will increase. Remember to thank a business owner for toughing it out in this difficult economic time. Try to shop local, keeping revenue close to home. And above all we must count our blessings in each other, and pull together against the pressures we are facing. Highlands people have learned over the years that by working together, we can weather the storm. We are strong stock. Our struggles make our future brighter. It doesn't cost a dime to see a sunrise on Sandy Hook, or to watch a sunset from the Highlands waterfront. With so many priceless gifts to offer, there is no reason we should not prevail.

Highlands First Impressions: Inviting Residents and Business Owners to Live, Work and Play here year 'round

For many the onset of Spring signifies a new beginning. In Highlands Spring reminds us that Summer fun is on the horizon. We emerge from cabin fever, spending more time outside in mild weather, enjoying nature's new life. Just as we spruce up our homes in the Spring celebrating the end of winter confinement, we straighten up our yards and make improvements that we can enjoy outdoors during our leisure time. The goals of Borough government are very similar.

Spring is the season for clean up throughout the Borough. Beach sweeps, bulk and brush pick ups, mulching and pruning in the parks, and general clean up of the basketball and tennis courts are some of the tasks assigned to the Department of Public Works in the Spring. Likewise Property Maintenance Code Enforcement becomes priority, as residents and visitors alike begin to stroll on Borough streets at all times of day and evening. Residents and Business Owners are encouraged to seek assistance and advice from Borough Hall in disposing of unwanted, unnecessary items and in improving the appearance of homes and businesses.

In 2010 the Highlands Borough Council has targeted the Downtown Business District for improvement. We are investigating requirements for a facade program for commercial property and residences throughout downtown. The Substandard Housing Committee continues to target vacant buildings in disrepair. Property owners are encouraged to meet with Borough Officials to discuss the condition of their home or business, receiving instructions about how to comply with code requirements. The benefit to the Property owner is a maximum value for their home or business. The benefit to the Borough is a clean and presentable appearance for Borough residents and visitors to the Borough.

Discussions are ongoing regarding grant opportunities for downtown improvements such as a Bay Avenue street scape, Broadband (aka Wifi) internet access, and underground utilities in targeted areas of the Business District. Grants are being carefully scrutinized for cost evaluation given the tight budget constraints facing residents, business owners, and municipalities alike. Planning future projects gives us hope and pride in Highlands Borough. Cleaning up what we have reminds us to put our best foot forward, reflecting on the value we place on our identity, history, and charm as a community. Projects which might draw new commercial uses to the Business District are high priority, because maximizing Commercial Property Values results in increased revenue from the Business District and a lower tax burden on residents at this difficult time.

In all matters facing the Borough of Highlands in 2010, we must be mindful of the need to balance the benefits and the cost of improvements to the Business District and generally throughout the Borough. Input from residents and business owners is key in determining where the benefits outweigh the costs of any project. The Governing Body of the Borough of Highlands encourages all residents and taxpayers to communicate with us via the web site and Borough Hall providing perspectives on the grant applications we may consider. We look forward to working with you as your representatives toward bringing out the best in Highlands for ourselves, and for future generations to come.

Mayor Little's State of the Borough Address: January 1, 2010

Happy New Year 2010 to you and your families. It is an honor to report to you regarding the experience of working with the Highlands Borough Council of 2009. The past year was filled with challenges, some created by actions of higher government, and some created by ourselves. We have all learned something from each other throughout this past year. We are all better as individuals for our experiences working together as members of this Governing Body.

In 2009, we continued to face many of the challenges that we faced in 2008 . Worldwide economic pressures yet unresolved resulted in new budget challenges here and in all levels of government. Moon Tides and sudden downpours continued to create flood management requirements. Bridge Construction continued to affect quality of life for residents and businesses throughout the Borough. Highlands felt an increased impact of the war in Afghanistan as we honored veterans and were reminded of the sons of Highlands fighting in the present foreign war, recognizing the needs of their families here at home.

