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.

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.

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.

Highlands Budget Review Advisory Committee: Citizens working together with government

This year marks the creation of the first citizen budget review committee in Highlands. I created this committee due to the economic pressures on Highlands Borough and their effect upon our ability to meet the requirements of the budget levy caps. These caps are imposed by the state legislature and carry with them a consequence of state government takeover if they are breached. My goal as your mayor has been to avoid such a takeover and comply with the budget levy caps by all means available to us.

Unfortunately in 2008 our only available method of complying with these levy caps was to eliminate commercial garbage collection. This resulted in a layoff of some Borough employees. While this legislative action by the 2008 Governing Body has been successful in helping us meet the levy cap requirements this year, I would like to avoid the need for such drastic action in the future. Thus, the budget has been a focal point for me during my term as Mayor and a focal point of the 2009 Borough Council as well.

The Budget Review Advisory Committee is comprised of Highlands Borough citizens who have a financial background, or who feel they can make suggestions toward reducing budget line items and the resulting financial burden on Borough taxpayers. The Advisory Committee is charged with suggesting both short term and long term goals to assist the Governing Body in making the very difficult decisions required to avoid future unexpected cuts in services and loss of jobs by Borough employees. The final decisions required to implement changes proposed by the committee must be made by the Highlands Borough Council to become effective. If study is needed to determine steps required for implementation, expenditures must be approved by the Borough Council or the Executive Office of the Mayor depending upon the amount required.

I am hopeful that the committee will focus on items such as health insurance costs, legal expenses and engineering expenses. I am also hopeful that the group will examine available technology options toward streamlining services and reducing the need for additional employees to deliver increased services. However, the committee can also recommend ideas for producing revenue to the Borough which might offset expenses and avoid future tax increases. Government works best when it is representative of the people we serve. By participating in this advisory committee, Borough citizens will be directly communicating with their representatives. In this way necessary change will not be dictated, but will evolve through an open dialogue.

The Budget Review Advisory Committee is a groundbreaking tool toward streamlining the Highlands Borough Budget and creating a fair tax burden that permits an affordable quality of life in Highlands. All citizens are invited to participate. Information regarding how to become a participant can be obtained by contacting the Borough Hall offices.

Mayor's State of the Borough Address

2008 was a challenging year for Highlands and throughout our nation, with ripples worldwide. In Highlands we must embrace our challenges because they bring us an opportunity to refocus our goals. While 2009 will also be challenging in Highlands, we will overcome by seizing the opportunity to work together as a Council and as a community.

I am proud of the 2008 Highlands Borough Council and our accomplishments. The following are just some of them. Relative to the Route 36 Highlands-Sea Bright Bridge Construction, we established a committee to improve communication between NJDOT and Highlands Borough; Continued prior Mayor & Council's efforts for Highlands Avenue repairs funding in amount of $1,184,000; Obtained NJDOT funding for Valley Avenue drain repair; Discussed Bayside Drive repairs, relocation of the police communications system and Portland Road repairs; Discussed water based transportation via the Seastreak ferry service to alleviate traffic issues associated with construction and travel to and from Highlands/Sandy Hook by car.

Regarding downtown flooding, we supported a moratorium on FEMA flood maps to encourage investigation and impact of flood abatement improvements; Established a regular maintenance schedule for cleaning of storm drains; Designated a Borough employee responsible for the maintenance schedule and additional cleaning before and after storms; Obtained Engineering status report, inspection and proposed improvements for increased capacity at pump stations, capping of outfall pipes with valves, upgrades to bulkheads, storm pipe lining/repairs, and a possible new pump at Snug Harbor Ave; Discussed Federal Stimulus Infrastructure Grants as possible funding source for this multimillion dollar project because all improvement must be simultaneously implemented to be effective.

In the area of code enforcement we discussed the need for a Borough-wide Property Maintenance Inspection Schedule and related manpower; Discussed the possible assumption of BHI inspections in multi-unit dwellings to permit annual inspections instead of once every five years; Used a Scattered Site Redevelopment program to address vacant buildings, holding the final meetings relative to existing code violations previously cited in past years.

We also recognized the need for a new Borough Hall; Redesigned/remodeled Police Headquarters, updating the fire radio and moving emergency communications to the new Firehouse; Discussed technology needs and incorporation of a public library into the new Borough Hall, establishing a dedicated trust for receiving donations for the library portion of the building; Discussed demolition of the old sewerage plant on Shore Drive and establishing additional public parking.

