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.

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.

Economic Downturn and Municipal Government: Global is Local

Surely we will all be affected by decision of the Federal and State Government in response to the economic downturn and its consequences. Many believe that local government is powerless to affect the overall economy, and must rather react to pressures adjusting policy accordingly. However, I believe that local officials also bear a responsibility to seek ways to address economic pressures. These are perhaps the single greatest threat to the quality of life of the people we serve.

Of course, we must scrutinize our budgets to curtail spending and avoid tax increases. Likewise, we must seek new revenue sources to offset the tax levy providing long term relief to our constituents. Further, we must streamline the delivery of services by local government using cutting edge technology where possible to reduce the financial burden associated with a demand for new or improved services to the public in a time of need. Lastly, government must look to share services among all levels of government, across town borders and regionally where appropriate. The individual taxpayer should pay a minimum required amount for the service received regardless of the government source of the service.

However, I believe the responsibility of local officials also extends to Stimulating Economic Growth. We must seek ways to stimulate the local economy in our towns, providing hope to our residents and businesses at a time when they so desperately need it. We must look forward bearing the past in mind and engage the public in discussion on the issues. It is difficult to lose hope while engaged in a project with a future goal. Hope can be restored to one who is desperate if a new plan is suggested and work is created as a result.

While we must first be concerned with economic activity within our town's borders, the overall economy can be supported by these grass roots efforts. For example, by attracting small to mid-sized businesses from a larger more expensive city to relocate in a small New Jersey town, local officials might be saving a business from closing its doors by offering a smaller rental payment and less demanding staffing alternatives, while creating jobs and rental income for constituents who might also be saved from desperation at a time of need.

I am sure that Federal and State Government needs all the help it can get. I believe global is local, and destiny is ours to dictate.