We ourselves created a few new pressures on businesses via our ABC Ordinance enforcement and ID card requirements. We also sent business owners scrambling to rework the budget of the Highlands Business Partnership, and to determine new methods for running HBP signature events without the “seed money” provided by the annual assessment imposed by the businesses against themselves. Through communication about these issues, members of the Governing Body proposed changes to the ABC Ordinance and ID requirements, and business owners resolved to continue operating the Highlands Business Partnership as a nonprofit organization. Our work in these areas is far from complete.

Throughout 2009 the Highlands Borough Council continued our work on budgetary issues. Worldwide economic decline pushed unemployment into double digits, forcing state government to reduce aid to municipalities once again. Policy changes and new ordinances passed by the 2008 Council, and cost saving suggestions by Borough employees, saved Highlands from levy cap breaches yet again in 2009. The Budget Review Advisory Committee spent countless hours analyzing the Borough's budget and has learned much about the difficulty in making short term budgetary changes. The Committee has many long term goals which will be helpful guidance to the Governing Body in 2010. The 2010 Council can look forward to considering actions to facilitate the goals of this very valuable Committee.

Construction of the Highlands-Sea Bright Bridge progressed with consequent quality of life issues, including traffic impact which created difficulty for residents and businesses alike. Through the Bridge Committee here in the Borough and via participation in the NJDOT construction meetings at the office of the Resident Engineer, we have made the concerns of residents and businesses known to NJDOT and its contractors. We continue to work on resolving many of the issues related to Bridge Construction, and will continue to post updates on the website under the Bridge Update button throughout 2010.

Our two most important achievements in 2009 were in the areas of zoning and flood abatement. In December 2009 the Governing Body enacted zoning ordinances in compliance with the Master Plan Reevaluation conducted by the Highlands Planning Board, and created a Bond Ordinance which would allow funding for a comprehensive solution to downtown flooding. Applications for funding assistance based on designs facilitated by the Bond Ordinance are expected to be submitted within the first quarter of 2010. These accomplishments were important in support of economic development in our downtown business area, improving quality of life for Highlands residents and increasing property values. Projects such as these improve our position in the FEMA Community Rating System giving us stronger eligibility for future funding and reductions in flood insurance costs.

I have already met informally with members of the 2010 Borough Council. There is certainly a different dynamic present in 2010 as compared with 2009. While our agenda for 2010 is still being formed, I am hopeful that in the true “Highlands Spirit” we will find unity in our common goal: To contribute to the betterment of the Borough, our home.

On this New Year's Day 2010 we should all be reminded of the gift given us by the founding fathers of our country, and which our military fights to preserve today. In many countries people are denied the opportunity to participate in their government. They are dictated to by leaders who are self interested and who disregard the needs of the people they serve. In Highlands we, the people, elect our government to represent our interests fairly and honestly. In our small community we are able to truly know our elected officials and communicate with them freely. We must all be encouraged to appreciate our freedoms and to use the gift of self government to the fullest extent. Our government is only fully effective if we participate fully.

Best Wishes for Peace and Prosperity in 2010. A Happy New Year to everyone.

To BID or Not to BID: A very important question for Highlands (reposted)

The Highlands Business Partnership (HBP) has been the economic development engine for the Borough of Highlands for a number of years. There has been benefit to not only the businesses but to the residents of Highlands as a result of the efforts of this organization. However, there is little understanding by the businesses and by the residents of Highlands as to how this organization came into existence, how it operates, and what its relationship is to the Governing Body of the Borough of Highlands. This lack of understanding exists despite extreme efforts on the part of the Highlands Business Partnership (HBP) to explain itself to all. My hope is that a blog entry of a more permanent nature may be helpful in this regard.

The Borough of Highlands was enabled by state statute to created a Special Improvement District (SID), and so did by Ordinance. The law requires all commercial property within the district must be assessed an additional tax to fund economic development efforts within the Special Improvement District (SID). The law also requires establishment of a nonprofit corporation to manage the district. Thus, the Highlands Business Partnership (HBP) was formed.