We addressed Zoning and Master Plan issues focusing on improved commercial uses in Bay Avenue's downtown business district and the Steep Slope Ordinance which is needed to maintain stability of steep slopes in Highlands while maintaining aesthetically pleasing solutions to destabilized slopes. We improved our sanitary sewer system by creating a stronger Grease Trap Ordinance, establishing a flow meter at Basin 8 and designing rehabilitation plans for Basin 2. Federal Stimulus Infrastructure grants may be a funding source for these upgrades. We supported quality of life initiatives by enacting a stronger Shade Tree Ordinance, appointing a fully active Environmental Commission and Shade Tree Commission, and receiving a $220,000 Monmouth County Open Space grant to acquire #2 Private Road near Miller street for public access to the water.

To stimulate our economy in Highlands we promoted the Borough via television through the HBP Tourism Video and Comcast News makers taping. We encouraged area realtors to propose commercial office space as an alternative to residential uses in properties on Bay Avenue; Discussed the possibility of wireless internet connectivity via a broadband system downtown as a high-tech draw to vacationers and suggesting that high-tech businesses are welcome in Highlands; Discussed underground utilities as a visual improvement and for expansion of the Clam Festival; Discussed creation of jobs for Highlands residents and use of the proposed public library in cooperation with the Media Center at Henry Hudson Regional High School for Borough sponsored education and training programs; Re-examined Mercantile Licensing Procedures to allow new businesses in the Borough to open efficiently but with the safety of residents and patrons in mind; Discussed water based transportation as a mass transit system that would stimulate economic growth in Highlands and the Bayshore section of Monmouth County.

Finally, regarding the Budget, we cut all variable expenses 10-15%; Discussed bringing engineering services in house to reduce costs; Re-examined the Borough vehicle policy; Increased Fees and Penalties; Re-examined the Clam Plant Lease as a revenue source to the Borough; Discussed establishing a new lease of Borough property to Aqua Life Seafood Distributors as a new revenue source to the Borough; Obtained 1% contribution by police officers toward health benefit premiums; Supported elementary school consolidation study; Shared service with Highlands Elementary School in the area of snow plowing, recreational programming and police communications; Discussed possibility of cooperative purchase of electricity through the Bayshore Conference of Mayors.

In 2009 we will work toward completing unfinished business in all areas of accomplishment in 2008. I have already met with each member of your 2009 Borough Council. We have agreed that the first major action items for 2009 are: SFY 2009 and SFY 2010 Budget; Storm Drain Improvements/Flood Abatement; Code Enforcement (including Property Maintenance, Grease Traps and Scattered Site Redevelopment); Steep Slope Ordinance/Master Plan Re-examination/Downtown Zoning; And a new Borough Hall including a public library (privately funded).

In all seriousness I project that Highlands Borough will be fighting for our very existence in 2009 as we have never fought before. Due to the economic downturn I expect further revenue reductions to the Borough in the area of state aid. In May of 2008 the state declared that aid would be cut to force consolidation of small towns under 10,000 people. Highlands has a population of roughly 5,000. Your 2009 Borough Council will be exploring consolidation as an option toward tax relief. However, we will not take this drastic action without consulting you. I intend to ask your 2009 Borough Council for support in submitting referendum questions for the November ballot asking you whether you support Highlands Borough exceeding the operations levy cap to avoid the layoff of Borough employees and whether you support consolidation of Highlands with another town to reduce taxes.

Today I will establish a new committee to the Council, named the "Budget Review Advisory Committee." This will permit members of the public and business owners in the Borough to more formally participate in budget examination, making suggestions from several perspectives for consideration during our difficult budgetary work. I hope that future mayors will continue this committee's existence. We must all work together if Highlands is to survive this economic climate.

On a positive note I am encouraged by my early meetings with members of this 2009 Highlands Borough Council. Each individual council member brings a different area of expertise to this table. Our differences are Highlands' strength. I believe we all take to heart the best interests of Highlands Borough and the people we serve. I am looking forward to accomplishing as much in 2009 as the 2008 Council did, if not more. When we are faced with challenges, we are given a chance to refocus our lives. We must always remember to focus on the people we love most. They are examples of the people we serve. At the Council level, the people we serve must be our focus.

I am honored to have served as your Mayor with the 2008 Council, and I continue to feel honored to serve you with the 2009 Council that you have elected. Highlands Borough is the best little town on Earth. A Happy , Healthy and Prosperous New Year 2009 to you and your families.