Every entity assessed by law is a member of the Highlands Business Partnership (HBP). The Board of Directors is established by annual election among the members of the nonprofit corporation. The purpose is that economic development be funded by the businesses and for the businesses, and that the managing corporation be governed by the businesses via democratically elected leadership. The Borough of Highlands participates in the management of the corporation by appointing two voting members of the Board of Directors.

The benefit to the Governing Body of Highlands is that there is no line item for economic development in the borough's municipal budget. Likewise, there is no staff in Borough Hall with duties toward economic development. In essence, the people of the Borough of Highlands have been saved this taxpayer funded expense because Highlands businesses pay for it themselves. In addition, Highlands residents benefit from a series of events funded by the Highlands Business Partnership (HBP), e.g. the St. Patrick's Day Parade, the Clamfest, the Oktoberfest, and others.

The current economic downturn, political agendas, and personal agendas have culminated in an effort by the Borough Council to reconsider the benefits of the Special Improvement District (SID) and the managing corporation, the Highlands Business Partnership (HBP). The context of discussions regarding this issue is submission and approval of the HBP 2009 Budget. The Borough Council has suggested that it may not approve the HBP Budget, but rather that events previously run by the HBP would be run by Highlands Borough instead.

A few difficulties exist with execution of the Borough Council's suggested plan. First, contracts for vendors and participants in 2009 events may have been signed in 2008 with the HBP. All or part payments may have been made to or from the vendors/participants at that time. Second, all advertising of the events was made at the expense of and in the name of the HBP. HBP has the right to advertise events as canceled. Highlands Borough would have to re-advertise events as not canceled. Third, Highlands Borough does not have staff or funding in place to support this year's events. Highlands Borough would have to establish staff and funding to do the work that the HBP now does. Fourth, equipment and utility upgrades paid for by the Highlands Business Partnership may belong to the Highlands Business Partnership and might have to be paid for or replaced. Highlands Borough could not use the assessments to pay for expenses, as there are no assessments unless a budget is approved. Fifth, Highlands Borough would not have the right to information collected by the HBP in running past events, as this information belongs to the HBP. In essence, Highlands Borough would be starting from scratch to run events that the HBP now successfully runs, and spending funds not allocated in the 2009 and 2010 Budgets at a time when services are being cut and layoffs are contemplated.

It is true that the Special Improvement District (SID) and the Highlands Business Partnership (HBP) have been politicized in the past. This tactic was unwise and inappropriate. Regardless, the benefits of the Special Improvement District (SID) and the HBP are undeniable.

The Borough Council has suggested that there might be more suitable projects for the HBP to champion, and that the Borough is capable of running Highlands' signature events. This may be so. However, transition of the events from HBP sponsorship to Highlands Borough sponsorship must be a collaborative and cooperative project. The Borough Council should send communication to the Board of Directors requesting the transition. Transition could take one to two years to complete. The HBP could then focus on these other projects with cooperation from the Borough Council without negative impact on the Borough's economy or loss of diversions for borough residents at a time when life at home may be an economic struggle.

The Borough Council has suggested that a chamber might be a more suitable organization funded by donations instead of by an assessment. This may be so. However, businesses who are assessed should be making this suggestion. Not hearing this from the HBP Board of Directors, and not hearing businesses lobby the HBP Board of Directors for relief, I cannot justify the Borough Council taking action upon this matter at this time.

Some members of the Borough Council state that businesses need a break during this difficult economic time, and therefore the HBP budget should not be approved. It is the responsibility and the prerogative of the businesses serving on the HBP Board of Directors to vote to disband the organization or cut their budget due to the economic downturn. I cannot justify Borough Council action that works against the spirit and purpose of state law and the borough ordinance that established the SID. Likewise, I cannot justify additional expense line items in the 2009 or the 2010 Municipal Budgets at a time when we are approaching breach of our statutory levy caps.

Highlands Borough is undertaking a Master Plan re-examination to increase potential commercial uses on Bay Avenue, e.g. professional service/office type uses. Highlands is also examining the benefits of reinvigorating our active seafood industry downtown via potential improvements to the Clam Depuration Plant and potentially establishing a new seafood distribution center in cooperation with Aqualife. Highlands Borough has been the center of discussions regarding expansion and development of water based transportation in the Bayshore Region of Monmouth County. This transportation alternative is significant in light of the Route 36 Bridge Construction and summer traffic conditions. Now is a time to build on our successful endeavors. Now is not the time to destabilize our economic engine.

There are so many pressing issues before the Borough Council, e.g. downtown flooding, budget reductions to comply with statutory levy caps, the need for a new Borough Hall, fighting gang influence, guns and drugs, code enforcement matters involving unsafe vacant buildings and property maintenance issues. The HBP issues can be solved via the HBP meetings and subcommittee meetings where businesses, council members and the public can plug in making statements and suggestions. The Borough Council should not unilaterally shut down a functioning organization without trying to effect changes appropriately through its process. If the Borough Council has tried to effect changes and failed because businesses do not agree, then we must not overstep our boundaries.

I hope that this matter can be decided based upon rational analysis, and not on political or personal agendas. A small town is like a family. We do not always agree with one another. Living in close quarters, our quirks can get on each other's nerves. However, none of us intends to leave Highlands. Thus, we must find a way to work together. Residents, Businesses, Governing Body, HBP: All for one, one for all. Better said: United we stand, divided we fall.

Fiscal Year 2010: Budget Reductions and Jobs in Borough Government

The quintessential struggle in managing a small municipality is balancing the need to reduce the budget with the need to keep Borough workers employed. Many Borough employees live locally in and around Highlands. These employees are also constituents, and have good insight toward keeping costs down and restructuring government to avoid future increases in the tax levy. It is important that management here in Highlands communicate freely with staff throughout the Borough keeping an open mind to suggestions that may come from Department Heads and individual Borough workers.

As Mayor I have had the distinct privilege of meeting one on one with many Borough employees. We have shared frank discussions regarding budgetary concerns and the need to reduce the size of Borough government. Employees have responded to concerns by identifying areas in each department where costs can be reduced or eliminated. Highlands should be proud of the dedication, professionalism and team work espoused by these members of our Highlands community.

Many employees who have become eligible for retirement are choosing to retire, increasing job security for their colleagues working in the Borough. It is touching to participate in discussions among employees about the priority for maintaining employment for those with young families and elder dependents. As retirements are accomplished, responsibilities are being analyzed and steps taken to hire from within, shifting additional responsibilities to existing staff. In most cases this has been accomplished with willing cooperation by Borough employees who keenly understand the impact of the levy cap and the threat of forced consolidation if we are unable to comply.

Our team in Borough Hall is pursuing technology as an alternative for streamlining Borough functions and improving response to the needs of Borough residents and business owners. Communication via email between Administration and Department heads provides a ready work list in chronological order, which can then be prioritized according to the emergent nature of each request. Increasing the number of forms available via the Borough website permits employees to focus more time on clerical duties and less time engaging in repetitive contact with the public.

Of course, the personal touch is necessary and preferred by some constituents. With small adjustments to the schedule and distribution of duties, morale is preserved and improved within Borough Hall. Employees who are comfortable with their work environment promote a more pleasant experience both for the public servant and for those served. I encourage all taxpayers throughout the Borough of Highlands to compliment your employees while interacting with them. Likewise make suggestions to them about how we can serve you better.

A dedicated workforce is our foundation and our hope for a better future in Highlands. Converting challenges into strengths by responding efficiently and effectively, Highlands can become a well oiled and well tuned instrument. All things are possible when we pull together and work as a team.

Flood Abatement: The Key to Quality of Life Downtown

Highlands is uniquely located on the shore of Sandy Hook Bay and the Shrewsbury River in perhaps the best location along the Jersey Shore. While we are best noted as a summer recreation town because of our close proximity to Sandy Hook and our renowned seafood restaurants, we are also only a 45 minute boat ride away from New York City, a world class cultural and business center. Most of the residents in Highlands live above sea level with good protection from storms due to the expensive and very effective bulkhead and pump system installed wisely after the 1992 flood. For this reason most summer residents in Highlands have chosen to make the Borough their year round home.

However, there are locations downtown in Highlands that routinely experience a collection of water in the streets. Some locations are subject to regular moon tide events which drive salt water from the bay into outfall pipes and into the streets. Other locations suffer storm water runoff from the Monmouth Hills section of Middletown leaving silt deposits in Highlands storm water pipes and most visibly in Jones Creek (the overflow basins at Snug Harbor and Huddy Park). While our pump system is effective, it requires regular maintenance by the Borough. The success of the Borough flood abatement solution also requires cooperation by private bulkhead owners in maintaining their private bulkheads where water may also seep into the ground and eventually into Borough streets. The Highlands storm water system is also in need of repair and updating in several areas and has remained so for several years.

In fairness to prior administrations I must admit that repairs and updates to the system are extremely expensive (roughly 4 million dollars). Clearly Highlands Borough taxpayers cannot afford to foot this bill all at once and without assistance from higher levels of government. Cooperation is also required from Middletown's Monmouth Hills residents in ensuring that the silt from their properties and the unpaved roadways does not remain in our storm water pipes and Jones Creek. Because the Middletown Monmouth Hills residents do not experience these events, awareness must be created through constant communication with them. The effect of the water events must be recorded diligently by photographs and reports by contractors cleaning the system and emptying Jones Creek of the silt and soil. There is much work to do before we will be successful in fully abating this recurring problem. However, the 2009 Borough Council and I have been working together to do whatever we can to immediately provide some relief.

In 2008 I asked Department of Public Works to designate a year round employee as a point of contact for flooding complaints related to the storm water system. A cell phone was provided to this individual so that he could remain on call around the clock for rapid response to maintenance issues. This individual is responsible for anticipating storms by monitoring the weather, and ensuring that pipes are cleaned and pumps are functional prior to storm occurrence. In 2008 I also asked Department of Public Works and the Office of the Administrator to establish a regular maintenance schedule for cleaning of storm water pipes in the Borough and for clearing of the silt and soil from Jones Creek. Administration and Public Works were already addressing the status of the Valley Street pump repairs and working with the maintenance bond provided by the manufacturer of the unit. The maintenance schedule for cleaning the system is aggressive and difficult for the Borough to maintain, but much progress has been made in reducing the amount of water downtown residents experience on a monthly moon tide basis.

Abatement of the collection of silt in storm water pipes and Jones Creek from storm water runoff during sudden rain events is a more difficult task. The storm water pipes in this area of the Borough as well as Jones Creek fill with silt and soil at a rapid rate with every heavy rainfall. The cleaning of the system after every heavy rainfall is cost prohibitive. To date we receive no assistance from Middletown Monmouth Hills in accomplishing this cleaning. Our goal is to establish a regular cleaning regimen that will avoid collection of water in the Huddy Park area after a sudden rain storm and to seek contribution from Middletown Monmouth Hills toward the expense. We are close to reaching this goal. However, I am advised by Borough Engineers that it may be impossible to produce the desired result without repairs and an upgrade to the system.

The 2009 Borough Council and I are committed to attending to this problem until it is resolved. We are presently seeking funding from FEMA and Economic Development grant sources to defray the cost of the repairs and upgrades. Regardless, the 2009 Council has made this project a priority by including it in the Capital Improvement portion of the 2009 fiscal budget. In fact, the 2009 Borough Council and I are considering removing other capital improvement items temporarily to permit this work to go forward while we seek grant opportunities to offset the expense. We must choose our priority projects in order to comply with state imposed budget limitations.

Highlands Borough Residents should rest assured that your representatives are aware of your difficulties in this area and are responding to your needs. Efforts are being made to make detail about our work in this matter available to you by every possible means. If you have questions or concerns regarding our progress, please feel free to contact your representatives by writing to them at Borough Hall or by using the email addresses provided at www.highlandsnj.com.